Arkansas Health Insurance Study Questions and Answers
2023/2024 Solved correctly
At what point must a life insurance applicant be informed of their right that fall under the
Fair Credit Reporting Act?
upon completion of the application
Who elects the governing body of a mutual insurance company?
policyholders
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the
Fair Credit Reporting Act
What type of reinsurance contract involves two companies automatically sharing their
risk exposure?
Treaty
The stated amount or percent of liquid assets that an insurer must have on hand that
will satisfy future obligations to its policyholders is called
Reserves
Which statement is TRUE regarding a group accident and health policy issued to an
employer? Neither the employer or employee are policy owners The employer is
issued a certificate of coverage and each employee receives a policy * The employer
receives the policy and each employee is issued a certificate
*Both the employer and employee are policy owners.
The employer receives the policy and each employee is issued a certificate.
G is an accountant who has ten employees and is concerned about how the business
would survive financially if G became disabled. The type of policy which BEST
addresses this concern is Business Overhead Expense Disability Income Key
Employee Life Contributory
Business Overhead Expense-- this policy's purpose is to cover certain overhead
expenses that continue when the business own is disabled.
How does group insurance differ from individual insurance?
Group insurance differs from individual insurance in that it provided coverage at a lower
cost.
The difference between group insurance and blanket health policies is
Blanket health policies do not issue certificates.
Which of the following statements BEST describes how a policy that uses the
"accidental bodily injury" definition of an accident differs from one that used the
"accidental means" definition? *double indemnity
benefits are taxable more restrictive *less restrictive
Less restrictive. A policy that uses "accidental bodily injury" definition of an accident is
less restrictive than the one that uses the "accidental means" definition.
Which of the following characteristics is associated with a large group disability income
policy? no waiting periods no medical underwriting no elimination periods no limit of
benefits
No medical underwriting. A large group disability income policy can be distinguished by
no medical underwriting.
, Which contract permits the remaining partners to buy-out the interest of a disabled
business partner?
A disability buy-sell plan allows the remaining partners to buy out the interest of the
disabled business partner.
An insurance company would MOST likely pay benefits under Accidental Death and
Dismemberment policy who which of the following losses? loss of life due to a heart
attack loss of eyesight due to an accidental injury *loss of the spleen due to an
accidental injury
* partial paralysis due to a stroke
Loss of eyesight due to an accidental injury.
XYZ Company pays the entire premium for its group health plan. The MINIMUM
percentage of eligible employees that must be covered is 25% 50% *75%
or *100%
Most noncontributory health plans require 100% participation by eligible employees.
P is a new employee and will be obtaining non-contributory group Major Medical
insurance from her employer. Which of the following actions must she take during the
open enrollment period? Authorize for payroll deductions Agree to a physical
examination Sign an enrollment card Register with her state of residency
A new employee must sign an enrollment card during the open enrollment period.
A medical care provider which typically delivers health services at its own local medical
facility is know as a
Health Maintenance Organization Regional Provider Multiple Employer
Trust Preferred Provider Organization
Health Maintenance Organization. HMO's traditionally provide services to its members
at its own local health care facilities.
Which type of provider is know for stressing preventative medical care? Multiple
Employer Welfare Arrangements (MEWA) Major medical provider Health
Maintenance Organizations (HMO's) Preferred Provider Organizations (PPO's)
The health provider that stresses preventative medical care is know as a Health
Maintenance Organization.
Which of the following BEST describes how a Preferred Provider Organization (PPO) is
less restrictive than a Health Maintenance Organization (HMO)? Typically not subject
to deductibles Not regulated by the federal government More benefits available More
physicians to choose from
PPO's normally provide a wider choice of physicians and hospitals.
The situation in which a group of physicians are salaried employees and conduct
business in an HMO facility is called a(n) closed panel open panel
co-op panel capitation panel
Closed panel. This is when an HMO is represented by a group of physicians who are
salaried employees and work out of the HMO's facility.
Medicare is intended for all of the following groups EXCEPT those enrolled as a full-
time student those receiving Social Security disability benefits for at least 24 months *
Those afflicted with chronic kidney failure
*those 65 and older
Those enrolled as a full-time student. All of these groups of people are typically eligible
for Medicare except full-time students.
2023/2024 Solved correctly
At what point must a life insurance applicant be informed of their right that fall under the
Fair Credit Reporting Act?
upon completion of the application
Who elects the governing body of a mutual insurance company?
policyholders
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the
Fair Credit Reporting Act
What type of reinsurance contract involves two companies automatically sharing their
risk exposure?
Treaty
The stated amount or percent of liquid assets that an insurer must have on hand that
will satisfy future obligations to its policyholders is called
Reserves
Which statement is TRUE regarding a group accident and health policy issued to an
employer? Neither the employer or employee are policy owners The employer is
issued a certificate of coverage and each employee receives a policy * The employer
receives the policy and each employee is issued a certificate
*Both the employer and employee are policy owners.
The employer receives the policy and each employee is issued a certificate.
G is an accountant who has ten employees and is concerned about how the business
would survive financially if G became disabled. The type of policy which BEST
addresses this concern is Business Overhead Expense Disability Income Key
Employee Life Contributory
Business Overhead Expense-- this policy's purpose is to cover certain overhead
expenses that continue when the business own is disabled.
How does group insurance differ from individual insurance?
Group insurance differs from individual insurance in that it provided coverage at a lower
cost.
The difference between group insurance and blanket health policies is
Blanket health policies do not issue certificates.
Which of the following statements BEST describes how a policy that uses the
"accidental bodily injury" definition of an accident differs from one that used the
"accidental means" definition? *double indemnity
benefits are taxable more restrictive *less restrictive
Less restrictive. A policy that uses "accidental bodily injury" definition of an accident is
less restrictive than the one that uses the "accidental means" definition.
Which of the following characteristics is associated with a large group disability income
policy? no waiting periods no medical underwriting no elimination periods no limit of
benefits
No medical underwriting. A large group disability income policy can be distinguished by
no medical underwriting.
, Which contract permits the remaining partners to buy-out the interest of a disabled
business partner?
A disability buy-sell plan allows the remaining partners to buy out the interest of the
disabled business partner.
An insurance company would MOST likely pay benefits under Accidental Death and
Dismemberment policy who which of the following losses? loss of life due to a heart
attack loss of eyesight due to an accidental injury *loss of the spleen due to an
accidental injury
* partial paralysis due to a stroke
Loss of eyesight due to an accidental injury.
XYZ Company pays the entire premium for its group health plan. The MINIMUM
percentage of eligible employees that must be covered is 25% 50% *75%
or *100%
Most noncontributory health plans require 100% participation by eligible employees.
P is a new employee and will be obtaining non-contributory group Major Medical
insurance from her employer. Which of the following actions must she take during the
open enrollment period? Authorize for payroll deductions Agree to a physical
examination Sign an enrollment card Register with her state of residency
A new employee must sign an enrollment card during the open enrollment period.
A medical care provider which typically delivers health services at its own local medical
facility is know as a
Health Maintenance Organization Regional Provider Multiple Employer
Trust Preferred Provider Organization
Health Maintenance Organization. HMO's traditionally provide services to its members
at its own local health care facilities.
Which type of provider is know for stressing preventative medical care? Multiple
Employer Welfare Arrangements (MEWA) Major medical provider Health
Maintenance Organizations (HMO's) Preferred Provider Organizations (PPO's)
The health provider that stresses preventative medical care is know as a Health
Maintenance Organization.
Which of the following BEST describes how a Preferred Provider Organization (PPO) is
less restrictive than a Health Maintenance Organization (HMO)? Typically not subject
to deductibles Not regulated by the federal government More benefits available More
physicians to choose from
PPO's normally provide a wider choice of physicians and hospitals.
The situation in which a group of physicians are salaried employees and conduct
business in an HMO facility is called a(n) closed panel open panel
co-op panel capitation panel
Closed panel. This is when an HMO is represented by a group of physicians who are
salaried employees and work out of the HMO's facility.
Medicare is intended for all of the following groups EXCEPT those enrolled as a full-
time student those receiving Social Security disability benefits for at least 24 months *
Those afflicted with chronic kidney failure
*those 65 and older
Those enrolled as a full-time student. All of these groups of people are typically eligible
for Medicare except full-time students.
