FREE INSURANCE AND STUDY GAMES ABOUT LIFE

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FREE INSURANCE AND STUDY GAMES ABOUT LIFE

INSURANCE EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -34 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: According to OBRA, what is the minimum number of employees required to constitute a large group?

Answer:

100 Question 2: An insured is covered by high-deductible health plan and makes regular contributions to this HSA. How are those contributions treated in regards to taxation?

Answer:

The contributions are tax deductible Question 3: An insurer must file advertisements of Medicare supplement policies with what authority?

Answer:

Commissioner Question 4: An applicant for health insurance has not had a medical claim in 5 yrs. He exercises daily and does not smoke or drink. What classification do you assume the applicant would receive from their insurer?

Answer:

Preferred

Question 5: Under what condition are group disability income benefits recieved by an employee NOT taxable as income?

Answer:

When the benefits recieved are equal or less than the employee's percentage of the contribution Question 6: A business engages in the same types of activities as a commercial insurer and deals with its own risk

Answer:

Self-insurance Question 7: Which statement accurately describes group disability income insurance?Short-term plans provide benefits for up to 1 year, The extent of benefits is determined by the insured's income, in long-term plans monthly benefits are limited to 75% of the insured

Answer:

The extent of benefits is determined by the insured's income Question 8: When can a Long-term Care policy deny a claim for losses incurred because of a pre-existing condition?

Answer:

Within 6 months of the effective date of coverage Question 9: An applicant is discussing his options for Medicare supplement coverage with his agent. The applicant is 65 years old and has just enrolled on Medicare Part A and Part

• What is the insurance company obligated to do?

Answer:

Offer the supplement policy on a guaranteed issue basis Question 10: Which of the following coverage is NOT monitored by the ERISA? Pension plans, Golden parachutes, Profit-sharing stock bonus, Welfare benefit plans

Answer:

Golden parachutes

Question 11: Medicare Parts A and B are administered by _____?

Answer:

Federal government only

Question 12: Medicare Parts B, which statement is INCORRECT? It is known as medical insurance, It is fully funded by Social Security taxes (FICA), It offers limited perception drug coverage, It provides partial coverage for medical expenses not fully covered by Part A

Answer:

It is fully funded by Social Security taxes (FDIC) Question 13: Which type of service under a nonscheduled plan typically has large deductibles and pays around 50% for the service provided?

Answer:

Major service Question 14: Which type of dental care would cover operative treatment of the mouth?

Answer:

Oral surgery Question 15: Type of dental plan which is incorporated into a major medical expense plan is a/an

Answer:

Integrated dental plan Question 16: Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of Risk on the part of the insurance company?

Answer:

Aleatory Question 17: Units with the same or similar exposure to loss are referred to as _____?

Answer:

Homogeneous Question 18: Which of the following statements is correct concerning taxation of long-term care insurance?

Answer:

Excessive benefits may be taxable

Question 19: What is NOT required to be stated in the outline coverage provided with a long-term care policy?

Answer:

Basic information about supplementary policies Question 20: Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the lost amounts?

Answer:

Indemnity

Question 21: All of the following are examples of Risk retention EXCEPT _____?

Answer:

Premiums Question 22: An applicant is considered to be high-risk, but not so much that the insurer wants to deny coverage. Which of the following is NOT true? The insurer can increase the premium, The insurer can add exclusions to the policy, The insurer can rates up the polic

Answer:

The insurer will issue a conditional coverage Question 23: If a person has a Medicare policy, and later becomes eligible for Medicaid, benefits and premiums may be suspended for up to how many years while Medicaid coverage is in force?

Answer:

• years

Question 24: Policies that cover hospital expenses must provide at least how much coverage (per year) for hospital inpatient and outpatient treatment of kidney disease?

Answer:

$30,000

Question 25: In which of the following locations would skilled care most likely be provided?

Answer:

In an institutional setting