PEARSONVUE HEALTH INSURANCE
PRACTICE EXAM CORRECT 100%
Medicare Part A covers which of the following expenses? - ANSWER Hospital room and
board
Which of the following reports may include information obtained by a telephone call to
the proposed insured? - ANSWER Inspection report
An individual who has had a heart murmur since birth is likely to be issued an individual
disability policy that includes: - ANSWER an Exclusionary/ Impairment rider
On June 1, S purchased a Major Medical policy and paid the initial premium to Producer
T. On July 1, Producer T received the policy from the insurance company. The policy
contained a Ten-Day Free Look provision. On July 3, Producer T attempted to deliver
the policy but found that S was not at home. On July 5, Producer T was able to deliver
the policy to S. On July 7, S decided he did not want the policy. S had 10 days from
which of the following dates to return the policy to the company and obtain a full
premium refund? - ANSWER July 5
When delivering a policy to a client, a producer should take all of the following actions
EXCEPT: - ANSWER keep the policy in the producer's office for safe-keeping on behalf
of the client
An applicant for insurance submits an application to an insurer for underwriting but does
not forward any premium payment with the application. Legally, the applicant is making:
- ANSWER an inquiry for an offer
Which of the following definitions of disability would cover a permanent partial disability?
- ANSWER Residual disability
The Elimination Period in most Disability Income policies applies: - ANSWER to each
separate disability
Which of the following statements is CORRECT about a Waiver of Premium provision in
a Disability Income policy? - ANSWER It allows the insured to maintain a policy in force
while disabled and unable to pay premiums.
The Consideration clause in an accident and health policy states the: - ANSWER the
applicant pays the initial premium
All of the following elements are required of a contract EXCEPT: - ANSWER
assignment
, A producer and an applicant complete an application for a health policy and submit it to
the insurer for underwriting without any premium. The underwriter issues a policy and
mails it to the producer for delivery to the applicant. The producer should take all of the
following actions during the delivery of the policy to the applicant EXCEPT: - ANSWER
issue a conditional receipt
Under a group health plan, an employer may offer additional benefits to classes of
employees on the basis of all of the following factors EXCEPT: - ANSWER gender
A health care plan that reimburses a flat fee for medical care it provides at a clinic it
owns and operates is referred to as: - ANSWER a Health Maintenance Organization
The Social Security program provides all of the following benefits EXCEPT: - ANSWER
workers compensation
Which of the following health policies requires a beneficiary designation? - ANSWER
Travel Accident
The Coordination of Benefits clause found in group health master contracts is used to: -
ANSWER avoid double payment of benefits to an insured who has duplicate group
coverages
Under an Accidental Death and Dismemberment (AD&D) policy, insurable interest must
exist at which of the following times? - ANSWER At the inception of the policy
A Disability Income policy may provide benefits for which of the following losses? -
ANSWER Residual Disability
A married insured has an Accidental Death and Dismemberment (AD&D) policy that
names his brother as the primary beneficiary and his son as the contingent beneficiary.
If the insured and his brother are both killed instantly in a train accident, the policy
proceeds would be paid to which of the following? - ANSWER The insured's son
The PRIMARY purpose of Medicaid is to: - ANSWER provide Medical Expense
coverage to persons meeting certain minimum income requirements
Five years ago, at age forty-five, X stated that he was forty years old on a disability
income insurance application. X now submits a claim and the insurer discovers X's true
age. The insurer will most likely take which of the following actions? - ANSWER Adjust
the benefits downward according to the benefits that X would have been entitled to
based on the premiums
Under a Guaranteed Renewable Accident & Health policy, an insurer retains the right
to: - ANSWER increase the premium rate for an entire class of insureds
PRACTICE EXAM CORRECT 100%
Medicare Part A covers which of the following expenses? - ANSWER Hospital room and
board
Which of the following reports may include information obtained by a telephone call to
the proposed insured? - ANSWER Inspection report
An individual who has had a heart murmur since birth is likely to be issued an individual
disability policy that includes: - ANSWER an Exclusionary/ Impairment rider
On June 1, S purchased a Major Medical policy and paid the initial premium to Producer
T. On July 1, Producer T received the policy from the insurance company. The policy
contained a Ten-Day Free Look provision. On July 3, Producer T attempted to deliver
the policy but found that S was not at home. On July 5, Producer T was able to deliver
the policy to S. On July 7, S decided he did not want the policy. S had 10 days from
which of the following dates to return the policy to the company and obtain a full
premium refund? - ANSWER July 5
When delivering a policy to a client, a producer should take all of the following actions
EXCEPT: - ANSWER keep the policy in the producer's office for safe-keeping on behalf
of the client
An applicant for insurance submits an application to an insurer for underwriting but does
not forward any premium payment with the application. Legally, the applicant is making:
- ANSWER an inquiry for an offer
Which of the following definitions of disability would cover a permanent partial disability?
- ANSWER Residual disability
The Elimination Period in most Disability Income policies applies: - ANSWER to each
separate disability
Which of the following statements is CORRECT about a Waiver of Premium provision in
a Disability Income policy? - ANSWER It allows the insured to maintain a policy in force
while disabled and unable to pay premiums.
The Consideration clause in an accident and health policy states the: - ANSWER the
applicant pays the initial premium
All of the following elements are required of a contract EXCEPT: - ANSWER
assignment
, A producer and an applicant complete an application for a health policy and submit it to
the insurer for underwriting without any premium. The underwriter issues a policy and
mails it to the producer for delivery to the applicant. The producer should take all of the
following actions during the delivery of the policy to the applicant EXCEPT: - ANSWER
issue a conditional receipt
Under a group health plan, an employer may offer additional benefits to classes of
employees on the basis of all of the following factors EXCEPT: - ANSWER gender
A health care plan that reimburses a flat fee for medical care it provides at a clinic it
owns and operates is referred to as: - ANSWER a Health Maintenance Organization
The Social Security program provides all of the following benefits EXCEPT: - ANSWER
workers compensation
Which of the following health policies requires a beneficiary designation? - ANSWER
Travel Accident
The Coordination of Benefits clause found in group health master contracts is used to: -
ANSWER avoid double payment of benefits to an insured who has duplicate group
coverages
Under an Accidental Death and Dismemberment (AD&D) policy, insurable interest must
exist at which of the following times? - ANSWER At the inception of the policy
A Disability Income policy may provide benefits for which of the following losses? -
ANSWER Residual Disability
A married insured has an Accidental Death and Dismemberment (AD&D) policy that
names his brother as the primary beneficiary and his son as the contingent beneficiary.
If the insured and his brother are both killed instantly in a train accident, the policy
proceeds would be paid to which of the following? - ANSWER The insured's son
The PRIMARY purpose of Medicaid is to: - ANSWER provide Medical Expense
coverage to persons meeting certain minimum income requirements
Five years ago, at age forty-five, X stated that he was forty years old on a disability
income insurance application. X now submits a claim and the insurer discovers X's true
age. The insurer will most likely take which of the following actions? - ANSWER Adjust
the benefits downward according to the benefits that X would have been entitled to
based on the premiums
Under a Guaranteed Renewable Accident & Health policy, an insurer retains the right
to: - ANSWER increase the premium rate for an entire class of insureds
