XCEL Arizona Life and Health
Insurance State Exam Questions and
Answers22
A client applies for an individual accident and health policy in Arizona. If the insurer collects
personal information from any source other than public records or the applicant, a notice of
application practices MUST be given to the applicant no later than the - ANSWERS -application
date
An insurable risk requires - ANSWERS -that the chance of loss be calculable
Which of these procedures is NOT designed for ambulatory care centers? - ANSWERS -Inpatient
surgery
How is an insured's accident and health claim handled by an insurer if it occurs during the
policy's grace period? - ANSWERS -The unpaid premium may be subtracted from the
reimbursement
Which of the following best describes a point-of-service (POS) plan? - ANSWERS -A plan which
combines indemnity plan features with those of an HMO
Which statement best defines what a Policy Title means on an insurance policy? - ANSWERS -
Every policy must have a title on the face and on the back of the policy, briefly describing the
policy
Switching Life insurance policies without tax consequence is permitted under - ANSWERS -
Section 1035 rules
,A producer is proposing that a policyowner replace an existing individual health insurance policy
with a new one. Under the new contract, a pre-existing conditions exclusion - ANSWERS -may
reduce the insured's benefits
Which of the following entities does NOT establish regulations for variable insurance products? -
ANSWERS -State attorney general
Under a long-term care inflation rider, the benefit levels - ANSWERS -periodically increase
without proof of insurability
In order for a health plan to be an "accountable health plan", who has to approve it? -
ANSWERS -the director
Medicare Part A coinsurance payments are covered by - ANSWERS -Medicare Supplement Plan
A
Employees generally receive workers compensation benefits for - ANSWERS -lost wages and
medical expenses due to occupational accidents
What year was the Mental Health Parity and Addiction Equity Act established? - ANSWERS -
2008
In what situation would disability income insurance premiums be a deductible expense? -
ANSWERS -Corporation paying for group disability income coverage for its employees
John received a one-time distribution of $50,000 from his modified endowment contract (MEC).
Prior to that, the contract's cash value was $150,000, the contract investment amount was
$100,000, and the death benefit was $500,000. What percentage of the $50,000 distribution
was taxable as ordinary income? - ANSWERS -100%
, A survivorship life insurance policy usually covers how many lives? - ANSWERS -2
Mentally or physically handicapped dependent children MUST be covered under an individual
health insurance policy - ANSWERS -until they become self-supportive
ERISA requires that a Summary Plan Description must be provided to a new plan member within
how many days following the new member's eligibility date? - ANSWERS -90 days
A policyowner suffers an injury that renders him incapable of performing one or more
important job duties. Any decrease in income resulting from this injury would make him eligible
for benefits under which provision? - ANSWERS -Partial disability
What is the maximum number of employees (earning at least $5,000) that an employer can
have in order to start a SIMPLE retirement plan? - ANSWERS -100 employees
Which of the following health plans pay benefits on a pre-paid service basis? - ANSWERS -HMO
An individual may receive Medicare Part A Hospital benefits, regardless of age, as long as the
person has received which of the following benefits for at least 24 months? - ANSWERS -Social
Security Disability
Which of the co-annuitants listed below would receive the largest monthly benefit payments in
a joint and 100% survivor annuity? - ANSWERS -Ages 71 and 73
Kevin has an existing life insurance policy and assigns it to another insurer for a new contract.
How would this transaction be treated for tax purposes? - ANSWERS -As a Section 1035
exchange
Karen is considering replacing her individual accident and health insurance policy with another
individual policy. She has had issues in the past with her gall bladder that would be considered a
Insurance State Exam Questions and
Answers22
A client applies for an individual accident and health policy in Arizona. If the insurer collects
personal information from any source other than public records or the applicant, a notice of
application practices MUST be given to the applicant no later than the - ANSWERS -application
date
An insurable risk requires - ANSWERS -that the chance of loss be calculable
Which of these procedures is NOT designed for ambulatory care centers? - ANSWERS -Inpatient
surgery
How is an insured's accident and health claim handled by an insurer if it occurs during the
policy's grace period? - ANSWERS -The unpaid premium may be subtracted from the
reimbursement
Which of the following best describes a point-of-service (POS) plan? - ANSWERS -A plan which
combines indemnity plan features with those of an HMO
Which statement best defines what a Policy Title means on an insurance policy? - ANSWERS -
Every policy must have a title on the face and on the back of the policy, briefly describing the
policy
Switching Life insurance policies without tax consequence is permitted under - ANSWERS -
Section 1035 rules
,A producer is proposing that a policyowner replace an existing individual health insurance policy
with a new one. Under the new contract, a pre-existing conditions exclusion - ANSWERS -may
reduce the insured's benefits
Which of the following entities does NOT establish regulations for variable insurance products? -
ANSWERS -State attorney general
Under a long-term care inflation rider, the benefit levels - ANSWERS -periodically increase
without proof of insurability
In order for a health plan to be an "accountable health plan", who has to approve it? -
ANSWERS -the director
Medicare Part A coinsurance payments are covered by - ANSWERS -Medicare Supplement Plan
A
Employees generally receive workers compensation benefits for - ANSWERS -lost wages and
medical expenses due to occupational accidents
What year was the Mental Health Parity and Addiction Equity Act established? - ANSWERS -
2008
In what situation would disability income insurance premiums be a deductible expense? -
ANSWERS -Corporation paying for group disability income coverage for its employees
John received a one-time distribution of $50,000 from his modified endowment contract (MEC).
Prior to that, the contract's cash value was $150,000, the contract investment amount was
$100,000, and the death benefit was $500,000. What percentage of the $50,000 distribution
was taxable as ordinary income? - ANSWERS -100%
, A survivorship life insurance policy usually covers how many lives? - ANSWERS -2
Mentally or physically handicapped dependent children MUST be covered under an individual
health insurance policy - ANSWERS -until they become self-supportive
ERISA requires that a Summary Plan Description must be provided to a new plan member within
how many days following the new member's eligibility date? - ANSWERS -90 days
A policyowner suffers an injury that renders him incapable of performing one or more
important job duties. Any decrease in income resulting from this injury would make him eligible
for benefits under which provision? - ANSWERS -Partial disability
What is the maximum number of employees (earning at least $5,000) that an employer can
have in order to start a SIMPLE retirement plan? - ANSWERS -100 employees
Which of the following health plans pay benefits on a pre-paid service basis? - ANSWERS -HMO
An individual may receive Medicare Part A Hospital benefits, regardless of age, as long as the
person has received which of the following benefits for at least 24 months? - ANSWERS -Social
Security Disability
Which of the co-annuitants listed below would receive the largest monthly benefit payments in
a joint and 100% survivor annuity? - ANSWERS -Ages 71 and 73
Kevin has an existing life insurance policy and assigns it to another insurer for a new contract.
How would this transaction be treated for tax purposes? - ANSWERS -As a Section 1035
exchange
Karen is considering replacing her individual accident and health insurance policy with another
individual policy. She has had issues in the past with her gall bladder that would be considered a
