  We present full disk X-ray reflection spectra for two currently popular
accretion flow geometries for AGN -- the lamppost model frequently used to
discuss the iron line reverberation in AGN, and the model where the X-rays are
produced in magnetic flares above a cold accretion disk (AD). The lamppost
spectra contain several spectroscopic features characteristic of highly ionized
material that are not seen in the X-ray spectra of most AGN. The magnetic flare
model, on the other hand, produces reflected spectra that are roughly a
super-position of a power-law and a {\em neutral-like} reflection and iron
K$\alpha$ line, and are thus more in line with typical AGN X-ray spectra.
Furthermore, because of the difference in the ionization structure of the
illuminated material in the two models, the line equivalent width increases
with the X-ray luminosity, $L_x$, for the lamppost, and decreases with $L_x$
for the flare model. In light of these theoretical insights, recent iron line
reverberation studies of AGN, the X-ray Baldwin effect, and the general lack of
X-ray reflection features in distant quasars all suggest that, for high
accretion rates, the cold accretion disk is covered by a Thomson thick,
completely ionized skin. Because the latter is only possible when the X-rays
are concentrated to small emitting regions, we believe that this presents a
strong evidence for the magnetic flare origin of X-rays in AGN.
