Arkansas Health Insurance Study Questions and Answers Latest 2024

Arkansas Health Insurance Study Questions and Answers Latest 2024 At what point must a life insurance applicant be informed of their right that fall under the Fair Credit Reporting Act? - CORRECT ANSWER-upon completion of the application Who elects the governing body of a mutual insurance company? - CORRECT ANSWER-policyholders An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the - CORRECT ANSWER-Fair Credit Reporting Act What type of reinsurance contract involves two companies automatically sharing their risk exposure? - CORRECT ANSWER-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 - CORRECT ANSWERReserves 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. - CORRECT ANSWER-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 - CORRECT ANSWER-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? - CORRECT ANSWERGroup insurance differs from individual insurance in that it provided coverage at a lower cost. The difference between group insurance and blanket health policies is - CORRECT ANSWER-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 - CORRECT ANSWER-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