KY Health and Insurance State Exam
questions and answers
The interest earned on the cash value of an individually-owned annuity is considered to be: -
ANSWER>>tax-deferred
Which of the following statements is correct regarding an employer/employee group health
plan? - ANSWER>>the employer receives a master policy and the employees receive certificates
Mary has a Health Savings Account (HSA). Distributions that have been made for anything other
than qualified medical expenses are considered taxable and subject to a penalty of: -
ANSWER>>20%
Each of the following is an unfair marketing or trade practice, EXCEPT: -
ANSWER>>Replacement
Medicaid is funded by which entity (entities)? - ANSWER>>Both Federal and State governments
T was treated for an ailment 2 months prior to applying for a health insurance policy. This
condition was noted on the application and the policy was issued shortly afterwards. How will
the insurer likely consider this condition? - ANSWER>>Insurer will likely treat as a pre-existing
condition which may not be covered for one year
The Fair Credit Reporting Act is intended to give: - ANSWER>>consumers the right to protect
their own credit information
A Health Reimbursement Arrangement MUST be established: - ANSWER>>by the employer
An insurance company can write an Accidental Death and Dismemberment policy as a(n): -
ANSWER>>stand-alone policy or rider
Which of the following is correct regarding fraudulent act of over $300 in Kentucky? -
ANSWER>>All of these are correct and are consequences of fraudulent acts:
- Imprisonment for at least one year but not more than 5 years
- A fine up to $10000 for individuals and $100000 for companies
-It is a felony
,A life insurance policy which characterized by flexible premium payments is called: -
ANSWER>>Variable Universal Life
What does a fixed annuity offer protection against? - ANSWER>>Savings depletion because of
longevity
The provision in a Group Health policy that allows the insurer to postpone coverage for a
covered illness 30 days after the policy's effective date is referred to as the: -
ANSWER>>Waiting Period
The inducement of an insured to lapse, forfeit or surrender an insurance policy by
misrepresentation or misleading comparisons, in order to write a new policy, is known as: -
ANSWER>>Twisting
N is covered by a Term Life policy and does not make the required premium payment which
was due August 1st. N dies September 15. What action will the insurer take? - ANSWER>>Claim
will be denied
A life insurance policy that fails the 7-pay Test is considered to be a Modified Endowment
Contract. This type of policy will: - ANSWER>>Lose certain tax advantages
How long must insurers maintain advertisement in their files? - ANSWER>>3 years
In many states, it is illegal for an agent to offer anything other than the policy, as an
inducement to buy insurance. This practice is known as: - ANSWER>>Rebating
All Medicare Supplement policies should be: - ANSWER>>Guaranteed Renewable
On health insurance applications, statements made on the application are considered: -
ANSWER>>Representations
Medicare does not pay for treatment: - ANSWER>>Outside the US
What group term life feature permits an individual to depart from the group and continue to be
covered without providing evidence of insurability? - ANSWER>>Conversion
An insurance company can be any of the following, EXCEPT: - ANSWER>>domestic and alien
, Which of the following reimburses its insureds for covered medical expenses? -
ANSWER>>Commercial Insurers
Many small business owners worry how their business would survive financially if the owner
becomes disabled. The policy which BEST addresses this concern is: - ANSWER>>Business
Overhead Expense
Bryce purchased a disability income policy with a rider that guarantees him the option of
purchasing additional amounts of coverage at predetermined times without requiring to
provide evidence of insurability. What kind of rider is this? - ANSWER>>Guaranteed Insurability
Rider
In life insurance, the needs approach is used mostly to establish: - ANSWER>>How much life
insurance a client should apply for
K has a life insurance policy where her husband is beneficiary and her daughter is contingent
beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an
automobile accident, where would the death proceeds be directed? - ANSWER>>daughter
The free-look period for an individual health insurance policy, during which the insured may
return the policy for a full refund of premium is? - ANSWER>>10 days
All of these are characteristics of an Adjustable Life policy, EXCEPT: - ANSWER>>face amount
can be adjusted using policy dividends
F needs life insurance that provides coverage for only a limited amount of time with a death
benefit that changes regularly according to a schedule. What kind of policy is needed? -
ANSWER>>decreasing term policy
With Optionally Renewable Health policies, the insurer may: - ANSWER>>review the policy
annually and determine whether or not to renew it.
When is the face amount paid under a Joint Life and Survivor policy? - ANSWER>>upon death of
the last insured
No individual may be licensed as a producer unless they are at least - ANSWER>>18 years of age
questions and answers
The interest earned on the cash value of an individually-owned annuity is considered to be: -
ANSWER>>tax-deferred
Which of the following statements is correct regarding an employer/employee group health
plan? - ANSWER>>the employer receives a master policy and the employees receive certificates
Mary has a Health Savings Account (HSA). Distributions that have been made for anything other
than qualified medical expenses are considered taxable and subject to a penalty of: -
ANSWER>>20%
Each of the following is an unfair marketing or trade practice, EXCEPT: -
ANSWER>>Replacement
Medicaid is funded by which entity (entities)? - ANSWER>>Both Federal and State governments
T was treated for an ailment 2 months prior to applying for a health insurance policy. This
condition was noted on the application and the policy was issued shortly afterwards. How will
the insurer likely consider this condition? - ANSWER>>Insurer will likely treat as a pre-existing
condition which may not be covered for one year
The Fair Credit Reporting Act is intended to give: - ANSWER>>consumers the right to protect
their own credit information
A Health Reimbursement Arrangement MUST be established: - ANSWER>>by the employer
An insurance company can write an Accidental Death and Dismemberment policy as a(n): -
ANSWER>>stand-alone policy or rider
Which of the following is correct regarding fraudulent act of over $300 in Kentucky? -
ANSWER>>All of these are correct and are consequences of fraudulent acts:
- Imprisonment for at least one year but not more than 5 years
- A fine up to $10000 for individuals and $100000 for companies
-It is a felony
,A life insurance policy which characterized by flexible premium payments is called: -
ANSWER>>Variable Universal Life
What does a fixed annuity offer protection against? - ANSWER>>Savings depletion because of
longevity
The provision in a Group Health policy that allows the insurer to postpone coverage for a
covered illness 30 days after the policy's effective date is referred to as the: -
ANSWER>>Waiting Period
The inducement of an insured to lapse, forfeit or surrender an insurance policy by
misrepresentation or misleading comparisons, in order to write a new policy, is known as: -
ANSWER>>Twisting
N is covered by a Term Life policy and does not make the required premium payment which
was due August 1st. N dies September 15. What action will the insurer take? - ANSWER>>Claim
will be denied
A life insurance policy that fails the 7-pay Test is considered to be a Modified Endowment
Contract. This type of policy will: - ANSWER>>Lose certain tax advantages
How long must insurers maintain advertisement in their files? - ANSWER>>3 years
In many states, it is illegal for an agent to offer anything other than the policy, as an
inducement to buy insurance. This practice is known as: - ANSWER>>Rebating
All Medicare Supplement policies should be: - ANSWER>>Guaranteed Renewable
On health insurance applications, statements made on the application are considered: -
ANSWER>>Representations
Medicare does not pay for treatment: - ANSWER>>Outside the US
What group term life feature permits an individual to depart from the group and continue to be
covered without providing evidence of insurability? - ANSWER>>Conversion
An insurance company can be any of the following, EXCEPT: - ANSWER>>domestic and alien
, Which of the following reimburses its insureds for covered medical expenses? -
ANSWER>>Commercial Insurers
Many small business owners worry how their business would survive financially if the owner
becomes disabled. The policy which BEST addresses this concern is: - ANSWER>>Business
Overhead Expense
Bryce purchased a disability income policy with a rider that guarantees him the option of
purchasing additional amounts of coverage at predetermined times without requiring to
provide evidence of insurability. What kind of rider is this? - ANSWER>>Guaranteed Insurability
Rider
In life insurance, the needs approach is used mostly to establish: - ANSWER>>How much life
insurance a client should apply for
K has a life insurance policy where her husband is beneficiary and her daughter is contingent
beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an
automobile accident, where would the death proceeds be directed? - ANSWER>>daughter
The free-look period for an individual health insurance policy, during which the insured may
return the policy for a full refund of premium is? - ANSWER>>10 days
All of these are characteristics of an Adjustable Life policy, EXCEPT: - ANSWER>>face amount
can be adjusted using policy dividends
F needs life insurance that provides coverage for only a limited amount of time with a death
benefit that changes regularly according to a schedule. What kind of policy is needed? -
ANSWER>>decreasing term policy
With Optionally Renewable Health policies, the insurer may: - ANSWER>>review the policy
annually and determine whether or not to renew it.
When is the face amount paid under a Joint Life and Survivor policy? - ANSWER>>upon death of
the last insured
No individual may be licensed as a producer unless they are at least - ANSWER>>18 years of age
