1|Page K E N T U C K Y H E A LT H I N S U R A N C E E X A M P R E P
Kentucky Health Insurance Exam Prep 2026–2027 |
Latest Questions & Answers PDF Study Guide
## EXAM COVERAGE
❖ Policy Provisions & Contract Law – Required/optional provisions, grace periods, reinstatement,
cancellation, renewal types, incontestability, free look, and entire contract clause
❖ Disability Income Insurance – Elimination periods, benefit periods, disability definitions, waiver of
premium, guaranteed insurability, and COLA riders
❖ Medical Expense & Major Medical – Deductibles, coinsurance, stoploss, inside limits, corridor
deductibles, UCR charges, and benefit restoration
❖ Group Health Insurance – Contributory/noncontributory plans, COBRA, HIPAA, coordination of
benefits, conversion, and METs
❖ Managed Care – HMOs, PPOs, POS plans, gatekeepers, capitation, utilization review, and TPAs
❖ Government Programs – Medicare Parts AD, Medigap, Medicaid, eligibility, and funding
❖ Workers Compensation – Compensable injuries, disability classifications, and extraterritorial provisions
❖ LongTerm Care – ADLs, cognitive impairment, facilityonly vs. comprehensive coverage
❖ Accident & Limited Policies – Accidental injury vs. accidental means, dread disease, hospital indemnity,
and credit health
❖ Beneficiaries & Ownership – Primary, contingent, irrevocable beneficiaries, and assignment
❖ Underwriting – Substandard risks, impairment riders, preexisting conditions, misrepresentation, and
concealment
❖ Federal & State Regulations – HIPAA, COBRA, ERISA, ACA, GINA, NAIC models, and privacy laws
,2|Page K E N T U C K Y H E A LT H I N S U R A N C E E X A M P R E P
1. A health insurance policy that the insurer may choose not to renew only on the premium due
date is called
A. A conditionally renewable policy
B. An optionally renewable policy
C. A cancellable policy
D. A guaranteed renewable policy
Correct Answer: A.
A conditionally renewable policy A conditionally renewable policy allows the insurer to decline
renewal only on the premium due date, typically under specific conditions stated in the policy.
2. Which of the following qualifies as a compensable injury under workers compensation
coverage?
A. A factory worker fractures an elbow while working overtime
B. An employee is struck by a car and seriously injured while walking back to work following a
lunch break
C. A worker is involved in an auto accident while driving to work
,3|Page K E N T U C K Y H E A LT H I N S U R A N C E E X A M P R E P
D. All of the above qualify
Correct Answer: A.
A factory worker fractures an elbow while working overtime Workers compensation covers
injuries that occur during the course of employment, and working overtime qualifies as
employmentrelated activity.
3. Which of the following represents certain consumer safeguards enacted by states and patterned
after a model act developed by NAIC?
A. Fair Credit Reporting Act
B. The MIB
C. Information and Privacy Protection Act
D. COBRA
Correct Answer: C.
, 4|Page K E N T U C K Y H E A LT H I N S U R A N C E E X A M P R E P
Information and Privacy Protection Act This act was developed by the NAIC as a model to
protect consumer privacy and regulate the collection and use of personal information in
insurance transactions.
4. The optional short term disability income benefit that pays a lump sum for specified injuries is
called the
A. Hospital income benefit
B. Elective indemnity benefit
C. Supplemental income benefit
D. Partial disability benefit
Correct Answer: B.
Elective indemnity benefit This benefit provides a specified lump sum payment for listed
injuries, such as loss of limb or sight, without requiring proof of actual income loss.
Kentucky Health Insurance Exam Prep 2026–2027 |
Latest Questions & Answers PDF Study Guide
## EXAM COVERAGE
❖ Policy Provisions & Contract Law – Required/optional provisions, grace periods, reinstatement,
cancellation, renewal types, incontestability, free look, and entire contract clause
❖ Disability Income Insurance – Elimination periods, benefit periods, disability definitions, waiver of
premium, guaranteed insurability, and COLA riders
❖ Medical Expense & Major Medical – Deductibles, coinsurance, stoploss, inside limits, corridor
deductibles, UCR charges, and benefit restoration
❖ Group Health Insurance – Contributory/noncontributory plans, COBRA, HIPAA, coordination of
benefits, conversion, and METs
❖ Managed Care – HMOs, PPOs, POS plans, gatekeepers, capitation, utilization review, and TPAs
❖ Government Programs – Medicare Parts AD, Medigap, Medicaid, eligibility, and funding
❖ Workers Compensation – Compensable injuries, disability classifications, and extraterritorial provisions
❖ LongTerm Care – ADLs, cognitive impairment, facilityonly vs. comprehensive coverage
❖ Accident & Limited Policies – Accidental injury vs. accidental means, dread disease, hospital indemnity,
and credit health
❖ Beneficiaries & Ownership – Primary, contingent, irrevocable beneficiaries, and assignment
❖ Underwriting – Substandard risks, impairment riders, preexisting conditions, misrepresentation, and
concealment
❖ Federal & State Regulations – HIPAA, COBRA, ERISA, ACA, GINA, NAIC models, and privacy laws
,2|Page K E N T U C K Y H E A LT H I N S U R A N C E E X A M P R E P
1. A health insurance policy that the insurer may choose not to renew only on the premium due
date is called
A. A conditionally renewable policy
B. An optionally renewable policy
C. A cancellable policy
D. A guaranteed renewable policy
Correct Answer: A.
A conditionally renewable policy A conditionally renewable policy allows the insurer to decline
renewal only on the premium due date, typically under specific conditions stated in the policy.
2. Which of the following qualifies as a compensable injury under workers compensation
coverage?
A. A factory worker fractures an elbow while working overtime
B. An employee is struck by a car and seriously injured while walking back to work following a
lunch break
C. A worker is involved in an auto accident while driving to work
,3|Page K E N T U C K Y H E A LT H I N S U R A N C E E X A M P R E P
D. All of the above qualify
Correct Answer: A.
A factory worker fractures an elbow while working overtime Workers compensation covers
injuries that occur during the course of employment, and working overtime qualifies as
employmentrelated activity.
3. Which of the following represents certain consumer safeguards enacted by states and patterned
after a model act developed by NAIC?
A. Fair Credit Reporting Act
B. The MIB
C. Information and Privacy Protection Act
D. COBRA
Correct Answer: C.
, 4|Page K E N T U C K Y H E A LT H I N S U R A N C E E X A M P R E P
Information and Privacy Protection Act This act was developed by the NAIC as a model to
protect consumer privacy and regulate the collection and use of personal information in
insurance transactions.
4. The optional short term disability income benefit that pays a lump sum for specified injuries is
called the
A. Hospital income benefit
B. Elective indemnity benefit
C. Supplemental income benefit
D. Partial disability benefit
Correct Answer: B.
Elective indemnity benefit This benefit provides a specified lump sum payment for listed
injuries, such as loss of limb or sight, without requiring proof of actual income loss.
