KENTUCKY HEALTH INSURANCE EXAM STUDY EXAM

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KENTUCKY HEALTH INSURANCE EXAM STUDY EXAM

QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -78 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Under most dental plans, what limitations are posed for denture replacement?

• once every 5 years.
• once every 10 years
• no limitations
• only the initial dentures are covered.

Answer:

• once every 5 years.

Question 2: What is another name for an Administrative Services only arrangement?

• Self funding
• Third party administrator
• A modified fully insured plan
• Modified endowment contract

Answer:

• Third party administrator

Question 3: Which of the following is NOT specifically prohibited by state law as an unfair trade practice?

• Reducing the premiums paid by employers for group insurance based on loss experience.
• Using misleading representations to induce uncalled for action by the insured.
• Using incomplete comparisons to induce uncalled for action by the insured
• Failing to disclose that the solicitations of an insurance contract are the result of a marketing

method.

Answer:

• reducing the premiums by employers for group insurance based on loss experience.

Question 4: Which of the following would NOT justify the revocation of an insurance license?

• Misrepresentation
• Using license to place business solely on an agent's own property.
• Sharing commissions with another licensed agent.
• Rebating

Answer:

• Sharing commissions with another licensed agent.

Question 5: How many pints of blood will be paid for by Medicare supplement core benefits?

• First 2
• None, Medicare pays for it all.
• Everything after first 3
• 1 pint

Answer:

• First 3

Question 6: What is a typical deductible for basic surgical expense insurance?

• 0

B. 100

C. 200

D. 300

Answer:

• 0

Question 7: An insured does not have to pay coinsurance or deductibles on a full series of mouth xray but does have to pay a deductible to get his cavities filled. Which dental plan does he have?

• nonscheduled
• limited
• procedure based.
• scheduled.

Answer:

• nonscheduled.

Question 8: Guarantee of insurability option in long-term care policies allows the insured to:

• Secure the policy's nonforfeiture values regardless of the insured's age or health status.
• Secure the policy's value regardless of the insured's age or health status.
• Increase benefit levels without providing proof of insurability.
• Add dependents to the plan without providing proof of their insurability.
• Replace the existing LTC policy based on the original underwriting.

Answer:

• Increase benefit levels without providing proof of insurability.

Question 9: What is reinsurance?

• an agreement between an insurer and an insured.
• an agreement between a ceding insurer and an assuming insurer.
• an agreement between an originating insurer and a ceding insurer.
• an agreement between a domestic insurer and a foreign insurer.

Answer:

• an agreement between a ceding insurer and an assuming insurer.

Question 10: Under what type of group health plan does the insurer issue the plan on one year renewable term basis and the premium for each year only pays for that year's coverage?

• Annual fully insured
• convention fully insured
• modified fully insured.
• premium daily arrangement

Answer:

• conventional fully insured.

Question 11: The____is designed to encourage employers to hire people who are partially disabled.

• insurance guaranty fund.
• injury reimbursement fund
• second injury fund
• reinjury fund.

Answer:

• second injury fund

Question 12: An insured is involved in an accident that renders him permanently deaf, although he does not sustain any other major injuries. The insured is still able to perform his current job.To what extend will he receive presumptive disability benefits?

• No benefits
• Full benefits
• Partial benefits

• full benefits for 2 years.

Answer:

• full benefits

Question 13: The provision in a health insurance policy that ensures that the insurer cannot refer to any document that is not contained in the contract is the...

• Entire contract clause.
• Time limit on certain defenses clause.
• Incontestability clause
• Legal action

Answer:

• Entire contract clause

Question 14: Under the Accidental Death and Dismemberment coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death?

• Double the amount of the death benefit
• Refund of premiums
• Principal sum
• Capital sum

Answer:

• Principal sum. Accidental Death and dismemberment coverage only pays for accidental losses and is

thus considered a pure form of accident insurance. The principal sum is paid for accidental death. In case of loss of sight or accidental dismemberment, a percentage of that principal sum will be paid by the policy, often referred to as the capital sum.Question 15: In reference to the standard Medicare supplement benefits plans what does the term standard mean?

• coverage options and conditions comply but will carry from provider to provider.
• All plans must include basic benefits a-n.
• coverage options are developed for average individuals.
• All providers will have the same coverage options and conditions for each plan

Answer:

• All providers will have the same coverage options and conditions for each plan.

Question 16: Under a nonscheduled plan, what portion of the balance could an insured expect to pay for basic services?

A. 100%

B. 20%

C. 50%

D. 80%