Kentucky Health Insurance Exam with well Detailed
Explanations | Frequently Most Tested Questions with
100% Accurate Answers |Expert Guarantee Pass
,Graded A+ , Reviewed and well Rationalized |Newest
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1. All of the following statements about noncancel-
able policies are true EXCEPT
A. a noncancelable policy is also called a
noncancelable and guaranteed renewable
policy
B. the only right to cancel the noncancelable
policy is for nonpayment of premiums
C. the insurer may increase the premium rate after
the policy is in effect, provided it does so by
classes of insureds
D. the insurer may regain the right to cancel or
not to renew when the insured reaches an age
specified in the policy
C.
Rationale: The insurer can never increase the
premiums of a noncancelable policy. The
premiums of a guaranteed renewable policy
can be increased by classification.
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.
D. All of the above.
A.
Rationale: A compensable injury under workers'
compensation coverage must be accidental
in nature and arise in the course of
employment. The employment must be the
source of the accident.
3. For a contributory plan with some insurance com-
panies, if the employee does not apply within the
eligibility period, she
A. loses the opportunity to purchase group
insurance
B. must pay a penalty for applying late
C. may be required to take a medical exam, even
for a nonmedical plan
D. must wait a full year before being again eligible
to apply
C.
Rationale: In some cases, for a nonmedical
contributory plan, if the employee does not
apply for the coverage during the eligibility
period, a medical exam may be required if
the coverage is wanted later.
4. Twisting involves which of the following?
A. Failure to remit premiums to the insurance
company
B. Policy replacement
C. Splitting a commission with a client
D. Promising coverage that cannot be delivered
B.
Rationale: Twisting is policy replacement, generally
when a producer talks a policyowner into
lapse or surrender of an in-force policy so
another policy can be sold.
,5. The type of health care provider that provides both
health care services and health care coverage is a
A. preferred provider organization
B. health maintenance organization
C. Blue Cross/Blue Shield organization
D. traditional health insurance company
B.
Rationale: An HMO is a group of medical practitioners
who contract to provide medical services
at a negotiated price, so the group provides
both the coverage and the medical services.
6. Dread disease, travel accident, vision care, and
hospital indemnity policies are al examples of
A. LTC policies
B. limited policies
C. group policies
D. blanket policies
B.
Rationale: A limited policy is one that covers only a
limited, specific risk.
7. Which of the following are NOT eligible for
Medicare coverage?
A. People age 65 and older who are eligible for
Social Security
B. People age 65 and older not eligible for Social
Security, but willing to pay a monthly premium
C. People of any age who have been entitled to
disability benefits for 24 months
D. People with any life-threatening condition
D.
Life-threatening conditions are not an issue
in determining eligibility for Medicare,
whether through age or disability.
8. A company that is licensed to sell insurance in a
particular state is known as
, A. a domestic company
B. an alien company
C. a nonadmitted company
D. an authorized company
D.
Rationale: An authorized or admitted company is
one that is licensed to sell insurance in a
particular state.
9. Optional Provisions 1 and 2, addressing changes
of occupation and misstatement of age, permit the
insurer to do which of the following?
A. Cancel the policy
B. Request the insured to fill out a new
application to correct previous misstatements
or alter information that has changed since the
application was originally submitted
C. Charge a back-end premium to make up for the
premium the insurer would have charged had
the true situation been known
D. Pay indemnities equal to benefits that would
have been purchased at the premium paid had
the insurer known the facts when the premium
was established
D.
Rationale: The first 2 optional provisions allow
premium to be adjusted to reflect the true
risk to be covered by the policy.
10. What term describes the concept that the insurer
and the insured share in the cost of medical
expenses, with the insurer bearing the greater share?
A. Deductible
B. Stop-loss limit
C. Coinsurance
D. Benefit restoration
C.
Explanations | Frequently Most Tested Questions with
100% Accurate Answers |Expert Guarantee Pass
,Graded A+ , Reviewed and well Rationalized |Newest
Updated Version and Latest Exam!!!
1. All of the following statements about noncancel-
able policies are true EXCEPT
A. a noncancelable policy is also called a
noncancelable and guaranteed renewable
policy
B. the only right to cancel the noncancelable
policy is for nonpayment of premiums
C. the insurer may increase the premium rate after
the policy is in effect, provided it does so by
classes of insureds
D. the insurer may regain the right to cancel or
not to renew when the insured reaches an age
specified in the policy
C.
Rationale: The insurer can never increase the
premiums of a noncancelable policy. The
premiums of a guaranteed renewable policy
can be increased by classification.
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.
D. All of the above.
A.
Rationale: A compensable injury under workers'
compensation coverage must be accidental
in nature and arise in the course of
employment. The employment must be the
source of the accident.
3. For a contributory plan with some insurance com-
panies, if the employee does not apply within the
eligibility period, she
A. loses the opportunity to purchase group
insurance
B. must pay a penalty for applying late
C. may be required to take a medical exam, even
for a nonmedical plan
D. must wait a full year before being again eligible
to apply
C.
Rationale: In some cases, for a nonmedical
contributory plan, if the employee does not
apply for the coverage during the eligibility
period, a medical exam may be required if
the coverage is wanted later.
4. Twisting involves which of the following?
A. Failure to remit premiums to the insurance
company
B. Policy replacement
C. Splitting a commission with a client
D. Promising coverage that cannot be delivered
B.
Rationale: Twisting is policy replacement, generally
when a producer talks a policyowner into
lapse or surrender of an in-force policy so
another policy can be sold.
,5. The type of health care provider that provides both
health care services and health care coverage is a
A. preferred provider organization
B. health maintenance organization
C. Blue Cross/Blue Shield organization
D. traditional health insurance company
B.
Rationale: An HMO is a group of medical practitioners
who contract to provide medical services
at a negotiated price, so the group provides
both the coverage and the medical services.
6. Dread disease, travel accident, vision care, and
hospital indemnity policies are al examples of
A. LTC policies
B. limited policies
C. group policies
D. blanket policies
B.
Rationale: A limited policy is one that covers only a
limited, specific risk.
7. Which of the following are NOT eligible for
Medicare coverage?
A. People age 65 and older who are eligible for
Social Security
B. People age 65 and older not eligible for Social
Security, but willing to pay a monthly premium
C. People of any age who have been entitled to
disability benefits for 24 months
D. People with any life-threatening condition
D.
Life-threatening conditions are not an issue
in determining eligibility for Medicare,
whether through age or disability.
8. A company that is licensed to sell insurance in a
particular state is known as
, A. a domestic company
B. an alien company
C. a nonadmitted company
D. an authorized company
D.
Rationale: An authorized or admitted company is
one that is licensed to sell insurance in a
particular state.
9. Optional Provisions 1 and 2, addressing changes
of occupation and misstatement of age, permit the
insurer to do which of the following?
A. Cancel the policy
B. Request the insured to fill out a new
application to correct previous misstatements
or alter information that has changed since the
application was originally submitted
C. Charge a back-end premium to make up for the
premium the insurer would have charged had
the true situation been known
D. Pay indemnities equal to benefits that would
have been purchased at the premium paid had
the insurer known the facts when the premium
was established
D.
Rationale: The first 2 optional provisions allow
premium to be adjusted to reflect the true
risk to be covered by the policy.
10. What term describes the concept that the insurer
and the insured share in the cost of medical
expenses, with the insurer bearing the greater share?
A. Deductible
B. Stop-loss limit
C. Coinsurance
D. Benefit restoration
C.
