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