ARKANSAS HEALTH INSURANCE EXAM EXAM QUESTIONS

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ARKANSAS HEALTH INSURANCE EXAM EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Bill requires some nursing care/supervision but NOT full time care. Which of these nursing home options would best serve him?

Answer:

Assisted living Question 2: Written notice for a health claim must be given to the insurer ____ days after the

occurrence of the loss:

Answer:

20 days Question 3: A domestic insurance company in Arkansas MUST:

Answer:

Be organized under Arkansas insurance laws

Question 4: Which of the following is NOT considered advertising?

Answer:

A.M Best company ratings Question 5: A life insurance policy owner does NOT have the right to:

Answer:

Revoke an absolute assignment

Question 6: An accident and health insurer has just received written proof of loss from one of

its insureds. The insured must now wait 60 days before:

Answer:

Bringing legal action against the insurer

Question 7: A dread disease policy is considered to be a type of

Answer:

Limited health insurance policy Question 8: Amy has a group medical policy through her employer with a $500 deductible and a 90% coinsurance provision. She incurs a $1,500 in covered healthcare services. How much will her group insurance carrier pay?

Answer:

$1,000

Question 9: This mandatory health policy provision states that the policy, including

endorsements and attached papers, constitutes:

Answer:

The entire insurance contract between the parties Question 10: "Maximum benefits" refers to the:

Answer:

Upper limit of the total lifetime benefits the insurance company will pay Question 11: Tom has a rider on his disability income policy that guarantees the right to increase his benefits without a medical exam. What kind of rider is this?

Answer:

Guaranteed insurability rider Question 12: What is the tax liability for employer contributions in Health Savings Accounts (HSA's)?

Answer:

No tax payment needed

Question 13: Which best describes a conditional insurance contract?

Answer:

A contract that requires certain conditions or acts by the insured individual Question 14: A health insurance policy that allows an insurer to change the policy owners

premiums, but NOT cancel the policy is called a(n):

Answer:

Guaranteed renewal policy Question 15: How often must a Commissioner examine each domestic insurance company?

Answer:

Every 5 years Question 16: Which of the following is NOT a reason for the commissioner to deny or refuse a producer license application?

Answer:

Unintentionally misrepresented a material fact on the application Question 17: A hearing must be held before a producer's license can be suspended or revoked.

Prior to the hearing, the commissioner is required to:

Answer:

Give written notice to the producer Question 18: In Arkansas, which of the following is considered an unfair trade practice?

Answer:

Coercion Question 19: When does a nondisabled person first qualify for a Medicare Supplement Policy?

Answer:

Age 65 Question 20: What does the Group Life underwriting risk selection process help protect insurance companies from?

Answer:

Adverse Selection

Question 21: In order for a contract to be valid, it must:

Answer:

Contain an offer & acceptance Question 22: According to the life insurance contract law, insurable interest exists

Answer:

At the time of the application Question 23: Which would NOT be considered in underwriting a health insurance risk?

Answer:

Marital status

Question 24: Which of the following is NOT an unfair claim settlement practice?

Answer:

Needing written documentation of claim details

Question 25: The waiver of premium does NOT include which provision?

Answer:

All future premiums are waived if the insured recovers from the disability Question 26: Ambiguities in an insurance policy are always resolved in favor of the:

Answer:

Insured Question 27: The Arkansas Life & Disability Insurance Guaranty Association assures payment of benefits from insurance policies for insolvent insurers, and covers all of the following insured

policies, EXCEPT:

Answer:

Liability Insurance Question 28: The Arkansas Insurance Department may take each of the following actions

EXCEPT:

Answer:

Incarceration