NJ ACCIDENT AND HEALTH INSURANCE FINAL
EXAM SCRIPT 2026 TEST PAPER QUESTIONS
AND SOLUTIONS GRADED A+
◉ No contract is in force until ______ is paid? Answer: Initial premium
◉ In Key Employee Disability Policy, if the business pays the
premium as a tax-deductible expense, any benefits paid are ______?
Answer: Fully taxable
◉ Policies that pay higher benefits, command ______ ? Answer:
Higher premiums
◉ One of the main responsibilities of an underwriter is to protect
the insurer against ______? Answer: Adverse selection
◉ Insurers issue preferred risk policies with reduced premiums
with the expectation of ______? Answer: Better than normal mortality
or morbidity experience
◉ Monitoring the insured's hospital stay to ensure everything is
going according to schedule and that the insured will be released as
planned is called ______? Answer: Concurrent review
, ◉ HIPAA provides that the 10% excise of tax for early withdrawal
from IRAs will not apply to the extent a withdrawal is used for
medical expenses that exceed ______ of the individual's adjusted gross
income. Answer: 7.5%
◉ One of the most important considerations in replacing medical
insurance is ______? Answer: Exclusions or limitations on a new
policy
◉ Upon policy delivery, if no initial payment is collected with the
application, the producer must request ______? Answer: The applicant
to sign a Statement of Good Health
◉ Managed care is provided with which policies, except ______?
Answer: Covered:
- PPO
- POS (point-of-service)
- HMO
◉ Point of service plan is considered what kind of plan? Answer:
Managed care plan
EXAM SCRIPT 2026 TEST PAPER QUESTIONS
AND SOLUTIONS GRADED A+
◉ No contract is in force until ______ is paid? Answer: Initial premium
◉ In Key Employee Disability Policy, if the business pays the
premium as a tax-deductible expense, any benefits paid are ______?
Answer: Fully taxable
◉ Policies that pay higher benefits, command ______ ? Answer:
Higher premiums
◉ One of the main responsibilities of an underwriter is to protect
the insurer against ______? Answer: Adverse selection
◉ Insurers issue preferred risk policies with reduced premiums
with the expectation of ______? Answer: Better than normal mortality
or morbidity experience
◉ Monitoring the insured's hospital stay to ensure everything is
going according to schedule and that the insured will be released as
planned is called ______? Answer: Concurrent review
, ◉ HIPAA provides that the 10% excise of tax for early withdrawal
from IRAs will not apply to the extent a withdrawal is used for
medical expenses that exceed ______ of the individual's adjusted gross
income. Answer: 7.5%
◉ One of the most important considerations in replacing medical
insurance is ______? Answer: Exclusions or limitations on a new
policy
◉ Upon policy delivery, if no initial payment is collected with the
application, the producer must request ______? Answer: The applicant
to sign a Statement of Good Health
◉ Managed care is provided with which policies, except ______?
Answer: Covered:
- PPO
- POS (point-of-service)
- HMO
◉ Point of service plan is considered what kind of plan? Answer:
Managed care plan
