ARKANSAS HEALTH INSURANCE EXAM
QUESTIONS WITH DETAILED VERIFIED ANSWERS
(A+)
A person covered with an individual health plan
a. is issued a policy
b. is issued a certificate of medical costs
c. does not contract directly with the insurance company d. is not subject to
medical underwriting: Is issued a policy
Which of the following is typically NOT eligible for coverage in a group health
policy?
a. Full-time employee
b. Temporary employee
c. Business owner
d. Partner in a partnership: Temporary Employee
How many employees must an employer have for a terminated employee to be
eligible for COBRA?
a. 20
b. 30
c. 40
d. 50: 20 employees
The election of COBRA for continuation of health coverage will
a. increase the coverage and lower premium maintain
b. the same coverage and increase premium increase
c. out-of-pocket costs and lower premium
d. decrease out-of-pocket costs and maintain same premium: maintain the same
coverage and increase premium
Justin is receiving disability income benefits from a group policy paid for by his
employer. How are these benefits treated for tax purposes?
a. Partially taxable income
b. Non-taxable income
,c. Taxable income
d. Conditionally taxable income: Taxable income
Health insurance involves two perils, accident and
a. death
b. sickness
c. disability
d. liability: sickness
The limited period of time given to all members to sign up for a group health plan is
called the
a. enlistment period
b. sign-up period
c. probationary period
d. enrollment period: enrollment period
Under group health insurance, a certificate of coverage is issued to the
a. employer
b. employee
c. producer
d. sponsor: Employee
Which of the following would evidence ownership in a participating health
insurance contract?
a. Stock ownership
b. Irrevocable beneficiary status
c. Policy ownership
d. Collateral assignment: Policy ownership
If an employee contributes 50% toward the disability plan premium provid- ed by an
employer, what would be considered the taxable income of a $1,000 monthly
disability benefit?
a. $100
b. $250
c. $500
d. $1,000: $500
,Which of the following does Coordination of Benefits allow?
a. Allows the secondary payor to reduce their benefit payments so no more than
100% of the claim is paid
b. Allows both a group health plan and individual health plan to coordinate their
benefit payments
c. Allows the deductible to be spread out between all the health providers
d. Allows each health provider to pay 100% of the claim: Allows the secondary
payor to reduce their benefit payments so no more than 100% of the claim is paid
The purpose of the Coordination of Benefits provision in group accident and
health plans is to
a. avoid overpayment of claims
b. reduce out-of-pocket costs
c. reduce adverse selection
d. lower the cost of premiums: avoid overpayment of claims
When can a group health policy renewal be denied according to the Health
Insurance Portability and
Accountability Act (HIPAA)?
a. When a change of management has occurred within the group
b. When the annual number of claims has increased by 25%
c. When contribution or participation rules have been violated
d. When group participation has increased by 25%: When contribution or partici-
pation rules have been violated
Credit Accident and Health plans are designed to
a. permit creditors the ability to require that coverage be purchased through
insurers of their choice
b. provide permanent protection
c. help pay off existing loans during periods of disability
d. not permit free choice of coverage selection: help pay off existing loans during
periods of disability
Which of the following decisions would a Health Savings Account (HSA) owner
NOT be able to make?
a. The amount contributed by the employer
b. The amount contributed by the owner
c. The underlying account investments used
, d. The medical expenses paid for by the HSA: The amount contributed by the
employer
Medicaid is a government-funded program designed to provide health care to
a. all individuals over the age of 65
b. all individuals who carry Medicare supplemental insurance
c. anyone who does not have a proper caregiver
d. poor people: poor people
How does one become eligible for Part D: Prescription Drug coverage?
a. Must meet certain underwriting guidelines
b. Must have a valid prescription
c. Must have Medicare coverage
d. Must have Medicaid coverage: Must have Medicare coverage
Part A Hospital expense coverage provided under Medicare is automatical- ly made
available to each of the following EXCEPT
a. A 50-year old individual who has qualified for SSDI in the last 24 months
b. A 70-year old NOT eligible for Social Security
c. A 55-year old suffering from kidney failure
d. A 65-year old retiree: A 70-year old NOT eligible for Social Security
Which of these will typically authorize treatment from a specialist?
a. Administrator
b. Policyowner
c. Insurance company
d. Gatekeeper: gatekeeper
Which of the following is Medicare Part B also known as?
a. Hospital insurance
b. Medical insurance
c. Long-term care insurance
d. Medigap: Medical Insurance
Medicare Part B covers most medically necessary doctors' services, preventive care,
durable medical equipment, hospital outpatient services, laboratory tests, x-rays, mental
QUESTIONS WITH DETAILED VERIFIED ANSWERS
(A+)
A person covered with an individual health plan
a. is issued a policy
b. is issued a certificate of medical costs
c. does not contract directly with the insurance company d. is not subject to
medical underwriting: Is issued a policy
Which of the following is typically NOT eligible for coverage in a group health
policy?
a. Full-time employee
b. Temporary employee
c. Business owner
d. Partner in a partnership: Temporary Employee
How many employees must an employer have for a terminated employee to be
eligible for COBRA?
a. 20
b. 30
c. 40
d. 50: 20 employees
The election of COBRA for continuation of health coverage will
a. increase the coverage and lower premium maintain
b. the same coverage and increase premium increase
c. out-of-pocket costs and lower premium
d. decrease out-of-pocket costs and maintain same premium: maintain the same
coverage and increase premium
Justin is receiving disability income benefits from a group policy paid for by his
employer. How are these benefits treated for tax purposes?
a. Partially taxable income
b. Non-taxable income
,c. Taxable income
d. Conditionally taxable income: Taxable income
Health insurance involves two perils, accident and
a. death
b. sickness
c. disability
d. liability: sickness
The limited period of time given to all members to sign up for a group health plan is
called the
a. enlistment period
b. sign-up period
c. probationary period
d. enrollment period: enrollment period
Under group health insurance, a certificate of coverage is issued to the
a. employer
b. employee
c. producer
d. sponsor: Employee
Which of the following would evidence ownership in a participating health
insurance contract?
a. Stock ownership
b. Irrevocable beneficiary status
c. Policy ownership
d. Collateral assignment: Policy ownership
If an employee contributes 50% toward the disability plan premium provid- ed by an
employer, what would be considered the taxable income of a $1,000 monthly
disability benefit?
a. $100
b. $250
c. $500
d. $1,000: $500
,Which of the following does Coordination of Benefits allow?
a. Allows the secondary payor to reduce their benefit payments so no more than
100% of the claim is paid
b. Allows both a group health plan and individual health plan to coordinate their
benefit payments
c. Allows the deductible to be spread out between all the health providers
d. Allows each health provider to pay 100% of the claim: Allows the secondary
payor to reduce their benefit payments so no more than 100% of the claim is paid
The purpose of the Coordination of Benefits provision in group accident and
health plans is to
a. avoid overpayment of claims
b. reduce out-of-pocket costs
c. reduce adverse selection
d. lower the cost of premiums: avoid overpayment of claims
When can a group health policy renewal be denied according to the Health
Insurance Portability and
Accountability Act (HIPAA)?
a. When a change of management has occurred within the group
b. When the annual number of claims has increased by 25%
c. When contribution or participation rules have been violated
d. When group participation has increased by 25%: When contribution or partici-
pation rules have been violated
Credit Accident and Health plans are designed to
a. permit creditors the ability to require that coverage be purchased through
insurers of their choice
b. provide permanent protection
c. help pay off existing loans during periods of disability
d. not permit free choice of coverage selection: help pay off existing loans during
periods of disability
Which of the following decisions would a Health Savings Account (HSA) owner
NOT be able to make?
a. The amount contributed by the employer
b. The amount contributed by the owner
c. The underlying account investments used
, d. The medical expenses paid for by the HSA: The amount contributed by the
employer
Medicaid is a government-funded program designed to provide health care to
a. all individuals over the age of 65
b. all individuals who carry Medicare supplemental insurance
c. anyone who does not have a proper caregiver
d. poor people: poor people
How does one become eligible for Part D: Prescription Drug coverage?
a. Must meet certain underwriting guidelines
b. Must have a valid prescription
c. Must have Medicare coverage
d. Must have Medicaid coverage: Must have Medicare coverage
Part A Hospital expense coverage provided under Medicare is automatical- ly made
available to each of the following EXCEPT
a. A 50-year old individual who has qualified for SSDI in the last 24 months
b. A 70-year old NOT eligible for Social Security
c. A 55-year old suffering from kidney failure
d. A 65-year old retiree: A 70-year old NOT eligible for Social Security
Which of these will typically authorize treatment from a specialist?
a. Administrator
b. Policyowner
c. Insurance company
d. Gatekeeper: gatekeeper
Which of the following is Medicare Part B also known as?
a. Hospital insurance
b. Medical insurance
c. Long-term care insurance
d. Medigap: Medical Insurance
Medicare Part B covers most medically necessary doctors' services, preventive care,
durable medical equipment, hospital outpatient services, laboratory tests, x-rays, mental
