ARKANSAS HEALTH INSURANCE EXAM
Questions And Correct Answers.
In order for a contract to be valid, it must: - Answer Contain an offer & acceptance
When does a nondisabled person first qualify for a Medicare Supplement Policy? - Answer Age
65
A life insurance company has transferred some of its risk to another insurer. The insurer
assuming the risk is called the: - Answer Reinsurer
A common exclusion with vision plans is: - Answer Lasik Surgery
What are applicants statements concerning occupation, hobbies and personal health history? -
Answer Representation
States that have "no loss, no gain" laws require a replacing policy to: - Answer Pay for ongoing
claims under the policy it replaces
A rehabilitation benefit is intended to: - Answer Prepare the insured to return to employment
Which of the following does coordination of benefits allow? - Answer The secondary payor to
reduce their benefit payments so no more than 100% of the claim is paid
An insurer may pay a commission in which of the following scenarios: - Answer To a licensed
producer who is appointed with the insurer
In which of the following situations would the insurer be liable for a loss? - Answer The
insured suffered an injury during a bank robbery
The Fair Credit and Reporting Act's main purpose is to: - Answer Protect consumers with
guidelines regarding credit reporting and distribution
,What is implied authority defined as? - Answer Authority that is not specifically given to an
agent contract, but that an agent can reasonably assume to carry out his/her duties
A person who is a nonsmoker, average weight, excellent health would fall into what risk
classification: - Answer Preferred
Which of the following is considered to be the period when the accumulated value in an annuity
is paid out? - Answer Annuitization phase
An insurers claim settlement practices are regulated by the: - Answer State insurance
departments
The two major actions required for a policyholder to comply with the Reinstatement Clause are:
- Answer provide evidence of insurability, pay past due premiums
An insurers ability to make unpredictable payouts to policy owners is called: - Answer Liquidity
Which of the following pertains to the analysis of an applicants personal information and
determining whether insurance should be issued or declined? - Answer Underwriting
What does the Group Life underwriting risk selection process help protect insurance companies
from? - Answer Adverse Selection
The Arkansas Life & Disability Insurance Guaranty Association assures payment of benefits from
insurance policies for insolvent insurers, and covers all of the following insured policies, EXCEPT:
- Answer Liability Insurance
Pat owns a 20-pay life policy with a paid-up dividend option. Which is true? - Answer The
policy may be paid up early by using policy dividends?
What would happen if a life insurance applicant is given a conditional receipt from an insurance
agent and then dies the next day? - Answer Claim will be paid if application is approved
A policy owner can receive a percentage payment of the death benefits prior to death by using
what kind of contract? - Answer Viatical Settlement agreement
, An employee under a group insurance policy has the right to name a beneficiary and the right
to: - Answer Convert to an individual policy in the event of employment termination
Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the
consumer price index has gone up 4%, how much may Ron increase the face value of the policy?
- Answer $4,000
Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000.
Which of these statements is true? - Answer The face amount and premium will remain
constant over the 10-year period
What is Arkansas required grace period for a life insurance contract? - Answer 31 days
A domestic insurance company in Arkansas MUST: - Answer Be organized under Arkansas
insurance laws
Which would be considered a possible applicant & contract policyholder for group health
benefits? - Answer Employer
Amy has a group medical policy through her employer with a $500 deductible and a 90%
coinsurance provision. She incurs a $1,500 in covered healthcare services. How much will her
group insurance carrier pay? - Answer $1,000
"Maximum benefits" refers to the: - Answer Upper limit of the total lifetime benefits the
insurance company will pay
What does Medicare part D cover? - Answer Prescription drugs
Which best describes a conditional insurance contract? - Answer A contract that requires
certain conditions or acts by the insured individual
A professional liability for which producers can be sued for mistakes of putting a policy into
effect is called: - Answer Errors and omissions
A long-term care policy typically provides all of the following levels of care EXCEPT: - Answer
Questions And Correct Answers.
In order for a contract to be valid, it must: - Answer Contain an offer & acceptance
When does a nondisabled person first qualify for a Medicare Supplement Policy? - Answer Age
65
A life insurance company has transferred some of its risk to another insurer. The insurer
assuming the risk is called the: - Answer Reinsurer
A common exclusion with vision plans is: - Answer Lasik Surgery
What are applicants statements concerning occupation, hobbies and personal health history? -
Answer Representation
States that have "no loss, no gain" laws require a replacing policy to: - Answer Pay for ongoing
claims under the policy it replaces
A rehabilitation benefit is intended to: - Answer Prepare the insured to return to employment
Which of the following does coordination of benefits allow? - Answer The secondary payor to
reduce their benefit payments so no more than 100% of the claim is paid
An insurer may pay a commission in which of the following scenarios: - Answer To a licensed
producer who is appointed with the insurer
In which of the following situations would the insurer be liable for a loss? - Answer The
insured suffered an injury during a bank robbery
The Fair Credit and Reporting Act's main purpose is to: - Answer Protect consumers with
guidelines regarding credit reporting and distribution
,What is implied authority defined as? - Answer Authority that is not specifically given to an
agent contract, but that an agent can reasonably assume to carry out his/her duties
A person who is a nonsmoker, average weight, excellent health would fall into what risk
classification: - Answer Preferred
Which of the following is considered to be the period when the accumulated value in an annuity
is paid out? - Answer Annuitization phase
An insurers claim settlement practices are regulated by the: - Answer State insurance
departments
The two major actions required for a policyholder to comply with the Reinstatement Clause are:
- Answer provide evidence of insurability, pay past due premiums
An insurers ability to make unpredictable payouts to policy owners is called: - Answer Liquidity
Which of the following pertains to the analysis of an applicants personal information and
determining whether insurance should be issued or declined? - Answer Underwriting
What does the Group Life underwriting risk selection process help protect insurance companies
from? - Answer Adverse Selection
The Arkansas Life & Disability Insurance Guaranty Association assures payment of benefits from
insurance policies for insolvent insurers, and covers all of the following insured policies, EXCEPT:
- Answer Liability Insurance
Pat owns a 20-pay life policy with a paid-up dividend option. Which is true? - Answer The
policy may be paid up early by using policy dividends?
What would happen if a life insurance applicant is given a conditional receipt from an insurance
agent and then dies the next day? - Answer Claim will be paid if application is approved
A policy owner can receive a percentage payment of the death benefits prior to death by using
what kind of contract? - Answer Viatical Settlement agreement
, An employee under a group insurance policy has the right to name a beneficiary and the right
to: - Answer Convert to an individual policy in the event of employment termination
Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the
consumer price index has gone up 4%, how much may Ron increase the face value of the policy?
- Answer $4,000
Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000.
Which of these statements is true? - Answer The face amount and premium will remain
constant over the 10-year period
What is Arkansas required grace period for a life insurance contract? - Answer 31 days
A domestic insurance company in Arkansas MUST: - Answer Be organized under Arkansas
insurance laws
Which would be considered a possible applicant & contract policyholder for group health
benefits? - Answer Employer
Amy has a group medical policy through her employer with a $500 deductible and a 90%
coinsurance provision. She incurs a $1,500 in covered healthcare services. How much will her
group insurance carrier pay? - Answer $1,000
"Maximum benefits" refers to the: - Answer Upper limit of the total lifetime benefits the
insurance company will pay
What does Medicare part D cover? - Answer Prescription drugs
Which best describes a conditional insurance contract? - Answer A contract that requires
certain conditions or acts by the insured individual
A professional liability for which producers can be sued for mistakes of putting a policy into
effect is called: - Answer Errors and omissions
A long-term care policy typically provides all of the following levels of care EXCEPT: - Answer
