XCEL Arizona Life and Health Insurance State Exam Questions And Answers Latest Update 2025, Exams of Insurance Economics

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State Exam Questions And Answers

Latest Update 2025

Under a long-term care inflation rider, the benefit levels - - - correct answer ✅periodically increase without proof of insurability In order for a health plan to be an "accountable health plan", who has to approve it? - - - correct answer ✅the director Medicare Part A coinsurance payments are covered by - - - correct answer ✅Medicare Supplement Plan A Employees generally receive workers compensation benefits for - - - correct answer ✅lost wages and medical expenses due to occupational accidents What year was the Mental Health Parity and Addiction Equity Act established? - - - correct answer ✅ 2008 In what situation would disability income insurance premiums be a deductible expense? - - - correct answer ✅Corporation paying for group disability income coverage for its employees

State Exam Questions And Answers

Latest Update 2025

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, distribution was taxable as ordinary income? - - - correct answer ✅100% A survivorship life insurance policy usually covers how many lives? -

correct answer ✅ 2 Mentally or physically handicapped dependent children MUST be covered under an individual health insurance policy - - - correct 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? - - - correct answer ✅90 days A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in

State Exam Questions And Answers

Latest Update 2025

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 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? - - - correct answer ✅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 answer ✅31 days A policyowner with a terminal illness who sells his life insurance policy to a third party is called a - - - correct answer ✅viator What is a juvenile life insurance policy? - - - correct answer ✅A life policy that covers the life of a minor

State Exam Questions And Answers

Latest Update 2025

ABC Partnership is a business with a limited number of partners. Which disability buy-sell agreement is best suited for this business?

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correct answer ✅Cross purchase agreement Which of the following involves sharing an uncertain risk with another similar group? - - - correct answer ✅Transfer The time limit an individual has to "rollover" funds from an IRA or qualified plan is - - - correct answer ✅60 days A life annuity with period certain is characterized as - - - correct 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 - - - correct answer ✅Key employee coverage

State Exam Questions And Answers

Latest Update 2025

In regards to the Affordable Care Act (ACA), which of these is NOT a role of a health insurance exchange? - - - correct answer ✅Contact the employer if an employee stops coverage under a plan offered in the exchange An insurer must keep advertising materials and records for at least how many years? - - - correct answer ✅3 years A consumer who has been recently denied insurance, credit, or employment based on an unfavorable consumer report MUST be advised as such. Which of the following does this statute originate from? - - - correct answer ✅Fair Credit Reporting Act The disability income policy most likely to have been issued on a substandard basis is - - - correct answer ✅Non-cancelable with a health condition exclusion rider Which of the following situations would a medical exam NOT be required for an individual health insurance applicant? - - -

State Exam Questions And Answers

Latest Update 2025

correct answer ✅Applicant's family members have a history of cancer A Medicare Supplement policy is required to do which of the following? - - - correct answer ✅Provide a 30 day free-look period A statement MUST be signed by the _________ for any illustrations used in the sale of a life insurance policy. - - - correct answer ✅producer The policy provision that permits an employee to change from group life coverage to an individual life policy is called the - - - correct answer ✅conversion provision A physician who accepts assignment on all Medicare claims is called a(n) - - - correct answer ✅participating provider Straight whole life insurance can be accurately described in all of these statements EXCEPT - - - correct answer ✅Policy protection normally expires at age 65

State Exam Questions And Answers

Latest Update 2025

correct answer ✅Written consent from the state insurance regulatory agency What is an insurance contract that identifies individuals by relationship to a specific organization? - - - correct answer ✅Group insurance Which of these factors does NOT influence an individual's need for life insurance? - - - correct answer ✅Self-maintenance expenses What effect does interest income have upon insurance premiums? -

correct answer ✅Decreases premium The Arizona Life and Disability Insurance Guaranty Fund protects an insured in the event of - - - correct answer ✅the insurer's insolvency Which type of deductible must be satisfied again for each illness or accident in a major medical plan? - - - correct answer ✅Per-cause

State Exam Questions And Answers

Latest Update 2025

How does a continuous premium whole life policy differ from a limited payment whole life policy? - - - correct answer ✅The time period in which premiums will be paid How is a community rating used for underwriting purposes? - - - correct answer ✅The same rates are charged for individual and group plans in the same geographical area The application is part of the annuity contract according to the - - - correct answer ✅Entire Contract clause The Medical Information Bureau consists of members from which group? - - - correct answer ✅Insurance companies The IRS has a "minimum coverage" rule regarding qualified retirement plans. This rule states that each qualified plan is required to - - - correct answer ✅benefit a broad cross-section of employees

State Exam Questions And Answers

Latest Update 2025

In Arizona, at least ___ employee(s) are needed for a small employer medical expense plan. - - - correct answer ✅ 2 Which of the following is excluded in a medical expense plan? - - - correct answer ✅Military duty How many hours of initial long-term care training must a producer complete before soliciting long-term care products? - - - correct answer ✅ 8 Tim is confined to a nursing home but doesn't have a terminal illness. Which life insurance rider is designed to help pay for this type of expense? - - - correct answer ✅Long-term care benefit rider Which of the following statements about the installments for a fixed period settlement option in life insurance policies is NOT true?

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correct answer ✅The periodic payment amount is determined by the beneficiary's age

State Exam Questions And Answers

Latest Update 2025

Which life insurance settlement option pays a stated monthly benefit until both principal and interest are exhausted? - - - correct answer ✅Fixed amount installment option Which statement concerning an adjustable life insurance policy is FALSE? - - - correct answer ✅Evidence of insurability is required when there is a change in premium Which of the following is NOT a valid reason for an insurer to contest a life insurance policy during the policy's first two years of existence? - - - correct answer ✅Misstatement of age Which of the following is NOT subject to the promise to pay in an insuring clause? - - - correct answer ✅How the premium is calculated Sylvia purchased an annuity for $100,000 from the proceeds of an inheritance. No further payments are permitted and the income stream begins in 15 years. This contract is a(n) - - - correct answer ✅single premium deferred annuity

State Exam Questions And Answers

Latest Update 2025

An annuity's accumulation period may - - - correct answer ✅continue after the purchase payments stop What is the guaranteed cash value of a whole life insurance policy when the insured turns 65 years old? - - - correct answer ✅Less than the policy's face amount To protect information systems, producers, brokers, and insurance companies must implement and maintain a(n): - - - correct answer ✅cybersecurity policy An advantage of owning a flexible premium life insurance policy would be - - - correct answer ✅The policyowner can make policy changes without difficulty Which of the following accurately describes a participating insurance policy? - - - correct answer ✅Policyowners may be entitled to receive dividends

State Exam Questions And Answers

Latest Update 2025

Which of the following best describes the presumptive disability provision? - - - correct answer ✅Waives the typical total disability requirements Emily is disabled. In order to become eligible for Social Security disability income benefits, she must be - - - correct answer ✅fully insured, according to Social Security According to HIPAA regulations, which of the following may reduce a medical plan's pre-existing conditions exclusion? - - - correct answer ✅Any period of prior coverage Tim is covered by Policy A with a $4,000 limit and by Policy B with a $2,000 limit. Policy A is primary. If a $6,000 loss is incurred, what will each policy pay? - - - correct answer ✅Policy A will pay $4,000 and Policy B will pay $2, A source of supplemental income for a life insurance policyowner can be derived from the - - - correct answer ✅cash value

State Exam Questions And Answers

Latest Update 2025

Which of the following situations would allow funds to be deposited into a rollover IRA? - - - correct answer ✅An employee quits her job and receives $50, from her qualified plan Third-party administration has become fairly common in accident and health insurance due to the growth of - - - correct answer ✅self-funding of benefits A(n) ________ insurer restricts the exposures it writes to those of its owners. - - - correct answer ✅captive Which of these is an accurate statement regarding the fixed period settlement option on a life insurance policy? - - - correct answer ✅A portion of the payments paid to the beneficiary comes from interest calculated on the proceeds of the policy An HMO prescription drug plan is generally characterized by - - - correct answer ✅drugs dispensed through participating pharmacies

State Exam Questions And Answers

Latest Update 2025

According to the Affordable Care Act (ACA), dependent children may remain on their parent's plan until what age? - - - correct answer ✅Age 26 The authority to change the beneficiary in an individual annuity lies with the - - - correct answer ✅owner Greg applies for insurance and makes a false statement on the application that will influence whether or not the insurer will accept the risk. Greg's false statement is called a(n) - - - correct answer ✅material misrepresentation According to the law of large numbers, how would losses be affected if the number of similar insured units increases? - - - correct answer ✅Predictability of losses will be improved Which of the following may be considered an act of misrepresentation? - - - correct answer ✅Misleading or failing to adequately disclose the title and true nature of a policy offered to a client