Question 1

If coverage has stayed in force with the same insurance company, what is the maximum number of years for which reconstructive surgery (mastectomy) benefits must be provided?

Options :

A : 1

B : 3

C : 5

D : 7

Answer: B

Question 2

Life insurance death proceeds paid to a named beneficiary are generally:

Options :

A : Subject to ordinary federal income tax in every case

B : Received free of federal income tax, subject to exceptions and special circumstances

C : Taxed as capital gains

D : Treated as a deductible premium refund

Answer: B

Question 3

A prospect submits an Accident and Health application with the premium and receives a conditional receipt. The insurance company issues a policy and mails it to the insured, but the insured never receives it. Which of the following statements is CORRECT about this situation?

Options :

A : The policy is not in force because delivery was not completed.

B : The policy will be in force five business days after the prospect notifies the company that the prospecthas not received the policy

C : The policy will be in force as soon as the company issues a replacement policy.

D : The policy is in force.

Answer: D

Question 4

Medicaid is best described as:

Options :

A : A federal retirement program funded only by payroll taxes

B : A joint federal-state program that provides medical assistance to eligible individuals

C : A private insurance policy sold by producers

D : A Medicare supplement insurance plan

Answer: B

Question 5

In a typical HMO arrangement, what is the primary role of the primary care provider?

Options :

A : To coordinate routine care and referrals under the plan’s rules

B : To sell insurance policies to other patients

C : To guarantee that all out-of-network care is covered

D : To determine the insurer’s investment return

Answer: A