Life & Health Insurance Exam Life and Health Insurance Assessment 3

Question 1

A group health plan that self-funds its claims but uses an insurance company for administrative services is known as an:

Accepted Answer

ASO (Administrative Services Only) plan

Answer

An ASO arrangement means the employer self-funds claims while an insurer provides administrative services such as claims processing.

Question 2

Under the ACA, the annual open enrollment period for individual marketplace health plans typically ends on:

Accepted Answer

December 15

Answer

The ACA marketplace open enrollment generally closes on December 15 for coverage starting January 1 of the following year.

Question 3

A universal life insurance policy differs from whole life primarily because it offers:

Accepted Answer

Flexible premiums and adjustable death benefits

Answer

Universal life provides flexibility by allowing policyowners to vary premium amounts and adjust the death benefit within policy limits.

Question 4

The coordination of benefits (COB) provision in group health insurance is designed to:

Accepted Answer

Prevent overpayment when a person is covered by more than one plan

Answer

COB rules determine which plan pays first (primary) and which pays second (secondary) to avoid total reimbursement exceeding actual expenses.

Question 5

Which of the following best describes a 'nonforfeiture option' in a whole life policy?

Accepted Answer

Options the policyowner may use if premiums are not paid

Answer

Nonforfeiture options (cash surrender, reduced paid-up, extended term) protect the policyowner's accumulated cash value if premiums lapse.

Life & Health Insurance Exam Practice Test