ARKANSAS HEALTH INSURANCE EXAM QUESTIONS A f f f f f
ND ANSWERS (VERIFIED ANSWERS GRADED A+) LATE
f f f f f f
ST UPDATE 2024/2025
f f
A person covered with an individual health plan
f f f f f f f
is issued a policy
f f f
is issued a certificate of medical costs
f f f f f f
does not contract directly with the insurance company
f f f f f f f
is not subject to medical underwriting -
f f f f f f
CORRECT ANSWER Is issued a policy
f f f f f f
Which of the following is typically NOT eligible for coverage in a group heal
f f f f f f f f f f f f f
th policy?
f
Full-
time employee Tempora
f f
ry employee Business ow
f f f
ner
Partner in a partnership - CORRECT ANSWER Temporary Employee
f f f f f f f f
,How many employees must an employer have for a terminated employee to
f f f f f f f f f f f f
be eligible for COBRA?
f f f
20
30
40
50 - CORRECT ANSWER 20 employees
f f f f f
The election of COBRA for continuation of health coverage will
f f f f f f f f f
increase the coverage and lower premium maintain t
f f f f f f f
he same coverage and increase premium increase out
f f f f f f f
-of-pocket costs and lower premium f f f f
decrease out-of-pocket costs and maintain same premium -
f f f f f f f
CORRECT ANSWER maintain the same coverage and increase premium
f f f f f f f f f
Justin is receiving disability income benefits from a group policy paid for by
f f f f f f f f f f f f
his employer. How are these benefits treated for tax purposes?
f f f f f f f f f f
Partially taxable income f f f
Non-
taxable income Taxable if f f
ncome
Conditionally taxable income - CORRECT ANSWER Taxable income f f f f f f f
,Health insurance involves two perils, accident and
f f f f f f
death sick f
ness disabi f
lity
liability - CORRECT ANSWER sickness f f f f
The limited period of time given to all members to sign up for a group health p
f f f f f f f f f f f f f f f f
lan is called the
f f f
enlistment period si f f
gn-
up period probation
f f
ary period
f
enrollment period - CORRECT ANSWER enrollment period f f f f f f
Under group health insurance, a certificate of coverage is issued to the
f f f f f f f f f f f
emplover f
employee
producer
f
sponsor - CORRECT ANSWER Employee f f f f
Which of the following would evidence ownership in a participating health i
f f f f f f f f f f f
nsurance contract? f
, Stock ownership f
Irrevocable beneficiary status Po f f f
licy ownership
f
Collateral assignment - CORRECT ANSWER Policy ownership
f f f f f f
If an employee contributes 50% toward the disability plan premium provide
f f f f f f f f f f
d by an employer, what would be considered the taxable income of a $1,000
f f f f f f f f f f f f f f
monthly disability benefit? f f
$100
$250
$500
$1,000 - CORRECT ANSWER $500f f f f
Which of the following does Coordination of Benefits allow?
f f f f f f f f
Allows the secondary payor to reduce their benefit payments so no more than
f f f f f f f f f f f f f
100% of the claim is paid
f f f f f
Allows both a group health plan and individual health plan to coordinate their
f f f f f f f f f f f f
benefit payments
f f
Allows the deductible to be spread out between all the health providers
f f f f f f f f f f f
Allows each health provider to pay 100% of the claim -
f f f f f f f f f f
CORRECT ANSWER Allows the secondary payor to reduce their benefit
f f f f f f f f f f f
payments so no more than 100% of the claim is paid
f f f f f f f f f f
ND ANSWERS (VERIFIED ANSWERS GRADED A+) LATE
f f f f f f
ST UPDATE 2024/2025
f f
A person covered with an individual health plan
f f f f f f f
is issued a policy
f f f
is issued a certificate of medical costs
f f f f f f
does not contract directly with the insurance company
f f f f f f f
is not subject to medical underwriting -
f f f f f f
CORRECT ANSWER Is issued a policy
f f f f f f
Which of the following is typically NOT eligible for coverage in a group heal
f f f f f f f f f f f f f
th policy?
f
Full-
time employee Tempora
f f
ry employee Business ow
f f f
ner
Partner in a partnership - CORRECT ANSWER Temporary Employee
f f f f f f f f
,How many employees must an employer have for a terminated employee to
f f f f f f f f f f f f
be eligible for COBRA?
f f f
20
30
40
50 - CORRECT ANSWER 20 employees
f f f f f
The election of COBRA for continuation of health coverage will
f f f f f f f f f
increase the coverage and lower premium maintain t
f f f f f f f
he same coverage and increase premium increase out
f f f f f f f
-of-pocket costs and lower premium f f f f
decrease out-of-pocket costs and maintain same premium -
f f f f f f f
CORRECT ANSWER maintain the same coverage and increase premium
f f f f f f f f f
Justin is receiving disability income benefits from a group policy paid for by
f f f f f f f f f f f f
his employer. How are these benefits treated for tax purposes?
f f f f f f f f f f
Partially taxable income f f f
Non-
taxable income Taxable if f f
ncome
Conditionally taxable income - CORRECT ANSWER Taxable income f f f f f f f
,Health insurance involves two perils, accident and
f f f f f f
death sick f
ness disabi f
lity
liability - CORRECT ANSWER sickness f f f f
The limited period of time given to all members to sign up for a group health p
f f f f f f f f f f f f f f f f
lan is called the
f f f
enlistment period si f f
gn-
up period probation
f f
ary period
f
enrollment period - CORRECT ANSWER enrollment period f f f f f f
Under group health insurance, a certificate of coverage is issued to the
f f f f f f f f f f f
emplover f
employee
producer
f
sponsor - CORRECT ANSWER Employee f f f f
Which of the following would evidence ownership in a participating health i
f f f f f f f f f f f
nsurance contract? f
, Stock ownership f
Irrevocable beneficiary status Po f f f
licy ownership
f
Collateral assignment - CORRECT ANSWER Policy ownership
f f f f f f
If an employee contributes 50% toward the disability plan premium provide
f f f f f f f f f f
d by an employer, what would be considered the taxable income of a $1,000
f f f f f f f f f f f f f f
monthly disability benefit? f f
$100
$250
$500
$1,000 - CORRECT ANSWER $500f f f f
Which of the following does Coordination of Benefits allow?
f f f f f f f f
Allows the secondary payor to reduce their benefit payments so no more than
f f f f f f f f f f f f f
100% of the claim is paid
f f f f f
Allows both a group health plan and individual health plan to coordinate their
f f f f f f f f f f f f
benefit payments
f f
Allows the deductible to be spread out between all the health providers
f f f f f f f f f f f
Allows each health provider to pay 100% of the claim -
f f f f f f f f f f
CORRECT ANSWER Allows the secondary payor to reduce their benefit
f f f f f f f f f f f
payments so no more than 100% of the claim is paid
f f f f f f f f f f
