FREE Life and Health Insurance Guide Exam Questions and Answers

Question 1

Which of the following legislation was made by the National Association of Insurance Commissioners (NAIC) to set up standard provisions for all individual health insurance policies?

Accepted Answer

The Uniform Individual Accident and Sickness Policy Provisions Law

Answer

The US Individual Healthcare Law

Answer

The NAIC Policy Provisions Law

Answer

The Required Health Provisions Law

Question 2

When an insured person switches to a more dangerous employment, some individual health insurance policies have provisions that allow insurers to modify medical plan premiums. This provision is known as:

Accepted Answer

The “Change of Occupation” provision

Answer

The “Relation of Earning to Insurance” provision

Answer

The “Conditionally Renewable” provision

Answer

The “Illegal Occupation” provision

Question 3

A company is an "Applicable Large Employer (ALE)" if:

Accepted Answer

Had an average of 50 or more combined full-time or full-time equivalent employees during the prior calendar year

Answer

Expects to have an average of 50 or more combined full-time or full-time equivalent employees during the prior calendar year

Answer

Had an average of 50 or more combined full-time equivalent employees during the prior insurance plan year

Answer

Currently employs any 50 or more combined full-time or full-time equivalent employees

Question 4

The employer is financially liable for the payment of claims to covered persons under a self-funded health plan. Which of these would reduce financial risks associated with high plan utilization?

Accepted Answer

Stop-loss insurance

Answer

Wider provider network

Answer

Lower premiums

Answer

Restriction on coverage of common procedures

Question 5

Companies that offer an employer-sponsored medical insurance plan must cover all dependents under the age of:

Accepted Answer

26

Answer

18

Answer

15

Answer

21

Question 6

Different benefits and/or premium payments may be provided by employers to different employee groups as long as:

Accepted Answer

Employees are not grouped by gender

Answer

Employees are not grouped by job classification

Answer

Employees are not grouped by tenure

Answer

Employees are not grouped by job location

Question 7

Most short-term disability income benefits last between 6 months and:

Accepted Answer

24 months

Answer

18 months

Answer

12 months

Answer

36 months

Question 8

Special Needs Plans (SNPs) are Medicare Advantage coordinated care plans for special needs patients, particularly those with chronic diseases. Which is not a chronic condition?

Accepted Answer

Seasonal allergies

Answer

Certain autoimmune disorders

Answer

Dementia

Answer

Certain cardiovascular disorders

Question 9

Which of these is not usually covered by long-term care insurance?

Accepted Answer

Care provided by family members

Answer

Assisted living care

Answer

Hospice care

Answer

Nursing home services

Question 10

Underwriting is required for most individual long-term care insurance, thus applicants with poor health may be denied or offered coverage:

Accepted Answer

A lower coverage amount and/or coverage with higher premiums

Answer

A higher lifetime benefit maximum

Answer

Coverage for care provided by family members only

Answer

A plan that contains a nursing home services exclusion