Arkansas Health insurance exam ACTUAL
UPDATED QUESTIONS AND CORRECT
ANSWERS
If an agent makes a correction on the application for health insurance, who must initial the
correct answer? - CORRECT ANSWERS✅✅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 ANSWERS✅✅Application
What information are the members of the Medical Information Bureau required to report? -
CORRECT ANSWERS✅✅Adverse medical information about the applicants or insured.
When should an agent obtain a Statement of Good Health from the insured? - CORRECT
ANSWERS✅✅When the premium was paid upon policy delivery and not the time of
application.
What is the entire contract in health insurance underwriting? - CORRECT
ANSWERS✅✅The application and policy issued.
What entities make up the Medical Information Bureau? - CORRECT
ANSWERS✅✅Insurers
What is the best way to make a change on an application for insurance? - CORRECT
ANSWERS✅✅Start over with a fresh application
In health insurance, the policy itself and the insurance application form what? - CORRECT
ANSWERS✅✅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 ANSWERS✅✅The applicant
,Who must sign a health insurance application? - CORRECT ANSWERS✅✅The
policyowner, the insured (if different), and the agent
If an underwriter requires extensive information about the applicant's medical history, what
report will best serve this purpose? - CORRECT ANSWERS✅✅Attending Physicians
statement
Who is responsible for paying the cost of a medical examination required in the process of
underwriting? - CORRECT ANSWERS✅✅Insurer
Whose responsibility is it to inform an applicant for health insurance about the insurer's
information gathering practices? - CORRECT ANSWERS✅✅The agent
What type of hospital policy pays a fixed amount each day that the insured is in the hospital?
- CORRECT ANSWERS✅✅Hospital indemnity
What is the term for a period of time immediately following a disability during which
benefits are not payable? - CORRECT ANSWERS✅✅Elimination period
What is the primary purpose of disability income insurance? - CORRECT
ANSWERS✅✅To replace income lost due to a disability
Who are the parties in a group health contract? - CORRECT ANSWERS✅✅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
ANSWERS✅✅Preferred Provider Organization (PPO)
How are HMO territories typically divided? - CORRECT ANSWERS✅✅geographic areas
Why do HMOs encourage members to get regular checkups? - CORRECT
ANSWERS✅✅To help catch health problems early when treatment has the greatest chance
for success (i.e. preventive care)
, Who chooses a primary care physician in an HMO plan? - CORRECT ANSWERS✅✅The
individual member
What is a fee-for-service health plan? - CORRECT ANSWERS✅✅Under a fee-for-service
plan, providers receive payments for each service provided
What are the three types of basic medical expense insurance? - CORRECT
ANSWERS✅✅Hospital, surgical, and medical
What is the capital sum in Accidental Death and Dismemberment (AD&D) coverage? -
CORRECT ANSWERS✅✅A percentage of the principle sum
What is the main principle of an HMO plan? - CORRECT ANSWERS✅✅Preventive care
In health insurance, what is considered a sickness? - CORRECT ANSWERS✅✅An illness
that first arises while the policy is in force
What do individual insureds receive as proof of their group health coverage? - CORRECT
ANSWERS✅✅Certificate of insurance
In what type of health plans are providers paid for services in advance, regardless of the
services provided? - CORRECT ANSWERS✅✅Prepaid plans
Can Alzheimer's disease be excluded from coverage under a long-term care policy? -
CORRECT ANSWERS✅✅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
ANSWERS✅✅The business (employer)
What type of health insurance would pay for hiring a replacement for an important employee
who becomes disabled? - CORRECT ANSWERS✅✅Key-person disability insurance
UPDATED QUESTIONS AND CORRECT
ANSWERS
If an agent makes a correction on the application for health insurance, who must initial the
correct answer? - CORRECT ANSWERS✅✅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 ANSWERS✅✅Application
What information are the members of the Medical Information Bureau required to report? -
CORRECT ANSWERS✅✅Adverse medical information about the applicants or insured.
When should an agent obtain a Statement of Good Health from the insured? - CORRECT
ANSWERS✅✅When the premium was paid upon policy delivery and not the time of
application.
What is the entire contract in health insurance underwriting? - CORRECT
ANSWERS✅✅The application and policy issued.
What entities make up the Medical Information Bureau? - CORRECT
ANSWERS✅✅Insurers
What is the best way to make a change on an application for insurance? - CORRECT
ANSWERS✅✅Start over with a fresh application
In health insurance, the policy itself and the insurance application form what? - CORRECT
ANSWERS✅✅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 ANSWERS✅✅The applicant
,Who must sign a health insurance application? - CORRECT ANSWERS✅✅The
policyowner, the insured (if different), and the agent
If an underwriter requires extensive information about the applicant's medical history, what
report will best serve this purpose? - CORRECT ANSWERS✅✅Attending Physicians
statement
Who is responsible for paying the cost of a medical examination required in the process of
underwriting? - CORRECT ANSWERS✅✅Insurer
Whose responsibility is it to inform an applicant for health insurance about the insurer's
information gathering practices? - CORRECT ANSWERS✅✅The agent
What type of hospital policy pays a fixed amount each day that the insured is in the hospital?
- CORRECT ANSWERS✅✅Hospital indemnity
What is the term for a period of time immediately following a disability during which
benefits are not payable? - CORRECT ANSWERS✅✅Elimination period
What is the primary purpose of disability income insurance? - CORRECT
ANSWERS✅✅To replace income lost due to a disability
Who are the parties in a group health contract? - CORRECT ANSWERS✅✅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
ANSWERS✅✅Preferred Provider Organization (PPO)
How are HMO territories typically divided? - CORRECT ANSWERS✅✅geographic areas
Why do HMOs encourage members to get regular checkups? - CORRECT
ANSWERS✅✅To help catch health problems early when treatment has the greatest chance
for success (i.e. preventive care)
, Who chooses a primary care physician in an HMO plan? - CORRECT ANSWERS✅✅The
individual member
What is a fee-for-service health plan? - CORRECT ANSWERS✅✅Under a fee-for-service
plan, providers receive payments for each service provided
What are the three types of basic medical expense insurance? - CORRECT
ANSWERS✅✅Hospital, surgical, and medical
What is the capital sum in Accidental Death and Dismemberment (AD&D) coverage? -
CORRECT ANSWERS✅✅A percentage of the principle sum
What is the main principle of an HMO plan? - CORRECT ANSWERS✅✅Preventive care
In health insurance, what is considered a sickness? - CORRECT ANSWERS✅✅An illness
that first arises while the policy is in force
What do individual insureds receive as proof of their group health coverage? - CORRECT
ANSWERS✅✅Certificate of insurance
In what type of health plans are providers paid for services in advance, regardless of the
services provided? - CORRECT ANSWERS✅✅Prepaid plans
Can Alzheimer's disease be excluded from coverage under a long-term care policy? -
CORRECT ANSWERS✅✅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
ANSWERS✅✅The business (employer)
What type of health insurance would pay for hiring a replacement for an important employee
who becomes disabled? - CORRECT ANSWERS✅✅Key-person disability insurance
