XCEL Arizona Life and Health Insurance
State Exam
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 pre-existing condition. How will a pre-existing conditions exclusion
affect Karen's new insurance contract? - Answers -May reduce her benefits
Greg had recently been terminated from his job that covered him for group life
insurance. How long does he have to convert his coverage to an individual policy? -
Answers -31 days
A policyowner with a terminal illness who sells his life insurance policy to a third party is
called a - Answers -viator
What is a juvenile life insurance policy? - Answers -A life policy that covers the life of a
minor
ABC Partnership is a business with a limited number of partners. Which disability buy-
sell agreement is best suited for this business? - Answers -Cross purchase agreement
Which of the following involves sharing an uncertain risk with another similar group? -
Answers -Transfer
The time limit an individual has to "rollover" funds from an IRA or qualified plan is -
Answers -60 days
A life annuity with period certain is characterized as - Answers -guaranteeing benefit
payments for a stated minimum number of years
James owns a business and purchased a policy that covers the business expense of
finding a permanent or temporary employee to replace a disabled one. This type of
disability coverage is called - Answers -Key employee coverage
State Exam
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 pre-existing condition. How will a pre-existing conditions exclusion
affect Karen's new insurance contract? - Answers -May reduce her benefits
Greg had recently been terminated from his job that covered him for group life
insurance. How long does he have to convert his coverage to an individual policy? -
Answers -31 days
A policyowner with a terminal illness who sells his life insurance policy to a third party is
called a - Answers -viator
What is a juvenile life insurance policy? - Answers -A life policy that covers the life of a
minor
ABC Partnership is a business with a limited number of partners. Which disability buy-
sell agreement is best suited for this business? - Answers -Cross purchase agreement
Which of the following involves sharing an uncertain risk with another similar group? -
Answers -Transfer
The time limit an individual has to "rollover" funds from an IRA or qualified plan is -
Answers -60 days
A life annuity with period certain is characterized as - Answers -guaranteeing benefit
payments for a stated minimum number of years
James owns a business and purchased a policy that covers the business expense of
finding a permanent or temporary employee to replace a disabled one. This type of
disability coverage is called - Answers -Key employee coverage
