100 Question - Nc Health Insurance Practice Exam

100 Questions | Total Attempts: 2888

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Health Insurance Quizzes & Trivia

100 Question - NC Health Insurance Practice Exam


Questions and Answers
  • 1. 
    Which of the following is not one of the 12 required provisions for healthinsurance policies set forth by the NAIC?
    • A. 

      Entire contract provision

    • B. 

      Grace period provision

    • C. 

      Waiver of premium provision

    • D. 

      time limit on certain defenses provision

  • 2. 
    For which of the following transactions does a person need more thanan insurance license?
    • A. 

      Selling variable life insurance

    • B. 

      Comparing an existing policy with one that is being recommended.

    • C. 

      Selling indeterminate premium whole life insurance (for example, universal life insurance).

    • D. 

      Replacing an existing life insurance policy with one that is recommended by the producer.

  • 3. 
    Beatrice is a member of the Supreme Lodge fraternal benefit society.What must Beatrice do before she can sell insurance on its behalf?
    • A. 

      obtain a restricted agent's license

    • B. 

      obtain a surplus lines license

    • C. 

      become a licensed agent with a specialty in fraternal lines insurance comply with

    • D. 

      comply with the same general licensing requirements that apply to resident agents

  • 4. 
    Which of the following best characterizes how overinsurance affectsinsurers?
    • A. 

      If many insurers are insuring for the same risk, it limits the ability of the insured to seek damages if the claim is ever denied.

    • B. 

      If many insurers are insuring for the same risk, the insured will receive duplicate benefits from multiple insureds.

    • C. 

      If many insurers are insuring for the same risk, it limits the liability of any one insurer's policy to the proportion of the total benefits it assumes.

    • D. 

      If many insurers are insuring for the same risk, the insured may end up receiving no benefits if all insurers cancel the coverage.

  • 5. 
    If an insurer issues a disability income policy that pays a set monthlybenefit of $500, which approach is the insurer using?
    • A. 

      Percentage limitation approach

    • B. 

      incomeformula approach

    • C. 

      flat-rate approach

    • D. 

      specified benefit approach

  • 6. 
    Roy has an insurance policy that pays a fixed sum directly to him foreach day he spends in a hospital. What type of insurance policy doesRoy have?
    • A. 

      a basic medical expense policy

    • B. 

      a major medical policy

    • C. 

      a comprehensive policy

    • D. 

      a hospital indemnity policy

  • 7. 
    Medical expense policies cover a wide range of services and care. Theway in which they cover the cost of these services and the way in whichcovered care services are delivered depends on which of the following?
    • A. 

      state insurance law

    • B. 

      the plan or policy

    • C. 

      the insured's age and health

    • D. 

      the insurer's marketing of these services

  • 8. 
    All of the following services are generally covered under MedicaidEXCEPT:
    • A. 

      cosmetic surgery

    • B. 

      mental health services

    • C. 

      rural health clinic services

    • D. 

      prescription drug services

  • 9. 
    All of the following are examples of hazards EXCEPT:
    • A. 

      Ron tends to forget to wear his seat belt when he drives.

    • B. 

      Sue is a heavy cigarette smoker.

    • C. 

      John is taking medications to control his high blood pressure.

    • D. 

      Jane, a business owner, refuses to fix a broken sidewalk in front of her shop because she and the town cannot agree on who must repair it.

  • 10. 
    Emil, an agent licensed in North Carolina, moves to a new home on April30. He is required to notify the North Carolina Department of Insuranceby what date?
    • A. 

      May 7

    • B. 

      May 10

    • C. 

      May 30

    • D. 

      October 31

  • 11. 
    How is a person who is covered by a medical expense insurance plancommonly referred to?
    • A. 

      insured or subscriber

    • B. 

      patient

    • C. 

      customer or client

    • D. 

      risk

  • 12. 
    Which statement about the coverage of chemical dependency under agroup health insurance policy is CORRECT?
    • A. 

      A group health insurance policy is required to cover treatment for chemical dependency.

    • B. 

      A group health insurance policy can provide different benefits for chemical dependency than for other illnesses.

    • C. 

      A group health insurance policy cannot set limits on the amount of benefits payable for chemical dependency.

    • D. 

      A group policyholder must have the option to purchase coverage for chemical dependency treatment.

  • 13. 
    To qualify for an insurance agent's license, a person must have all of thefollowing EXCEPT:
    • A. 

      college degree

    • B. 

      good reputation and character

    • C. 

      licensing fee

    • D. 

      18 years of age

  • 14. 
    Which statement about disability reducing term insurance policies isNOT correct?
    • A. 

      The business owner typically buys a policy to cover the term of a loan.

    • B. 

      The policy pays off the loan balance if the business owner becomes disabled during the policy term.

    • C. 

      The benefit payment under such policies increases over the policy's term.

    • D. 

      Reducing term insurance is fairly inexpensive.

  • 15. 
    Under the Patient Protection and Affordable Care Act, until when aredependent children eligible to be covered under their parent’s groupmedical insurance policy?
    • A. 

      age 19

    • B. 

      Age 22

    • C. 

      age 26

    • D. 

      They become married.

  • 16. 
    Medicare Part A hospital insurance covers, within certain limits, all ofthe following expenses, EXCEPT
    • A. 

      Inpatient hospital costs.

    • B. 

      long-term care costs.

    • C. 

      home health-care costs.

    • D. 

      hospice costs.

  • 17. 
    Delta Inc. pays the premiums on a disability buyoutpolicy, a business overhead policy, and a key executive disability policy. For which policiescan it take an income tax deduction for the premiums it pays?
    • A. 

      disability buy-out policy

    • B. 

      business overhead policy

    • C. 

      business overhead policy and key executive disability policy

    • D. 

      disability buy-out policy, business overhead policy, and key executive disability policy

  • 18. 
    During the application process, insurance coverage can be providedunder a conditional receipt or which of the following?
    • A. 

      an interim receipt

    • B. 

      a temporary insurance receipt

    • C. 

      a waiting period receipt

    • D. 

      a grace period receipt

  • 19. 
    What is the term for deliberately withholding material facts when applying for insurance?
    • A. 

      concealment

    • B. 

      collusion

    • C. 

      twisting

    • D. 

      waiver

  • 20. 
    Harvey's health insurance policy covers only treatment for cancer. Whattype of insurance policy does Harvey have?
    • A. 

      a basic medical expense policy

    • B. 

      a restricted policy

    • C. 

      a dread disease policy

    • D. 

      a cancer policy

  • 21. 
    Which of the following represents consideration under the terms of aninsurance policy contract?
    • A. 

      the insurer's promise to renew the contract

    • B. 

      the policy's benefits

    • C. 

      the premium paid

    • D. 

      any claims paid

  • 22. 
    Which of the following groups would typically NOT be eligible for groupaccident and health insurance?
    • A. 

      association group

    • B. 

      neighborhood group

    • C. 

      labor union

    • D. 

      employer group

  • 23. 
    Gracie owns a Medicare Advantage policy and requires emergency carewhile visiting her daughter, but there are no network providers nearby.What should Gracie do?
    • A. 

      travel home where she can see a network provider

    • B. 

      see a nonnetwork provider

    • C. 

      forego treatment

    • D. 

      get approval from Medicare before seeing a nonnetwork provider

  • 24. 
    Dan, age 43, is applying for an individual health insurance policy. Theapplication asks about his current health and whether he has any knownmedical conditions. Dan discloses that he is partially blind, which wouldbe considered which of the following?
    • A. 

      a peril

    • B. 

      A moral hazard

    • C. 

      a morale hazard

    • D. 

      a physical hazard

  • 25. 
    Which of the following best illustrates risk transfer?
    • A. 

      Anita purchases health insurance to protect herself in the event of a serious illness.

    • B. 

      Abigail refuses to buy a home and continues to rent because she thinks homeowners insurance is too expensive.

    • C. 

      Anne refuses to venture out after dark, citing the fear of being assaulted.

    • D. 

      Arlene decides not to purchase life insurance because she has no dependents and plenty of cash in her savings accounts to cover any final expenses.

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