Arkansas Health Insurance Study Questions With Verified Answers
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Course
Arkansas Health Insurance
Institution
Arkansas Health Insurance
Who elects the governing body of a mutual insurance company? - ANSWER-policyholders
An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the - ANSWER-Fair Credit Reporting Act
What type of reinsurance contract involves two compani...
Arkansas Health Insurance Study
Questions With Verified Answers
At what point must a life insurance applicant be informed of their right that fall under
the Fair Credit Reporting Act? - ANSWER-upon completion of the application
Who elects the governing body of a mutual insurance company? - ANSWER-
policyholders
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the - ANSWER-Fair Credit Reporting Act
What type of reinsurance contract involves two companies automatically sharing
their risk exposure? - ANSWER-Treaty
The stated amount or percent of liquid assets that an insurer must have on hand that
will satisfy future obligations to its policyholders is called - ANSWER-Reserves
Which statement is TRUE regarding a group accident and health policy issued to an
employer? *Neither the employer or employee are policy owners *The employer is
issued a certificate of coverage and each employee receives a policy * The employer
receives the policy and each employee is issued a certificate
*Both the employer and employee are policy owners. - ANSWER-The employer
receives the policy and each employee is issued a certificate.
G is an accountant who has ten employees and is concerned about how the
business would survive financially if G became disabled. The type of policy which
BEST addresses this concern is *Business Overhead Expense * Disability Income
*Key Employee Life * Contributory - ANSWER-Business Overhead Expense-- this
policy's purpose is to cover certain overhead expenses that continue when the
business own is disabled.
How does group insurance differ from individual insurance? - ANSWER-Group
insurance differs from individual insurance in that it provided coverage at a lower
cost.
The difference between group insurance and blanket health policies is - ANSWER-
Blanket health policies do not issue certificates.
Which of the following statements BEST describes how a policy that uses the
"accidental bodily injury" definition of an accident differs from one that used the
"accidental means" definition? *double indemnity
*benefits are taxable * more restrictive *less restrictive - ANSWER-Less restrictive. A
policy that uses "accidental bodily injury" definition of an accident is less restrictive
than the one that uses the "accidental means" definition.
, Which of the following characteristics is associated with a large group disability
income policy? *no waiting periods *no medical underwriting *no elimination periods
* no limit of benefits - ANSWER-No medical underwriting. A large group disability
income policy can be distinguished by no medical underwriting.
Which contract permits the remaining partners to buy-out the interest of a disabled
business partner? - ANSWER-A disability buy-sell plan allows the remaining partners
to buy out the interest of the disabled business partner.
An insurance company would MOST likely pay benefits under Accidental Death and
Dismemberment policy who which of the following losses? *loss of life due to a heart
attack *loss of eyesight due to an accidental injury *loss of the spleen due to an
accidental injury
* partial paralysis due to a stroke - ANSWER-Loss of eyesight due to an accidental
injury.
XYZ Company pays the entire premium for its group health plan. The MINIMUM
percentage of eligible employees that must be covered is *25% *50% *75%
or *100% - ANSWER-Most noncontributory health plans require 100% participation
by eligible employees.
P is a new employee and will be obtaining non-contributory group Major Medical
insurance from her employer. Which of the following actions must she take during
the open enrollment period? * Authorize for payroll deductions * Agree to a physical
examination *Sign an enrollment card * Register with her state of residency -
ANSWER-A new employee must sign an enrollment card during the open enrollment
period.
A medical care provider which typically delivers health services at its own local
medical facility is know as a
*Health Maintenance Organization * Regional Provider *Multiple Employer Trust
*Preferred Provider Organization - ANSWER-Health Maintenance Organization.
HMO's traditionally provide services to its members at its own local health care
facilities.
Which type of provider is know for stressing preventative medical care? *Multiple
Employer Welfare Arrangements (MEWA) * Major medical provider *Health
Maintenance Organizations (HMO's) *Preferred Provider Organizations (PPO's) -
ANSWER-The health provider that stresses preventative medical care is know as a
Health Maintenance Organization.
Which of the following BEST describes how a Preferred Provider Organization (PPO)
is less restrictive than a Health Maintenance Organization (HMO)? *Typically not
subject to deductibles *Not regulated by the federal government *More benefits
available *More physicians to choose from - ANSWER-PPO's normally provide a
wider choice of physicians and hospitals.
The situation in which a group of physicians are salaried employees and conduct
business in an HMO facility is called a(n) *closed panel *open panel
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