pg. 1 Arkansas Health Insurance Exam Latest 2024 Complete 150 Actual Exam Questions with Correct Verified Answers/ Graded A+
What type of insurance covers an employee who is hurt on the job?- Correct Answer- Workers compensation
What is the tax advantage of the employer paying premiums for its employees for disability income insurance?- Correct Answer- Premiums are deducible as a business expense
How long do short-term disability group plans pay benefits?- Correct Answer- For up to 52 weeks
What is a birthday rule in a coordination of benefits provision?- Correct Answer- The coverage of the parent whose birthday is earlier in the year is considered primary
In health insurance, when would an excess plan pay benefits?- Correct Answer- After the primary plan has paid its full promised benefit, the excess plan will pay the balance
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
Why do HMOs encourage members to get regular checkups?- Correct Answer- To help catch health problems early when treatment has the greatest chance for success (i.e.preventive care) 1 / 3
pg. 2 Who chooses a primary care physician in an HMO plan?- Correct Answer- The individual member
What is a fee-for-service health plan?- Correct Answer- Under a fee-for-service plan, providers receive payments for each service provided
What are the three types of basic medical expense insurance?- Correct Answer- Hospital, surgical, and medical
What is the capital sum in Accidental Death and Dismemberment (AD&D) coverage?- Correct Answer- A percentage of the principle sum
What is the main principle of an HMO plan?- Correct Answer- Preventive care
In health insurance, what is considered a sickness?- Correct Answer- An illness that first arises while the policy is in force
What do individual insureds receive as proof of their group health coverage?- Correct Answer- Certificate of insurance
In what type of health plans are providers paid for services in advance, regardless of the services provided?- Correct Answer- Prepaid plans
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
With key person disability insurance, who pays the policy premiums?- Correct Answer- The business (employer)
What type of health insurance would pay for hiring a replacement for an important employee who becomes disabled?- Correct Answer- Key-person disability insurance 2 / 3
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What are the two types of flexible spending accounts?- Correct Answer- Health care accounts and dependent care accounts
In order to be eligible for coverage by an HSA, an individual must also be covered by what type of health plan?- Correct Answer- High deductible health plan (HDHP)
What does the amount of disability benefit that an insured can receive depend on?- Correct Answer- The insured's income at the time of policy application
What is the purpose of COBRA?- Correct Answer- To allow continuation of health insurance coverage for terminated employees
What is the purpose of a buy-sell agreement for health insurance policies?- Correct Answer- To specify how the business will pass between owners when one of them dies or becomes disabled
What is the purpose of respite care in long-term care insurance?- Correct Answer- To provide relief for a major caregiver (usually a family member)
What type of groups are eligible for group health insurance?- Correct Answer- Employer-sponsored and association-sponsored groups
How can an HMO member see a specialist?- Correct Answer- Referral by the primary physician
What types of injuries and services will be excluded from major medical coverage?- Correct Answer- Injuries caused by war, intentionally self-inflicted injuries, injuries covered by workers compensation, regular dental/vision/hearing care, custodial care, and elective cosmetic surgery
What is the role of the gatekeeper in an HMO plan?- Correct Answer- To control costs for the service of specialists
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