Kentucky Health Insurance Exam Prep | Questions and Verified Answers| 100 % Correct| Grade A (Latest 2024/ 2025 Update)

Kentucky Health Insurance Exam Prep | Questions and Verified Answers| 100 % Correct| Grade A (Latest 2024/ 2025 Update) Q: Premium payments for personally-owned disability income policies are... A. Tax deductible to the extent that they exceed 10% of the adjusted gross income of those itemizing deductions. B. When the premiums and other unreimbursed medical expenses exceed 5% of the employee's adjusted gross income. D. An employee's group medical benefits are generally exempt from taxation as income. Answer: D. An employee's group medical benefits are generally exempt from taxation as income. Q: A business entity acting as an agent is required to obtain what kind of license? A. an adjuster's license B. A broker's license C. An agent's license D. A consultant's license Answer: C. An agent's license Q: ______ policies cover only those injuries and illnesses that occur outside of one's job. A. Limited B. Nonoccupational C. Workers compensation D. Full coverage Answer: B. Non-occupation Q: HMOs that are patients' cooperatives are____while those owned by physicians are typically______. A. For-profit, nonprofit B. Emergency facilities, routine outpatient facilities C. Routine outpatient facilities, emergency facilities, D. Nonprofit, for-profit Answer: D. Nonprofit, for-profit Q: Which of the following is true regarding underwriting for a person with HIV? A. The person may only be declined if he/she has symptoms. B. The person may not be declined. C. A person may be declined for HIV but not AIDs. D. The person may be declined. Answer: D. The person may be declined. The HIV consent form provides the insurance company with authorization to test for the presence of the HIV virus and applies to all life and health policies issued in this state. Underwriting for HIV or AIDs is permitted as it is not unfairly discriminatory. An adverse underwriting decision is not permitted if based solely upon the presence of symptoms, but only if HIV is confirmed in relation to the symptoms. Q: Under the Accidental Death and Dismemberment coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death? A. Double the amount of the death benefit B. Refund of premiums C. Principal sum D. Capital sum Answer: C. Principal sum. Accidental Death and dismemberment coverage only pays for accidental losses and is thus considered a pure form of accident insurance. The principal sum is paid for accidental death. In case of loss of sight or accidental dismemberment, a percentage of that principal sum will be paid by the policy, often referred to as the capital sum. Q: Which renewal option does NOT guarantee renewal and allows the insurance company to refuse renewal of a policy at any premium due date? A. optionally renewable B. conditionally renewable C. Guaranteed renewable D. Noncancellable Answer: A. Optionally renewable Q: All of the following qualify for Medicare Part A EXCEPT A. Anyone who is at the end stage of renal disease. B. Anyone who is over 65, not covered by Social Security, and is willing to pay premium. C. Anyone who is willing to pay a premium. D. Anyone that qualifies through Social Security. Answer: C. Anyone who is willing to pay a premium. Q: What is the purpose of the rehabilitation benefit in disability insurance? A. To compensate the insured for the lost income. B. To refund the insured's premium paid during the disability. C. To help the insured recover from a disability. D. To cover the expenses of retraining the insured to return to work. Answer: D. To cover the expenses of retraining the insured to return to work. Q: An insurance company must notify the Commissioner whenever it terminates an agent's appointment within how many days of the termination date? A. 10 days B. 15 days C. 30 days D. 60 days Answer: C. 30 days Q: Every insurer marketing long-term care insurance must establish marketing procedures to ensure all of the following EXCEPT... A. Excessive insurance will not be sold. B. Every reasonable efforts is made to identify an applicant's other insurance. C. LTC policies are marketed effectively to prospective insureds. D. Comparisons of policies are fair and accurate. Answer: C. LTC policies are marketed effectively to prospective insureds. Q: Which of the following would be considered an illegal inducement to purchase insurance? A. Confirming future dividends in a life insurance proposal. B. Mailing an agency brochure to a prospective client. C. Listing the insurance companies the agency represents in a letter. D. Inviting prospective clients to the grand opening of the producer's new office.