NJ ACCIDENT & HEALTH PRODUCER PRACTICE
EXAMS Questions & Answers
1. Which of the following determines whether a person passes the financial
test to qualify for Medicaid
-federal guidelines
-the SS Administration
- state law
- Americans with Disabilities Act
Answer -state law
MEDICAID ELIGIBILITY IS BASED ON INCOME DEPENDING ON THE STATE
2. All of the following are elements of an uninsurable loss EXCEPT
-expected losses are measurable
-expected losses will be accidental
-types of losses that occur can be expected
-affordable premiums can be charged
Answer -affordable premiums can be charged INSURABLE LOSSES CAN B
EXPECTED, MUST BE MEASURABLE, GENER- ATE AFFORDABLE PREMIUMS
AND ARE ACCIDENTAL IN NATURE
3. In which of the following does a covered employee agree to a reduction
in compensation so the amount can be used to cover medical expenses?
,-health reimbursement account (HRA)
-consumer driven health plan (CDHP)
-flexible spending account (FSA)
-healthcare savings account (HSA)
Answer FSA
FSA IS A FORM OF CAFETERIA PLAN BENEFIT FUNDED BY SALARY REDUC
TION AND EMPLOYER CONTRIBUTIONS
4. which of the following may be thought of as a time deductible rather
than a dollar deductible in a disability income policy because benefits are
not payable during that time?
Answer - elimination period
the TIME period an individual must be disabled before benefits become
payable
5.According to the Time Payment of Claims provision, the insurer must
make the payment immediately after receiving proof of loss EXCEPT
- if the insured is able to eventually return to work
-if the death is suicide or due to a pre existing condition
-when the policy is in the incontestability period
-for claims involving periodic payments
Answer for claims involving periodic payments
INSURERS MUST PAY LUMP SUM CLAIMS IMMEDIATELY AFTER RECEIVING
PROOF OF LOSS
, 6.What does coinsurance mean?
- a policy covers the insured and the any additional named persons
-the insurer and the insured share expenses over the deductible
-the insurer and the insured share ALL expenses
-the policy owner holds multiple policies through the same insurer
Answer The insurer and the insured share expenses over the deductible
COINSURANCE IS THE SHARING BETWEEN THE INSURER AND THE IN-
SURED OF COVERED EXPENSES THAT EXCEED THE DEDUCTIBLE AMOUNT
THE SHARING ENDS WHEN THE "STOP LOSS LIMIT" IS REACHED
7.The life insurance policy will not be truly effect until all of the following
occur EXCEPT
-the statement of good health is obtained by the insurer
-the first premium is collected
-the policy is delivered to the applicant
-the producer has explained the policy to the client
Answer -the producer has explained the policy to the client
EFFECTIVE DATE BASED ON
-APP DATE
-IF PREMIUM HAS BEEN PAID
-IF A STATEMENT OF GOOD HEALTH MUST BE OBTAINED IF PREMIUM WA
NOT SUBMITTED WITH APPLICATION
EXAMS Questions & Answers
1. Which of the following determines whether a person passes the financial
test to qualify for Medicaid
-federal guidelines
-the SS Administration
- state law
- Americans with Disabilities Act
Answer -state law
MEDICAID ELIGIBILITY IS BASED ON INCOME DEPENDING ON THE STATE
2. All of the following are elements of an uninsurable loss EXCEPT
-expected losses are measurable
-expected losses will be accidental
-types of losses that occur can be expected
-affordable premiums can be charged
Answer -affordable premiums can be charged INSURABLE LOSSES CAN B
EXPECTED, MUST BE MEASURABLE, GENER- ATE AFFORDABLE PREMIUMS
AND ARE ACCIDENTAL IN NATURE
3. In which of the following does a covered employee agree to a reduction
in compensation so the amount can be used to cover medical expenses?
,-health reimbursement account (HRA)
-consumer driven health plan (CDHP)
-flexible spending account (FSA)
-healthcare savings account (HSA)
Answer FSA
FSA IS A FORM OF CAFETERIA PLAN BENEFIT FUNDED BY SALARY REDUC
TION AND EMPLOYER CONTRIBUTIONS
4. which of the following may be thought of as a time deductible rather
than a dollar deductible in a disability income policy because benefits are
not payable during that time?
Answer - elimination period
the TIME period an individual must be disabled before benefits become
payable
5.According to the Time Payment of Claims provision, the insurer must
make the payment immediately after receiving proof of loss EXCEPT
- if the insured is able to eventually return to work
-if the death is suicide or due to a pre existing condition
-when the policy is in the incontestability period
-for claims involving periodic payments
Answer for claims involving periodic payments
INSURERS MUST PAY LUMP SUM CLAIMS IMMEDIATELY AFTER RECEIVING
PROOF OF LOSS
, 6.What does coinsurance mean?
- a policy covers the insured and the any additional named persons
-the insurer and the insured share expenses over the deductible
-the insurer and the insured share ALL expenses
-the policy owner holds multiple policies through the same insurer
Answer The insurer and the insured share expenses over the deductible
COINSURANCE IS THE SHARING BETWEEN THE INSURER AND THE IN-
SURED OF COVERED EXPENSES THAT EXCEED THE DEDUCTIBLE AMOUNT
THE SHARING ENDS WHEN THE "STOP LOSS LIMIT" IS REACHED
7.The life insurance policy will not be truly effect until all of the following
occur EXCEPT
-the statement of good health is obtained by the insurer
-the first premium is collected
-the policy is delivered to the applicant
-the producer has explained the policy to the client
Answer -the producer has explained the policy to the client
EFFECTIVE DATE BASED ON
-APP DATE
-IF PREMIUM HAS BEEN PAID
-IF A STATEMENT OF GOOD HEALTH MUST BE OBTAINED IF PREMIUM WA
NOT SUBMITTED WITH APPLICATION
