Kentucky Health Insurance Exam
Questions and Answers Verified
Solutions
The full premium was submitted with the application for life insurance, and the policy
was issued two weeks later as requested. When does the policy become effective? A.
as of the application date
B. As of the policy delivery date
C. As of the first of the month after the policy issue date
D. As of the policy issue date - ANSWER-A. As of the application date
All of the following are true about group disability income insurance EXCEPT: A. The
waiting period starts at the onset of the injury or sickness.
B. The longer the waiting period, the lower the premium.
C. Coverage applies both on and off the job.
D. Benefits are usually short term. - ANSWER-C. Coverage applies both on and off the
job.
Under the age discrimination in employment act, if the obligation of the employer to
provide retiree health benefits, what will an individual younger than 65 receive in
benefits each year? A. one-fourth of the benefits required under the social security act.
B. at least 10,000. C. At least the value of the Social Security Benefits. D. The minimum
established by the employer - ANSWER-C. At least the value of the Social Security
benefits
Disability income policies can provide coverage for a loss of income when returning to
work only part-time after recovering from total disability. What is the benefit that is
based on the insured's loss of earnings after recovery from a disability? A. recurrent
disability B. partial disability C. income replacement D. Residual disability - ANSWER-D.
Residual disability
A producer is acting in what capacity when he or she is trying to obtain credible
information about an applicant for health insurance? A. office underwriter B. General
agent C. Consumer report investigator D. Field underwriter - ANSWER-D. Field
underwriter
Which of the following riders would NOT increase the premium for a policyowner? A.
impairment rider B. payor benefit rider C. Waiver of premium rider D. Multiple indemnity
rider - ANSWER-A. impairment rider
An insured wants to name her husband as the beneficiary of her health policy. She also
wishes to retain all of the rights of ownership. The insured should have her husband
, named as what type of beneficiary? A. Contingent B. Irrevocable C. Revocable D.
Primary - ANSWER-C. Revocable
Guarantee of insurability option in long-term care policies allows the insured to: A.
Secure the policy's nonforfeiture values regardless of the insured's age or health status.
A. Secure the policy's value regardless of the insured's age or health status. B. Increase
benefit levels without providing proof of insurability. C. Add dependents to the plan
without providing proof of their insurability. D. Replace the existing LTC policy based on
the original underwriting. - ANSWER-B. Increase benefit levels without providing proof
of insurability.
What is the maximum age for qualifying for a catastrophic plan? A. 26 B. 30 C. 45 D. 62
- ANSWER-B. 30
Which type of dental care would cover operative treatment of the mouth? A.
Endodontics B. Orthodontics C. Oral surgery D. Restoratvie - ANSWER-C. Oral surgery
Under a key person disability income policy, premium payments... A. Are made by the
business and are tax-deductible B. Are made by the business and are not tax
deductible. C. Are made by the employee and are not tax deductible D. Are made by
the employee and are tax free. - ANSWER-B. Are made by the business and are not tax
deductible.
Premium payments for personally-owned disability income policies are... A. Tax
deductible to the extent that they exceed 10% of the adjusted gross income of those
itemizing deductions. B. When the premiums and other unreimbursed medical expenses
exceed 5% of the employee's adjusted gross income. D. An employee's group medical
benefits are generally exempt from taxation as income. - ANSWER-D. An employee's
group medical benefits are generally exempt from taxation as income.
A business entity acting as an agent is required to obtain what kind of license? A. an
adjuster's license B. A broker's license C. An agent's license D. A consultant's license -
ANSWER-C. An agent's license
______ policies cover only those injuries and illnesses that occur outside of one's job.
A. Limited B. Nonoccupational C. Workers compensation D. Full coverage - ANSWER-
B. Non-occupation
HMOs that are patients' cooperatives are____while those owned by physicians are
typically______. A. For-profit, nonprofit B. Emergency facilities, routine outpatient
facilities C. Routine outpatient facilities, emergency facilities, D. Nonprofit, for-profit -
ANSWER-D. Nonprofit, for-profit
Which of the following is true regarding underwriting for a person with HIV? A. The
person may only be declined if he/she has symptoms. B. The person may not be
declined. C. A person may be declined for HIV but not AIDs. D. The person may be
Questions and Answers Verified
Solutions
The full premium was submitted with the application for life insurance, and the policy
was issued two weeks later as requested. When does the policy become effective? A.
as of the application date
B. As of the policy delivery date
C. As of the first of the month after the policy issue date
D. As of the policy issue date - ANSWER-A. As of the application date
All of the following are true about group disability income insurance EXCEPT: A. The
waiting period starts at the onset of the injury or sickness.
B. The longer the waiting period, the lower the premium.
C. Coverage applies both on and off the job.
D. Benefits are usually short term. - ANSWER-C. Coverage applies both on and off the
job.
Under the age discrimination in employment act, if the obligation of the employer to
provide retiree health benefits, what will an individual younger than 65 receive in
benefits each year? A. one-fourth of the benefits required under the social security act.
B. at least 10,000. C. At least the value of the Social Security Benefits. D. The minimum
established by the employer - ANSWER-C. At least the value of the Social Security
benefits
Disability income policies can provide coverage for a loss of income when returning to
work only part-time after recovering from total disability. What is the benefit that is
based on the insured's loss of earnings after recovery from a disability? A. recurrent
disability B. partial disability C. income replacement D. Residual disability - ANSWER-D.
Residual disability
A producer is acting in what capacity when he or she is trying to obtain credible
information about an applicant for health insurance? A. office underwriter B. General
agent C. Consumer report investigator D. Field underwriter - ANSWER-D. Field
underwriter
Which of the following riders would NOT increase the premium for a policyowner? A.
impairment rider B. payor benefit rider C. Waiver of premium rider D. Multiple indemnity
rider - ANSWER-A. impairment rider
An insured wants to name her husband as the beneficiary of her health policy. She also
wishes to retain all of the rights of ownership. The insured should have her husband
, named as what type of beneficiary? A. Contingent B. Irrevocable C. Revocable D.
Primary - ANSWER-C. Revocable
Guarantee of insurability option in long-term care policies allows the insured to: A.
Secure the policy's nonforfeiture values regardless of the insured's age or health status.
A. Secure the policy's value regardless of the insured's age or health status. B. Increase
benefit levels without providing proof of insurability. C. Add dependents to the plan
without providing proof of their insurability. D. Replace the existing LTC policy based on
the original underwriting. - ANSWER-B. Increase benefit levels without providing proof
of insurability.
What is the maximum age for qualifying for a catastrophic plan? A. 26 B. 30 C. 45 D. 62
- ANSWER-B. 30
Which type of dental care would cover operative treatment of the mouth? A.
Endodontics B. Orthodontics C. Oral surgery D. Restoratvie - ANSWER-C. Oral surgery
Under a key person disability income policy, premium payments... A. Are made by the
business and are tax-deductible B. Are made by the business and are not tax
deductible. C. Are made by the employee and are not tax deductible D. Are made by
the employee and are tax free. - ANSWER-B. Are made by the business and are not tax
deductible.
Premium payments for personally-owned disability income policies are... A. Tax
deductible to the extent that they exceed 10% of the adjusted gross income of those
itemizing deductions. B. When the premiums and other unreimbursed medical expenses
exceed 5% of the employee's adjusted gross income. D. An employee's group medical
benefits are generally exempt from taxation as income. - ANSWER-D. An employee's
group medical benefits are generally exempt from taxation as income.
A business entity acting as an agent is required to obtain what kind of license? A. an
adjuster's license B. A broker's license C. An agent's license D. A consultant's license -
ANSWER-C. An agent's license
______ policies cover only those injuries and illnesses that occur outside of one's job.
A. Limited B. Nonoccupational C. Workers compensation D. Full coverage - ANSWER-
B. Non-occupation
HMOs that are patients' cooperatives are____while those owned by physicians are
typically______. A. For-profit, nonprofit B. Emergency facilities, routine outpatient
facilities C. Routine outpatient facilities, emergency facilities, D. Nonprofit, for-profit -
ANSWER-D. Nonprofit, for-profit
Which of the following is true regarding underwriting for a person with HIV? A. The
person may only be declined if he/she has symptoms. B. The person may not be
declined. C. A person may be declined for HIV but not AIDs. D. The person may be
