Life Health and Accident Insurance, Practice Test Questions With Correct Answers Latest Updated 2024/2025 | Graded A+

Life Health and Accident Insurance, Practice Test Questions With Correct Answers Latest Updated 2024/2025 | Graded A+. Which of the following is a true statement about dependent coverage on group health policies? Select one: a. The dependent can be a natural child, step child or adopted child. b. A child can be considered dependent after age 19 if he/she was disabled before that time. c. A child can be considered dependent after 19 if a full time student. d. All of the above: A dependent can be any of those listed. Usually coverage lasts until they reach 19, but if the child was mentally or physically disabled prior to turning19, or if the child is a full time student, coverage can be extended. The correct answer is: All of the above 2. Which of the following is a benefit of a prescription drug policy? Select one: a. Prescriptions are usually free. b. Prescriptions are for a set price. Health and Accident Insurance Practice Test Questions With Correct Answers Latest Updated 2024/2025 | Graded A+ 2 / 25 c. Prescriptions are for a set, lower price. d. Prescriptions can be refilled at any time.: Under a prescription policy, prescription drugs are not only at a set price, but a much lower price - usually $2, $3 or $5, regardless of the actual cost of the drug. The correct answer is: Prescriptions are for a set, lower price. 3. Which of the following is part of the loss of earnings test for disability? Select one: a. Inability to perform duties of the insured's own occupation for 2 to 5 years b. Inability to perform the duties of any suitable occupation c. Both of the above d. None of the above: The loss of earnings test for disability includes both the inability to perform duties of the insured's own occupation for 2 to 5 years and the inability to perform the duties of any suitable occupation. The correct answer is: Both of the above 4. If, after a hearing, the Superintendent finds that an individual has engaged in an unfair practice, the Superintendent can take all the following actions, EXCEPT: 3 / 25 Select one: a. Suspend the individual's license b. Revoke the individual's license c. Assess a civil penalty d. Jail the individual: When an individual is found to have committed an unfair trade practice, the Superintendent has the power to revoke, suspend, refuse to issue or renew, and assess civil penalties and administrative costs incurred by the 4 / 25 department. The correct answer is: Jail the individual 5. What benefits might your disability policy pay if you have experienced an accident, but you can work part time as you recover fully? Select one: a. Regular benefits for the first six months and a reduced benefit thereafter b. Partial benefits based on ability to perform certain duties c. No benefits, since you can perform some of the duties of your occupation d. A delayed benefit if your condition does not improve: Answer: C 6. For which of the following types of employees is an employer group health plan considered the primary plan? Select one: a. Disabled employees b. Employees with kidney failure c. Employees age 65 or older d. All of the above: Answer: A 7. A vision plan will usually include benefits for all of the following, EXCEPT: Select one: a. Annual eye examination 5 / 25 b. Eye surgery c. Contact lenses d. Eyeglass frames: Vision plans will include periodic eye exams, glasses, and contacts. The correct answer is: Eye surgery 8. Which of the following is one of the major differences between private and government insurance? Select one: a. Private insurance can deny coverage to individuals. b. Government insurance can be either federal or state. c. Both private and government have disability coverage. d. Government insurance is more efficiently run: In order to stay in business, private insurance can deny coverage to high-risk individuals and minimize their losses. The correct answer is: Private insurance can deny coverage to individuals. 9. Where must the wording 'Accident Only Plan' be prominently displayed on an accident only policy? Select one: a. It must be in bold type in the exclusions section. 6 / 25 b. It must be in bold type in the time limit for certain defenses section. 7 / 25 c. It must be in bold type on the front page of the policy. d. It must be in bold type on a special insert before delivery.: To avoid confusionACCIDENT ONLY or similar wording must be prominently displayed on the front page of an accident policy. The correct answer is: It must be in bold type on the front page of the policy. 10. All of the following are commonly used when investigating the insurability of an applicant, EXCEPT: Select one: a. An attending physician's statement b. A credit report c. Contacting the Medical Information Bureau (MIB) d. Talking to the neighborhood watch: Insurers typically utilize the physician's statement, credit report and MIB when determining insurability of an applicant. They do not talk to the neighborhood watch. The correct answer is: Talking to the neighborhood watch 11. Insurance contracts pay for losses on an: Select one: a. Indemnity basis b. Cash payment basis 8 / 25 c. Valued basis d. All of the above: Insurance contracts pay for losses on an indemnity, valued or cash basis. The correct answer is: All of the above 12. Using an insurance license to sell mainly to relatives is referred to as: Select one: a. A familial business b. An incestuous business c. A paternal business d. A controlled business: An agent is not allowed to use a license for the principal purpose of procuring controlled business (insurance sold to relatives, employers, or employees). The correct answer is: A controlled business