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Kentucky Health Insurance Exam (New Update) Questions and Verified ANSWERs| 100 % Correct| Grade
Question: Sean has renewed his health insurance policy with
Ability Insurance every year for the past 3 years. At this renewal, Sean received an extra payment from his insurer as a reward for renewing his policy and to encourage him to renew his policy again next year. What is this extra amount called?
Options: 1. An endorsement, 2. An accumulation, 3. A
supplemental benefit, 4. An additional benefit ANSWER: 2. An accumulation [Note: The user’s ANSWER aligns with a possible interpretation where “accumulation” refers to a returned benefit or dividend, though this is more commonly called a “policyholder dividend” or “premium refund” in insurance. “Accumulation” typically relates to cash value, so this may be context-specific.]
Question: When an individual is covered under two health
insurance policies that have duplicate benefits which could make a claim for benefits because of an injury or illness
profitable, it is called:
Options: 1. Pro-rata coverage, 2. Overinsurance, 3. Double
indemnity coverage, 4. Fraternal coverage
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ANSWER: 2. Overinsurance
Question: In the event a policy lapses due to nonpayment of
premium, within how many days would the policy be automatically reinstated once the outstanding premium is paid?
Options: 1. 10 days, 2. 25 days, 3. 30 days, 4. 45 days
ANSWER: 4. 45 days [Note: This aligns with common reinstatement periods, though it can vary by state or policy terms, often requiring proof of insurability after a grace period.]
Question: A typical Accidental Death & Dismemberment policy
covers all of the following losses EXCEPT
Options: 1. Income, 2. Eyesight, 3. Limb, 4. Life
ANSWER: 1. Income [Note: AD&D covers death and specific physical losses (e.g., eyesight, limbs), not income replacement, which is covered by disability insurance.]
Question: In which type of HMO model does the HMO contract
with at least two medical groups?
Options: 1. Group, 2. Staff, 3. Network, 4. Expanded
ANSWER: 3. Network
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Question: In group insurance, what is the policy called?
Options: 1. Master policy, 2. Entire contract, 3. Certificate of
authority, 4. Certificate of insurance
ANSWER: 1. Master policy
Question: For how many days during a patient’s lifetime will
Medicare Part A cover mental health care in a psychiatric facility?
Options: 1. 190, 2. 365, 3. 90, 4. 100
ANSWER: 1. 190
Question: A man works for Company A and his wife works for
Company B. The spouses are covered by health plans through their respective companies that also cover the other spouse. If the husband files a claim,
Options: 1. The insurance plans will split the coverage evenly, 2.
Both plans will pay the full amount of the claim, 3. The insurance through his company is primary, 4. The insurance through his wife’s company is primary
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ANSWER: 3. The insurance through his company is primary
[Note: Under coordination of benefits (COB), the plan of the
person incurring the expense is typically primary.]
Question: Which of the following losses will be covered by a
group medical expense policy?
Options: 1. An elective cosmetic surgery, 2. A pre-existing
condition, 3. An injury resulting from active military duty, 4. An intentionally self-inflicted injury ANSWER: 2. A pre-existing condition [Note: Coverage depends on policy terms, but pre-existing conditions are often covered after a waiting period, unlike the other exclusions.]
Question: A hospital indemnity policy will pay
Options: 1. A benefit for each day the insured is in a hospital, 2.
Income lost while the insured is in the hospital, 3. All expenses incurred by the stay in the hospital, 4. Any expenses incurred by the stay in the hospital, minus coinsurance payments and deductibles