PRACTICE EXAM HEALTH AND ACCIDENT questions
and answers with solutions
an agent makes a mistake on the application and then corrects his mistake by physically
entering the necessary information. who must then initial that change:
A: agent
B: applicant
C: executive officer of the company
D: insured - ANSWER B: applicant
Whose responsibility is it to determine if all of the questions on an application have been
answered?
a)The insurer
b)The applicant
c)The beneficiary
d)The agent - ANSWER d)The agent
All of the following would be considered an insurance transaction EXCEPT
a)Advising a policyholder regarding a claim
b)Negotiating coverage.
c)Obtaining an insurance license.
d)Soliciting a policy. - ANSWER c)Obtaining an insurance license.
Which of the following is NOT true regarding Basic Surgical Expense coverage?
a)It is commonly written in conjunction with Hospital Expense policies.
b)Coverage is unlimited
c)There is no deductible.
,d)Contracts include a surgical schedule - ANSWER b)Coverage is unlimited
A typical Accidental Death & Dismemberment policy covers all of the following losses EXCEPT
a)Limb.
b)Life.
c)Income.
d)Eyesight. - ANSWER c)Income.
To be eligible under HIPAA regulations, for how long should an individual converting to an
individual health plan have been covered under the previous group plan?
a)5 years
b)12 months
c)63 days
d)18 months - ANSWER d)18 months
An organization licensed as a producer business entity based in New York would like to transact
insurance in New Jersey. Which of the following is true?
a)The organization will need to obtain a nonresident business entity license, which will secure
nonresident status for the business itself and all of its producers
.b)The organization will need to obtain a nonresident business entity license, and its producers
will need to obtain nonresident licenses
c)The organization will not have to obtain a nonresident license, unless more than 50% of its
business is conducted in New Jersey. However, its producers will need to obtain nonresident
licenses.
d)The organization will not have to obtain a nonresident license, since it is a business entity.
However, all of its producers will need to have nonresident licenses. - ANSWER b)The
organization will need to obtain a nonresident business entity license, and its producers will
need to obtain nonresident licenses
,Who makes up the Medical Information Bureau?a)Insurers
b)Hospitals
c)Former insured
d)Physicians and paramedics - ANSWER a)Insurers
Which of the following is the legal name of a corporation or partnership under which a licensee
conducts insurance business?
a)Assumed name
b)Legal name
c)Name of reference
d)Business name - ANSWER d)Business name
An insurer is closing a branch office in this state. Within how many days of the office closing
must the insurer notify the Department?
a)10 days
b)15 days
c)30 days
d)90 days - ANSWER c)30 days
Once the person meets the stringent requirements for disability benefits under Social Security,
how long is the waiting period before any benefits will be paid?
a)12 months
b)Benefits will be paid immediately.
c)90 days
d)5 months - ANSWER d)5 months
, Which provision states that the insurance company must pay Medical Expense claims
immediately?
a)Legal Actions
b)Relation of Earnings to Insurance
c)Time of Payment of Claims
d)Payment of Claims - ANSWER c)Time of Payment of Claims
When an insurance agency published an advertising brochure, it emphasized the company's
financial stability and sound business practices. In reality, its financial health is terrible, and the
company will soon have to file for bankruptcy. Which of the following terms best describes the
advertisement?
a)Defamation
b)Twisting
c)Rebating
d)False financial statement - ANSWER d)False financial statement
The primary eligibility requirement for Medicaid benefits is based upon
a)Number of dependents.
b)Need.
c)Whether the claimant is insurable on the private market.
d)Age. - ANSWER b)Need.
Bill's license was revoked 2 years ago. How much longer will he have to wait in order to request
his license to be reinstated?
and answers with solutions
an agent makes a mistake on the application and then corrects his mistake by physically
entering the necessary information. who must then initial that change:
A: agent
B: applicant
C: executive officer of the company
D: insured - ANSWER B: applicant
Whose responsibility is it to determine if all of the questions on an application have been
answered?
a)The insurer
b)The applicant
c)The beneficiary
d)The agent - ANSWER d)The agent
All of the following would be considered an insurance transaction EXCEPT
a)Advising a policyholder regarding a claim
b)Negotiating coverage.
c)Obtaining an insurance license.
d)Soliciting a policy. - ANSWER c)Obtaining an insurance license.
Which of the following is NOT true regarding Basic Surgical Expense coverage?
a)It is commonly written in conjunction with Hospital Expense policies.
b)Coverage is unlimited
c)There is no deductible.
,d)Contracts include a surgical schedule - ANSWER b)Coverage is unlimited
A typical Accidental Death & Dismemberment policy covers all of the following losses EXCEPT
a)Limb.
b)Life.
c)Income.
d)Eyesight. - ANSWER c)Income.
To be eligible under HIPAA regulations, for how long should an individual converting to an
individual health plan have been covered under the previous group plan?
a)5 years
b)12 months
c)63 days
d)18 months - ANSWER d)18 months
An organization licensed as a producer business entity based in New York would like to transact
insurance in New Jersey. Which of the following is true?
a)The organization will need to obtain a nonresident business entity license, which will secure
nonresident status for the business itself and all of its producers
.b)The organization will need to obtain a nonresident business entity license, and its producers
will need to obtain nonresident licenses
c)The organization will not have to obtain a nonresident license, unless more than 50% of its
business is conducted in New Jersey. However, its producers will need to obtain nonresident
licenses.
d)The organization will not have to obtain a nonresident license, since it is a business entity.
However, all of its producers will need to have nonresident licenses. - ANSWER b)The
organization will need to obtain a nonresident business entity license, and its producers will
need to obtain nonresident licenses
,Who makes up the Medical Information Bureau?a)Insurers
b)Hospitals
c)Former insured
d)Physicians and paramedics - ANSWER a)Insurers
Which of the following is the legal name of a corporation or partnership under which a licensee
conducts insurance business?
a)Assumed name
b)Legal name
c)Name of reference
d)Business name - ANSWER d)Business name
An insurer is closing a branch office in this state. Within how many days of the office closing
must the insurer notify the Department?
a)10 days
b)15 days
c)30 days
d)90 days - ANSWER c)30 days
Once the person meets the stringent requirements for disability benefits under Social Security,
how long is the waiting period before any benefits will be paid?
a)12 months
b)Benefits will be paid immediately.
c)90 days
d)5 months - ANSWER d)5 months
, Which provision states that the insurance company must pay Medical Expense claims
immediately?
a)Legal Actions
b)Relation of Earnings to Insurance
c)Time of Payment of Claims
d)Payment of Claims - ANSWER c)Time of Payment of Claims
When an insurance agency published an advertising brochure, it emphasized the company's
financial stability and sound business practices. In reality, its financial health is terrible, and the
company will soon have to file for bankruptcy. Which of the following terms best describes the
advertisement?
a)Defamation
b)Twisting
c)Rebating
d)False financial statement - ANSWER d)False financial statement
The primary eligibility requirement for Medicaid benefits is based upon
a)Number of dependents.
b)Need.
c)Whether the claimant is insurable on the private market.
d)Age. - ANSWER b)Need.
Bill's license was revoked 2 years ago. How much longer will he have to wait in order to request
his license to be reinstated?
