FREE AHIP North Carolina Questions and Answers

Question 1

Due to concerns it has regarding the applicant's credit history, Statewide Insurers is requesting an investigative consumer report. What needs to be done before Statewide can get a report?

Accepted Answer

Inform the applicant that he has the right to be contacted for an interview regarding the report.

Answer

Under the Fair Credit Reporting Act (FCRA), when an insurer requests an investigative consumer report, which involves personal interviews with third parties about an applicant's character or reputation, specific disclosures are required. The applicant must be informed that such a report is being requested and, importantly, they have the right to be contacted for an interview regarding the information contained within that report. This ensures transparency and allows the applicant to address any potential inaccuracies.

Question 2

All of the following are prerequisites for obtaining an insurance agent's license, WITH THE EXCEPTION of:

Accepted Answer

College degree

Answer

To obtain an insurance agent's license, common prerequisites typically include being at least 18 years of age, paying a licensing fee, and demonstrating good reputation and character. While a college degree can be advantageous for career advancement, it is generally not a mandatory requirement for the initial licensing process itself. Many individuals successfully become licensed agents with a high school diploma or equivalent.

Question 3

The following benefits are ALL provided to insured workers by workers' compensation policies, EXCEPT

Accepted Answer

expenses of running a business until a disabled worker can return to work

Answer

Workers' compensation policies are designed to provide benefits directly to employees who suffer work-related injuries or illnesses. These benefits typically include coverage for medical treatment, wage replacement for lost income due to disability, and vocational rehabilitation to help the worker return to employment. However, workers' compensation does not cover the expenses of running a business; these are separate operational costs for the employer, distinct from employee benefits.

Question 4

Which of the following applies to contributions that are tax deductible, grow tax-free, and provide tax-free payouts for eligible medical expenses?

Accepted Answer

health savings accounts (HSAs)

Answer

Health Savings Accounts (HSAs) are unique savings accounts available to individuals enrolled in high-deductible health plans (HDHPs). They offer a "triple tax advantage": contributions are tax-deductible, the funds grow tax-free, and withdrawals for qualified medical expenses are also tax-free. This makes HSAs a powerful tool for saving for healthcare costs, both in the present and for retirement.

Question 5

Every time Maverick visits a doctor, he must pay $15 under his primary medical insurance. What is the name of this payment?

Accepted Answer

the co-payment

Answer

The fixed amount of $15 that Maverick pays each time he visits a doctor is known as a co-payment (or copay). A copay is a predetermined fee that an insured individual pays at the time of receiving a covered medical service, such as a doctor's visit or prescription fill, with the insurance company covering the remaining eligible cost. It is distinct from a deductible or coinsurance.

AHIP - America's Health Insurance Plans Practice Test

AHIP - America's Health Insurance Plans Practice Test

FREE AHIP North Carolina Questions and Answers