NJ HEALTH AND ACCIDENT EXAM
Questions and Answers
1. In what form do disability income policies typically pay benefits
ANS Periodic income
2. The Mandatory health policy provision states that the policy,
including en- dorsements and attached papers, constitutes
ANS The entire insurance contract between the parties
3. The entire contract includes the actual policy and the
ANS application
4. employer sponsored group health insurance provides coverage
for which of the following
ANS Alcoholism
5. The term which describes the fact that both parties of a
contract may not receive the same value is referred to as
ANS Aleatory
6. Tom has a home health care benefit and is confined to his home.
Which of these is NOT typically covered
1/
20
,ANS Full-time nursing care
7. A Medicare Supplement policy can be cancelled by the insurer for
ANS Nonpayment
8. Credit Accident and Health plans are designed to
ANS help pay off existing loans during periods of disability
9. A payment system for health care in which the provider is paid for
each service given is called
ANS fee-for-service
10. An insurance company ONLY pay a sales commission to
ANS individuals licensed by the state
11. Ken is a producer who has obtained Consumer Information
Reports under false pretenses. Under the Fair Credit Reporting Act,
what is the maximum penalty that may be imposed on Ken?
ANS $5000 and 1 year imprisonment
12. A closed network plan offers a primary physician copay of
$25. If a subscriber chooses a primary care physician outside of the
network, the subscriber will likely pay
ANS 100% of the billed amount
2/
20
, 13. What is the maximum fine for a producer violating an NJ
insurance law for the first time?
ANS $5000
14. A licensed producer is required to file notice to any changes
of address within how many days
ANS 30 days
15. Jonas has disability insurance through his employer. The
employer pays 75% of the premium, and Jonas pays the other 25%.
What is Jonas's tax liability for any benefits paid from the disability plan?
ANS Taxes must be paid on 75% of the benefits received
16. After an insured gives notice of loss, what must he/she do if
the insurer does not furnish forms?
ANS File written proof of loss
17. Which of the following is an example of the insured's
consideration?
ANS A paid premium
18. A(n) insurance company is one that was formed
under the laws of a state other than NJ
ANS Foreign
3/
20
Questions and Answers
1. In what form do disability income policies typically pay benefits
ANS Periodic income
2. The Mandatory health policy provision states that the policy,
including en- dorsements and attached papers, constitutes
ANS The entire insurance contract between the parties
3. The entire contract includes the actual policy and the
ANS application
4. employer sponsored group health insurance provides coverage
for which of the following
ANS Alcoholism
5. The term which describes the fact that both parties of a
contract may not receive the same value is referred to as
ANS Aleatory
6. Tom has a home health care benefit and is confined to his home.
Which of these is NOT typically covered
1/
20
,ANS Full-time nursing care
7. A Medicare Supplement policy can be cancelled by the insurer for
ANS Nonpayment
8. Credit Accident and Health plans are designed to
ANS help pay off existing loans during periods of disability
9. A payment system for health care in which the provider is paid for
each service given is called
ANS fee-for-service
10. An insurance company ONLY pay a sales commission to
ANS individuals licensed by the state
11. Ken is a producer who has obtained Consumer Information
Reports under false pretenses. Under the Fair Credit Reporting Act,
what is the maximum penalty that may be imposed on Ken?
ANS $5000 and 1 year imprisonment
12. A closed network plan offers a primary physician copay of
$25. If a subscriber chooses a primary care physician outside of the
network, the subscriber will likely pay
ANS 100% of the billed amount
2/
20
, 13. What is the maximum fine for a producer violating an NJ
insurance law for the first time?
ANS $5000
14. A licensed producer is required to file notice to any changes
of address within how many days
ANS 30 days
15. Jonas has disability insurance through his employer. The
employer pays 75% of the premium, and Jonas pays the other 25%.
What is Jonas's tax liability for any benefits paid from the disability plan?
ANS Taxes must be paid on 75% of the benefits received
16. After an insured gives notice of loss, what must he/she do if
the insurer does not furnish forms?
ANS File written proof of loss
17. Which of the following is an example of the insured's
consideration?
ANS A paid premium
18. A(n) insurance company is one that was formed
under the laws of a state other than NJ
ANS Foreign
3/
20
