Arkansas Health insurance exam Latest Update 2024-2025 Exam 250 Questions and 100% Verified Correct Answers Guaranteed A+ A waiver of premium may be included with what type of health insurance policies? -
CORRECT ANSWER: Disability income
According to the Coordination of Benefits provision, if both parents have coverage for a child from their employers' policies, which policy will pay first? - CORRECT ANSWER: The order of payment will be determined by the birthday rule: the coverage of the parent whose birthday is earlier in the year will be considered primary
According to the Reinstatement provision, once a lapsed policy is reinstated, how soon
will coverage be available for accidents? - CORRECT ANSWER: Immediately
According to the Time Limit on Certain Defenses provision in health insurance policies, when can an insurer contest fraudulent misstatements on a health insurance
application? - CORRECT ANSWER: Any time while the policy is in force
After the elimination period, a totally disabled insured qualified for benefits from a disability income policy that has a waiver of premium rider. What will happen to the premium that was paid into the policy during the elimination period? - CORRECT
ANSWER: Premium will be refunded
An accident and Health insurance policy that requires the premium to be paid quarterly must include a grace period of at least: - CORRECT ANSWER: 31 days
An agent offers a client free tickets to a sporting event in exchange for the purchase of
an insurance policy. What is the agent guilty of? - CORRECT ANSWER: Rebating
An insured with Medicare Part D has reached the initial benefit limit and must now pay a portion of prescription drug costs. What is the term for this gap in coverage? -
CORRECT ANSWER: The donut holePa
At what age do individuals qualify for Medicare? - CORRECT ANSWER: Age 65
Can Alzheimer's disease be excluded from coverage under a long-term care policy? -
CORRECT ANSWER: No, organic cognitive disorders, such as Alzheimer's or
Parkinson's must be covered
Can an insured who belongs to a POS plan use an out-of-network physician? -
CORRECT ANSWER: Yes, but the copays and deductibles may be higher
Can insurers advertise the existence of the guaranty association during solicitation and sale of insurance policy? - CORRECT ANSWER: No, advertising of the existence of the 1 / 3
guaranty association for the purpose of solicitation and sale of insurance policies by insurers is an illegal business practice
Concerning an HMO, with what must an enrollee be provided? - CORRECT ANSWER:
Description of services, Directions as to how to secure services, and truthful advertising
Helga is eligible to receive medical assistance and is applying for an HMO policy. Which type of provisions can she expect to be included on policy, in order to exclude coverage based on her eligibility for medical assistance? - CORRECT ANSWER: No contract or evidence of coverage is issued by an HMO may contain any provision which limits or excludes payments of health care services to or on behalf of the enrollee because the enrollee or any covered dependent is eligible for or is receiving medical assistance benefits
How are benefits received by the business from a key person disability insurance? -
CORRECT ANSWER: Income tax free
How are HMO territories typically divided? - CORRECT ANSWER: geographic areas
How are individually-owned disability income benefits taxed once received by the
insured? - CORRECT ANSWER: Disability benefits are not taxed; they are received
income tax free
How can an HMO member see a specialist? - CORRECT ANSWER: Referral by the
primary physician
How does someone qualify for Social Security disability income benefits? - CORRECT ANSWER: The insured must have the proper insured status (such as fully insured), meet the definition of disability, and satisfy the waiting period
How is Part B Medicare funded? - CORRECT ANSWER: By monthly premiums and
from the general revenues of the federal government
How long do short-term disability group plans pay benefits? - CORRECT ANSWER: For up to 52 weeks
How many parts does Medicare have? - CORRECT ANSWER: Four: Parts A-D
How many pints of blood will be paid for by Medicare Supplement core benefits? -
CORRECT ANSWER: First 3 pints
How will changing one's occupation to be more hazardous affect the health insurance
policy in force? - CORRECT ANSWER: Claim benefits will be reduced to what the
premium would have bought for a more hazardous occupation
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If a health insurance policy has a 31-day grace period, what does that mean? - CORRECT ANSWER: The policy remains in effect for 31 days after the premium is due and not paid
If a medical organization bears part of a patients risk in healthcare-related costs, what
type of organization is it? - CORRECT ANSWER: HMO
If a producer makes maliciously critical statements about another insurer, what is this
illegal practice called? - CORRECT ANSWER: Defamation
If an agent makes a correction on the application for health insurance, who must initial
the correct answer? - CORRECT ANSWER: The applicant
If an individual is covered by Medicare, and is also covered by his employer's health
plan, which plan would be considered primary? - CORRECT ANSWER: The employer
plan
If an insurer decides to obtain medical information from different sources in order to determine the insurability of an applicant, who must be notified of the investigation? -
CORRECT ANSWER: The applicant
If an insurer holds a Certificate of Authority, it is known as what type of insurer? -
CORRECT ANSWER: Authorized or admitted
If an insurer meets the state's financial requirements and is approved to transact
business in the state, it is considered what type of insurer? - CORRECT ANSWER:
Authorized or admitted
If an underwriter requires extensive information about the applicant's medical history, what report will best serve this purpose? - CORRECT ANSWER: Attending Physicians statement
If the commissioner deems it so, why may an enrollee's HMO be cancelled? -
CORRECT ANSWER: The commissioner can cancel or nonrenew an HMO for any
rules he/she establishes
If the insured pays a monthly premium for health insurance, how long would the grace
period be on the policy? - CORRECT ANSWER: 10 days
If the insured share the cost of health insurance premiums with the employer, this would
be known as what type of group health plan? - CORRECT ANSWER: Contributory
In general, who can be excluded from producer licensing and examination
requirements? - CORRECT ANSWER: Insurance company officers, directors, or any
other employees who do not transact insurance and who do not receive commissions for their services
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