Health Insurance Exam-Illinois Explore
New Questions and Answers|2026
Update | 100% Correct.
Accepted questions on application to base premiums - CORRECT ANSWER-age,
family composition, geographic region of residency, tobacco use
unacceptable question on application to base premiums - CORRECT ANSWER-past
medical history, gender, occupation, ethnicity
Attending Physician Statement - CORRECT ANSWER-the underwriter contacts
physician who has treated the applicant in the past for an evaluation; it's purpose is to
confirm information on the medical report
Errors and Changes on the Application - CORRECT ANSWER-if error on application,
underwriter may require it be corrected and changes must be approved and initialed by
the applicant
Medical information bureau (MIB) report - CORRECT ANSWER-it is a clearing house
for medical information for insurance companies that belong to it
Credit Report - CORRECT ANSWER-Determines if total benefits are reasonable
compared to applicant's income so as to avoid disincentive
Inspection report - CORRECT ANSWER-to verify that the producer completed the
application accurately and completely is the first purpose of an inspection report
Risk type expenses - CORRECT ANSWER-cannot be planned and is unintended
Purpose of health insurance is - CORRECT ANSWER-to protect a insured against the
risk of financial loss he/she cannot individually afford caused by illness, injury, or
diability
Indeminity - CORRECT ANSWER-Reimbursement
Coordination of Benefits provision - CORRECT ANSWER-is in some health insurance
policies; allows insurance companies to reduce benefits so that the insured will be paid
no more that his/her actual loss. prevents the insured from collecting under multiple
policies more than his/her actual loss
, Coordination policy - CORRECT ANSWER-is a policy that includes a coordination of
benefits provision
Non-coordinating policy - CORRECT ANSWER-is a policy that does not include a
coordination of benefits provision
Incontestability Clause - CORRECT ANSWER-after the policy has been in effect two
years the insurance company cannot contest a policy doe to any misstatement or
concealment unless it can prove fraud
(tax) premiums on ind. hospital/medical expense policies - CORRECT ANSWER-can
sometimes be tax deducted; depends on whether an ind is self-employed and if ind.
itemizes on tax returm
(tax) premiums paid by an ind. on ind. diability income policies - CORRECT ANSWER-
usually cannot be tax deducted (non qualified)
(tax) ind. expense policies, ind disability income policies, are usually - CORRECT
ANSWER-tax free and have no tax on the benefits
(tax) premiums paid by employer usually - CORRECT ANSWER-can be tax deducted
by the employer (tax qualified)
(tax) group expense coverage is usually - CORRECT ANSWER-no tax on benefits (tax
free)
Private Health Insurance Companies were originally established to - CORRECT
ANSWER-issue risk indeminity policies
Private Health Insurance Companies have the _____ restrictions to where the insured
can go for service - CORRECT ANSWER-fewest
Service Organizations - CORRECT ANSWER-the subscriber is entitled to obtain
hospital/medical services from any hospital/doctor service provider that is a member of
the network; outside network will not be covered
Blue Cross originally assured payment of - CORRECT ANSWER-hospital charges
Blue Shield originally assured payment of - CORRECT ANSWER-physician's charges
Preferred Provider Organizations (PPO's) - CORRECT ANSWER-provides medical
services at negotiated discounted rates and offer lower deductibles and co-insurance
requirements to apply if the insured receives service from a hospital in network
New Questions and Answers|2026
Update | 100% Correct.
Accepted questions on application to base premiums - CORRECT ANSWER-age,
family composition, geographic region of residency, tobacco use
unacceptable question on application to base premiums - CORRECT ANSWER-past
medical history, gender, occupation, ethnicity
Attending Physician Statement - CORRECT ANSWER-the underwriter contacts
physician who has treated the applicant in the past for an evaluation; it's purpose is to
confirm information on the medical report
Errors and Changes on the Application - CORRECT ANSWER-if error on application,
underwriter may require it be corrected and changes must be approved and initialed by
the applicant
Medical information bureau (MIB) report - CORRECT ANSWER-it is a clearing house
for medical information for insurance companies that belong to it
Credit Report - CORRECT ANSWER-Determines if total benefits are reasonable
compared to applicant's income so as to avoid disincentive
Inspection report - CORRECT ANSWER-to verify that the producer completed the
application accurately and completely is the first purpose of an inspection report
Risk type expenses - CORRECT ANSWER-cannot be planned and is unintended
Purpose of health insurance is - CORRECT ANSWER-to protect a insured against the
risk of financial loss he/she cannot individually afford caused by illness, injury, or
diability
Indeminity - CORRECT ANSWER-Reimbursement
Coordination of Benefits provision - CORRECT ANSWER-is in some health insurance
policies; allows insurance companies to reduce benefits so that the insured will be paid
no more that his/her actual loss. prevents the insured from collecting under multiple
policies more than his/her actual loss
, Coordination policy - CORRECT ANSWER-is a policy that includes a coordination of
benefits provision
Non-coordinating policy - CORRECT ANSWER-is a policy that does not include a
coordination of benefits provision
Incontestability Clause - CORRECT ANSWER-after the policy has been in effect two
years the insurance company cannot contest a policy doe to any misstatement or
concealment unless it can prove fraud
(tax) premiums on ind. hospital/medical expense policies - CORRECT ANSWER-can
sometimes be tax deducted; depends on whether an ind is self-employed and if ind.
itemizes on tax returm
(tax) premiums paid by an ind. on ind. diability income policies - CORRECT ANSWER-
usually cannot be tax deducted (non qualified)
(tax) ind. expense policies, ind disability income policies, are usually - CORRECT
ANSWER-tax free and have no tax on the benefits
(tax) premiums paid by employer usually - CORRECT ANSWER-can be tax deducted
by the employer (tax qualified)
(tax) group expense coverage is usually - CORRECT ANSWER-no tax on benefits (tax
free)
Private Health Insurance Companies were originally established to - CORRECT
ANSWER-issue risk indeminity policies
Private Health Insurance Companies have the _____ restrictions to where the insured
can go for service - CORRECT ANSWER-fewest
Service Organizations - CORRECT ANSWER-the subscriber is entitled to obtain
hospital/medical services from any hospital/doctor service provider that is a member of
the network; outside network will not be covered
Blue Cross originally assured payment of - CORRECT ANSWER-hospital charges
Blue Shield originally assured payment of - CORRECT ANSWER-physician's charges
Preferred Provider Organizations (PPO's) - CORRECT ANSWER-provides medical
services at negotiated discounted rates and offer lower deductibles and co-insurance
requirements to apply if the insured receives service from a hospital in network
