XCEL Arizona Life and Health
Insurance State Exam Latest Update
2025/2026 GRADED A+
Under a long-term care inflation rider, the benefit levels - correct answerperiodically
increase without proof of insurability
In order for a health plan to be an "accountable health plan", who has to approve it? -
correct answerthe director
Medicare Part A coinsurance payments are covered by - correct answerMedicare
Supplement Plan A
Employees generally receive workers compensation benefits for - correct answerlost
wages and medical expenses due to occupational accidents
What year was the Mental Health Parity and Addiction Equity Act established? - correct
answer2008
In what situation would disability income insurance premiums be a deductible expense?
- correct answerCorporation 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? - correct answer100%
A survivorship life insurance policy usually covers how many lives? - correct answer2
Mentally or physically handicapped dependent children MUST be covered under an
individual health insurance policy - correct answeruntil 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? - correct
answer90 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? - correct answerPartial 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? - correct answer100 employees
Which of the following health plans pay benefits on a pre-paid service basis? - correct
answerHMO
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? -
correct answerSocial Security Disability
Which of the co-annuitants listed below would receive the largest monthly benefit
payments in a joint and 100% survivor annuity? - correct answerAges 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? - correct answerAs 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? - correct answerMay 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? -
correct answer31 days
A policyowner with a terminal illness who sells his life insurance policy to a third party is
called a - correct answerviator
What is a juvenile life insurance policy? - correct answerA 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? - correct answerCross purchase
agreement
Which of the following involves sharing an uncertain risk with another similar group? -
correct answerTransfer
The time limit an individual has to "rollover" funds from an IRA or qualified plan is -
correct answer60 days
A life annuity with period certain is characterized as - correct answerguaranteeing
benefit payments for a stated minimum number of years
Insurance State Exam Latest Update
2025/2026 GRADED A+
Under a long-term care inflation rider, the benefit levels - correct answerperiodically
increase without proof of insurability
In order for a health plan to be an "accountable health plan", who has to approve it? -
correct answerthe director
Medicare Part A coinsurance payments are covered by - correct answerMedicare
Supplement Plan A
Employees generally receive workers compensation benefits for - correct answerlost
wages and medical expenses due to occupational accidents
What year was the Mental Health Parity and Addiction Equity Act established? - correct
answer2008
In what situation would disability income insurance premiums be a deductible expense?
- correct answerCorporation 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? - correct answer100%
A survivorship life insurance policy usually covers how many lives? - correct answer2
Mentally or physically handicapped dependent children MUST be covered under an
individual health insurance policy - correct answeruntil 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? - correct
answer90 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? - correct answerPartial 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? - correct answer100 employees
Which of the following health plans pay benefits on a pre-paid service basis? - correct
answerHMO
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? -
correct answerSocial Security Disability
Which of the co-annuitants listed below would receive the largest monthly benefit
payments in a joint and 100% survivor annuity? - correct answerAges 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? - correct answerAs 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? - correct answerMay 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? -
correct answer31 days
A policyowner with a terminal illness who sells his life insurance policy to a third party is
called a - correct answerviator
What is a juvenile life insurance policy? - correct answerA 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? - correct answerCross purchase
agreement
Which of the following involves sharing an uncertain risk with another similar group? -
correct answerTransfer
The time limit an individual has to "rollover" funds from an IRA or qualified plan is -
correct answer60 days
A life annuity with period certain is characterized as - correct answerguaranteeing
benefit payments for a stated minimum number of years
