License Test Review

80 Questions  I  By Sagemk
Please take the quiz to rate it.

License Test Quizzes & Trivia
A pracitce exam to help in the preparation for the Indiana State Accident & Health Insurance test.

  
Changes are done, please start the quiz.


Questions and Answers

Removing question excerpt is a premium feature

Upgrade and get a lot more done!
  • 1. 
    Medicare is more like ...
    • A. 

      Major Medical

    • B. 

      Comprehensive Major Medical

    • C. 

      Comprehensive Major Medicare

    • D. 

      Accidental death and Dismemberment


  • 2. 
    The Commissioner has the power to do all of the following except...
    • A. 

      Impose a fine on a company

    • B. 

      Appoint a conservator to take over a company's operation

    • C. 

      Liquidate a company that had been judged insolvent

    • D. 

      Revoke a company's Certificate of Authority


  • 3. 
    A person with total assets of $4000 with a LTCP Policy of $100,000 how much Proection of Nursing cost is available?
    • A. 

      $4,000

    • B. 

      $96,000

    • C. 

      $100,000

    • D. 

      $104,000


  • 4. 
    In a Health Insurance Policy, when does the 10-day Free look begin?
    • A. 

      At the time of application

    • B. 

      When the Policy has been issued by the company

    • C. 

      When the Underwriter has approved the application

    • D. 

      At the time of delivery


  • 5. 
    In a Family Health Policy, a dependent will continue to be covered after the limiting age if the dependent is ...
    • A. 

      Married, but still a student

    • B. 

      Decides to begin a career

    • C. 

      Handicapped and dependent on policyholder for maintenance

    • D. 

      Willing to live independently of the family


  • 6. 
    In a Health Savings Account which of the following is true?
    • A. 

      Contributions are made by employer

    • B. 

      Contributions are non-taxable

    • C. 

      Benefits are taxable

    • D. 

      If the account is not used for medical expenses by the end of the year, balance is forfeited


  • 7. 
    If an employee is covered by Group Insurance and a Private Policy, and is injured in a covered worker's compensation accident, which is true?
    • A. 

      Group pays first, workers compensation pays other costs

    • B. 

      Workers compensation is primary insurer, group is secondary

    • C. 

      Private insurance pays primary

    • D. 

      Group Insurance does not cover work related losses


  • 8. 
    Medicare Supplement Policies are designed to pay ...
    • A. 

      What medicaid does not cover

    • B. 

      The amount of Medical Cost not covered by medicare

    • C. 

      Losses not covered by workers compensation only

    • D. 

      Special needs of certain diseases on an experimental basis


  • 9. 
    If an employer has 15 emplyees and one quits, which of the following would continue to cover the employee?
    • A. 

      COBRA

    • B. 

      HIPPA

    • C. 

      MEWA

    • D. 

      MET


  • 10. 
    LTC policy would cover a policy holder unable to perform 2 or more ADL's. Which of the follwoing is not a listed ADL?
    • A. 

      Feeding

    • B. 

      Dressing

    • C. 

      Transporting

    • D. 

      Breathing


  • 11. 
    An application for insurance is submitted to request a policy to be issued. The person responsible for the approval is ...
    • A. 

      The executive office

    • B. 

      The regional administrator

    • C. 

      The actuary

    • D. 

      The Underwriter


  • 12. 
    A guaranteed renewable policy is a policy guaranteed to be renewed to a specific age; However, the premium ...
    • A. 

      Must be paid before the due date each term

    • B. 

      May be refused if the insured changes occupation

    • C. 

      May be changed if all insured in the same class are changed

    • D. 

      Is guaranteed not to change


  • 13. 
    The characteristics of HMO's include all of the folowing except...
    • A. 

      Stresses prevention of a condition

    • B. 

      Requires a primary care physician to prescribe care

    • C. 

      Offers nation-wide service

    • D. 

      Annual open enrollment


  • 14. 
    In order to qualify for social security disability benefits the follwing is true.
    • A. 

      The applicant musy be fully insured

    • B. 

      The disability must be work-related

    • C. 

      The employer musy varify disability

    • D. 

      The disability must be total and permanent


  • 15. 
    Medicare Part A will cover all of the following except...
    • A. 

      Hospital rom and board

    • B. 

      Physician fees

    • C. 

      Nursing home care

    • D. 

      Hospice treatment


  • 16. 
    If a company becomes insolvent a policy holder may recieve benefits from the life and health guarantee association up to
    • A. 

      $100,000

    • B. 

      $200,000

    • C. 

      $300,000

    • D. 

      $400,000


  • 17. 
    What is the maximum payment to be made to a variable anuity policy holder?
    • A. 

      $100,000

    • B. 

      $200,000

    • C. 

      $300,000

    • D. 

      $0


  • 18. 
    Medicaid is funded by which of the following?
    • A. 

      Federal funds

    • B. 

      State tax payers

    • C. 

      Local welfare departments

    • D. 

      All of the Above


  • 19. 
    Which of the following is a requirement for Medicaid?
    • A. 

      Age 65

    • B. 

      Financial need

    • C. 

      Totally disabled

    • D. 

      Fully insured


  • 20. 
    According to the mandatory uniform provisions, who can change policy provisions?
    • A. 

      The insurance comissioner

    • B. 

      The policyholder

    • C. 

      The underwriter

    • D. 

      The company executive officer


  • 21. 
    Medicare Part B covers which of the following?
    • A. 

      Hospice care

    • B. 

      Custodial care

    • C. 

      Doctor's care

    • D. 

      Nursing home care


  • 22. 
    Which of the following conditions would qualify a recipient for medicare Part A at any age?
    • A. 

      Renal failure

    • B. 

      Any terminal condition

    • C. 

      Unable to perform 2 ADL's

    • D. 

      Rehabilitation following a serious operation


  • 23. 
    In group health insurance what does the employer ercieve from the insurer?
    • A. 

      Statement of financial status

    • B. 

      A master contract

    • C. 

      Receipt of premium payment

    • D. 

      Certificate of agreement


  • 24. 
    Which of teh following documents is given to the employee as proof of group health coverage?
    • A. 

      An individual policy

    • B. 

      The employer's financial statemenet

    • C. 

      Certificate of coverage

    • D. 

      Copy of employment application


  • 25. 
    If both Mr. and Mrs. Jones each have group health insurance coverage for themselves and their dependents, and their 15 year old son has a bicycle accident and is hospitalized, how is the primary insurer determined?
    • A. 

      By first to be covered

    • B. 

      By which insurer pays most

    • C. 

      By birth dates of parents

    • D. 

      By which claim is filed first


  • 26. 
    Which of the following is a requirement of an insurance consultant in Indiana?
    • A. 

      Must be licensed as a producer

    • B. 

      Must have signed agreement with client before advice is provided

    • C. 

      Is not permitted to charge a fee

    • D. 

      Recieves compensation in the form of commisions


  • 27. 
    Indiana comprehensive heath covers uninsurable hoosiers under three plans. If an insured selects a $1000 deductable, what is the maximum stop-loss?
    • A. 

      $2000

    • B. 

      $2500

    • C. 

      $3000

    • D. 

      $3500


  • 28. 
    A consultant must obtain a written agreement with a client, specifying service to be given. How long must a concultant keep this agreement?
    • A. 

      1 year

    • B. 

      2 years

    • C. 

      4 years

    • D. 

      6 months


  • 29. 
    Under which of the following circumstances may a temporary license be issued?
    • A. 

      To the spouse of a deceased producer

    • B. 

      To a new producer until passing the required exam

    • C. 

      To a limited licensee

    • D. 

      To a consultant before an agreement is signed


  • 30. 
    If a producer from another state wants a non-resident license in Indiana, what must the applicant provide with the application?
    • A. 

      Copy of original license in the other state

    • B. 

      A letter of clearance from the other state insurance regulator

    • C. 

      A copy of a financial statement

    • D. 

      A copy of a Birth Certificate


  • 31. 
    In Long-Term Care policies, which of the following would be covered?
    • A. 

      Kidney failure

    • B. 

      Skilled nursing facility

    • C. 

      Disability after 5 months

    • D. 

      Age 50 and older


  • 32. 
    When two groups cover one loss, what will excess insurer pay?
    • A. 

      Half of all costs

    • B. 

      Co-Pay and deductables

    • C. 

      All reasonable expences

    • D. 

      Pre-existing conditions


  • 33. 
    The responsiblity to provide information regarding COBRA is given to ...
    • A. 

      The employer

    • B. 

      The physician who treats the employee

    • C. 

      The U.S. Government

    • D. 

      The state in which the employee is employed


  • 34. 
    If the principal sum of a AD&D policy is $100,000, what is the value of the capital sum?
    • A. 

      $200,000

    • B. 

      $100,000

    • C. 

      $75,000

    • D. 

      $50,000


  • 35. 
    How many days does the insurer have to send proof of loss forms when the insured notifies the insurer of a loss?
    • A. 

      10 days

    • B. 

      15 days

    • C. 

      30 days

    • D. 

      90 days


  • 36. 
    The purpose of the Coinsurance provision in a mjor medical policy is to minimize ...
    • A. 

      Adverse Selection

    • B. 

      Over Utilization

    • C. 

      Adverse Discrimination

    • D. 

      Application Misrepresentation


  • 37. 
    If an employee terminates from a small group coverage, the employee converts to an individual policy provided employment was at least ...
    • A. 

      6 months

    • B. 

      12 months

    • C. 

      30 days

    • D. 

      90 days


  • 38. 
    When a person enrolls in an HMO plan, what selection must be made?
    • A. 

      The deductable

    • B. 

      A primary care physician

    • C. 

      Coverage area

    • D. 

      Previous medical records


  • 39. 
    Which of the following type of renewability does not allow the insurer to increase the premium?
    • A. 

      Non-cancellable

    • B. 

      Non-renewable

    • C. 

      Guaranteed renewable

    • D. 

      Optionally renewable


  • 40. 
    To be eligble to recieve social security disability the applicant must have been totally disabled for ...
    • A. 

      30 days

    • B. 

      2 months

    • C. 

      90 days

    • D. 

      5 months


  • 41. 
    The minimum number of employees in a small group ploicy in Indiana is ...
    • A. 

      2

    • B. 

      5

    • C. 

      10

    • D. 

      30


  • 42. 
    To qualify for coverage under ICHIA, what is required?
    • A. 

      Have been rejected by atleast one insurer

    • B. 

      Be in good physical condition

    • C. 

      Unable to afford major medical

    • D. 

      Also qualified for Medicaid


  • 43. 
    If an employee is over 65 and decides to keep working and is covered by medicare, what is required of teh emplyer regarding group coverage?
    • A. 

      Employee may be rejected for coverage

    • B. 

      Emplyer must offer the smae benefits as they do to younger employees

    • C. 

      Employer may require a chioce of either medicare or group plan

    • D. 

      Both plans must be continued


  • 44. 
    The grace period for an individual policy ...
    • A. 

      Is 30 days

    • B. 

      Is 60 days

    • C. 

      Is 150 days

    • D. 

      Depends on the mode of premium payment


  • 45. 
    Under which of teh following circumstances would be an insurer be also responsible if a producer violated the law?
    • A. 

      If the producer is under contract

    • B. 

      If the insurer trained the producer to commit the act

    • C. 

      In every case

    • D. 

      Only when the insurer is a domestic company


  • 46. 
    A contract in which the premium is known but there is no guarantee that the company will pay out anything is ...
    • A. 

      Aleatory

    • B. 

      Executory

    • C. 

      Conditional

    • D. 

      Personal


  • 47. 
    In an insurance contract the applicants consideration is ...
    • A. 

      A promise to pay future premiums

    • B. 

      The application and initial premium

    • C. 

      Applicants signature and conditional reciept

    • D. 

      Compliance with the policy provisions


  • 48. 
    To join a medicare PLUS choice the recipient must continue to ...
    • A. 

      Be covered by Medicare A & B

    • B. 

      Pay the premium for part B for medicare

    • C. 

      Give up any private health insurance

    • D. 

      Agree to all policy provisions


  • 49. 
    Which provision is designed to protect an insurer against over insurance when an insured has more than one policy with the same company?
    • A. 

      Deductibles and co-insurance

    • B. 

      Insuring clause

    • C. 

      Consideration clause

    • D. 

      Other insurance in the insurer


  • 50. 
    A dependent in a family may be continued on the coverage after age 18 if the dependent is ...
    • A. 

      Employed full-time

    • B. 

      Married and emplyed

    • C. 

      A full-time student

    • D. 

      In good health and decides to remain on the coverage


  • 51. 
    When presenting a medigap policy, the producer is required to ask about existing policies to comply with which regulation?
    • A. 

      Pre-existing provisions law

    • B. 

      Error and omissions insurance

    • C. 

      Policy underwring rules

    • D. 

      Suitability regulations


  • 52. 
    When a policy holder purchases a medicare supplement policy, how long does the person have to exercise the free look provision?
    • A. 

      10 days

    • B. 

      20 days

    • C. 

      30 days

    • D. 

      60 days


  • 53. 
    Which provision designed to protect against over-insurance when a policy holder has duplication policies with two or more insurers?
    • A. 

      Coordination of benefits

    • B. 

      Insurance in other insurers

    • C. 

      Adverse selection rule

    • D. 

      Underwriting rule violation


  • 54. 
    All the following may trigger benefits to be provided in a long-term care policy except...
    • A. 

      Unable to perform 2 or more ADLs

    • B. 

      Physician referral

    • C. 

      Need following hospitalization

    • D. 

      Request of family members


  • 55. 
    When an applicant does not isclose a known fact on the aplpication, it is ...
    • A. 

      Misrepresentation

    • B. 

      Concealment

    • C. 

      Privacy act right

    • D. 

      Unknown to underwriter


  • 56. 
    The federal HIPAA Regulation applies to employees changing employment. HIPAA does not apply when the employee does not make a change after how many days?
    • A. 

      10

    • B. 

      30

    • C. 

      63

    • D. 

      90


  • 57. 
    If the policy holder selects a high deductable health plan to preserve premiums with a tax advantage it is ...
    • A. 

      Major medical policy

    • B. 

      Health savings account

    • C. 

      Multiple employer trust

    • D. 

      Fraternal benfit plan


  • 58. 
    Which type of company pays dividends to its policyholders who voted for the company's management?
    • A. 

      Stock company

    • B. 

      Reciprocal organization

    • C. 

      Lloyd's arrangement

    • D. 

      Mutual company


  • 59. 
    How often must a company providing vision coverage allow eye exams and new glasses?
    • A. 

      6 months

    • B. 

      12 months

    • C. 

      18 months

    • D. 

      24 months


  • 60. 
    A gatekeeper is selected in which of teh following types of medical providers?
    • A. 

      MEWA

    • B. 

      MET

    • C. 

      HMO

    • D. 

      MSP


  • 61. 
    Which of the following uniform provisions does not have a required time limit?
    • A. 

      Claim forms

    • B. 

      Legal actions

    • C. 

      Proof of loss

    • D. 

      Payment of claims


  • 62. 
    When an application submits a pre-paid application, this constitutes ...
    • A. 

      An invitation to make an offer

    • B. 

      An offer

    • C. 

      An acceptance

    • D. 

      A counter offer


  • 63. 
    In Indiana, a MSP and Long Term Care policies have a free look  period of how many days?
    • A. 

      10

    • B. 

      20

    • C. 

      30

    • D. 

      60


  • 64. 
    Which of the following is a requirement of an applicant for a non-resident license in Indiana?
    • A. 

      Pass a license exam

    • B. 

      Cancel their license in resident state

    • C. 

      Provide a Clearance Letter from the resident state

    • D. 

      Pay the resident license fee of $40.00


  • 65. 
    If an employer has 15 employees and one of these employees leaves to go to another employer, which of the following would provide coverage?
    • A. 

      COBRA

    • B. 

      HIPAA

    • C. 

      MEWA

    • D. 

      MET


  • 66. 
    Sixteen-year-old Rachael applies for a Health Insurance Policy. She excels in school and leads a very healthy life style. What risk classification would te underwriter assign to her?
    • A. 

      Declined

    • B. 

      Preferred

    • C. 

      Substandard

    • D. 

      Standard


  • 67. 
    In a non-contributory Medical Plan, the premium is ___ and teh benefits are ___.
    • A. 

      Taxable, tax free

    • B. 

      Tax deductable, tax free

    • C. 

      Taxable, taxable

    • D. 

      Tax deductable, taxable


  • 68. 
    In a non-contributory plan for Disability, the premiums are ___ and the benefits are ___.
    • A. 

      Taxable, tax free

    • B. 

      Tax deductible, tax free

    • C. 

      Taxable, taxable

    • D. 

      Tax deductible, taxable


  • 69. 
    Jack is licensed as a Life producer and Jill is licensed in Property and Casualty. Jack sends a client to Jill to get auto insurance. Jill writes the policy and sends a portion of the commission to jack as a Finders Fee. Which is true concerning these events?
    • A. 

      Jack is guilty of an illegal act

    • B. 

      Jill is guilt of an illegal act

    • C. 

      Both Jack and Jill are guilty of an illegal act

    • D. 

      Neither Jack or Jill is guilty of an illegal act


  • 70. 
    Under which process does the insurer monitor the insured's hospital stay to make sure everything is proceeding according to schedule and that the insured will be released from the hospital as planned?
    • A. 

      Prospective review

    • B. 

      Treatment monitoring

    • C. 

      Schedule of treatment

    • D. 

      Concurrent review


  • 71. 
    According to COBRA, the number of employees required to constitute a large group is ...
    • A. 

      150

    • B. 

      15

    • C. 

      20

    • D. 

      50


  • 72. 
    Which of the following is true regarding the premium and benefits in a Business Overhead Expense Policy?
    • A. 

      Premium taxable and benefits tax free

    • B. 

      Premium tax deductible and ebnefits taxable

    • C. 

      Premium taxable and benefits taxable

    • D. 

      Premium tax deductible and benefits tax free


  • 73. 
    A consultant is required to have which of the following?
    • A. 

      A producer's license

    • B. 

      An agreement with the client approved by the Commisioner

    • C. 

      A contract with an insurance agency

    • D. 

      A surplus lines license to handle unusual risks


  • 74. 
    An insurance company's consideration in an insurance contract includes which of the following?
    • A. 

      Assets and liabilities of the company

    • B. 

      The promises in the contract

    • C. 

      The application signed by a producer of the company

    • D. 

      Signature of an executive oficer of the company


  • 75. 
    A person is covered by both Medicare and Medicaid. A producer can provide medicare Supplement POlicies and Long Term Care Policies. Which should the client select?
    • A. 

      Medicare Supplement Policy only

    • B. 

      LTC Policy only

    • C. 

      Both Medicare Suplplement Policy and LTC Policy

    • D. 

      Neither Medicare Suplplement Policy or LTC Policy


  • 76. 
    Which of the following is an alternate term used for schedule indemnity plans?
    • A. 

      Focus

    • B. 

      Basic

    • C. 

      Limited

    • D. 

      Comprehensive


  • 77. 
    The Commisioner can do all of teh following except ...
    • A. 

      Hold hearing

    • B. 

      Issue Temporary License

    • C. 

      Revoke licenses

    • D. 

      Liquidation of a company


  • 78. 
    Sally discovers she is pregnant. She gets a new job with health insurance benefits 5 months later.  Which of the folloowing is true?
    • A. 

      Pregnancy will reduce limited benefits because it existed during pre-existing conditions period

    • B. 

      Pregnancy will be covered during the pre-existing conditions period

    • C. 

      Pregnancy will be covered after the pre-existing conditions period

    • D. 

      Pregnancy will not be covered since it existed in a pre-existing condition period


  • 79. 
    All of the following is required by Skilled Nursing Care except...
    • A. 

      24 hour Nurse to be there

    • B. 

      24 hour Doctor to be there

    • C. 

      Keep a dosument chart of the care

    • D. 

      Covered by Medicare Part A


  • 80. 
    Which of the following is incorrect regarding HIPAAs creditable coverage?
    • A. 

      12 months of creditable coverage may come from different employers as long as the total is 12 months of coverage with no gap of over 63 days

    • B. 

      There would be no pre-existing conditions limitation under a new plan as long as more than 12 months of creditable coverage existed immediately prior to joining a new group.

    • C. 

      When a person leaves employment, they will be issued a certificat of creditable coverage for the number of months they were covered under the employer's group health insurance plan

    • D. 

      The 12 months of coverage must all come from the same employer


Back to top

Removing ad is a premium feature

Upgrade and get a lot more done!
Take Another Quiz
We have sent an email with your new password.