XCEL Chapter 4 Quiz Questions
Without a section 125 Plan in place, what would happen to an employee's payroll contribution to an HSA? (A) It would be considered taxable income to the employee (B) The employee would not be allowed to an HSA (C) The employer would pay payroll tax and FICA on the contribution amount (D) The employer would not be allowed to deduct the contribution from the employer's pay
(A) It would be considered taxable income to the employee
Under the subrogation clause, legal action can be taken by the insurer against: (A) Responsible third party (B) Beneficiary (C) policyowner (D) State
(A) Responsible third party
Which of the following decisions would a health savings account (HSA) owner not be able to make? (A) The amount contributed by an employer (B) The amount contributed by the owner (C) The underlying account investments used (D) The medical expenses paid for by the HSA
(A) The amount contributed by an employer
When are group disability benefits considered to be tax free to the insured (A) When the recipient pays the premium (B) When the employer pays the premium (C) When both the employer and employee pay the premium (D) When the benefits paid are equal to or lower than the recipients salary
(A) When the recipient pays the premium
According to HIPAA, when an insured individual leaves an employer and immediately begins working for a new company that offers group health insurance, the individual (A) is eligible for coverage upon hire (B) must wait 360 days to be eligible for coverage (C) must continue to coverage with the previous employer (D) is eligible for only health insurance, not life or dental
(A) is eligible for coverage upon hire
A person covered with an individual health plan (A) is issued a policy (B) Is issued a certificate of medical costs (C) Does not contract directly with the insurance company (D) Is not subject not medical underwriting
(A) is issued a policy
The Policyholder for group health benefit plan is considered to be the : (A) Employee (B) Employer (C) Liaison (D) Insurer
(B) Employer
Which of the following would be considered a possible applicant and contract policy holder for group health benefits? (A) Human resource department (B) Employer (C) Insured Employee (D) Insurance Company
(B) Employer
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), a terminated employee's benefits must (A) be less extensive and premium cannot exceed 102% (B) be the same and the premium cannot exceed 102% (C) be more extensive and the premium cannot exceed 102% (D) be the same as well as the premium
(B) be the same and the premium cannot exceed 102%
If the employee contributes 50% toward the disability plan premium provided by the employer, what would be considered taxable income of a $1,000 monthly benefit? (A) $100 (B) $250 (C) $500 (D) $1,000
(C) $500
Sole proprietors are permitted tax deductions for health costs paid from their earnings in the amount of (A) Costs that exceed 7.5% of AGI (B) Costs that exceed 10% of AGI (C) 100% of costs (D) no deductions permitted
(C) 100% of costs
In an employer sponsored contributory plan disability income plan, the employer pays 60% of the premium and each employee pays 40% of the premium. Any income benefits paid are taxed to the employee at: (A) Employee has not tax liability (B) 40% of the benefit (C) 60% of the benefit (D) 100% of the benefit
(C) 60% of the benefit
Key person disability insurance pays benefits to the (A) Hospital (B) Employee (C) Employer (D) Employee's creditors
(C) Employer
Mark continues working after the age of 65 and is covered through his employer's group health plan which of the following statements is TRUE?: (A) He's not eligible for Medicare (B) His group coverage and Medicare each pay 50% (C) Medicare is the secondary payer (D) Medicare is the primary payer
(C) Medicare is the secondary payer
When can a group health policy renewal be denied according to the health insurance portability and Accountability Act (HIPPA)? (A) When a change of management has occurred within the group (B) When the annual number of claims has increased by 25% (C) When contributions or participation rules have been violated (D) When group participation has increased by 25%
(C) When contributions or participation rules have been violated
Under the Health insurance Portability and Accountability Act (HIPAA), the employee's new Group Plan will verify Creditable Coverage so that (A) employees benefits still owed can be claimed (B) employee cannot be excluded from the new employer's group plan (C) employees waiting period for coverage of a preexisting conditions can be reduced under the new employers health plan (D) new health insurance carrier will have a clear record of any chronic conditions that exists
(C) employees waiting period for coverage of a preexisting conditions can be reduced under the new employers health plan
Credit Accident and Health plans are designed to : (A) Permit creditors the ability to require that coverage be purchased through insurers of their choice (B) Provide permanent protection (C) help pay off existing loans during periods of disability (D) not permitted free choice of coverage selection
(C) help pay off existing loans during periods of disability
HIPAA Considers which of the following as "Individually identifiable health information?" (A) a person's employment history (B) A person's net income (C) A person's hire date (D) A person's health claim information
(D) A person's health claim information
What is issued to each employee of an employer health plan? (A) Provision (B) Receipt (C) Policy (D) Certificate
(D) Certificate
In an employer sponsored group accident and health plan, a master contract is issued to the (A) TPA (B) Employees (C) Administrative Services Organizations (ASOs) (D) Employer
(D) Employer
