Kentucky Health Insurance
License Exam Study Guide –
Practice Questions with
Verified Answers. GRADED A+.
Latest 2026/2027 Update
Sean has renewed his health insurance policy with Ability Insurance every year
for the past 3 years. At this renewal, Sean received an extra payment from his
insurer as a reward for renewing his policy and to encourage him to renew his
policy again next year. What is this extra amount called?
1. An endorsement
2. An accumulation
3. A supplemental benefit
4. An additional benefit
An accumulation
When an individual is covered under two health insurance policies that have
duplicate benefits which could make a claim for benefits because of an injury
or illness profitable, it is called:
1. Pro-rata coverage.
2. Overinsurance.
3. Double indemnity coverage.
4. Fraternal coverage
Overinsurance
,In the event a policy lapses due to nonpayment of premium, within how many
days would the policy be automatically reinstated once the outstanding
premium is paid?
1. 10 days
2. 25 days
3. 30 days
4. 45 days
45 days
A typical Accidental Death & Dismemberment policy covers all of the following
losses EXCEPT
1. Income.
2. Eyesight.
3. Limb.
4. Life.
Income
In which type of HMO model does the HMO contract with at least two medical
groups?
1. Group
2. Staff
3. Network
4. Expanded
Network
In group insurance, what is the policy called?
1. Master policy
2. Entire contract
3. Certificate of authority
4. Certificate of insurance
Master Policy
For how many days during a patient's lifetime will Medicare Part A cover
mental health care in a psychiatric facility?
1. 190
2. 365
,3. 90
4. 100
190
A man works for Company A and his wife works for Company B. The spouses
are covered by health plans through their respective companies that also cover
the other spouse. If the husband files a claim,
1. The insurance plans will split the coverage evenly.
2. Both plans will pay the full amount of the claim.
3. The insurance through his company is primary.
4. The insurance through his wife's company is primary.
The insurance through his company is primary.
Which of the following losses will be covered by a group medical expense
policy?
1. An elective cosmetic surgery
2. A pre-existing condition
3. An injury resulting from active military duty
4. An intentionally self-inflicted injury
A pre-existing condition
A hospital indemnity policy will pay
1. A benefit for each day the insured is in a hospital.
2. Income lost while the insured is in the hospital.
3. All expenses incurred by the stay in the hospital.
4. Any expenses incurred by the stay in the hospital, minus coinsurance
payments and deductibles.
A benefit for each day the insured is in a hospital.
Whose responsibility is it to determine if all of the questions on an application
have been answered?
1. The applicant
2. The beneficiary
3. The agent
4. The insurer
, The agent
A 63-year-old man is planning to be employed until age 68. When will he be
eligible for Medicare?
1. Age 70, if still employed
2. Age 69 ½ if no longer employed
3. Age 65, regardless of his employment status
4. As soon as he retires at age 68
Age 65, regardless of his employment status
Which of the following policies will pay benefits to an insured who is
temporarily totally disabled?
1. Major medical
2. Medical expense
3. Disability income
4. Workers compensation
Disability income
Medicare is funded mostly by
1. Nonprofit organizations.
2. Insureds.
3. Federal taxes.
4. State taxes.
Federal Taxes
Under a health insurance policy, benefits, other than death benefits, that have
not otherwise been assigned, will be paid to
1. The spouse of the insured.
2. The insured.
3. Creditors.
4. Beneficiary of the death benefit.
The insured
What coverage, written in conjunction with hospital expense policies, covers
surgeons' fees, anesthesiologist, and the operating room?
1. Basic Medical Expense
License Exam Study Guide –
Practice Questions with
Verified Answers. GRADED A+.
Latest 2026/2027 Update
Sean has renewed his health insurance policy with Ability Insurance every year
for the past 3 years. At this renewal, Sean received an extra payment from his
insurer as a reward for renewing his policy and to encourage him to renew his
policy again next year. What is this extra amount called?
1. An endorsement
2. An accumulation
3. A supplemental benefit
4. An additional benefit
An accumulation
When an individual is covered under two health insurance policies that have
duplicate benefits which could make a claim for benefits because of an injury
or illness profitable, it is called:
1. Pro-rata coverage.
2. Overinsurance.
3. Double indemnity coverage.
4. Fraternal coverage
Overinsurance
,In the event a policy lapses due to nonpayment of premium, within how many
days would the policy be automatically reinstated once the outstanding
premium is paid?
1. 10 days
2. 25 days
3. 30 days
4. 45 days
45 days
A typical Accidental Death & Dismemberment policy covers all of the following
losses EXCEPT
1. Income.
2. Eyesight.
3. Limb.
4. Life.
Income
In which type of HMO model does the HMO contract with at least two medical
groups?
1. Group
2. Staff
3. Network
4. Expanded
Network
In group insurance, what is the policy called?
1. Master policy
2. Entire contract
3. Certificate of authority
4. Certificate of insurance
Master Policy
For how many days during a patient's lifetime will Medicare Part A cover
mental health care in a psychiatric facility?
1. 190
2. 365
,3. 90
4. 100
190
A man works for Company A and his wife works for Company B. The spouses
are covered by health plans through their respective companies that also cover
the other spouse. If the husband files a claim,
1. The insurance plans will split the coverage evenly.
2. Both plans will pay the full amount of the claim.
3. The insurance through his company is primary.
4. The insurance through his wife's company is primary.
The insurance through his company is primary.
Which of the following losses will be covered by a group medical expense
policy?
1. An elective cosmetic surgery
2. A pre-existing condition
3. An injury resulting from active military duty
4. An intentionally self-inflicted injury
A pre-existing condition
A hospital indemnity policy will pay
1. A benefit for each day the insured is in a hospital.
2. Income lost while the insured is in the hospital.
3. All expenses incurred by the stay in the hospital.
4. Any expenses incurred by the stay in the hospital, minus coinsurance
payments and deductibles.
A benefit for each day the insured is in a hospital.
Whose responsibility is it to determine if all of the questions on an application
have been answered?
1. The applicant
2. The beneficiary
3. The agent
4. The insurer
, The agent
A 63-year-old man is planning to be employed until age 68. When will he be
eligible for Medicare?
1. Age 70, if still employed
2. Age 69 ½ if no longer employed
3. Age 65, regardless of his employment status
4. As soon as he retires at age 68
Age 65, regardless of his employment status
Which of the following policies will pay benefits to an insured who is
temporarily totally disabled?
1. Major medical
2. Medical expense
3. Disability income
4. Workers compensation
Disability income
Medicare is funded mostly by
1. Nonprofit organizations.
2. Insureds.
3. Federal taxes.
4. State taxes.
Federal Taxes
Under a health insurance policy, benefits, other than death benefits, that have
not otherwise been assigned, will be paid to
1. The spouse of the insured.
2. The insured.
3. Creditors.
4. Beneficiary of the death benefit.
The insured
What coverage, written in conjunction with hospital expense policies, covers
surgeons' fees, anesthesiologist, and the operating room?
1. Basic Medical Expense
