Accident and Health Insurance Exam
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
Which type of insurance provides income when an insured cannot work due to illness or injury?
A. Life insurance
✔✔B. Disability insurance
C. Property insurance
D. Liability insurance
What does an elimination period refer to in health insurance?
A. Time coverage ends
✔✔B. Waiting period before benefits begin
C. Policy renewal date
D. Claim filing deadline
Which policy pays benefits regardless of other coverage?
A. Reimbursement policy
✔✔B. Indemnity policy
C. Managed care policy
D. Group policy
What is the main purpose of accident insurance?
1
,A. Cover chronic illness
✔✔B. Cover injuries from accidents
C. Pay retirement income
D. Cover property loss
Which term describes the insured’s share of medical costs before benefits apply?
✔✔A. Deductible
B. Premium
C. Benefit
D. Rider
Which policy feature allows benefits to increase with inflation?
A. Waiver of premium
✔✔B. Cost-of-living adjustment
C. Exclusion clause
D. Grace period
What does a grace period allow the policyholder to do?
A. Increase coverage
B. File claims late
✔✔C. Pay premiums after due date
D. Cancel the policy
2
,Which accident policy pays a fixed amount per injury?
✔✔A. Specified injury policy
B. Major medical policy
C. Group health policy
D. HMO plan
What is the main function of underwriting?
A. Pay claims
✔✔B. Assess risk
C. Sell policies
D. Set hospital fees
Which provision prevents benefits from exceeding actual loss?
✔✔A. Coordination of benefits
B. Guaranteed renewability
C. Waiver of premium
D. Probationary period
Which term refers to false information on an insurance application?
A. Risk
✔✔B. Misrepresentation
C. Deductible
D. Fraud claim
3
, What does a policy rider do?
A. Cancel coverage
✔✔B. Modify coverage
C. Replace the policy
D. Reduce premiums
Which insurance pays benefits for loss of limbs or eyesight?
A. Disability income
✔✔B. Accidental death and dismemberment
C. Critical illness
D. Hospital indemnity
What is the primary purpose of a waiver of premium?
A. Increase benefits
✔✔B. Keep policy active during disability
C. Shorten elimination period
D. Reduce deductibles
Which policy is usually purchased by employers for employees?
A. Individual health
✔✔B. Group health
C. Travel insurance
4
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
Which type of insurance provides income when an insured cannot work due to illness or injury?
A. Life insurance
✔✔B. Disability insurance
C. Property insurance
D. Liability insurance
What does an elimination period refer to in health insurance?
A. Time coverage ends
✔✔B. Waiting period before benefits begin
C. Policy renewal date
D. Claim filing deadline
Which policy pays benefits regardless of other coverage?
A. Reimbursement policy
✔✔B. Indemnity policy
C. Managed care policy
D. Group policy
What is the main purpose of accident insurance?
1
,A. Cover chronic illness
✔✔B. Cover injuries from accidents
C. Pay retirement income
D. Cover property loss
Which term describes the insured’s share of medical costs before benefits apply?
✔✔A. Deductible
B. Premium
C. Benefit
D. Rider
Which policy feature allows benefits to increase with inflation?
A. Waiver of premium
✔✔B. Cost-of-living adjustment
C. Exclusion clause
D. Grace period
What does a grace period allow the policyholder to do?
A. Increase coverage
B. File claims late
✔✔C. Pay premiums after due date
D. Cancel the policy
2
,Which accident policy pays a fixed amount per injury?
✔✔A. Specified injury policy
B. Major medical policy
C. Group health policy
D. HMO plan
What is the main function of underwriting?
A. Pay claims
✔✔B. Assess risk
C. Sell policies
D. Set hospital fees
Which provision prevents benefits from exceeding actual loss?
✔✔A. Coordination of benefits
B. Guaranteed renewability
C. Waiver of premium
D. Probationary period
Which term refers to false information on an insurance application?
A. Risk
✔✔B. Misrepresentation
C. Deductible
D. Fraud claim
3
, What does a policy rider do?
A. Cancel coverage
✔✔B. Modify coverage
C. Replace the policy
D. Reduce premiums
Which insurance pays benefits for loss of limbs or eyesight?
A. Disability income
✔✔B. Accidental death and dismemberment
C. Critical illness
D. Hospital indemnity
What is the primary purpose of a waiver of premium?
A. Increase benefits
✔✔B. Keep policy active during disability
C. Shorten elimination period
D. Reduce deductibles
Which policy is usually purchased by employers for employees?
A. Individual health
✔✔B. Group health
C. Travel insurance
4
