KENTUCKY HEALTH UPDATED TEST QUESTIONS AND
ANSWERS GRADED A+
✔✔Which renewal option does NOT guarantee renewal and allows the insurance
company to refuse renewal of a policy at any premium due date? A. optionally
renewable B. conditionally renewable C. Guaranteed renewable D. Noncancellable -
✔✔A. Optionally renewable
✔✔All of the following qualify for Medicare Part A EXCEPT A. Anyone who is at the end
stage of renal disease. B. Anyone who is over 65, not covered by Social Security, and is
willing to pay premium. C. Anyone who is willing to pay a premium. D. Anyone that
qualifies through Social Security. - ✔✔C. Anyone who is willing to pay a premium.
✔✔What is the purpose of the rehabilitation benefit in disability insurance? A. To
compensate the insured for the lost income. B. To refund the insured's premium paid
during the disability. C. To help the insured recover from a disability. D. To cover the
expenses of retraining the insured to return to work. - ✔✔D. To cover the expenses of
retraining the insured to return to work.
✔✔An insurance company must notify the Commissioner whenever it terminates an
agent's appointment within how many days of the termination date? A. 10 days B. 15
days C. 30 days D. 60 days - ✔✔C. 30 days
✔✔Every insurer marketing long-term care insurance must establish marketing
procedures to ensure all of the following EXCEPT... A. Excessive insurance will not be
sold. B. Every reasonable efforts is made to identify an applicant's other insurance. C.
LTC policies are marketed effectively to prospective insureds. D. Comparisons of
policies are fair and accurate. - ✔✔C. LTC policies are marketed effectively to
prospective insureds.
✔✔Which of the following would be considered an illegal inducement to purchase
insurance? A. Confirming future dividends in a life insurance proposal. B. Mailing an
agency brochure to a prospective client. C. Listing the insurance companies the agency
represents in a letter. D. Inviting prospective clients to the grand opening of the
producer's new office. - ✔✔A. Confirming future dividends in a life insurance proposal.
✔✔What is a typical deductible for basic surgical expense insurance? A. 0 B. 100 C.
200 D. 300 - ✔✔A. 0
✔✔Which of the following would NOT justify the revocation of an insurance license? A.
Misrepresentation B. Using license to place business solely on an agent's own property.
C. Sharing commissions with another licensed agent. D. Rebating - ✔✔C. Sharing
commissions with another licensed agent.
, ✔✔Group policy types are determined by two facts, whether the policy is contributory or
noncontributory and... A. Whether the policy is paid by annual premiums or monthly
premiums. B. Whether or not the policy will be covering dependents. C. The size of the
group D. Whether the policy is occupational or nonoccupational. - ✔✔D. Whether the
policy is occupational or nonoccupational.
✔✔When the insured initiates the cancellation of a policy, the unearned premium will be
refunded on a... A. Short rate basis B. extended term basis C. Pro rata basis D. Per
occurrence basis - ✔✔A. Short rate basis.
✔✔Which describes the features of a comprehensive major medical policy? A. Basic
medical expense benefits are provided in a single package B. The deductible is always
expressed as deferred amount C. It is the same as major medical insurance D. There is
no coinsurance - ✔✔A. Basic medical expense benefits are provided in a single
package.
✔✔Under what condition are group disability income benefits received by an employee
NOT taxable as income? A. When the benefits received are equal or less than the
employee's percentage of the contribution B. When the employer makes all the
premium payments. C. When the employee is 59 1/2 D. When the amount of the benefit
is equal or less than the amount of contributed by the employer. - ✔✔A. When the
benefits received are equal or less than the employee's percentage of the contributions.
✔✔How many pints of blood will be paid for by Medicare supplement core benefits? A.
First 2 B. None, Medicare pays for it all. C. Everything after first 3 D. 1 pint - ✔✔A. First
3
✔✔An insured is covered under 2 group health plans - under his own and his spouse's.
He had suffered a loss of $2,000. After the insured paid the total of $500 in deductibles
and coinsurance, the primary insurer covered $1,500 of medical expenses. What
amount, if any, would be paid by the secondary insurer? A. 0 B. 500 C. 1000 D. 2000 -
✔✔B. 500
✔✔Individuals who itemize deductions can claim deductions for medical expenses not
covered by health insurance that exceed what percent of their adjusted gross income?
A. 5% B. 7% C. 10% D. 15% - ✔✔C. 10%
✔✔What is another name for an Administrative Services only arrangement? A. Self
funding B. Third party administrator C. A modified fully insured plan D. Modified
endowment contract - ✔✔B. Third party administrator
✔✔Social Security Supplement SIS or Social Security riders would provide for the
payment of income benefit in each of the situations except A. If the insured has been
denied coverage under social security B. When the amount payable under social
ANSWERS GRADED A+
✔✔Which renewal option does NOT guarantee renewal and allows the insurance
company to refuse renewal of a policy at any premium due date? A. optionally
renewable B. conditionally renewable C. Guaranteed renewable D. Noncancellable -
✔✔A. Optionally renewable
✔✔All of the following qualify for Medicare Part A EXCEPT A. Anyone who is at the end
stage of renal disease. B. Anyone who is over 65, not covered by Social Security, and is
willing to pay premium. C. Anyone who is willing to pay a premium. D. Anyone that
qualifies through Social Security. - ✔✔C. Anyone who is willing to pay a premium.
✔✔What is the purpose of the rehabilitation benefit in disability insurance? A. To
compensate the insured for the lost income. B. To refund the insured's premium paid
during the disability. C. To help the insured recover from a disability. D. To cover the
expenses of retraining the insured to return to work. - ✔✔D. To cover the expenses of
retraining the insured to return to work.
✔✔An insurance company must notify the Commissioner whenever it terminates an
agent's appointment within how many days of the termination date? A. 10 days B. 15
days C. 30 days D. 60 days - ✔✔C. 30 days
✔✔Every insurer marketing long-term care insurance must establish marketing
procedures to ensure all of the following EXCEPT... A. Excessive insurance will not be
sold. B. Every reasonable efforts is made to identify an applicant's other insurance. C.
LTC policies are marketed effectively to prospective insureds. D. Comparisons of
policies are fair and accurate. - ✔✔C. LTC policies are marketed effectively to
prospective insureds.
✔✔Which of the following would be considered an illegal inducement to purchase
insurance? A. Confirming future dividends in a life insurance proposal. B. Mailing an
agency brochure to a prospective client. C. Listing the insurance companies the agency
represents in a letter. D. Inviting prospective clients to the grand opening of the
producer's new office. - ✔✔A. Confirming future dividends in a life insurance proposal.
✔✔What is a typical deductible for basic surgical expense insurance? A. 0 B. 100 C.
200 D. 300 - ✔✔A. 0
✔✔Which of the following would NOT justify the revocation of an insurance license? A.
Misrepresentation B. Using license to place business solely on an agent's own property.
C. Sharing commissions with another licensed agent. D. Rebating - ✔✔C. Sharing
commissions with another licensed agent.
, ✔✔Group policy types are determined by two facts, whether the policy is contributory or
noncontributory and... A. Whether the policy is paid by annual premiums or monthly
premiums. B. Whether or not the policy will be covering dependents. C. The size of the
group D. Whether the policy is occupational or nonoccupational. - ✔✔D. Whether the
policy is occupational or nonoccupational.
✔✔When the insured initiates the cancellation of a policy, the unearned premium will be
refunded on a... A. Short rate basis B. extended term basis C. Pro rata basis D. Per
occurrence basis - ✔✔A. Short rate basis.
✔✔Which describes the features of a comprehensive major medical policy? A. Basic
medical expense benefits are provided in a single package B. The deductible is always
expressed as deferred amount C. It is the same as major medical insurance D. There is
no coinsurance - ✔✔A. Basic medical expense benefits are provided in a single
package.
✔✔Under what condition are group disability income benefits received by an employee
NOT taxable as income? A. When the benefits received are equal or less than the
employee's percentage of the contribution B. When the employer makes all the
premium payments. C. When the employee is 59 1/2 D. When the amount of the benefit
is equal or less than the amount of contributed by the employer. - ✔✔A. When the
benefits received are equal or less than the employee's percentage of the contributions.
✔✔How many pints of blood will be paid for by Medicare supplement core benefits? A.
First 2 B. None, Medicare pays for it all. C. Everything after first 3 D. 1 pint - ✔✔A. First
3
✔✔An insured is covered under 2 group health plans - under his own and his spouse's.
He had suffered a loss of $2,000. After the insured paid the total of $500 in deductibles
and coinsurance, the primary insurer covered $1,500 of medical expenses. What
amount, if any, would be paid by the secondary insurer? A. 0 B. 500 C. 1000 D. 2000 -
✔✔B. 500
✔✔Individuals who itemize deductions can claim deductions for medical expenses not
covered by health insurance that exceed what percent of their adjusted gross income?
A. 5% B. 7% C. 10% D. 15% - ✔✔C. 10%
✔✔What is another name for an Administrative Services only arrangement? A. Self
funding B. Third party administrator C. A modified fully insured plan D. Modified
endowment contract - ✔✔B. Third party administrator
✔✔Social Security Supplement SIS or Social Security riders would provide for the
payment of income benefit in each of the situations except A. If the insured has been
denied coverage under social security B. When the amount payable under social
