HEALTH AND ACCIDENT INSURANCE
PRACTICE TEST EXAM WITH
COMPLETE SOLUTIONS
Which of the following is a true statement about dependent coverage on group health
policies?
Select one:
a. The dependent can be a natural child, step child or adopted child.
b. A child can be considered dependent after age 19 if he/she was disabled before that
time.
c. A child can be considered dependent after 19 if a full time student.
d. All of the above -ANSA dependent can be any of those listed. Usually coverage lasts
until they reach 19, but if the child was mentally or physically disabled prior to turning
19, or if the child is a full time student, coverage can be extended.
The correct answer is: All of the above
Which of the following is a benefit of a prescription drug policy?
Select one:
a. Prescriptions are usually free.
b. Prescriptions are for a set price.
c. Prescriptions are for a set, lower price.
d. Prescriptions can be refilled at any time. -ANSUnder a prescription policy,
prescription drugs are not only at a set price, but a much lower price - usually $2, $3 or
$5, regardless of the actual cost of the drug.
The correct answer is: Prescriptions are for a set, lower price.
Which of the following is part of the loss of earnings test for disability?
Select one:
a. Inability to perform duties of the insured's own occupation for 2 to 5 years
b. Inability to perform the duties of any suitable occupation
c. Both of the above
d. None of the above -ANSThe loss of earnings test for disability includes both the
inability to perform duties of the insured's own occupation for 2 to 5 years and the
inability to perform the duties of any suitable occupation.
The correct answer is: Both of the above
If, after a hearing, the Superintendent finds that an individual has engaged in an unfair
practice, the Superintendent can take all the following actions, EXCEPT:
Select one:
a. Suspend the individual's license
b. Revoke the individual's license
c. Assess a civil penalty
,d. Jail the individual -ANSWhen an individual is found to have committed an unfair trade
practice, the Superintendent has the power to revoke, suspend, refuse to issue or
renew, and assess civil penalties and administrative costs incurred by the department.
The correct answer is: Jail the individual
What benefits might your disability policy pay if you have experienced an accident, but
you can work part time as you recover fully?
Select one:
a. Regular benefits for the first six months and a reduced benefit thereafter
b. Partial benefits based on ability to perform certain duties
c. No benefits, since you can perform some of the duties of your occupation
d. A delayed benefit if your condition does not improve -ANSAnswer: C
For which of the following types of employees is an employer group health plan
considered the primary plan?
Select one:
a. Disabled employees
b. Employees with kidney failure
c. Employees age 65 or older
d. All of the above -ANSAnswer: A
A vision plan will usually include benefits for all of the following, EXCEPT:
Select one:
a. Annual eye examination
b. Eye surgery
c. Contact lenses
d. Eyeglass frames -ANSVision plans will include periodic eye exams, glasses, and
contacts.
The correct answer is: Eye surgery
Which of the following is one of the major differences between private and government
insurance?
Select one:
a. Private insurance can deny coverage to individuals.
b. Government insurance can be either federal or state.
c. Both private and government have disability coverage.
d. Government insurance is more efficiently run -ANSIn order to stay in business,
private insurance can deny coverage to high-risk individuals and minimize their losses.
The correct answer is: Private insurance can deny coverage to individuals.
Where must the wording 'Accident Only Plan' be prominently displayed on an accident
only policy?
Select one:
a. It must be in bold type in the exclusions section.
b. It must be in bold type in the time limit for certain defenses section.
c. It must be in bold type on the front page of the policy.
, d. It must be in bold type on a special insert before delivery. -ANSTo avoid confusion,
ACCIDENT ONLY or similar wording must be prominently displayed on the front page of
an accident policy.
The correct answer is: It must be in bold type on the front page of the policy.
All of the following are commonly used when investigating the insurability of an
applicant, EXCEPT:
Select one:
a. An attending physician's statement
b. A credit report
c. Contacting the Medical Information Bureau (MIB)
d. Talking to the neighborhood watch -ANSInsurers typically utilize the physician's
statement, credit report and MIB when determining insurability of an applicant. They do
not talk to the neighborhood watch.
The correct answer is: Talking to the neighborhood watch
Insurance contracts pay for losses on an:
Select one:
a. Indemnity basis
b. Cash payment basis
c. Valued basis
d. All of the above -ANSInsurance contracts pay for losses on an indemnity, valued or
cash basis.
The correct answer is: All of the above
Using an insurance license to sell mainly to relatives is referred to as:
Select one:
a. A familial business
b. An incestuous business
c. A paternal business
d. A controlled business -ANSAn agent is not allowed to use a license for the principal
purpose of procuring controlled business (insurance sold to relatives, employers, or
employees).
The correct answer is: A controlled business
When presenting long-term care or Medicare Supplement plans, it is necessary to
provide the prospect with a:
Select one:
a. Prefilled application form
b. A Shoppers Guide for the product presented
c. Illustrations with large print
d. Testimonials from other buyers -ANSA Shoppers Guide (Outline of Coverage) is
required for many sales to senior citizens.
The correct answer is: A Shoppers Guide for the product presented
PRACTICE TEST EXAM WITH
COMPLETE SOLUTIONS
Which of the following is a true statement about dependent coverage on group health
policies?
Select one:
a. The dependent can be a natural child, step child or adopted child.
b. A child can be considered dependent after age 19 if he/she was disabled before that
time.
c. A child can be considered dependent after 19 if a full time student.
d. All of the above -ANSA dependent can be any of those listed. Usually coverage lasts
until they reach 19, but if the child was mentally or physically disabled prior to turning
19, or if the child is a full time student, coverage can be extended.
The correct answer is: All of the above
Which of the following is a benefit of a prescription drug policy?
Select one:
a. Prescriptions are usually free.
b. Prescriptions are for a set price.
c. Prescriptions are for a set, lower price.
d. Prescriptions can be refilled at any time. -ANSUnder a prescription policy,
prescription drugs are not only at a set price, but a much lower price - usually $2, $3 or
$5, regardless of the actual cost of the drug.
The correct answer is: Prescriptions are for a set, lower price.
Which of the following is part of the loss of earnings test for disability?
Select one:
a. Inability to perform duties of the insured's own occupation for 2 to 5 years
b. Inability to perform the duties of any suitable occupation
c. Both of the above
d. None of the above -ANSThe loss of earnings test for disability includes both the
inability to perform duties of the insured's own occupation for 2 to 5 years and the
inability to perform the duties of any suitable occupation.
The correct answer is: Both of the above
If, after a hearing, the Superintendent finds that an individual has engaged in an unfair
practice, the Superintendent can take all the following actions, EXCEPT:
Select one:
a. Suspend the individual's license
b. Revoke the individual's license
c. Assess a civil penalty
,d. Jail the individual -ANSWhen an individual is found to have committed an unfair trade
practice, the Superintendent has the power to revoke, suspend, refuse to issue or
renew, and assess civil penalties and administrative costs incurred by the department.
The correct answer is: Jail the individual
What benefits might your disability policy pay if you have experienced an accident, but
you can work part time as you recover fully?
Select one:
a. Regular benefits for the first six months and a reduced benefit thereafter
b. Partial benefits based on ability to perform certain duties
c. No benefits, since you can perform some of the duties of your occupation
d. A delayed benefit if your condition does not improve -ANSAnswer: C
For which of the following types of employees is an employer group health plan
considered the primary plan?
Select one:
a. Disabled employees
b. Employees with kidney failure
c. Employees age 65 or older
d. All of the above -ANSAnswer: A
A vision plan will usually include benefits for all of the following, EXCEPT:
Select one:
a. Annual eye examination
b. Eye surgery
c. Contact lenses
d. Eyeglass frames -ANSVision plans will include periodic eye exams, glasses, and
contacts.
The correct answer is: Eye surgery
Which of the following is one of the major differences between private and government
insurance?
Select one:
a. Private insurance can deny coverage to individuals.
b. Government insurance can be either federal or state.
c. Both private and government have disability coverage.
d. Government insurance is more efficiently run -ANSIn order to stay in business,
private insurance can deny coverage to high-risk individuals and minimize their losses.
The correct answer is: Private insurance can deny coverage to individuals.
Where must the wording 'Accident Only Plan' be prominently displayed on an accident
only policy?
Select one:
a. It must be in bold type in the exclusions section.
b. It must be in bold type in the time limit for certain defenses section.
c. It must be in bold type on the front page of the policy.
, d. It must be in bold type on a special insert before delivery. -ANSTo avoid confusion,
ACCIDENT ONLY or similar wording must be prominently displayed on the front page of
an accident policy.
The correct answer is: It must be in bold type on the front page of the policy.
All of the following are commonly used when investigating the insurability of an
applicant, EXCEPT:
Select one:
a. An attending physician's statement
b. A credit report
c. Contacting the Medical Information Bureau (MIB)
d. Talking to the neighborhood watch -ANSInsurers typically utilize the physician's
statement, credit report and MIB when determining insurability of an applicant. They do
not talk to the neighborhood watch.
The correct answer is: Talking to the neighborhood watch
Insurance contracts pay for losses on an:
Select one:
a. Indemnity basis
b. Cash payment basis
c. Valued basis
d. All of the above -ANSInsurance contracts pay for losses on an indemnity, valued or
cash basis.
The correct answer is: All of the above
Using an insurance license to sell mainly to relatives is referred to as:
Select one:
a. A familial business
b. An incestuous business
c. A paternal business
d. A controlled business -ANSAn agent is not allowed to use a license for the principal
purpose of procuring controlled business (insurance sold to relatives, employers, or
employees).
The correct answer is: A controlled business
When presenting long-term care or Medicare Supplement plans, it is necessary to
provide the prospect with a:
Select one:
a. Prefilled application form
b. A Shoppers Guide for the product presented
c. Illustrations with large print
d. Testimonials from other buyers -ANSA Shoppers Guide (Outline of Coverage) is
required for many sales to senior citizens.
The correct answer is: A Shoppers Guide for the product presented
