Life & Health Insurance Exam Life & Health Insurance Health Insurance Fundamentals 3

Question 1

Under the ACA, what is the required waiting period before an employer-sponsored health plan must cover a new employee?

Accepted Answer

Up to 90 days

Answer

The ACA limits employer waiting periods for health plan enrollment to a maximum of 90 days.

Question 2

Which of the following is NOT a qualifying life event that triggers a special enrollment period?

Accepted Answer

Voluntary termination of prior coverage

Answer

Voluntarily dropping prior coverage does not qualify as a special enrollment trigger; only involuntary loss of coverage qualifies.

Question 3

A Point-of-Service (POS) plan combines features of which two plan types?

Accepted Answer

HMO and PPO

Answer

A POS plan blends HMO structure (PCP gatekeeper, lower in-network costs) with PPO flexibility (option to use out-of-network providers at higher cost).

Question 4

What is the grace period for an individual health insurance policy under most state laws?

Accepted Answer

31 days

Answer

Most states require at least a 31-day grace period for individual health insurance policies, during which the policy remains in force even if a premium is overdue.

Question 5

Which federal law requires group health plans covering 20 or more employees to offer continuation coverage to terminated employees?

Accepted Answer

COBRA

Answer

COBRA (Consolidated Omnibus Budget Reconciliation Act) mandates continuation of group health coverage for up to 18 months after qualifying events such as job loss.

Life & Health Insurance Exam Practice Test

Life & Health Insurance Exam Practice Test

Life & Health Insurance Exam Life & Health Insurance Health Insurance Fundamentals 3