2025 KENTUCKY HEALTH INSURANCE EXAM QUESTION
WITH ANSWERS 2025/2026
A. An irrevocable beneficiary - Brenda Names her husband as the beneficiary of the
accidental death benefit in her health policy. She has relinquished her right to change
the beneficiary designation. According to Required Provision 12, Brenda's husband is
A. An irrevocable beneficiary
B. Revocable Beneficiary
C. Contingent Beneficiary
D. A tertiary beneficiary
A. 20,000 - Under a credit health policy, what is the maximum amount of any accidental
death benefit included?
A. 20,000
B. the amount of the oringal indebtedness
C. The amount of the outstanding indebtedness at any given time
D. A specified multiple of the monthly loan payment
B. Reserves - The factor in premium computation that has to do with the record keeping
and statistical analysis insurance companies preform is
A. Expense Loading
B. Reserves
C. Experience
D. Policy Fees
C. Partially Disabled - Before Cranston was disabled, he was a full-time engineer
earning about 70,000 annually. Now, two years later he is able to work part-time.
earning about 25,000 annually. It is likely that Cranston would be classified as
A. totally and permanently disabled
B. recurrently disabled
C. partially disabled
,D. not disabled at all
B. Conversion generally must be within 31 days after the family coverage ends and the
individual must provide evidence of insurability - Select the correct statement about
converting from a family policy to an individual policy
A. Usually, a conversion may be made without evidence of insurability if the individual
does within 31 days after the family coverage ends
B. Conversion generally must be within 31 days after the family coverage ends and the
individual must provide evidence of insurability
C. Generally, conversion may be made anytime within the 365 days following the
individuals 19th birthday without evidence of insurability 31 days after that, the individual
may convert, but evidence of insurability will be required
D. Usually, no evidence of insurability is required if the individual is a full time student at
a recognized insinuation or higher education and makes the conversion within 31 days
of graduation
B. Social security payroll taxes - Primary support for Medicare Part A comes from
A. General tax revenues
B. Social security payroll taxes
C. Private funding
D. A combination of the above
D. Designated Charges - When medical expenses policies do not state any specific
dollar amount, but instead base payments upon the charges for like services in the
same geographical area, benefits are designated as which of the following?
A. Usual, customary and reasonable charges
B. Stated charges
C. Percentage of Stated Charges
D. Designated Charges
C. Less costly and have more liberal provisions - As compared to individual disability
income policies, group disability income policies are generally
, A. More costly and have less liberal provisions
B. More restrictive in terms of covered medical expense
C. less costly and have more liberal provisions
D. Tied more closely to Social Security disability benefits
B. One year from the time proof is otherwise required - Required provisions 7 indicated
that except in the absence of the insured's legal capacity, if it was not reasonably
possible for the insured to provide proof of loss as required in a policy, the latest time
the proof of loss may be furnished is
A. three years from the time proof is otherwise required
B. On year from the time proof is otherwise required
C. within 90 days of a final notice from the insurer
D. unlimited
D. Stop-Loss Limit - Many major medical policies include a provision whereby when
expenses reach a certain dollar amount, the insured no longer shares in the costs of the
expenses; the insurer pays 100% of the remaining covered charges. This is referred to
as the
A. maximum benefit
B. benefit restoration
C. coinsurance percentage
D. stop loss limit
A. Collateral Assignment - What term describes a situation where a policy owner
transfers a potion of his or her rights in an insurance policy to another party in order to
secure a debt to that party?
A. Collateral Assignment
B. Absolute Assignment
C. Transfer Assignment
D. Accumulations Assignment
WITH ANSWERS 2025/2026
A. An irrevocable beneficiary - Brenda Names her husband as the beneficiary of the
accidental death benefit in her health policy. She has relinquished her right to change
the beneficiary designation. According to Required Provision 12, Brenda's husband is
A. An irrevocable beneficiary
B. Revocable Beneficiary
C. Contingent Beneficiary
D. A tertiary beneficiary
A. 20,000 - Under a credit health policy, what is the maximum amount of any accidental
death benefit included?
A. 20,000
B. the amount of the oringal indebtedness
C. The amount of the outstanding indebtedness at any given time
D. A specified multiple of the monthly loan payment
B. Reserves - The factor in premium computation that has to do with the record keeping
and statistical analysis insurance companies preform is
A. Expense Loading
B. Reserves
C. Experience
D. Policy Fees
C. Partially Disabled - Before Cranston was disabled, he was a full-time engineer
earning about 70,000 annually. Now, two years later he is able to work part-time.
earning about 25,000 annually. It is likely that Cranston would be classified as
A. totally and permanently disabled
B. recurrently disabled
C. partially disabled
,D. not disabled at all
B. Conversion generally must be within 31 days after the family coverage ends and the
individual must provide evidence of insurability - Select the correct statement about
converting from a family policy to an individual policy
A. Usually, a conversion may be made without evidence of insurability if the individual
does within 31 days after the family coverage ends
B. Conversion generally must be within 31 days after the family coverage ends and the
individual must provide evidence of insurability
C. Generally, conversion may be made anytime within the 365 days following the
individuals 19th birthday without evidence of insurability 31 days after that, the individual
may convert, but evidence of insurability will be required
D. Usually, no evidence of insurability is required if the individual is a full time student at
a recognized insinuation or higher education and makes the conversion within 31 days
of graduation
B. Social security payroll taxes - Primary support for Medicare Part A comes from
A. General tax revenues
B. Social security payroll taxes
C. Private funding
D. A combination of the above
D. Designated Charges - When medical expenses policies do not state any specific
dollar amount, but instead base payments upon the charges for like services in the
same geographical area, benefits are designated as which of the following?
A. Usual, customary and reasonable charges
B. Stated charges
C. Percentage of Stated Charges
D. Designated Charges
C. Less costly and have more liberal provisions - As compared to individual disability
income policies, group disability income policies are generally
, A. More costly and have less liberal provisions
B. More restrictive in terms of covered medical expense
C. less costly and have more liberal provisions
D. Tied more closely to Social Security disability benefits
B. One year from the time proof is otherwise required - Required provisions 7 indicated
that except in the absence of the insured's legal capacity, if it was not reasonably
possible for the insured to provide proof of loss as required in a policy, the latest time
the proof of loss may be furnished is
A. three years from the time proof is otherwise required
B. On year from the time proof is otherwise required
C. within 90 days of a final notice from the insurer
D. unlimited
D. Stop-Loss Limit - Many major medical policies include a provision whereby when
expenses reach a certain dollar amount, the insured no longer shares in the costs of the
expenses; the insurer pays 100% of the remaining covered charges. This is referred to
as the
A. maximum benefit
B. benefit restoration
C. coinsurance percentage
D. stop loss limit
A. Collateral Assignment - What term describes a situation where a policy owner
transfers a potion of his or her rights in an insurance policy to another party in order to
secure a debt to that party?
A. Collateral Assignment
B. Absolute Assignment
C. Transfer Assignment
D. Accumulations Assignment
