Question 1

A health maintenance organization may issue a contract that provides benefits for the following:

Options :

A : Replacement of income lost by a member due to the member’s disability

B : Health care services provided to members of the HMO

C : The accidental death of an HMO member

D : The dismemberment of an HMO member

Answer: B

Question 2

The free-look period provided in a life insurance policy is usually:

Options :

A : 10 days

B : 31 days

C : 45 days

D : 60 days

Answer: A

Question 3

Which of the following is a requirement of an insurable risk?

Options :

A : The loss must be intentional.

B : The loss must be catastrophic.

C : The chance of loss must be calculable.

D : There must be a large number of different loss exposures.

Answer: C

Question 4

The primary purpose of disability income insurance is to:

Options :

A : Provide indemnity for loss of life

B : Pay necessary hospital expenses when the insured is unable to work

C : Provide benefit payments for a period of time when the insured is unable to work

D : Pay any physicians’ fees resulting from a disabling injury

Answer: C

Question 5

Which expenses are covered by Medicare Part D?

Options :

A : Medical

B : Hospital

C : Prescription drug

D : Dental

Answer: C