XCEL Arizona Life and Health Insurance
State Exam ACTUAL QUESTIONS AND
CORRECT ANSWERS
Under a long-term care inflation rider, the benefit levels - Correct answers✔periodically increase
without proof of insurability
In order for a health plan to be an "accountable health plan", who has to approve it? - Correct
answers✔the director
Medicare Part A coinsurance payments are covered by - Correct answers✔Medicare Supplement
Plan A
Employees generally receive workers compensation benefits for - Correct answers✔lost wages
and medical expenses due to occupational accidents
What year was the Mental Health Parity and Addiction Equity Act established? - Correct
answers✔2008
In what situation would disability income insurance premiums be a deductible expense? - Correct
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? - Correct answers✔100%
,A survivorship life insurance policy usually covers how many lives? - Correct answers✔2
Mentally or physically handicapped dependent children MUST be covered under an individual
health insurance policy - Correct 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? - Correct 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? - Correct 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? - Correct answers✔100 employees
Which of the following health plans pay benefits on a pre-paid service basis? - Correct
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? - Correct
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? - Correct 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? - Correct 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? - Correct 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? - Correct answers✔31 days
A policyowner with a terminal illness who sells his life insurance policy to a third party is called
a - Correct answers✔viator
What is a juvenile life insurance policy? - Correct 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? - Correct answers✔Cross purchase agreement
Which of the following involves sharing an uncertain risk with another similar group? - Correct
answers✔Transfer
The time limit an individual has to "rollover" funds from an IRA or qualified plan is - Correct
answers✔60 days
A life annuity with period certain is characterized as - Correct 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 - Correct answers✔Key employee coverage
State Exam ACTUAL QUESTIONS AND
CORRECT ANSWERS
Under a long-term care inflation rider, the benefit levels - Correct answers✔periodically increase
without proof of insurability
In order for a health plan to be an "accountable health plan", who has to approve it? - Correct
answers✔the director
Medicare Part A coinsurance payments are covered by - Correct answers✔Medicare Supplement
Plan A
Employees generally receive workers compensation benefits for - Correct answers✔lost wages
and medical expenses due to occupational accidents
What year was the Mental Health Parity and Addiction Equity Act established? - Correct
answers✔2008
In what situation would disability income insurance premiums be a deductible expense? - Correct
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? - Correct answers✔100%
,A survivorship life insurance policy usually covers how many lives? - Correct answers✔2
Mentally or physically handicapped dependent children MUST be covered under an individual
health insurance policy - Correct 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? - Correct 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? - Correct 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? - Correct answers✔100 employees
Which of the following health plans pay benefits on a pre-paid service basis? - Correct
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? - Correct
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? - Correct 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? - Correct 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? - Correct 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? - Correct answers✔31 days
A policyowner with a terminal illness who sells his life insurance policy to a third party is called
a - Correct answers✔viator
What is a juvenile life insurance policy? - Correct 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? - Correct answers✔Cross purchase agreement
Which of the following involves sharing an uncertain risk with another similar group? - Correct
answers✔Transfer
The time limit an individual has to "rollover" funds from an IRA or qualified plan is - Correct
answers✔60 days
A life annuity with period certain is characterized as - Correct 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 - Correct answers✔Key employee coverage
