Kentucky Health Insurance Exam Questions
and Answers (Latest update 2026)GRADED
A+
A Health Insurance plan is: - CORRECT ANSWERS A legal agreement between two or more
parties
Promising a certain performance
Exchange for valuable consideration
CLOC - CORRECT ANSWERS Competetent Parties- Age
Legal Purpose
Offer and Acceptance
Consideration- Statements in the Applications
Duress - CORRECT ANSWERS person who proves that they were compeled to sign a contract
when they were incompetent
adhesion contract - CORRECT ANSWERS A standard-form contract in which the stronger party
dictates the terms.
Sticky on one side
Take it or leave policy
Unilateral Contract - CORRECT ANSWERS only the insurer makes a legally enforceable
promise
Aleatory - CORRECT ANSWERS The insured may recieve a great deal more from the insurer
than what was paid to them in premiums.
Personal Contract - CORRECT ANSWERS the contract is between the insured and the insurer
Conditional Contract - CORRECT ANSWERS Insurance company's obligation to pay any claims
is subject to the insured performing certain acts such as paying premiums and providing proof of the
claim.
Two Sources of Loss - CORRECT ANSWERS Accident and Sickness
Person suffering from accident or sickness may need protection from two risks - CORRECT ANSWERS
Loss of Income and expenses incurred from medical care.
General Catagories of health insurance are: - CORRECT ANSWERS Disability Income
Medical Expense
disability income insurance - CORRECT ANSWERS Policies pay periodic benefits weekly or
monthly to a person whe can no longer work to earn a regular incomeas a result of disability
, Medical Expense Policies - CORRECT ANSWERS cover both accidents and illnesses, various
hospital expenses
May cover various combinations of hospital, surgical, and medical expenses and normally pays benefits
in a lump sum to reimburse for medical expenses.
Accident - CORRECT ANSWERS an event that is completely unforseen and unintended and
generally results in an injury.
Accident Benefits - CORRECT ANSWERS will pay only for accident, not for sickness and
commonly pays for loss of life, loss of limb or sight resulting in loss of time, medical expenses
Dismemberment - CORRECT ANSWERS loss of sight or limb
Loss of Limb - CORRECT ANSWERS actual severance above the main joint by which the limb is
attached to the body
Loss of Sight - CORRECT ANSWERS must be complete and permenant loss of vision
Capital Sum - CORRECT ANSWERS "Decapitation"
The amount payable for the loss of one member is 1/2 of the principle sum.
Principal Sum - CORRECT ANSWERS The amount paid for accidental death
Beneficiaries - CORRECT ANSWERS The person who recieves the death benefits.
Primary Beneficiary - CORRECT ANSWERS The person who is named as first to receive
benefits from a policy.
Contingent Beneficiary - CORRECT ANSWERS entitled to the proceeds if the primary
beneficiary dies before the insured
Teritary Beneficiary - CORRECT ANSWERS third in line for the benefits
Indemnity - CORRECT ANSWERS The amount paid by the insurer in the event of a loss
Fractional Indemnity - CORRECT ANSWERS partial payment versus full
Multiple Indemnity - CORRECT ANSWERS 2,3 or 4 times the full benefit; that is double the
indemnity, triple etc.
Accidental Bodily Injury - CORRECT ANSWERS where only the result is required to be
accidental
Accidental Bodily Injury by Accidental Means - CORRECT ANSWERS where both the cause and
the result are required to be accidental.
More restrictive
Less favorable to the insured
and Answers (Latest update 2026)GRADED
A+
A Health Insurance plan is: - CORRECT ANSWERS A legal agreement between two or more
parties
Promising a certain performance
Exchange for valuable consideration
CLOC - CORRECT ANSWERS Competetent Parties- Age
Legal Purpose
Offer and Acceptance
Consideration- Statements in the Applications
Duress - CORRECT ANSWERS person who proves that they were compeled to sign a contract
when they were incompetent
adhesion contract - CORRECT ANSWERS A standard-form contract in which the stronger party
dictates the terms.
Sticky on one side
Take it or leave policy
Unilateral Contract - CORRECT ANSWERS only the insurer makes a legally enforceable
promise
Aleatory - CORRECT ANSWERS The insured may recieve a great deal more from the insurer
than what was paid to them in premiums.
Personal Contract - CORRECT ANSWERS the contract is between the insured and the insurer
Conditional Contract - CORRECT ANSWERS Insurance company's obligation to pay any claims
is subject to the insured performing certain acts such as paying premiums and providing proof of the
claim.
Two Sources of Loss - CORRECT ANSWERS Accident and Sickness
Person suffering from accident or sickness may need protection from two risks - CORRECT ANSWERS
Loss of Income and expenses incurred from medical care.
General Catagories of health insurance are: - CORRECT ANSWERS Disability Income
Medical Expense
disability income insurance - CORRECT ANSWERS Policies pay periodic benefits weekly or
monthly to a person whe can no longer work to earn a regular incomeas a result of disability
, Medical Expense Policies - CORRECT ANSWERS cover both accidents and illnesses, various
hospital expenses
May cover various combinations of hospital, surgical, and medical expenses and normally pays benefits
in a lump sum to reimburse for medical expenses.
Accident - CORRECT ANSWERS an event that is completely unforseen and unintended and
generally results in an injury.
Accident Benefits - CORRECT ANSWERS will pay only for accident, not for sickness and
commonly pays for loss of life, loss of limb or sight resulting in loss of time, medical expenses
Dismemberment - CORRECT ANSWERS loss of sight or limb
Loss of Limb - CORRECT ANSWERS actual severance above the main joint by which the limb is
attached to the body
Loss of Sight - CORRECT ANSWERS must be complete and permenant loss of vision
Capital Sum - CORRECT ANSWERS "Decapitation"
The amount payable for the loss of one member is 1/2 of the principle sum.
Principal Sum - CORRECT ANSWERS The amount paid for accidental death
Beneficiaries - CORRECT ANSWERS The person who recieves the death benefits.
Primary Beneficiary - CORRECT ANSWERS The person who is named as first to receive
benefits from a policy.
Contingent Beneficiary - CORRECT ANSWERS entitled to the proceeds if the primary
beneficiary dies before the insured
Teritary Beneficiary - CORRECT ANSWERS third in line for the benefits
Indemnity - CORRECT ANSWERS The amount paid by the insurer in the event of a loss
Fractional Indemnity - CORRECT ANSWERS partial payment versus full
Multiple Indemnity - CORRECT ANSWERS 2,3 or 4 times the full benefit; that is double the
indemnity, triple etc.
Accidental Bodily Injury - CORRECT ANSWERS where only the result is required to be
accidental
Accidental Bodily Injury by Accidental Means - CORRECT ANSWERS where both the cause and
the result are required to be accidental.
More restrictive
Less favorable to the insured
