KENTUCKY HEALTH INSURANCE REAL EXAN 120 QUESTONS
AND CORRECT ANSWERS 2024-2025 LATEST
VERSION//ALREADY GRADED A+
Who is required to sign the application for life insurance? - CORRECT ANSWER-Both the agent and the
proposed insured (usually the applicant) must sign the application.
At what point does coverage begin when an agent issues a conditional reciept? - CORRECT ANSWER-The
conditional receipt says that coverage will be effective either on the date of the application or the date
of the medical exam, whichever occurs last.
Who is responsible for delivering the policy to the insured and collecting the premium? - CORRECT
ANSWER-The agent
What must the producer do if the premium does not accompany the application? - CORRECT ANSWER-
Collect the premium and obtain a statement of continued good heath from the applicant before
releasing the policy.
What is an attending physician's statement and when is it required? - CORRECT ANSWER-An attending
physician's statement is issued by a medical practitioner who treated the applicant for a prior medical
problem. It may be required for applicants of higher amounts of coverage, or if the application raised
additional questions concerning the prospective insured's health.
How can an insurance company use the information it obtains from the MIB? - CORRECT ANSWER-it can
use MIB information to conduct further investigation into an applicants current insurability.
What is the purpose of Fair Credit Reporting Act? - CORRECT ANSWER-It protects consumers against
circulation of inaccurate and obsolete information
What is the difference between consumer report and investigative consumer report? - CORRECT
ANSWER-Investigative consumer reports are similar to consumer reports in that they also provide
information on the consumer's character, reputation, and habits. The primary difference is that the
information is obtained through an investigation and interviews with associates, friends, and neighbors
of the consumer.
, What risk classification typically qualifies for lower premiums? - CORRECT ANSWER-Preferred risks
reflect a reduced risk of loss and are covered at a reduced rate.
How does substandard risk policy differ from a standard risk? - CORRECT ANSWER-Substandard risk
applicants are not acceptable at standard rates because of physical condition, personal or family history
of disease, occupation, or dangerous habit. These policies could be issued with the premium rated-up
(higher than the standard risk).
When would an insured be required to sign a statement of good health? - CORRECT ANSWER-If the
initial premium is not paid with the application, the agent may need to obtain the statement of good
health at policy delivery.
What is the purpose of a policy fee? - CORRECT ANSWER-To help offset the expense of the insurer's
costs.
In group health insurance, what does the employee receive which shows the amount of coverage? -
CORRECT ANSWER-The individuals covered under the insurance contract are issued certificates of
insurance.
According to the coordination benefits (COB) provision, if both parents have coverage where they are
employed, under whom will the children be covered? - CORRECT ANSWER-If both parents name their
children as dependents under their group policies, the order of payment will usually be determined by
the birthday rule: the coverage of the parent whose birthday is the earliest in the year will be considered
primary.
Under COBRA, when are dependents covered and for how long? - CORRECT ANSWER-COBRA requires
any employer with 20 or more employees to extend group health coverage to terminated employees
and their families after a qualifying event. For any of these qualifying events, coverage is extended up to
18 months.
Describe the function of Americans with Disabilities Act? - CORRECT ANSWER-To prevent employers
from rejecting job applicants who have disabilities in an attempt to keep group healthcare benefit costs
low.
AND CORRECT ANSWERS 2024-2025 LATEST
VERSION//ALREADY GRADED A+
Who is required to sign the application for life insurance? - CORRECT ANSWER-Both the agent and the
proposed insured (usually the applicant) must sign the application.
At what point does coverage begin when an agent issues a conditional reciept? - CORRECT ANSWER-The
conditional receipt says that coverage will be effective either on the date of the application or the date
of the medical exam, whichever occurs last.
Who is responsible for delivering the policy to the insured and collecting the premium? - CORRECT
ANSWER-The agent
What must the producer do if the premium does not accompany the application? - CORRECT ANSWER-
Collect the premium and obtain a statement of continued good heath from the applicant before
releasing the policy.
What is an attending physician's statement and when is it required? - CORRECT ANSWER-An attending
physician's statement is issued by a medical practitioner who treated the applicant for a prior medical
problem. It may be required for applicants of higher amounts of coverage, or if the application raised
additional questions concerning the prospective insured's health.
How can an insurance company use the information it obtains from the MIB? - CORRECT ANSWER-it can
use MIB information to conduct further investigation into an applicants current insurability.
What is the purpose of Fair Credit Reporting Act? - CORRECT ANSWER-It protects consumers against
circulation of inaccurate and obsolete information
What is the difference between consumer report and investigative consumer report? - CORRECT
ANSWER-Investigative consumer reports are similar to consumer reports in that they also provide
information on the consumer's character, reputation, and habits. The primary difference is that the
information is obtained through an investigation and interviews with associates, friends, and neighbors
of the consumer.
, What risk classification typically qualifies for lower premiums? - CORRECT ANSWER-Preferred risks
reflect a reduced risk of loss and are covered at a reduced rate.
How does substandard risk policy differ from a standard risk? - CORRECT ANSWER-Substandard risk
applicants are not acceptable at standard rates because of physical condition, personal or family history
of disease, occupation, or dangerous habit. These policies could be issued with the premium rated-up
(higher than the standard risk).
When would an insured be required to sign a statement of good health? - CORRECT ANSWER-If the
initial premium is not paid with the application, the agent may need to obtain the statement of good
health at policy delivery.
What is the purpose of a policy fee? - CORRECT ANSWER-To help offset the expense of the insurer's
costs.
In group health insurance, what does the employee receive which shows the amount of coverage? -
CORRECT ANSWER-The individuals covered under the insurance contract are issued certificates of
insurance.
According to the coordination benefits (COB) provision, if both parents have coverage where they are
employed, under whom will the children be covered? - CORRECT ANSWER-If both parents name their
children as dependents under their group policies, the order of payment will usually be determined by
the birthday rule: the coverage of the parent whose birthday is the earliest in the year will be considered
primary.
Under COBRA, when are dependents covered and for how long? - CORRECT ANSWER-COBRA requires
any employer with 20 or more employees to extend group health coverage to terminated employees
and their families after a qualifying event. For any of these qualifying events, coverage is extended up to
18 months.
Describe the function of Americans with Disabilities Act? - CORRECT ANSWER-To prevent employers
from rejecting job applicants who have disabilities in an attempt to keep group healthcare benefit costs
low.
