Arkansas Health Insurance Exam (2 Different Versions) | All Questions And
Correct Answers | Graded A+ | Verified Answers
If an agent makes a correction on the application for health insurance, who must initial the correct
answer? - (CORRECT ANSWER)The applicant
What is the term used for a written request for an insurer to issue an insurance contract based on the
provided information? - (CORRECT ANSWER)Application
What information are the members of the Medical Information Bureau required to report? - (CORRECT
ANSWER)Adverse medical information about the applicants or insured.
When should an agent obtain a Statement of Good Health from the insured? - (CORRECT
ANSWER)When the premium was paid upon policy delivery and not the time of application.
What is the entire contract in health insurance underwriting? - (CORRECT ANSWER)The application and
policy issued.
What entities make up the Medical Information Bureau? - (CORRECT ANSWER)Insurers
What is the best way to make a change on an application for insurance? - (CORRECT ANSWER)Start over
with a fresh application
In health insurance, the policy itself and the insurance application form what? - (CORRECT ANSWER)The
entire contract
If an insurer decides to obtain medical information from different sources in order to determine the
insurability of an applicant, who must be notified of the investigation? - (CORRECT ANSWER)The
applicant
Who must sign a health insurance application? - (CORRECT ANSWER)The policyowner, the insured (if
different), and the agent
1
,If an underwriter requires extensive information about the applicant's medical history, what report will
best serve this purpose? - (CORRECT ANSWER)Attending Physicians statement
Who is responsible for paying the cost of a medical examination required in the process of
underwriting? - (CORRECT ANSWER)Insurer
Whose responsibility is it to inform an applicant for health insurance about the insurer's information
gathering practices? - (CORRECT ANSWER)The agent
What type of hospital policy pays a fixed amount each day that the insured is in the hospital? -
(CORRECT ANSWER)Hospital indemnity
What is the term for a period of time immediately following a disability during which benefits are not
payable? - (CORRECT ANSWER)Elimination period
What is the primary purpose of disability income insurance? - (CORRECT ANSWER)To replace income
lost due to a disability
Who are the parties in a group health contract? - (CORRECT ANSWER)The employer and the insurer
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? - (CORRECT ANSWER)Preferred Provider
Organization (PPO)
How are HMO territories typically divided? - (CORRECT ANSWER)geographic areas
Why do HMOs encourage members to get regular checkups? - (CORRECT ANSWER)To help catch health
problems early when treatment has the greatest chance for success (i.e. preventive care)
2
, Who chooses a primary care physician in an HMO plan? - (CORRECT ANSWER)The individual member
What is a fee-for-service health plan? - (CORRECT ANSWER)Under a fee-for-service plan, providers
receive payments for each service provided
What are the three types of basic medical expense insurance? - (CORRECT ANSWER)Hospital, surgical,
and medical
What is the capital sum in Accidental Death and Dismemberment (AD&D) coverage? - (CORRECT
ANSWER)A percentage of the principle sum
What is the main principle of an HMO plan? - (CORRECT ANSWER)Preventive care
In health insurance, what is considered a sickness? - (CORRECT ANSWER)An illness that first arises while
the policy is in force
What do individual insureds receive as proof of their group health coverage? - (CORRECT
ANSWER)Certificate of insurance
In what type of health plans are providers paid for services in advance, regardless of the services
provided? - (CORRECT ANSWER)Prepaid plans
Can Alzheimer's disease be excluded from coverage under a long-term care policy? - (CORRECT
ANSWER)No, organic cognitive disorders, such as Alzheimer's or Parkinson's must be covered
With key person disability insurance, who pays the policy premiums? - (CORRECT ANSWER)The business
(employer)
3
Correct Answers | Graded A+ | Verified Answers
If an agent makes a correction on the application for health insurance, who must initial the correct
answer? - (CORRECT ANSWER)The applicant
What is the term used for a written request for an insurer to issue an insurance contract based on the
provided information? - (CORRECT ANSWER)Application
What information are the members of the Medical Information Bureau required to report? - (CORRECT
ANSWER)Adverse medical information about the applicants or insured.
When should an agent obtain a Statement of Good Health from the insured? - (CORRECT
ANSWER)When the premium was paid upon policy delivery and not the time of application.
What is the entire contract in health insurance underwriting? - (CORRECT ANSWER)The application and
policy issued.
What entities make up the Medical Information Bureau? - (CORRECT ANSWER)Insurers
What is the best way to make a change on an application for insurance? - (CORRECT ANSWER)Start over
with a fresh application
In health insurance, the policy itself and the insurance application form what? - (CORRECT ANSWER)The
entire contract
If an insurer decides to obtain medical information from different sources in order to determine the
insurability of an applicant, who must be notified of the investigation? - (CORRECT ANSWER)The
applicant
Who must sign a health insurance application? - (CORRECT ANSWER)The policyowner, the insured (if
different), and the agent
1
,If an underwriter requires extensive information about the applicant's medical history, what report will
best serve this purpose? - (CORRECT ANSWER)Attending Physicians statement
Who is responsible for paying the cost of a medical examination required in the process of
underwriting? - (CORRECT ANSWER)Insurer
Whose responsibility is it to inform an applicant for health insurance about the insurer's information
gathering practices? - (CORRECT ANSWER)The agent
What type of hospital policy pays a fixed amount each day that the insured is in the hospital? -
(CORRECT ANSWER)Hospital indemnity
What is the term for a period of time immediately following a disability during which benefits are not
payable? - (CORRECT ANSWER)Elimination period
What is the primary purpose of disability income insurance? - (CORRECT ANSWER)To replace income
lost due to a disability
Who are the parties in a group health contract? - (CORRECT ANSWER)The employer and the insurer
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? - (CORRECT ANSWER)Preferred Provider
Organization (PPO)
How are HMO territories typically divided? - (CORRECT ANSWER)geographic areas
Why do HMOs encourage members to get regular checkups? - (CORRECT ANSWER)To help catch health
problems early when treatment has the greatest chance for success (i.e. preventive care)
2
, Who chooses a primary care physician in an HMO plan? - (CORRECT ANSWER)The individual member
What is a fee-for-service health plan? - (CORRECT ANSWER)Under a fee-for-service plan, providers
receive payments for each service provided
What are the three types of basic medical expense insurance? - (CORRECT ANSWER)Hospital, surgical,
and medical
What is the capital sum in Accidental Death and Dismemberment (AD&D) coverage? - (CORRECT
ANSWER)A percentage of the principle sum
What is the main principle of an HMO plan? - (CORRECT ANSWER)Preventive care
In health insurance, what is considered a sickness? - (CORRECT ANSWER)An illness that first arises while
the policy is in force
What do individual insureds receive as proof of their group health coverage? - (CORRECT
ANSWER)Certificate of insurance
In what type of health plans are providers paid for services in advance, regardless of the services
provided? - (CORRECT ANSWER)Prepaid plans
Can Alzheimer's disease be excluded from coverage under a long-term care policy? - (CORRECT
ANSWER)No, organic cognitive disorders, such as Alzheimer's or Parkinson's must be covered
With key person disability insurance, who pays the policy premiums? - (CORRECT ANSWER)The business
(employer)
3
