Arkansas Health Insurance Study Questions with 100% Correct Answers

Arkansas Health Insurance Study Questions with 100% Correct Answers At what point must a life insurance applicant be informed of their right that fall under the Fair Credit Reporting Act? - Correct Answer ️️ -upon completion of the application Who elects the governing body of a mutual insurance company? - Correct Answer ️️ - policyholders An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the - Correct Answer ️️ -Fair Credit Reporting Act What type of reinsurance contract involves two companies automatically sharing their risk exposure? - Correct Answer ️️ -Treaty The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called - Correct Answer ️️ - Reserves Which statement is TRUE regarding a group accident and health policy issued to an employer? *Neither the employer or employee are policy owners *The employer is issued a certificate of coverage and each employee receives a policy * The employer receives the policy and each employee is issued a certificate *Both the employer and employee are policy owners. - Correct Answer ️️ -The employer receives the policy and each employee is issued a certificate. G is an accountant who has ten employees and is concerned about how the business would survive financially if G became disabled. The type of policy which BEST addresses this concern is *Business Overhead Expense * Disability Income *Key Employee Life * Contributory - Correct Answer ️️ -Business Overhead Expense-- this policy's purpose is to cover certain overhead expenses that continue when the business own is disabled. How does group insurance differ from individual insurance? - Correct Answer ️️ - Group insurance differs from individual insurance in that it provided coverage at a lower cost. The difference between group insurance and blanket health policies is - Correct Answer ️️ -Blanket health policies do not issue certificates. Which of the following statements BEST describes how a policy that uses the "accidental bodily injury" definition of an accident differs from one that used the "accidental means" definition? *double indemnity *benefits are taxable * more restrictive *less restrictive - Correct Answer ️️ -Less restrictive. A policy that uses "accidental bodily injury" definition of an accident is less restrictive than the one that uses the "accidental means" definition. Which of the following characteristics is associated with a large group disability income policy? *no waiting periods *no medical underwriting *no elimination periods * no limit of benefits - Correct Answer ️️ -No medical underwriting. A large group disability income policy can be distinguished by no medical underwriting