EMILLYCHARLOTTE 2024/2025 ACADEMIC YAER ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISH SEPTEMBER 2024
XCEL Arizona Life and Health Insurance
State Exam Study Guide with Complete
Solutions
Under a long-term care inflation rider, the benefit levels - Answer✔✔-periodically increase without
proof of insurability
In order for a health plan to be an "accountable health plan", who has to approve it? - Answer✔✔-the
director
Medicare Part A coinsurance payments are covered by - Answer✔✔-Medicare Supplement Plan A
Employees generally receive workers compensation benefits for - Answer✔✔-lost wages and medical
expenses due to occupational accidents
What year was the Mental Health Parity and Addiction Equity Act established? - Answer✔✔-2008
In what situation would disability income insurance premiums be a deductible expense? - Answer✔✔-
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? - Answer✔✔-100%
A survivorship life insurance policy usually covers how many lives? - Answer✔✔-2
Page 1/22
,EMILLYCHARLOTTE 2024/2025 ACADEMIC YAER ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISH SEPTEMBER 2024
Mentally or physically handicapped dependent children MUST be covered under an individual health
insurance policy - Answer✔✔-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? - Answer✔✔-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? - Answer✔✔-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? - Answer✔✔-100 employees
Which of the following health plans pay benefits on a pre-paid service basis? - Answer✔✔-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? - Answer✔✔-Social Security Disability
Which of the co-annuitants listed below would receive the largest monthly benefit payments in a joint
and 100% survivor annuity? - Answer✔✔-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? - Answer✔✔-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? -
Answer✔✔-May reduce her benefits
Page 2/22
, EMILLYCHARLOTTE 2024/2025 ACADEMIC YAER ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISH SEPTEMBER 2024
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? - Answer✔✔-31 days
A policyowner with a terminal illness who sells his life insurance policy to a third party is called a -
Answer✔✔-viator
What is a juvenile life insurance policy? - Answer✔✔-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? - Answer✔✔-Cross purchase agreement
Which of the following involves sharing an uncertain risk with another similar group? - Answer✔✔-
Transfer
The time limit an individual has to "rollover" funds from an IRA or qualified plan is - Answer✔✔-60 days
A life annuity with period certain is characterized as - Answer✔✔-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 - Answer✔✔-
Key employee coverage
Kelly purchases a health insurance policy issued on a conditionally renewable basis. The insurance
company has a right to refuse renewal of the policy for - Answer✔✔-specific reasons stated in the
contract
Who is the beneficiary in a life insurance policy? - Answer✔✔-The stated person or entity who is
designated to receive the death proceeds
Page 3/22
FIRST PUBLISH SEPTEMBER 2024
XCEL Arizona Life and Health Insurance
State Exam Study Guide with Complete
Solutions
Under a long-term care inflation rider, the benefit levels - Answer✔✔-periodically increase without
proof of insurability
In order for a health plan to be an "accountable health plan", who has to approve it? - Answer✔✔-the
director
Medicare Part A coinsurance payments are covered by - Answer✔✔-Medicare Supplement Plan A
Employees generally receive workers compensation benefits for - Answer✔✔-lost wages and medical
expenses due to occupational accidents
What year was the Mental Health Parity and Addiction Equity Act established? - Answer✔✔-2008
In what situation would disability income insurance premiums be a deductible expense? - Answer✔✔-
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? - Answer✔✔-100%
A survivorship life insurance policy usually covers how many lives? - Answer✔✔-2
Page 1/22
,EMILLYCHARLOTTE 2024/2025 ACADEMIC YAER ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISH SEPTEMBER 2024
Mentally or physically handicapped dependent children MUST be covered under an individual health
insurance policy - Answer✔✔-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? - Answer✔✔-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? - Answer✔✔-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? - Answer✔✔-100 employees
Which of the following health plans pay benefits on a pre-paid service basis? - Answer✔✔-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? - Answer✔✔-Social Security Disability
Which of the co-annuitants listed below would receive the largest monthly benefit payments in a joint
and 100% survivor annuity? - Answer✔✔-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? - Answer✔✔-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? -
Answer✔✔-May reduce her benefits
Page 2/22
, EMILLYCHARLOTTE 2024/2025 ACADEMIC YAER ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISH SEPTEMBER 2024
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? - Answer✔✔-31 days
A policyowner with a terminal illness who sells his life insurance policy to a third party is called a -
Answer✔✔-viator
What is a juvenile life insurance policy? - Answer✔✔-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? - Answer✔✔-Cross purchase agreement
Which of the following involves sharing an uncertain risk with another similar group? - Answer✔✔-
Transfer
The time limit an individual has to "rollover" funds from an IRA or qualified plan is - Answer✔✔-60 days
A life annuity with period certain is characterized as - Answer✔✔-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 - Answer✔✔-
Key employee coverage
Kelly purchases a health insurance policy issued on a conditionally renewable basis. The insurance
company has a right to refuse renewal of the policy for - Answer✔✔-specific reasons stated in the
contract
Who is the beneficiary in a life insurance policy? - Answer✔✔-The stated person or entity who is
designated to receive the death proceeds
Page 3/22
