XCEL CHAPTER 4 - HEALTH AND
ACCIDENT INSURANCE EXAM
QUESTIONS AND ANSWERS
What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985
allow an employee to do? - ANSWER-In the event of employment termination, group
health insurance can be kept if the employee pays the premiums
Group health plans may deny participation based upon the - ANSWER-member's
part-time employment status
Justin is receiving disability income benefits from a group policy paid for by his
employer. How are these benefits treated for tax purposes? - ANSWER-Taxable
income
Coordination of Benefits regulation applies to all of the following plans EXCEPT -
ANSWER-Preferred provider organization plan
Under a disability income policy, which provision would be payable if the cause of an
injury is unexpected and accidental? - ANSWER-Accidental bodily injury provision
In an employer-sponsored group accident and health plan, a master contract is
issued to the - ANSWER-Employer
According to the Health Insurance Portability and Accountability Act (HIPAA), when
can a group health policy renewal be denied? - ANSWER-Participation or
contribution rules have been violated
If an employee contributes 50% toward the disability plan premium provided by an
employer, what would be considered the taxable income of a $1,000 monthly
disability benefit?
$100
$250
$500
$1,000 - ANSWER-$500
Which of the following would be considered a possible applicant and contract
policyholder for group health benefits? - ANSWER-Employer
Which type of business insurance is meant to cover the costs of continuing to do
business while the owner is disabled? - ANSWER-Business overhead expense
policy
An employer is issued a group medical insurance policy. The single contract is
known as a(n) - ANSWER-Master policy
ACCIDENT INSURANCE EXAM
QUESTIONS AND ANSWERS
What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985
allow an employee to do? - ANSWER-In the event of employment termination, group
health insurance can be kept if the employee pays the premiums
Group health plans may deny participation based upon the - ANSWER-member's
part-time employment status
Justin is receiving disability income benefits from a group policy paid for by his
employer. How are these benefits treated for tax purposes? - ANSWER-Taxable
income
Coordination of Benefits regulation applies to all of the following plans EXCEPT -
ANSWER-Preferred provider organization plan
Under a disability income policy, which provision would be payable if the cause of an
injury is unexpected and accidental? - ANSWER-Accidental bodily injury provision
In an employer-sponsored group accident and health plan, a master contract is
issued to the - ANSWER-Employer
According to the Health Insurance Portability and Accountability Act (HIPAA), when
can a group health policy renewal be denied? - ANSWER-Participation or
contribution rules have been violated
If an employee contributes 50% toward the disability plan premium provided by an
employer, what would be considered the taxable income of a $1,000 monthly
disability benefit?
$100
$250
$500
$1,000 - ANSWER-$500
Which of the following would be considered a possible applicant and contract
policyholder for group health benefits? - ANSWER-Employer
Which type of business insurance is meant to cover the costs of continuing to do
business while the owner is disabled? - ANSWER-Business overhead expense
policy
An employer is issued a group medical insurance policy. The single contract is
known as a(n) - ANSWER-Master policy
