Exam questions

Question 1

Workers compensation benefits regulated by which entity?

Answer 1

state

Question 2

Type of dental plan incorporated into major medical plan

Answer 2

integrated plan

Question 3

Section of a health policy that states the causes of eligible loss under which insured is assumed disabled

Answer 3

insuring clause

Question 4

compared to policy that uses accidental means definition, accidental BODILY injury definition coverage is broader limited in general?

Answer 4

broader in general

bodily coverage is broader than means

Question 5

insured goes from window washer to library manager; insurer is notified and does what?

Answer 5

adjust benefit in accordance to decreased risk

Question 6

person is disabled at age 27 and meets SS’s definition of total disability; how many work credits?

Answer 6

12 credits

Question 7

NOT a characteristic of group health insurance

Answer 7

policy issued to each insured individual

Question 8

Consumer requests additional information from consumer reports. How long does insurer or consumer agency have to comply?

Answer 8

5 days

Question 9

insured wants to name husband as beneficiary of health policy; wishes to retains all rights of ownership; should have hb. named as what type of beneficiary?

Answer 9

revocable

Question 10

applicant returns completed application and check for first premium to agent; she receives conditional rcpt. two weeks later; what has the insurer done by this point?

Answer 10

neither approved NOR issued policy

Question 11

MIB (Medical Information Bureau)

Answer 11

nonprofit maintaining underwriting information on applicants for life and health

Question 12

Social Security Supplement or SS Riders provide payment of income benefits in each situation EXCEPT

Answer 12

when amount payable under SS is more than amount payable under rider

Question 13

Which is an eligibility requirement for SS disability income benefits?

Answer 13

fully insured status

Question 14

in disability income ins., time between onset of injury or sickness and when benefits begin

Answer 14

elimination period

Question 15

which is NOT provided by an HMO?

Answer 15

reimbursement

Question 16

purpose of coinsurance provisions?

Answer 16

help insurance company to prevent overutilization of policy

Question 17

maximum age for qualifying for catastrophic plan

Answer 17

30

Question 18

taxation of group medical expense premiums and benefits

Answer 18

premiums are tax deductible and benefits are not taxed

Question 19

which policy covers unusual risks NOT normally included under AD&D coverage?

Answer 19

Special Risk Policy

Question 20

defamation

Answer 20

making false statements about financial conditions of any insurer that are intended to injure any person engaged in insurance business

Question 21

banker is ready to close on customer’s loan; bank will offer loan only if customer purchases life insurance policy from bank

Answer 21

COERCION

Question 22

exists to protect the PUBLIC

Answer 22

State Insurance Department

Question 23

state provides temporary license for all EXCEPT

Answer 23

producer’s retirement

Question 24

producers give or promise anything of value not specified in the policy

Answer 24

rebating

Question 25

specifies minimum number of persons to be covered under a group health insurance plan

Answer 25

state law

Question 26

participating ins. policy may do what?

Answer 26

pay dividends to the policyowner

Question 27

NOT considered to be a rebate because policy specifies that they might be paid

Answer 27

dividends from mutual insurer

Question 28

how long must insurer's advertisements be kept on file?

Answer 28

4 years

Question 29

how long is free-look period in long-term policies in this state?

Answer 29

30 days

Question 30

specifies causes of loss for which insurer will not pay

Answer 30

exclusions

Question 31

any supplemental agreement attached to and made part of the policy whether the policy's conditions are expanded and additional coverage added or coverage or condition is waived

Answer 31

rider

Question 32

the provision in a health ins. policy that ensures that the insurer cannot refer to any document not in the contract

Answer 32

entire contract clause

Question 33

who can make changes to an insurance policy?

Answer 33

insurer's executive officer

Question 34

The relation of earnings to insurance provision allows the insurance company to limit the insured’s benefits to his/her average income over the last how many months?

Answer 34

24 months

Question 35

What provision requires that no legal action to collect benefits may be started sooner than 60 days after the proof of loss is filed with the insurer?

Answer 35

legal action

Question 36

When can you change an IRREVOCABLE beneficiary?

Answer 36

only with the written consent of the beneficiary

Question 37

Under the Uniform Required Provisions, proof of loss under a health insurance policy normally should be filed within ? days of a loss.

Answer 37

90 days

Question 38

Which provision allows a policyholder 10 days after the policy is delivered in which to decide whether or not he/she wants the policy?

Answer 38

Free Look Period

Question 39

Ted was a doctor on a Covid ward. He changed to a remote job. What should the insurer do?

Answer 39

Adjust the benefit in accordance with the decreased risk.

Question 40

waiver of premium provision may be included with what kind of health ins. policy?

Answer 40

disability income

Question 41

a medical expense policy that establishes the amount of benefit paid based on the prevailing charges falling within the standard range of fees normally charged in that geographic location

Answer 41

usual, customary, and reasonable

Question 42

premium charged for exercising the Guaranteed Ins. Rider based on insured's

Answer 42

attained age

Question 43

what is the purpose of coinsurance provisions?

Answer 43

to help ins. company prevent over utilization of policy

Question 44

Spells out the insured’s duty to provide the insurer with reasonable notice in the event of a loss.

Answer 44

The Notice of Claim Provision

Question 45

Who has authority to make changes to insurance policy?

Answer 45

executive officer of the company

Question 46

section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled

Answer 46

insuring clause

Question 47

The insured would be the policyowner and wants to be able to make changes even though she names her hb. as beneficiary.

Answer 47

revocable

Question 48

head of State Dept. of Insurance

Answer 48

Commissioner

Question 49

ability to meet financial obligations

Answer 49

solvency

Question 50

an insurance company incorporated in this state

Answer 50

domestic insurer

Question 51

appointed by the governor

Answer 51

Insurance Commissioner, for four years, at least 30 years old, citizen of Arkansas

Question 52

insurance exams conducted every how many years?

Answer 52

5