ILHI - Indiana Life and Health Insurance Exam

Question 1: An individually owned, tax-favored savings account may be opened only by a taxpayer enrolled in a high deductible health plan who has no other comprehensive coverage. Contributions are deductible and unused balances roll forward year after year. Which account is this?

A flexible spending arrangement

A health reimbursement account

A multiple employer welfare arrangement

A health savings account

Question 2: A policy pays a flat one-hundred-dollar amount for every day the insured spends as a hospital inpatient, and the check goes to the insured rather than to the hospital or the physician. Which type of coverage works this way?

Major medical expense insurance

Hospital indemnity insurance

Accident-only insurance

Dental expense insurance

Question 3: An inexpensive limited policy pays benefits when the insured is injured by a sudden unforeseen event, and it may also pay for dismemberment, but it denies every claim that arises from illness or disease. Which limited benefit policy matches that description?

Accident-only insurance

Hospital indemnity insurance

Specified disease insurance

Short-term medical insurance

Question 4: A software company buys key employee disability coverage on its lead developer, expecting a monthly payment during an extended disability that will fund temporary help and offset lost production. Which of the following is the payee of that benefit?

The disabled developer

The business

The developer's named beneficiary

The developer's dependents

Question 5: Long-term care policies measure whether an insured can live independently by testing a standard list of everyday functions that includes bathing, dressing, toileting, transferring, continence and eating. Which term does the insurance industry use for the items on that list?

Levels of care

Benefit periods

Nonforfeiture benefits

Activities of daily living

Question 6: An employee handbook describes a benefit that begins after a very short wait, sometimes with no wait at all, and pays about sixty percent of pay for a period running from six to twenty-four months. Which of the following is being described?

Long term disability coverage

Business overhead expense coverage

Short term disability coverage

Key employee disability coverage

Question 7: A retiree covered by Original Medicare Parts A and B buys a policy from a private insurance company that helps pay the co-payments, coinsurance and deductibles Original Medicare leaves for the beneficiary to pay. Which coverage has this retiree purchased?

A Medicare Advantage plan

A Medicare supplement policy

A qualified long-term care policy

A hospital indemnity policy

Question 8: An employer offers a short term disability plan with a six month benefit period and wants the long term plan to pick up without any gap or any overlap in payments. Which of the following long term elimination periods accomplishes that?

No elimination period at all

Thirty days

Two years

Six months

Question 9: When a health insurer issues coverage to an employer for its workforce, the sponsoring employer holds one document while each covered worker receives a different one showing who is covered and summarizing benefits. Which pairing of documents is correct?

Certificate to employer, policy to worker

Enrollment card to both parties

Master policy to employer, certificate to worker

Individual policies issued to every worker

Question 10: An insured is comparing two individual disability income proposals from the same insurer. One pays monthly benefits for two years once payments start, and the other pays them until the insured reaches age sixty-five. Which policy feature are these two proposals describing?

The benefit period

The elimination period

The relation of earnings limit

The recurrent disability rule

Question 11: When a disability buy-sell agreement is funded, the parties debate how long the elimination period should run. One owner argues for thirty days so cash arrives quickly. Which of the following best explains why a much longer period is customary here?

Longer waits raise the monthly benefit

State law forbids shorter waiting periods

The buyout, once triggered, cannot be undone

Overhead bills must be paid first

Question 12: Subscribers in a certain managed care plan must select a general practice physician who must be seen first for all non-emergency care, and no specialist may be consulted without that physician's referral. Which feature of the plan is being described?

Capitation

Concurrent review

Coordination of benefits

The gatekeeper concept

Question 13: Medicare supplement policies sold across the country are not designed independently by each insurer; instead every company must fit its offering into one of ten benefit packages identified by letter. Which statement correctly describes these standardized Medicare supplement plans?

They are lettered A through N

They are numbered one through ten

Each insurer writes its own benefits

They are lettered A through Z

Question 14: A long-term care policy describes one level of service as assistance with eating, bathing and other personal tasks that can be provided by a family member or aide who holds no medical training. Which level of care is described?

Skilled nursing care

Intermediate care

Custodial care

Respite care

Question 15: A long-term care policy states that the insured must receive covered care for thirty days before the insurer begins paying any daily benefit. Producers often call this feature a time deductible. Which policy provision does the thirty-day requirement represent?

The elimination period

The benefit period

The probationary period

The free look period

Question 16: An older group of medical expense products paid benefits from the very first dollar of covered charges, carried no deductible and no coinsurance, but listed each service with a low scheduled payment limit. Which of the following describes that group of products?

Comprehensive major medical policies

Health maintenance organization subscriber agreements

Basic hospital, medical and surgical policies

Supplemental major medical policies

Question 17: Two applicants of the same age and health apply for disability income coverage; one is an attorney and the other is a roofer, and their offers differ sharply. Which of the following factors most influences a disability income underwriting decision?

Marital status

State of residence

Number of dependents

Occupation

Question 18: A comprehensive medical expense policy covers disease and injury affecting the eyes, but it pays nothing toward routine eye examinations, corrective lenses, frames or contact lenses. Which limited benefit policy is sold specifically to fill that gap for the insured?

A hearing insurance plan

A dental expense plan

A vision care plan

A prescription drug plan

Question 19: A traditional insurance company collects premiums and then pays or reimburses the medical bills its insureds incur. One managed care entity differs because it both arranges and delivers the care itself while also financing it. Which entity works that way?

A health maintenance organization

A preferred provider organization