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

If an insurer pays an individual accident and health insurance claim during a policy’s grace period:

Options :

A : The deductible is waived

B : A 10% service fee is charged

C : The policy is canceled automatically at the end of the grace period

D : The amount of unpaid premium may be subtracted from the reimbursement

Answer: D

Question 3

Disability income insurance premiums are a deductible expense when the premiums are paid by:

Options :

A : A partnership for group disability income coverage for the partners

B : A corporation for group disability income coverage for the employees

C : An insured for individual disability income coverage

D : An employee for group disability income coverage

Answer: B

Question 4

In dental insurance coverage, which one of the following typically is EXCLUDED?

Options :

A : Treatment started prior to the eligibility date

B : Preventive care

C : Dental X-rays

D : Root canal therapy

Answer: A

Question 5

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