XCEL CHAPTER 11 EXAM 2025
QUESTIONS AND ANSWERS
What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 allow an
employee to do?
A. In the event of employment termination, group health insurance can be kept if the employee
pays the premiums
B. Receive a tax credit to help offset the cost of health insurance
C. Remain on their current coverage for 30 months
D. In the event of employment termination, group health insurance can be kept if the employer
pays the premiums - ANS In the event of employment termination, group health insurance
can be kept if the employee pays the premiums
Credit Accident and Health plans are designed to?
A. permit creditors the ability to require that coverage be purchased through insurers of their
choice
B. provide permanent protection
C. help pay off existing loans during periods of disability
D. not permit free choice of coverage selection - ANS help pay off existing loans during
periods of disability
Ron has a new employer and wishes to enroll in the company's group health plan. In
determining whether his pre-existing health condition applies, Ron cannot have more than a
___ day gap without previous health insurance.
A. 45
B. 63
1 @COPYRIGHT THEBRIGHT 2025/2026
, C. 75
D. 90 - ANS 63
Health insurance involves two perils, accident and ____.
A. death
B. sickness
C. disability
D. liability - ANS sickness
Which of the following would evidence ownership in a participating health insurance contract?
A. Stock ownership
B. Irrevocable beneficiary status
C. Policy ownership
D. Collateral assignment - ANS Policy ownership
Under the subrogation clause, legal action can be taken by the insurer against the?
A. responsible third party
B. beneficiary
C. policyowner
D. State - ANS responsible third party
Sole proprietors are permitted tax deductions for health costs paid from their earnings in the
amount of?
A. costs that exceed 7 1/2 % of AGI
B. costs that exceed 10% of AGI
C. 100% of costs
D. no deduction permitted - ANS 100% of costs
2 @COPYRIGHT THEBRIGHT 2025/2026
QUESTIONS AND ANSWERS
What does the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 allow an
employee to do?
A. In the event of employment termination, group health insurance can be kept if the employee
pays the premiums
B. Receive a tax credit to help offset the cost of health insurance
C. Remain on their current coverage for 30 months
D. In the event of employment termination, group health insurance can be kept if the employer
pays the premiums - ANS In the event of employment termination, group health insurance
can be kept if the employee pays the premiums
Credit Accident and Health plans are designed to?
A. permit creditors the ability to require that coverage be purchased through insurers of their
choice
B. provide permanent protection
C. help pay off existing loans during periods of disability
D. not permit free choice of coverage selection - ANS help pay off existing loans during
periods of disability
Ron has a new employer and wishes to enroll in the company's group health plan. In
determining whether his pre-existing health condition applies, Ron cannot have more than a
___ day gap without previous health insurance.
A. 45
B. 63
1 @COPYRIGHT THEBRIGHT 2025/2026
, C. 75
D. 90 - ANS 63
Health insurance involves two perils, accident and ____.
A. death
B. sickness
C. disability
D. liability - ANS sickness
Which of the following would evidence ownership in a participating health insurance contract?
A. Stock ownership
B. Irrevocable beneficiary status
C. Policy ownership
D. Collateral assignment - ANS Policy ownership
Under the subrogation clause, legal action can be taken by the insurer against the?
A. responsible third party
B. beneficiary
C. policyowner
D. State - ANS responsible third party
Sole proprietors are permitted tax deductions for health costs paid from their earnings in the
amount of?
A. costs that exceed 7 1/2 % of AGI
B. costs that exceed 10% of AGI
C. 100% of costs
D. no deduction permitted - ANS 100% of costs
2 @COPYRIGHT THEBRIGHT 2025/2026
