Health Final Exam - NJ Accident and Health
1. A 10% excise tax is normally applied to an early withdrawal from an IRA.
According to HIPAA, this tax will not be applied if the withdrawal is used for medical
expenses that exceed ____ of the individual's adjusted gross income.
A. 5%
B. 7.5%
C. 10%
D. 12.5%
Answer: B. 7.5%
2. A beneficiary change can occur:
A. Only at policy inception
B. Normally at any time during the policy term
C. Only with insurer approval
D. Only once per year
Answer: B. Normally at any time during the policy term
3. A branch office registration form is required to be filed at least ___ days before
selling insurance out of that branch:
A. 15 days
B. 20 days
C. 30 days
D. 45 days
Answer: C. 30 days
4. A clause that allows an insurer the right to terminate coverage at any anniversary
date is called a(n):
A. Cancellation clause
B. Optional renewability clause
C. Termination provision
D. Anniversary clause
Answer: B. Optional renewability clause
5. A common exclusion with Vision plans is:
Health Final Exam - NJ Accident and Health
,A. Eye exams
B. Prescription glasses
C. Lasik surgery
D. Contact lenses
Answer: C. Lasik surgery
6. A disability income policy can prevent an insured from earning a higher income if
he/she were working by utilizing:
A. Benefit limits
B. Income caps
C. Premium adjustments
D. Coverage restrictions
Answer: A. Benefit limits
7. A doctor who accepts Medicare assignment agrees to which of the following:
A. Doctor may charge up to a maximum of 15% more than Medicare pays for the
service
B. Doctor is not bound by Medicare's limitations on charges
C. Doctor cannot charge more than Medicare's scheduled coverage
D. Doctor bills the Medicare beneficiary directly for services performed
Answer: C. Doctor cannot charge more than Medicare's scheduled coverage
8. A dread disease policy is considered to be a type of:
A. Comprehensive health insurance policy
B. Limited health insurance policy
C. Major medical policy
D. Disability insurance policy
Answer: B. Limited health insurance policy
9. A health insurance policy that allows an insurer to change the policy owner's
premiums, but NOT cancel the policy is called a(n):
A. Noncancellable policy
B. Guaranteed renewable policy
C. Conditionally renewable policy
D. Optionally renewable policy
Health Final Exam - NJ Accident and Health
, Answer: B. Guaranteed renewable policy
10. A health insurance policy where the insurer has the right to terminate the policy
for reasons other than the insured's health is called:
A. Noncancellable
B. Guaranteed renewable
C. Conditionally renewable
D. Optionally renewable
Answer: C. Conditionally renewable
11. A health insurer must be provided with written proof of loss ___ days after the
date of loss:
A. 30 days
B. 60 days
C. 90 days
D. 120 days
Answer: C. 90 days
12. A Medicare supplement basic benefit is:
A. Part B deductible
B. The first 3 pints of blood per year
C. Foreign travel emergency
D. Part A deductible
Answer: B. The first 3 pints of blood per year
13. A Medicare supplement policy can be cancelled by the insurer for:
A. Health deterioration
B. Age of insured
C. Nonpayment
D. Excessive claims
Answer: C. Nonpayment
14. A newborn is required to be covered for ____ days from the moment of birth:
Health Final Exam - NJ Accident and Health
1. A 10% excise tax is normally applied to an early withdrawal from an IRA.
According to HIPAA, this tax will not be applied if the withdrawal is used for medical
expenses that exceed ____ of the individual's adjusted gross income.
A. 5%
B. 7.5%
C. 10%
D. 12.5%
Answer: B. 7.5%
2. A beneficiary change can occur:
A. Only at policy inception
B. Normally at any time during the policy term
C. Only with insurer approval
D. Only once per year
Answer: B. Normally at any time during the policy term
3. A branch office registration form is required to be filed at least ___ days before
selling insurance out of that branch:
A. 15 days
B. 20 days
C. 30 days
D. 45 days
Answer: C. 30 days
4. A clause that allows an insurer the right to terminate coverage at any anniversary
date is called a(n):
A. Cancellation clause
B. Optional renewability clause
C. Termination provision
D. Anniversary clause
Answer: B. Optional renewability clause
5. A common exclusion with Vision plans is:
Health Final Exam - NJ Accident and Health
,A. Eye exams
B. Prescription glasses
C. Lasik surgery
D. Contact lenses
Answer: C. Lasik surgery
6. A disability income policy can prevent an insured from earning a higher income if
he/she were working by utilizing:
A. Benefit limits
B. Income caps
C. Premium adjustments
D. Coverage restrictions
Answer: A. Benefit limits
7. A doctor who accepts Medicare assignment agrees to which of the following:
A. Doctor may charge up to a maximum of 15% more than Medicare pays for the
service
B. Doctor is not bound by Medicare's limitations on charges
C. Doctor cannot charge more than Medicare's scheduled coverage
D. Doctor bills the Medicare beneficiary directly for services performed
Answer: C. Doctor cannot charge more than Medicare's scheduled coverage
8. A dread disease policy is considered to be a type of:
A. Comprehensive health insurance policy
B. Limited health insurance policy
C. Major medical policy
D. Disability insurance policy
Answer: B. Limited health insurance policy
9. A health insurance policy that allows an insurer to change the policy owner's
premiums, but NOT cancel the policy is called a(n):
A. Noncancellable policy
B. Guaranteed renewable policy
C. Conditionally renewable policy
D. Optionally renewable policy
Health Final Exam - NJ Accident and Health
, Answer: B. Guaranteed renewable policy
10. A health insurance policy where the insurer has the right to terminate the policy
for reasons other than the insured's health is called:
A. Noncancellable
B. Guaranteed renewable
C. Conditionally renewable
D. Optionally renewable
Answer: C. Conditionally renewable
11. A health insurer must be provided with written proof of loss ___ days after the
date of loss:
A. 30 days
B. 60 days
C. 90 days
D. 120 days
Answer: C. 90 days
12. A Medicare supplement basic benefit is:
A. Part B deductible
B. The first 3 pints of blood per year
C. Foreign travel emergency
D. Part A deductible
Answer: B. The first 3 pints of blood per year
13. A Medicare supplement policy can be cancelled by the insurer for:
A. Health deterioration
B. Age of insured
C. Nonpayment
D. Excessive claims
Answer: C. Nonpayment
14. A newborn is required to be covered for ____ days from the moment of birth:
Health Final Exam - NJ Accident and Health
