ARKANSAS HEALTH INSURANCE Exam QUESTIONS AND CORRECT ANSWERS LATEST UPDATE JUST RELEASED THIS YEAR

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ARKANSAS HEALTH INSURANCE Exam QUESTIONS
AND CORRECT ANSWERS LATEST UPDATE JUST
RELEASED THIS YEAR


Question: What type of hospital policy pays a fixed amount each day that the insured is in the

hospital? - ANSWER✔✔Hospital indemnity




Question: What is the term for a period of time immediately following a disability during which

benefits are not payable? - ANSWER✔✔Elimination period




Question: What is the primary purpose of disability income insurance? - ANSWER✔✔To

replace income lost due to a disability




Question: Who are the parties in a group health contract? - ANSWER✔✔The employer and the

insurer

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Question: Under what type of care do insurers negotiate contracts with health care providers

to allow subscribers have access to health care services at a favorable cost? -

ANSWER✔✔Preferred Provider Organization (PPO)




Question: How are HMO territories typically divided? - ANSWER✔✔geographic areas




Question: Why do HMOs encourage members to get regular checkups? - ANSWER✔✔To help

catch health problems early when treatment has the greatest chance for success (i.e. preventive

care)




Question: Who chooses a primary care physician in an HMO plan? - ANSWER✔✔The individual

member




Question: What is a fee-for-service health plan? - ANSWER✔✔Under a fee-for-service plan,

providers receive payments for each service provided

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Question: What are the three types of basic medical expense insurance? -

ANSWER✔✔Hospital, surgical, and medical




Question: What is the capital sum in Accidental Death and Dismemberment (AD&D) coverage?

- ANSWER✔✔A percentage of the principle sum




Question: What is the main principle of an HMO plan? - ANSWER✔✔Preventive care




Question: In health insurance, what is considered a sickness? - ANSWER✔✔An illness that first

arises while the policy is in force




Question: What do individual insureds receive as proof of their group health coverage? -

ANSWER✔✔Certificate of insurance




Question: In what type of health plans are providers paid for services in advance, regardless of

the services provided? - ANSWER✔✔Prepaid plans

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Question: Can Alzheimer's disease be excluded from coverage under a long-term care policy? -

ANSWER✔✔No, organic cognitive disorders, such as Alzheimer's or Parkinson's must be covered




Question: With key person disability insurance, who pays the policy premiums? -

ANSWER✔✔The business (employer)




Question: What type of health insurance would pay for hiring a replacement for an important

employee who becomes disabled? - ANSWER✔✔Key-person disability insurance




Question: What are the two types of flexible spending accounts? - ANSWER✔✔Health care

accounts and dependent care accounts




Question: In order to be eligible for coverage by an HSA, an individual must also be covered by

what type of health plan? - ANSWER✔✔High deductible health plan (HDHP)




Question: What does the amount of disability benefit that an insured can receive depend on? -

ANSWER✔✔The insured's income at the time of policy application