Health Quiz 1-2

Question 1

Before a customer’s agent delivers his policy, the insurer makes a last-minute change to the policy. The agent informs the customer of this change, and he accepts it. What must the agent do now?

Answer 1

The agent should ask the customer to sign a statement acknowledging that he is aware of the change.

Question 2

If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant’s

Answer 2

Ancestry

Question 3

Whose responsibility is it to determine if all of the questions on an application have been answered?

Answer 3

The agent

Question 4

An agent is in the process of replacing the insured’s current health insurance policy with a new one. Which of the following would be a proper action?

Answer 4

The old policy should stay in force until the new policy is issued.

Question 5

Todd has been informed that he has a hernia which requires repair. When Todd researches the cost, he learns that his insurance plan will cover 200 points worth of surgical expenses. Each point represents $10, which means that $2000 of his surgery will be covered by his insurance plan. What system is Todd’s insurance company using?

Answer 5

Relative value

Question 6

What is a penalty tax for nonqualified distributions from a health savings account?

Answer 6

20%

Question 7

Which of the following is another name for a primary care physician in an HMO?

Answer 7

Gatekeeper

Question 8

An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy?

Answer 8

The capital amount in a lump sum

Question 9

As it pertains to group health insurance, COBRA stipulates that

Answer 9

Group coverage must be extended for terminated employees up to a certain period of time at the former employee’s expense.

Question 10

What are the three basic coverages for medical expense insurance?

Answer 10

Hospital, Surgical, Medical

Question 11

Which of the following statements is NOT correct concerning the COBRA Act of 1985?

Answer 11

It requires all employers, regardless of the number or age of employees, to provide extended group health coverage

Question 12

Which of the following is NOT covered under a long-term care policy

Answer 12

Acute care in a hospital

Question 13

Which of the following is true regarding optional benefits with long-term care policies?

Answer 13

They are available for an additional premium.

Question 14

Benefit periods for individual short-term disability policies will usually continue from

Answer 14

Six months to 2 years.

Question 15

Which of the following answers does NOT describe the principal goal of a Preferred Provider Organization?

Answer 15

Provide medical services only from physicians in the network

Question 16

What is NOT a benefit of a POS plan?

Answer 16

It allows guaranteed acceptance of all applicants.

Question 17

After a person’s employment is terminated, it is possible to obtain individual health insurance after losing the group health coverage provided by the employer. Which of the following is NOT true?

Answer 17

By law, the new, individual policy must provide the same benefits as the group insurance policy

Question 18

Which of the following is NOT a characteristic or a service of an HMO plan?

Answer 18

Contracting with insurance companies

Question 19

Occasional visits by which of the following medical professionals will NOT be covered under LTC’s home health care?

Answer 19

Attending physician

Question 20

What type of care is Respite care?

Answer 20

Relief for a major care giver

Question 21

An insured is covered by a disability income policy that contains an accidental means clause. The insured exits a bus by jumping down the steps and breaks an ankle. What coverage will apply?

Answer 21

No coverage will apply, since the injury could have been foreseen.

Question 22

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1: Every insurer marketing Long-Term Care insurance must establish marketing procedures to ensure all of the following EXCEPT

Answer 22

LTC policies are marketed effectively to prospective insureds.

Question 23

Which of the following was designed to ensure continued access to affordable health insurance coverage for employees of small employers, their dependents, and other qualified beneficiaries not currently protected by COBRA?

Answer 23

Florida Health Insurance Coverage Continuation Act

Question 24

The Florida Health Insurance Coverage Continuation Act requires insurers that sell health plans to small employers to offer in those plans a right to elect to continue coverage, without providing evidence of insurability, to employees who lose their coverage and are unable to replace it. The premium rate for this coverage may NOT exceed

Answer 24

115% of the regular group rate

Question 25

long-term care shopper’s guide must be presented at what point?

Answer 25

Prior to the time of application

Question 26

When do HMOs file reports of their activities to the Department?

Answer 26

Within 3 months of the end of each fiscal year

Question 27

Which types of insurance companies marketing long-term care insurance coverage must establish procedures to assure that any comparison of policies by its agents will be fair and accurate?

Answer 27

Every company is required to establish marketing procedures.