Arkansas Health and Accident Insurance Exam 2024

Funding for Medicare Part B is partially provided by - user premiums Which of the following would evidence ownership in a participating health insurance contract? - Policy Ownership To protect information, systems, agents, brokers, and insurance companies must implement and maintain a(n) - cybersecurity policy An insurer is best described as - Any person, corporation, association, or society that writes insurance contracts Jennifer is required to pay a specific sum out of pocket before any benefits are paid in a year. Her health policy most likely contains a(n) - deductible In Arkansas, anyone who lies under oath during a hearing is guilty of: - perjury Which of the following basics is a producer's fiduciary responsibility? - collecting premiums and paying them to the insurance company An insurance company needs to obtain personal information from a third party concerning an applicant. Which law do all insurers and their producers need to comply with? - Fair Credit Reporting Act Which is the best way to describe Controlled Business? - Policies written on people that a producer has influence over Tom has a rider on his disability income policy that guarantees the right to increase his benefits without a medical exam. What kind of rider is this? - Guaranteed Insurability rider Underwriters can acquire information from all of the following sources EXCEPT - Genetic Testing According to Arkansas law, commissions may be paid to: - licensed and duty appointed producers If a person is convicted of a crime stemming from a hearing, a fine up to $ per violation may be imposed - $1,000 The document that describes policy features, benefits, exclusions and riders in a Long-Term Care policy is known as the - Outline of Coverage Which of the following is NOT included under a health benefit plan? - Hospital indemnity plan Which of the following constitutes grounds for suspending an Arkansas producer's license? - Felony conviction Once a policy has been reinstated the insured must wait what amount of time before coverage for sickness is available? - 10 days Which of the following signatures is not required on an individual insurance application? - insurer Which of the following nursing home options would BEST suit an individual who needs some nursing care and supervision but NOT full-time care? - Assisted living facilities An employer is issued a group medical insurance policy. This single contract is known as a(n) - employer contract Under the Health Insurance Portability and Accountability Act (HIPAA), the employee's new Group Health Plan will verify Creditable Coverage so that the - employee's waiting period for coverage of a preexisting condition can be reduced under the new employer's health plan a nonparticipating policy will - not pay dividends Which of the following statements is TRUE about an insurer's right to screen applicants for HIV? - An insurer can require a blood test for HIV Any person who knowingly sells, solicits, or negotiates insurance products with a person or entity that is not licensed in Arkansas is guilty of - A class D felony Upon policy delivery, which of the following must a producer have an applicant sign if no initial premium was collected with the health insurance application? - a good health statement Kathy pays a monthly premium on her health insurance policy. How long is her grace period? - 10 days Richard owns an insurance policy that is renewable only at the option of the insurance company. His policy is considered to be - optionally renewable Which clause defines total disability as being unable to perform the major duties of the insured's regular occupation? - own occupation clause In contrast to a guaranteed renewable policy, a noncancellable policy - may never raise premiums Which of the following is NOT a common exclusion for a medical expense policy? - Physical therapy One of the most important considerations when replacing health insurance would be the - exclusions on a new policy a beneficiary change can occur - normally at any time during the policy term Which of the following is NOT considered advertising? - a rating from a rating service company, such as A.M. Best Small employers who are sponsored by an insurer to provide group benefits to its employees are called - MEWA Which of the following actions may an insurance company NOT do in a health policy that contains a guaranteed renewable premium benefit? - increase the premium on an individual basis The renewable period for a producer's license is a - two-year term Which of the following statements most aptly describe health insurance benefits? - the greater the benefits, the higher the premium Which of the following is NOT a reason for the commissioner to deny or refuse a producer license application? - Unintentionally misrepresented a material fact on the application An individual covered under a Blue Cross Blue Shield plan is call a(n) - subscriber The time limit for filing claim disputes is addressed in which provision of an accident and health policy? - Legal actions Distributions from a Health Savings Account (HSA) for qualified medical expenses are - tax-free To qualify as a small employer, an employer must employ no more than - 50 eligible employees An insurance producer is BEST defined as - a person who has a contract with an insurance company to represent it Which of these characteristics of an applicant is NOT taken into consideration when assessing risk for Disability coverage? - number of children Sonya applied for a health insurance policy on April 1. Her agent submitted the information to the insurance company on April 6. She paid the premium on May 15 with the policy indicating the effective date being May 30. On which date would Sonya have coverage? - May 30 All of the following would affect a health insurance policy's premium rate EXCEPT - Residential address of the insured All of the following plans allow for employee contributions to be taken on a pre- tax basis EXCEPT - health reimbursement arrangement plan Which of these options is NOT considered false advertising? - Putting a license number on a flyer Craig submits a $500 claim for medical expenses. With a past due premium of $100, the insurer pays $400. Which of the Uniform Optional Provisions covers this situation? - unpaid premium Benefits provided by a Medicare Supplement policy must NOT - duplicate Medicare benefits How is Medicare Part B funded? - General tax revenue and user premiums The Commissioner must examine the financial affairs of each admitted insurer operating in Arkansas at least once every how many years? - 5 Which of the following is NOT considered to be an act of fraud? - Collecting a charge for insurance that is less than the charge applicable to that insurance A dread disease policy is considered to be a type of - limited health insurance policy The reinstatement provision in a health insurance policy is - mandatory An insurance producer who convinces a prospective insured to purchase a policy by exaggerating the benefits of the policy may be found guilty of - misrepresentation What is a certificate of authority - The license required for an insurer to conduct business in the state The authority granted to a licensed producer is provided via the - Law of Agency Which of the following is NOT a required provision in an accident and health insurance policy? - change of occupation A policyowner suffers an injury that renders him incapable of performing one or more important job duties. Any decrease in income resulting from this injury would make him eligible for benefits under which provision? - partial disability All of the following are functions of an insuring clause EXCEPT - primarily describes the free-look period Which of the following would be considered a possible applicant and contract policyholder for group health benefits? - employer a health insurance policy will typically cover - preventative health services