KY Health and Insurance State Exam
tax-deferred - Answer-The interest earned on the cash value of an individually-owned annuity is
considered to be:
the employer receives a master policy and the employees receive certificates - Answer-Which of the
following statements is correct regarding an employer/employee group health plan?
20% - Answer-Mary has a Health Savings Account (HSA). Distributions that have been made for anything
other than qualified medical expenses are considered taxable and subject to a penalty of:
Replacement - Answer-Each of the following is an unfair marketing or trade practice, EXCEPT:
Both Federal and State governments - Answer-Medicaid is funded by which entity (entities)?
Insurer will likely treat as a pre-existing condition which may not be covered for one year - Answer-T
was treated for an ailment 2 months prior to applying for a health insurance policy. This condition was
noted on the application and the policy was issued shortly afterwards. How will the insurer likely
consider this condition?
,consumers the right to protect their own credit information - Answer-The Fair Credit Reporting Act is
intended to give:
by the employer - Answer-A Health Reimbursement Arrangement MUST be established:
stand-alone policy or rider - Answer-An insurance company can write an Accidental Death and
Dismemberment policy as a(n):
All of these are correct and are consequences of fraudulent acts:
- Imprisonment for at least one year but not more than 5 years
- A fine up to $10000 for individuals and $100000 for companies
-It is a felony - Answer-Which of the following is correct regarding fraudulent act of over $300 in
Kentucky?
Variable Universal Life - Answer-A life insurance policy which characterized by flexible premium
payments is called:
Savings depletion because of longevity - Answer-What does a fixed annuity offer protection against?
Waiting Period - Answer-The provision in a Group Health policy that allows the insurer to postpone
coverage for a covered illness 30 days after the policy's effective date is referred to as the:
Twisting - Answer-The inducement of an insured to lapse, forfeit or surrender an insurance policy by
misrepresentation or misleading comparisons, in order to write a new policy, is known as:
Claim will be denied - Answer-N is covered by a Term Life policy and does not make the required
premium payment which was due August 1st. N dies September 15. What action will the insurer take?
, Lose certain tax advantages - Answer-A life insurance policy that fails the 7-pay Test is considered to be
a Modified Endowment Contract. This type of policy will:
3 years - Answer-How long must insurers maintain advertisement in their files?
Rebating - Answer-In many states, it is illegal for an agent to offer anything other than the policy, as an
inducement to buy insurance. This practice is known as:
Guaranteed Renewable - Answer-All Medicare Supplement policies should be:
Representations - Answer-On health insurance applications, statements made on the application are
considered:
Outside the US - Answer-Medicare does not pay for treatment:
Conversion - Answer-What group term life feature permits an individual to depart from the group and
continue to be covered without providing evidence of insurability?
domestic and alien - Answer-An insurance company can be any of the following, EXCEPT:
Commercial Insurers - Answer-Which of the following reimburses its insureds for covered medical
expenses?
Business Overhead Expense - Answer-Many small business owners worry how their business would
survive financially if the owner becomes disabled. The policy which BEST addresses this concern is:
Guaranteed Insurability Rider - Answer-Bryce purchased a disability income policy with a rider that
guarantees him the option of purchasing additional amounts of coverage at predetermined times
without requiring to provide evidence of insurability. What kind of rider is this?
tax-deferred - Answer-The interest earned on the cash value of an individually-owned annuity is
considered to be:
the employer receives a master policy and the employees receive certificates - Answer-Which of the
following statements is correct regarding an employer/employee group health plan?
20% - Answer-Mary has a Health Savings Account (HSA). Distributions that have been made for anything
other than qualified medical expenses are considered taxable and subject to a penalty of:
Replacement - Answer-Each of the following is an unfair marketing or trade practice, EXCEPT:
Both Federal and State governments - Answer-Medicaid is funded by which entity (entities)?
Insurer will likely treat as a pre-existing condition which may not be covered for one year - Answer-T
was treated for an ailment 2 months prior to applying for a health insurance policy. This condition was
noted on the application and the policy was issued shortly afterwards. How will the insurer likely
consider this condition?
,consumers the right to protect their own credit information - Answer-The Fair Credit Reporting Act is
intended to give:
by the employer - Answer-A Health Reimbursement Arrangement MUST be established:
stand-alone policy or rider - Answer-An insurance company can write an Accidental Death and
Dismemberment policy as a(n):
All of these are correct and are consequences of fraudulent acts:
- Imprisonment for at least one year but not more than 5 years
- A fine up to $10000 for individuals and $100000 for companies
-It is a felony - Answer-Which of the following is correct regarding fraudulent act of over $300 in
Kentucky?
Variable Universal Life - Answer-A life insurance policy which characterized by flexible premium
payments is called:
Savings depletion because of longevity - Answer-What does a fixed annuity offer protection against?
Waiting Period - Answer-The provision in a Group Health policy that allows the insurer to postpone
coverage for a covered illness 30 days after the policy's effective date is referred to as the:
Twisting - Answer-The inducement of an insured to lapse, forfeit or surrender an insurance policy by
misrepresentation or misleading comparisons, in order to write a new policy, is known as:
Claim will be denied - Answer-N is covered by a Term Life policy and does not make the required
premium payment which was due August 1st. N dies September 15. What action will the insurer take?
, Lose certain tax advantages - Answer-A life insurance policy that fails the 7-pay Test is considered to be
a Modified Endowment Contract. This type of policy will:
3 years - Answer-How long must insurers maintain advertisement in their files?
Rebating - Answer-In many states, it is illegal for an agent to offer anything other than the policy, as an
inducement to buy insurance. This practice is known as:
Guaranteed Renewable - Answer-All Medicare Supplement policies should be:
Representations - Answer-On health insurance applications, statements made on the application are
considered:
Outside the US - Answer-Medicare does not pay for treatment:
Conversion - Answer-What group term life feature permits an individual to depart from the group and
continue to be covered without providing evidence of insurability?
domestic and alien - Answer-An insurance company can be any of the following, EXCEPT:
Commercial Insurers - Answer-Which of the following reimburses its insureds for covered medical
expenses?
Business Overhead Expense - Answer-Many small business owners worry how their business would
survive financially if the owner becomes disabled. The policy which BEST addresses this concern is:
Guaranteed Insurability Rider - Answer-Bryce purchased a disability income policy with a rider that
guarantees him the option of purchasing additional amounts of coverage at predetermined times
without requiring to provide evidence of insurability. What kind of rider is this?
