Health License Exam with 100% correct
answers
On April 9, an application is submitted without the initial premium. The insurer requires a
medical exam, and it is completed on April 14. On April 18, the insurer issued the policy, and the
producer delivers it on April 21. When is coverage effective?
Select one:
a. April 9
b. April 14
c. April 18
d. April 21, after the statement of good health is signed, and the initial premium is paid. -
answer Coverage begins on April 21, after the statement of good health is signed, and the
initial premium is paid.
Jeff and Mike own an architect firm with 20 employees and worry about the company if one of
them becomes permanently disabled. What type of policy should they buy?
Select one:
a. Individual disability
b. Business overhead expense
c. Disability buy-out
d. Key employee - answer They should buy a disability buy-out policy.
If an individual has a chronic medical condition, how is the insurer likely to handle this situation
when issuing an individual health policy?
Select one:
a. The insurer will issue a Waiver of Premium rider.
b. The insurer will exclude the condition with an Impairment rider.
c. The insurer will include a Double Indemnity rider.
Health License Exam with 100% correct answers
,d. The insurer will include a Disability Income rider. - answer The insurer will exclude the
condition with an Impairment rider.
For at least how many years must individuals retain records relating to an insurance
transaction?
Select one:
a. 1 year
b. 2 years
c. 3 years
d. 5 years - answer 3 years
Which of the following is an improper form of policy replacement?
Select one:
a. Twisting
b. Defamation
c. Rebating
d. Discrimination - answer Twisting
In the health industry, what does HMO stand for?
Select one:
a. Health medical operations
b. Health methodology organizations
c. Health maintenance organizations
d. Health manufacturing operations - answer Health maintenance organizations
Who may issue any rules and regulations for administration or enforcement of the Insurance
Code?
Health License Exam with 100% correct answers
,Select one:
a. The Director
b. The Commissioner
c. The Governor
d. The legislature - answer The Commissioner
The Commissioner is responsible for all of the following in Virginia, EXCEPT:
Select one:
a. Enforcement of insurance laws
b. Regulation and supervision of insurance transactions
c. Examining all individuals or entities that transact insurance in the Commonwealth
d. Enactment of insurance laws - answer Enactment of insurance laws
An individual has a disability income policy with a Change of Occupation clause when he
changes to a new more hazardous job. He neglects to inform the insurer. What happens if one
year later he files a claim when he becomes disabled?
Select one:
a. The insurer will write a new policy
b. The insurer will pay one-half of the claim.
c. The insurer will pay the claim based on what the premiums would have purchased had the
hazardous occupation been known.
d. Cancel his policy and refund one year's premium payments. - answer The insurer will pay the
claim based on what the premiums would have purchased had the hazardous occupation
been known.
How many days does someone have after termination of their group policy to make their first
premium payment on the converted policy?
Select one:
a. 14 days
Health License Exam with 100% correct answers
, b. 30 days
c. 31 days
d. 45 days - answer 31 days
According to the Physical Examination and Autopsy provision, who is responsible for paying the
cost of examining the insured?
Select one:
a. The policyowner
b. The insured
c. The insurer
d. The medical provider - answer The insurer
Tina has a policy that only covers cancer-related medical expenses. What kind of policy does she
have?
Select one:
a. Accident only
b. Stop-loss
c. AD&D
d. Dread disease - answer Dread disease
What right of renewability does not guarantee insurability if certain circumstances happen and
allows the insurer to increase premiums?
Select one:
a. Noncancelable
b. Cancelable
c. Conditionally renewable
Health License Exam with 100% correct answers
answers
On April 9, an application is submitted without the initial premium. The insurer requires a
medical exam, and it is completed on April 14. On April 18, the insurer issued the policy, and the
producer delivers it on April 21. When is coverage effective?
Select one:
a. April 9
b. April 14
c. April 18
d. April 21, after the statement of good health is signed, and the initial premium is paid. -
answer Coverage begins on April 21, after the statement of good health is signed, and the
initial premium is paid.
Jeff and Mike own an architect firm with 20 employees and worry about the company if one of
them becomes permanently disabled. What type of policy should they buy?
Select one:
a. Individual disability
b. Business overhead expense
c. Disability buy-out
d. Key employee - answer They should buy a disability buy-out policy.
If an individual has a chronic medical condition, how is the insurer likely to handle this situation
when issuing an individual health policy?
Select one:
a. The insurer will issue a Waiver of Premium rider.
b. The insurer will exclude the condition with an Impairment rider.
c. The insurer will include a Double Indemnity rider.
Health License Exam with 100% correct answers
,d. The insurer will include a Disability Income rider. - answer The insurer will exclude the
condition with an Impairment rider.
For at least how many years must individuals retain records relating to an insurance
transaction?
Select one:
a. 1 year
b. 2 years
c. 3 years
d. 5 years - answer 3 years
Which of the following is an improper form of policy replacement?
Select one:
a. Twisting
b. Defamation
c. Rebating
d. Discrimination - answer Twisting
In the health industry, what does HMO stand for?
Select one:
a. Health medical operations
b. Health methodology organizations
c. Health maintenance organizations
d. Health manufacturing operations - answer Health maintenance organizations
Who may issue any rules and regulations for administration or enforcement of the Insurance
Code?
Health License Exam with 100% correct answers
,Select one:
a. The Director
b. The Commissioner
c. The Governor
d. The legislature - answer The Commissioner
The Commissioner is responsible for all of the following in Virginia, EXCEPT:
Select one:
a. Enforcement of insurance laws
b. Regulation and supervision of insurance transactions
c. Examining all individuals or entities that transact insurance in the Commonwealth
d. Enactment of insurance laws - answer Enactment of insurance laws
An individual has a disability income policy with a Change of Occupation clause when he
changes to a new more hazardous job. He neglects to inform the insurer. What happens if one
year later he files a claim when he becomes disabled?
Select one:
a. The insurer will write a new policy
b. The insurer will pay one-half of the claim.
c. The insurer will pay the claim based on what the premiums would have purchased had the
hazardous occupation been known.
d. Cancel his policy and refund one year's premium payments. - answer The insurer will pay the
claim based on what the premiums would have purchased had the hazardous occupation
been known.
How many days does someone have after termination of their group policy to make their first
premium payment on the converted policy?
Select one:
a. 14 days
Health License Exam with 100% correct answers
, b. 30 days
c. 31 days
d. 45 days - answer 31 days
According to the Physical Examination and Autopsy provision, who is responsible for paying the
cost of examining the insured?
Select one:
a. The policyowner
b. The insured
c. The insurer
d. The medical provider - answer The insurer
Tina has a policy that only covers cancer-related medical expenses. What kind of policy does she
have?
Select one:
a. Accident only
b. Stop-loss
c. AD&D
d. Dread disease - answer Dread disease
What right of renewability does not guarantee insurability if certain circumstances happen and
allows the insurer to increase premiums?
Select one:
a. Noncancelable
b. Cancelable
c. Conditionally renewable
Health License Exam with 100% correct answers
