KY Health and Insurance State Exam
Questions and All Correct Answers.
tax-deferred - Answer The interest earned on the cash value of an individually-owned annuity
is considered to be:
the employer receives a master policy and the employees receive certificates - Answer Which
of the following statements is correct regarding an employer/employee group health plan?
20% - Answer Mary has a Health Savings Account (HSA). Distributions that have been made for
anything other than qualified medical expenses are considered taxable and subject to a penalty
of:
Replacement - Answer Each of the following is an unfair marketing or trade practice, EXCEPT:
Both Federal and State governments - Answer Medicaid is funded by which entity (entities)?
Insurer will likely treat as a pre-existing condition which may not be covered for one year -
Answer T was treated for an ailment 2 months prior to applying for a health insurance policy.
This condition was noted on the application and the policy was issued shortly afterwards. How
will the insurer likely consider this condition?
consumers the right to protect their own credit information - Answer The Fair Credit Reporting
Act is intended to give:
by the employer - Answer A Health Reimbursement Arrangement MUST be established:
stand-alone policy or rider - Answer An insurance company can write an Accidental Death and
Dismemberment policy as a(n):
All of these are correct and are consequences of fraudulent acts:
- Imprisonment for at least one year but not more than 5 years
- A fine up to $10000 for individuals and $100000 for companies
-It is a felony - Answer Which of the following is correct regarding fraudulent act of over $300
,Savings depletion because of longevity - Answer What does a fixed annuity offer protection
against?
Waiting Period - Answer The provision in a Group Health policy that allows the insurer to
postpone coverage for a covered illness 30 days after the policy's effective date is referred to as
the:
Twisting - Answer The inducement of an insured to lapse, forfeit or surrender an insurance
policy by misrepresentation or misleading comparisons, in order to write a new policy, is known
as:
Claim will be denied - Answer N is covered by a Term Life policy and does not make the
required premium payment which was due August 1st. N dies September 15. What action will
the insurer take?
Lose certain tax advantages - Answer A life insurance policy that fails the 7-pay Test is
considered to be a Modified Endowment Contract. This type of policy will:
3 years - Answer How long must insurers maintain advertisement in their files?
Rebating - Answer In many states, it is illegal for an agent to offer anything other than the
policy, as an inducement to buy insurance. This practice is known as:
Guaranteed Renewable - Answer All Medicare Supplement policies should be:
Representations - Answer On health insurance applications, statements made on the
application are considered:
Outside the US - Answer Medicare does not pay for treatment:
Conversion - Answer What group term life feature permits an individual to depart from the
group and continue to be covered without providing evidence of insurability?
domestic and alien - Answer An insurance company can be any of the following, EXCEPT:
, Business Overhead Expense - Answer Many small business owners worry how their business
would survive financially if the owner becomes disabled. The policy which BEST addresses this
concern is:
Guaranteed Insurability Rider - Answer Bryce purchased a disability income policy with a rider
that guarantees him the option of purchasing additional amounts of coverage at predetermined
times without requiring to provide evidence of insurability. What kind of rider is this?
How much life insurance a client should apply for - Answer In life insurance, the needs
approach is used mostly to establish:
daughter - Answer K has a life insurance policy where her husband is beneficiary and her
daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are
both killed in an automobile accident, where would the death proceeds be directed?
10 days - Answer The free-look period for an individual health insurance policy, during which
the insured may return the policy for a full refund of premium is?
face amount can be adjusted using policy dividends - Answer All of these are characteristics of
an Adjustable Life policy, EXCEPT:
decreasing term policy - Answer F needs life insurance that provides coverage for only a
limited amount of time with a death benefit that changes regularly according to a schedule.
What kind of policy is needed?
review the policy annually and determine whether or not to renew it. - Answer With
Optionally Renewable Health policies, the insurer may:
upon death of the last insured - Answer When is the face amount paid under a Joint Life and
Survivor policy?
18 years of age - Answer No individual may be licensed as a producer unless they are at least
exclusion for the medical condition - Answer An underwriter determines that an applicant's
risk should be recategorized due to a health issue. This policy may be issued with a(n)
Questions and All Correct Answers.
tax-deferred - Answer The interest earned on the cash value of an individually-owned annuity
is considered to be:
the employer receives a master policy and the employees receive certificates - Answer Which
of the following statements is correct regarding an employer/employee group health plan?
20% - Answer Mary has a Health Savings Account (HSA). Distributions that have been made for
anything other than qualified medical expenses are considered taxable and subject to a penalty
of:
Replacement - Answer Each of the following is an unfair marketing or trade practice, EXCEPT:
Both Federal and State governments - Answer Medicaid is funded by which entity (entities)?
Insurer will likely treat as a pre-existing condition which may not be covered for one year -
Answer T was treated for an ailment 2 months prior to applying for a health insurance policy.
This condition was noted on the application and the policy was issued shortly afterwards. How
will the insurer likely consider this condition?
consumers the right to protect their own credit information - Answer The Fair Credit Reporting
Act is intended to give:
by the employer - Answer A Health Reimbursement Arrangement MUST be established:
stand-alone policy or rider - Answer An insurance company can write an Accidental Death and
Dismemberment policy as a(n):
All of these are correct and are consequences of fraudulent acts:
- Imprisonment for at least one year but not more than 5 years
- A fine up to $10000 for individuals and $100000 for companies
-It is a felony - Answer Which of the following is correct regarding fraudulent act of over $300
,Savings depletion because of longevity - Answer What does a fixed annuity offer protection
against?
Waiting Period - Answer The provision in a Group Health policy that allows the insurer to
postpone coverage for a covered illness 30 days after the policy's effective date is referred to as
the:
Twisting - Answer The inducement of an insured to lapse, forfeit or surrender an insurance
policy by misrepresentation or misleading comparisons, in order to write a new policy, is known
as:
Claim will be denied - Answer N is covered by a Term Life policy and does not make the
required premium payment which was due August 1st. N dies September 15. What action will
the insurer take?
Lose certain tax advantages - Answer A life insurance policy that fails the 7-pay Test is
considered to be a Modified Endowment Contract. This type of policy will:
3 years - Answer How long must insurers maintain advertisement in their files?
Rebating - Answer In many states, it is illegal for an agent to offer anything other than the
policy, as an inducement to buy insurance. This practice is known as:
Guaranteed Renewable - Answer All Medicare Supplement policies should be:
Representations - Answer On health insurance applications, statements made on the
application are considered:
Outside the US - Answer Medicare does not pay for treatment:
Conversion - Answer What group term life feature permits an individual to depart from the
group and continue to be covered without providing evidence of insurability?
domestic and alien - Answer An insurance company can be any of the following, EXCEPT:
, Business Overhead Expense - Answer Many small business owners worry how their business
would survive financially if the owner becomes disabled. The policy which BEST addresses this
concern is:
Guaranteed Insurability Rider - Answer Bryce purchased a disability income policy with a rider
that guarantees him the option of purchasing additional amounts of coverage at predetermined
times without requiring to provide evidence of insurability. What kind of rider is this?
How much life insurance a client should apply for - Answer In life insurance, the needs
approach is used mostly to establish:
daughter - Answer K has a life insurance policy where her husband is beneficiary and her
daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are
both killed in an automobile accident, where would the death proceeds be directed?
10 days - Answer The free-look period for an individual health insurance policy, during which
the insured may return the policy for a full refund of premium is?
face amount can be adjusted using policy dividends - Answer All of these are characteristics of
an Adjustable Life policy, EXCEPT:
decreasing term policy - Answer F needs life insurance that provides coverage for only a
limited amount of time with a death benefit that changes regularly according to a schedule.
What kind of policy is needed?
review the policy annually and determine whether or not to renew it. - Answer With
Optionally Renewable Health policies, the insurer may:
upon death of the last insured - Answer When is the face amount paid under a Joint Life and
Survivor policy?
18 years of age - Answer No individual may be licensed as a producer unless they are at least
exclusion for the medical condition - Answer An underwriter determines that an applicant's
risk should be recategorized due to a health issue. This policy may be issued with a(n)
