ARKANSAS HEALTH INSURANCE EXAM
2025 QUESTIONS WITH ANSWERS.
Which of the following statements is CORRECT regarding an individual
applying for life or health insurance? - correct answer - The applicant's medical
history may be analyzed and reported
One or more necessary or appropriate diagnostic, preventive, therapeutic,
rehabilitative, maintenance, or personal care services in a setting other than an
acute care unit of a hospital is provided by: - correct answer -Long-term care
insurance
The Federal Employees Benefit Program consists of two types of health plans
for federal civilian employees. The two plans are fee- for-service and: - correct
answer -Prepaid
An insurer's ability to make unpredictable payouts to policyowners is called: -
correct answer -Liquidity
Why are dividends from a mutual insurer not subject to taxation? - correct
answer -Because dividends are considered to be a return of premium
What is the elimination period of an individual disability policy? - correct
,answer -Time period a disabled person must wait before benefits are paid
Defamation occurs when a producer makes a false statement intended to: -
correct answer -Malign another insurer
Which situation would qualify an individual for receiving benefits from a
qualifies long-term care policy? - correct answer - Becoming cognitively
impaired
Which of the following is present when an applicant stands to lose value if the
insured dies? - correct answer -Insurable interest
A proposed insured for a health insurance policy was treated for heart disease
within the past year. When applying for health insurance, the heart disease
treatment: - correct answer - Indicates a pre-existing condition
Under a disability income policy, which provision would be payable if the
cause of an injury is unexpected and accidental? - correct answer -Accidental
bodily injury provision
A person covered with an individual health plan: - correct answer - is issued a
policy
,Field underwriting performed by the producer involves: - correct answer -
Completing the application and collecting initial premium
When an insured has a major medical plan with first dollar coverage, how does
this impact the benefits paid? - correct answer -No deductible payment is
required
A Medicare Supplement Policy is - correct answer -Designed to fill in the gaps
of Part A and Part B Medicare
An example of an unfair claims settlement practice is: - correct answer -
Turning down a claim without providing the basis of denial
The difference between pre-certification and concurrent review is that pre-
certification: - correct answer -Occurs before the treatment is provided
Which of the following actions may an insurance company NOT do in an
health policy that contains a guaranteed renewable premium benefit? - correct
answer -Increase the premiums on an individual basis
Which is NOT a qualification for establishing a health savings account (HSA)?
- correct answer -Enrolled in a health plan with a prescription drug benefit
, In an employer-sponsored group accident and health plan, a master contract is
issued to the: - correct answer -Employer
All of these are considered key factors in underwriting health insurance
EXCEPT: - correct answer -Marital status
Karen is a producer who has obtained personal information about a client
without having a legitimate reason to do so. Under the McCarran-Ferguson
Act, what is the minimum penalty for this? - correct answer -$10,000
The election of COBRA for continuation of health coverage will: - correct
answer -Maintain the same coverage and increase premium
A health insurance policy where the insurer has the right to terminate the
policy for reasons other than the insured's health is called: - correct answer -
Conditionally renewable
Bob and Tim start a business. Since each partner contributes an important
element to the success of the business, they decide to take life insurance
policies out on each other, and name each other as beneficiaries. Eventually,
they retire and dissolve the business. Bob dies 12 months later. The policies
continue in force with no change. Both partners are still married at the time of
Bob's death. In this situation, who will receive Bob's policy proceeds? - correct
answer -Tom
2025 QUESTIONS WITH ANSWERS.
Which of the following statements is CORRECT regarding an individual
applying for life or health insurance? - correct answer - The applicant's medical
history may be analyzed and reported
One or more necessary or appropriate diagnostic, preventive, therapeutic,
rehabilitative, maintenance, or personal care services in a setting other than an
acute care unit of a hospital is provided by: - correct answer -Long-term care
insurance
The Federal Employees Benefit Program consists of two types of health plans
for federal civilian employees. The two plans are fee- for-service and: - correct
answer -Prepaid
An insurer's ability to make unpredictable payouts to policyowners is called: -
correct answer -Liquidity
Why are dividends from a mutual insurer not subject to taxation? - correct
answer -Because dividends are considered to be a return of premium
What is the elimination period of an individual disability policy? - correct
,answer -Time period a disabled person must wait before benefits are paid
Defamation occurs when a producer makes a false statement intended to: -
correct answer -Malign another insurer
Which situation would qualify an individual for receiving benefits from a
qualifies long-term care policy? - correct answer - Becoming cognitively
impaired
Which of the following is present when an applicant stands to lose value if the
insured dies? - correct answer -Insurable interest
A proposed insured for a health insurance policy was treated for heart disease
within the past year. When applying for health insurance, the heart disease
treatment: - correct answer - Indicates a pre-existing condition
Under a disability income policy, which provision would be payable if the
cause of an injury is unexpected and accidental? - correct answer -Accidental
bodily injury provision
A person covered with an individual health plan: - correct answer - is issued a
policy
,Field underwriting performed by the producer involves: - correct answer -
Completing the application and collecting initial premium
When an insured has a major medical plan with first dollar coverage, how does
this impact the benefits paid? - correct answer -No deductible payment is
required
A Medicare Supplement Policy is - correct answer -Designed to fill in the gaps
of Part A and Part B Medicare
An example of an unfair claims settlement practice is: - correct answer -
Turning down a claim without providing the basis of denial
The difference between pre-certification and concurrent review is that pre-
certification: - correct answer -Occurs before the treatment is provided
Which of the following actions may an insurance company NOT do in an
health policy that contains a guaranteed renewable premium benefit? - correct
answer -Increase the premiums on an individual basis
Which is NOT a qualification for establishing a health savings account (HSA)?
- correct answer -Enrolled in a health plan with a prescription drug benefit
, In an employer-sponsored group accident and health plan, a master contract is
issued to the: - correct answer -Employer
All of these are considered key factors in underwriting health insurance
EXCEPT: - correct answer -Marital status
Karen is a producer who has obtained personal information about a client
without having a legitimate reason to do so. Under the McCarran-Ferguson
Act, what is the minimum penalty for this? - correct answer -$10,000
The election of COBRA for continuation of health coverage will: - correct
answer -Maintain the same coverage and increase premium
A health insurance policy where the insurer has the right to terminate the
policy for reasons other than the insured's health is called: - correct answer -
Conditionally renewable
Bob and Tim start a business. Since each partner contributes an important
element to the success of the business, they decide to take life insurance
policies out on each other, and name each other as beneficiaries. Eventually,
they retire and dissolve the business. Bob dies 12 months later. The policies
continue in force with no change. Both partners are still married at the time of
Bob's death. In this situation, who will receive Bob's policy proceeds? - correct
answer -Tom
