Accident and Health Insurance Agent (Broker) Practice Exam with
complete Questions and Answers
Sally is considering her Medicare options. She understands that to enroll in Medicare Part B, she
will have to pay a monthly premium. Since she is healthy, she is considering delaying her
enrollment until later. Will she be able to enroll at a later date?
1.Yes, she can enroll at anytime in the future
2.Yes, however; she would have a permanent premium penalty when she does enroll
3.No, this is a take or leave it situation
4.Yes, but she would have to show evidence of good health. - answerYes, however; she would have
a permanent premium penalty when she does enroll
Under Medicare Part A, a spell of illness begins again and is subject to a new deductible for
another admission when:
1.The patient has been discharged from a prior stay and 45 days have elapsed
2.The patient has been discharged from a prior stay and 30 days have elapsed
3.The patient has been discharged from a prior stay and 60 days have elapsed
4.The patient has been discharged from a prior stay and 90 days have elapsed - answerThe patient
has been discharged from a prior stay and 60 days have elapsed
What type of insurer retains risk?
1.Government insurance.
2.Reinsurers.
3.Self insurers.
4.Assessment insurers. - answerSelf insurers.
,A variety of types of care are provided under a long-term care policy. All of the following are types
of care generally provided EXCEPT:
1.Home health care
2.Intensive care
3.Custodial care
4.Skilled care - answerIntensive care
Melvin has a long-term care policy with a 30-day elimination period. The policy has a daily benefit
of $100/day. The policy has a 3-year benefit period. If Melvin is confined to a nursing home for 9
months, how much in benefits will his policy pay?
1.$27,000
2.$18,000
3.$24,000
4.$17,000 - answer$24,000
Martin and his friends were at a local tavern celebrating his birthday. Martin left the bar to drive
home, but unfortunately, he was involved in a fatal accident, killing himself and two other
individuals. An autopsy reveals that Martin was well above the legal limit on his blood alcohol
test. Martin's family will receive the following from his Accidental Death and Dismemberment
policy:
1.His family will receive reduced benefits since other deaths were involved.
2.His family will receive the principal sum since this was death
3.His family will receive no benefits, since he was in the act of committing a felony
4.His family will receive no benefits since there was no dismemberment involved. - answerHis
family will receive no benefits, since he was in the act of committing a felony
,An exclusion that always appears in a health policy is:
1.No coverage for drug or alcohol related illness
2.Hernia from an accident
3.Travel outside of the USA
4.Injury in the act of committing a felony - answerInjury in the act of committing a felony
Bruce owns a plan that pays $100 daily benefit for a hospital stay with no deductible. This kind of
policy is known as a (an):
1.Major medical plan
2.Basic plan
3.Indemnity plan
4.Reimbursement plan - answerIndemnity plan
Under what conditions is the death benefit (principal sum) payable under an Accidental Death
and Dismemberment (AD&D) policy?
1.The insured dies from a grave illness
2.The insured dies from natural causes
3.The insured dies from an accident
4.All of the above - answerThe insured dies from an accident
An insurance agent told a member of his church who had recently experienced several personal
and financial losses that he could see that she got a more favorable rate on her insurance policies
than her health and general circumstances would warrant. The woman had been his kindergarten
teacher and was a pillar in the community's life. He wanted to help her. Which of the following is
FALSE?
, 1.The agent was breaking the law.
2.The agent is compassionate.
3.The agent was engaging in unfair discrimination.
4.The agent was engaging in twisting. - answerThe agent was engaging in twisting.
Which of the following is NOT considered to be an unfair claims settlement practice?
1.Knowingly misrepresenting policy provisions.
2.Replacing one insurance policy with another.
3.Failing to promptly acknowledge pertinent communications.
4.Refusing to pay claimants without conducting a reasonable investigation. - answerReplacing one
insurance policy with another.
The practice of using misrepresentation to induce a policyholder to replace a policy issued by the
insurer the producer represents is called:
1.twisting.
2.churning.
3.intimidation.
4.misrepresentation. - answerchurning.
All of the following acts are considered unfair trade practices EXCEPT:
1.replacement.
2.misrepresentation
3.coercion.
complete Questions and Answers
Sally is considering her Medicare options. She understands that to enroll in Medicare Part B, she
will have to pay a monthly premium. Since she is healthy, she is considering delaying her
enrollment until later. Will she be able to enroll at a later date?
1.Yes, she can enroll at anytime in the future
2.Yes, however; she would have a permanent premium penalty when she does enroll
3.No, this is a take or leave it situation
4.Yes, but she would have to show evidence of good health. - answerYes, however; she would have
a permanent premium penalty when she does enroll
Under Medicare Part A, a spell of illness begins again and is subject to a new deductible for
another admission when:
1.The patient has been discharged from a prior stay and 45 days have elapsed
2.The patient has been discharged from a prior stay and 30 days have elapsed
3.The patient has been discharged from a prior stay and 60 days have elapsed
4.The patient has been discharged from a prior stay and 90 days have elapsed - answerThe patient
has been discharged from a prior stay and 60 days have elapsed
What type of insurer retains risk?
1.Government insurance.
2.Reinsurers.
3.Self insurers.
4.Assessment insurers. - answerSelf insurers.
,A variety of types of care are provided under a long-term care policy. All of the following are types
of care generally provided EXCEPT:
1.Home health care
2.Intensive care
3.Custodial care
4.Skilled care - answerIntensive care
Melvin has a long-term care policy with a 30-day elimination period. The policy has a daily benefit
of $100/day. The policy has a 3-year benefit period. If Melvin is confined to a nursing home for 9
months, how much in benefits will his policy pay?
1.$27,000
2.$18,000
3.$24,000
4.$17,000 - answer$24,000
Martin and his friends were at a local tavern celebrating his birthday. Martin left the bar to drive
home, but unfortunately, he was involved in a fatal accident, killing himself and two other
individuals. An autopsy reveals that Martin was well above the legal limit on his blood alcohol
test. Martin's family will receive the following from his Accidental Death and Dismemberment
policy:
1.His family will receive reduced benefits since other deaths were involved.
2.His family will receive the principal sum since this was death
3.His family will receive no benefits, since he was in the act of committing a felony
4.His family will receive no benefits since there was no dismemberment involved. - answerHis
family will receive no benefits, since he was in the act of committing a felony
,An exclusion that always appears in a health policy is:
1.No coverage for drug or alcohol related illness
2.Hernia from an accident
3.Travel outside of the USA
4.Injury in the act of committing a felony - answerInjury in the act of committing a felony
Bruce owns a plan that pays $100 daily benefit for a hospital stay with no deductible. This kind of
policy is known as a (an):
1.Major medical plan
2.Basic plan
3.Indemnity plan
4.Reimbursement plan - answerIndemnity plan
Under what conditions is the death benefit (principal sum) payable under an Accidental Death
and Dismemberment (AD&D) policy?
1.The insured dies from a grave illness
2.The insured dies from natural causes
3.The insured dies from an accident
4.All of the above - answerThe insured dies from an accident
An insurance agent told a member of his church who had recently experienced several personal
and financial losses that he could see that she got a more favorable rate on her insurance policies
than her health and general circumstances would warrant. The woman had been his kindergarten
teacher and was a pillar in the community's life. He wanted to help her. Which of the following is
FALSE?
, 1.The agent was breaking the law.
2.The agent is compassionate.
3.The agent was engaging in unfair discrimination.
4.The agent was engaging in twisting. - answerThe agent was engaging in twisting.
Which of the following is NOT considered to be an unfair claims settlement practice?
1.Knowingly misrepresenting policy provisions.
2.Replacing one insurance policy with another.
3.Failing to promptly acknowledge pertinent communications.
4.Refusing to pay claimants without conducting a reasonable investigation. - answerReplacing one
insurance policy with another.
The practice of using misrepresentation to induce a policyholder to replace a policy issued by the
insurer the producer represents is called:
1.twisting.
2.churning.
3.intimidation.
4.misrepresentation. - answerchurning.
All of the following acts are considered unfair trade practices EXCEPT:
1.replacement.
2.misrepresentation
3.coercion.
