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Free Accident & Health Producer Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the Accident & Health Producer practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1An employee wants a policy that pays toward earnings lost during a covered period of disability. Which coverage serves that purpose?

    1. A. Individual disability income coverage for the employee's lost earnings
    2. B. Business overhead expense coverage for the employer's operating costs
    3. C. Key employee disability coverage for the firm's loss from a worker
    4. D. Hospital indemnity coverage for each day of inpatient confinement

    Answer: A

    Explanation: The NAIC says, "Disability insurance is designed to replace income or other expenses" when an insured cannot work. For this employee's own lost earnings, disability income coverage is the matching benefit; the other choices address business costs or hospital confinement.

    Reference: NAIC Small Business Insurance — What is disability insurance?

  2. 2A producer wants to determine what documents constitute a Minnesota accident-and-sickness policy's entire insurance contract. Which set belongs in it?

    1. A. The policy and the producer's handwritten sales notes
    2. B. The policy and the insurer's internal underwriting file
    3. C. The policy, its endorsements, and attached papers
    4. D. The policy and later oral changes approved by the agent

    Answer: C

    Explanation: Minnesota's entire-contract provision states, "This policy, including the endorsements and the attached papers, if any, constitutes the entire contract of insurance." Sales notes, internal files and oral agent changes are not the documents specified in that provision.

    Reference: Minnesota Statutes § 62A.04 — Minn. Stat. § 62A.04, subd. 2(1)

  3. 3A Medicare beneficiary needs a physician's outpatient evaluation rather than an inpatient hospital stay or prescription drug coverage. Which Medicare part principally addresses that service?

    1. A. Part A, the hospital insurance component
    2. B. Part B, the medical insurance component
    3. C. Part C, the private-plan alternative
    4. D. Part D, the prescription drug component

    Answer: B

    Explanation: Medicare.gov lists under Part B, "Services from doctors and other health care providers" and "Outpatient care." Part A chiefly addresses inpatient services, Part D drug coverage, and Part C is the Medicare Advantage plan route rather than the specific Original Medicare part asked for.

    Reference: Medicare.gov Parts of Medicare — Parts of Medicare—Part B (Medical Insurance)

  4. 4After an injury, an insured can work fewer hours and earns less but is not wholly unable to work. Which disability benefit is designed to address that lost portion of income?

    1. A. A recurrent-disability benefit for a returning total disability
    2. B. A presumptive-disability benefit for a specified severe loss
    3. C. A residual-disability benefit for reduced earnings during partial disability
    4. D. A total-disability benefit for complete inability to perform work

    Answer: C

    Explanation: The NAIC describes "Residual Benefit(s) - This coverage fills the gap in income if you are partially disabled, resulting in reduced income." That is the stated partial work and earnings loss; the other benefit labels address different disability conditions.

    Reference: NAIC Simplifying the Complications of Disability Insurance — Residual Benefit(s)

  5. 5An insurer discovers an inaccurate statement in an application for a Minnesota accident-and-sickness policy. Under the governing materiality rule, when can that falsity bar recovery?

    1. A. Whenever any answer differs from a later medical record
    2. B. Whenever the producer recorded an answer inaccurately
    3. C. Only if it materially affected risk acceptance or the hazard assumed
    4. D. Only if the application was completed without an agent present

    Answer: C

    Explanation: Minnesota says a false application statement "may not bar the right to recovery" unless it "materially affected either the acceptance of the risk or the hazard assumed by the insurer." Mere discrepancy or who completed the form is insufficient under this rule.

    Reference: Minnesota Statutes § 62A.06 — Minn. Stat. § 62A.06, subd. 3

  6. 6May the Minnesota commissioner investigate a regulated insurance matter before receiving a consumer complaint?

    1. A. No; investigations begin only after a complaint
    2. B. Yes; the commissioner may investigate without first receiving a complaint
    3. C. No; only the attorney general may initiate an investigation
    4. D. Yes, but only after issuing a data call

    Answer: B

    Explanation: Minn. Stat. § 45.027, subd. 1 authorizes the commissioner to "make public or private investigations within or without this state as the commissioner considers necessary."

    Reference: Ch. 45 MN Statutes — Minn. Stat. § 45.027, subd. 1

  7. 7A covered emotionally disabled child receives treatment in a licensed residential treatment facility. How must a covered Minnesota plan generally provide benefits?

    1. A. On the same basis as inpatient hospital medical coverage
    2. B. On the same basis as outpatient dental coverage
    3. C. Only after the dependent reaches the limiting age
    4. D. Only through a separately underwritten nongroup policy

    Answer: A

    Explanation: Minn. Stat. § 62A.151 says: "The mandatory coverage under this section shall be on the same basis as inpatient hospital medical coverage provided under the policy or plan."

    Reference: Mn Statutes Ch62A — Minn. Stat. § 62A.151

  8. 8A sole proprietor becomes disabled but must keep paying office rent and staff payroll. Which disability coverage addresses those operating expenses?

    1. A. Individual disability income insurance for the proprietor's lost wages
    2. B. Business overhead expense insurance for the firm's continuing bills
    3. C. Key employee disability insurance for a worker's value to the firm
    4. D. Business disability buyout insurance for a partner's ownership share

    Answer: B

    Explanation: The NAIC explains that a business overhead provision "covers standard business expenses such as payroll, utilities," including the rent in this case. It addresses continuing operating bills during the owner's disability, not personal wages or a transfer of ownership.

    Reference: NAIC Small Business Insurance — Disability Insurance—business overhead insurance

  9. 9An individual accident-and-sickness policy has been in force for more than two years. A later covered loss begins, and the insurer finds a nonfraudulent application misstatement. How does the statutory time-limit provision treat that statement?

    1. A. It may void the policy whenever the statement concerned health
    2. B. It generally may not void the policy or defeat that later claim
    3. C. It may defeat only the first claim filed after the second year
    4. D. It automatically reduces every later claim by the premium paid

    Answer: B

    Explanation: The statute says, "After two years from the date of issue of this policy no misstatements, except fraudulent misstatements," may be used to void the policy or deny a later qualifying claim. The specified nonfraudulent statement and later-onset loss fit that protection; fraudulent statements are expressly excepted.

    Reference: Minnesota Statutes § 62A.04 — Minn. Stat. § 62A.04, subd. 2(2)(a)

  10. 10A family with low income asks about the jointly administered federal and state program that may cover eligible adults and children. Which program is the producer describing?

    1. A. Medicare hospital insurance
    2. B. Social Security retirement insurance
    3. C. Social Security disability insurance
    4. D. Medicaid health coverage

    Answer: D

    Explanation: Medicare.gov states, "Medicaid is a joint federal and state program that provides health coverage for certain low-income people, families and children" and other eligible groups. The other named programs have different eligibility bases or benefits.

    Reference: Medicare.gov Parts of Medicare — Parts of Medicare—What's the difference between Medicare & Medicaid?

Topics in this practice bank

These topics describe the available practice for Accident & Health Producer. Review the examination outline and its sources for scope and allocation details.

  • Accident & Health - General Knowledge — Types of Policies - 16 items
    • Disability Income
    • Disability Income / Individual Disability Income Policy
    • Disability Income / Business Overhead Expense Policy
    • Disability Income / Business Disability Buyout Policy
    • Disability Income / Group Disability Income Policy
    • Disability Income / Key Employee Policy
    • Accidental Death and Dismemberment
    • Medical Expense Insurance
    • Medical Expense Insurance / Basic Hospital, Medical, and Surgical Policies
    • Medical Expense Insurance / Major Medical Policies
    • Medical Expense Insurance / Comprehensive Major Medical Policies
    • Medical Expense Insurance / Health Maintenance Organizations (HMOs)
    • Medical Expense Insurance / Preferred Provider Organizations (PPOs)
    • Medical Expense Insurance / Point of Service (POS) Plans
    • Medical Expense Insurance / Flexible Spending Accounts (FSAs)
    • Medical Expense Insurance / Health Reimbursement Accounts (HRAs)
    • Medical Expense Insurance / High Deductible Health Plans (HDHPs) and Related Health Savings Accounts (HSAs)
    • Medicare Supplement Policies
    • Group Insurance
    • Group Insurance / Differences between Individual and Group Contracts
    • Group Insurance / General Concepts
    • Group Insurance / COBRA
    • Individual/Group Long Term Care (LTC)
    • Individual/Group Long Term Care (LTC) / Eligibility
    • Individual/Group Long Term Care (LTC) / Levels of care
    • Other Policies
    • Other Policies / Dental
    • Other Policies / Vision
    • Other Policies / Cancer
    • Other Policies / Critical illness or specified disease
    • Other Policies / Worksite (employer-sponsored)
    • Other Policies / Hospital indemnity
    • Other Policies / Short-term medical
    • Other Policies / Accident
  • Accident & Health - General Knowledge — Policy Provisions, Clauses, and Riders - 15 items
    • Mandatory and Optional Provisions
    • Mandatory and Optional Provisions / Entire Contract
    • Mandatory and Optional Provisions / Time Limit on Certain Defenses (incontestable)
    • Mandatory and Optional Provisions / Grace Period
    • Mandatory and Optional Provisions / Reinstatement
    • Mandatory and Optional Provisions / Notice of Claim
    • Mandatory and Optional Provisions / Claim Forms
    • Mandatory and Optional Provisions / Proof of Loss
    • Mandatory and Optional Provisions / Time of Payment of Claims
    • Mandatory and Optional Provisions / Payment of Claims
    • Mandatory and Optional Provisions / Physical Examination and Autopsy
    • Mandatory and Optional Provisions / Legal Actions
    • Mandatory and Optional Provisions / Change of Beneficiary
    • Mandatory and Optional Provisions / Change of Occupation
    • Mandatory and Optional Provisions / Misstatement of Age or Gender
    • Mandatory and Optional Provisions / Illegal Occupation
    • Mandatory and Optional Provisions / Relation of earnings to insurance
    • Other Provisions and Clauses
    • Other Provisions and Clauses / Insuring Clause
    • Other Provisions and Clauses / Free look
    • Other Provisions and Clauses / Consideration Clause
    • Other Provisions and Clauses / Probationary Period
    • Other Provisions and Clauses / Elimination Period
    • Other Provisions and Clauses / Waiver of Premium
    • Other Provisions and Clauses / Exclusions and limitations
    • Other Provisions and Clauses / Preexisting Conditions
    • Other Provisions and Clauses / Coinsurance
    • Other Provisions and Clauses / Deductibles
    • Other Provisions and Clauses / Eligible Expenses
    • Other Provisions and Clauses / Copayments
    • Other Provisions and Clauses / Pre-Authorizations and Prior Approval Requirements
    • Other Provisions and Clauses / Usual, Reasonable, and Customary (URC) Charges
    • Other Provisions and Clauses / Lifetime, Annual, or per Cause Maximum Benefit Limits
    • Riders
    • Riders / Impairment/exclusions
    • Riders / Guaranteed Insurability
    • Riders / Future increase option
    • Rights of Renewability
    • Rights of Renewability / Noncancelable
    • Rights of Renewability / Cancelable
    • Rights of Renewability / Guaranteed Renewable
  • Accident & Health - General Knowledge — Social Insurance - 6 items
    • Medicare (Parts A, B, C, D)
    • Medicaid
    • Social Security Benefits
  • Accident & Health - General Knowledge — Other Insurance Concepts - 5 items
    • Total, Partial, Recurrent and Residual Disability
    • Owner's Rights
    • Dependent Children Benefits
    • Primary and Contingent Beneficiaries
    • Modes of premium payments
    • Nonduplication and Coordination of Benefits (e.g., primary vs. excess)
    • Occupational vs. Nonoccupational
    • Tax Treatment of Premiums and Proceeds of Insurance Contracts (e.g., disability income and medical expenses, etc.)
    • Managed Care
    • Workers' Compensation Exclusion
    • Subrogation
    • Cost Containment
  • Accident & Health - General Knowledge — Field Underwriting Procedures - 8 items
    • Completing the Application
    • Explaining Sources of Insurability and HIPAA Privacy Information (e.g., MIB Report, Fair Credit Reporting Act, etc.)
    • Initial Premium Payment and Receipt and Consequences of the Receipt (e.g., medical examination, etc.)
    • Submitting Application (and initial premium if collected) to Company for Underwriting
    • Policy Delivery
    • Explaining Policy and its Provisions, Riders, Exclusions, and Ratings to Clients
    • Replacement
    • Contract Law
    • Contract Law / Elements of a Contract
    • Contract Law / Insurable Interest
    • Contract Law / Warranties and Representations
    • Contract Law / Unique Aspects of the Insurance Contract
    • Contract Law / Unique Aspects of the Insurance Contract / Conditional
    • Contract Law / Unique Aspects of the Insurance Contract / Unilateral
    • Contract Law / Unique Aspects of the Insurance Contract / Adhesion
    • Contract Law / Unique Aspects of the Insurance Contract / Aleatory
  • Life & Health - Minnesota Specific — Minnesota Laws, Rules, and Regulations Common to Life, Health, Property, and Casualty Insurance - 20 items
    • Powers and Duties of the Commissioner
    • Powers and Duties of the Commissioner / Broad Powers
    • Powers and Duties of the Commissioner / Examination of Records
    • Powers and Duties of the Commissioner / Notice and Hearing
    • Powers and Duties of the Commissioner / Forms and Rate Review
    • Definitions
    • Definitions / Domestic and Foreign
    • Definitions / Stock and Mutual
    • Definitions / Certificate of Authority
    • Definitions / Fraternals
    • Licensing and Appointments
    • Licensing and Appointments / Educational Requirements
    • Licensing and Appointments / Educational Requirements / Prelicensing
    • Licensing and Appointments / Educational Requirements / Continuing Education
    • Licensing and Appointments / Educational Requirements / Long-Term Care (LTC)
    • Licensing and Appointments / Educational Requirements / Annuities
    • Licensing and Appointments / Types of Licenses
    • Licensing and Appointments / Types of Licenses / Producer
    • Licensing and Appointments / Types of Licenses / Temporary
    • Licensing and Appointments / Types of Licenses / Nonresident
    • Licensing and Appointments / Termination of License
    • Licensing and Appointments / Termination of License / Expiration
    • Licensing and Appointments / Termination of License / Revocation or Suspension
    • Licensing and Appointments / Appointment and termination of appointment
    • Licensing and Appointments / Maintenance and Duration of License
    • Trade Practices
    • Trade Practices / Prohibited Practices
    • Trade Practices / Prohibited Practices / Unfair Claims Settlement Methods and Practices
    • Trade Practices / Prohibited Practices / Rebating
    • Trade Practices / Prohibited Practices / Misrepresentation
    • Trade Practices / Prohibited Practices / Defamation
    • Trade Practices / Prohibited Practices / Discrimination
    • Trade Practices / Prohibited Practices / Penalties
    • Trade Practices / Prohibited Practices / Misappropriation or Conversion of Funds
    • Trade Practices / Prohibited Practices / Forgery
    • Trade Practices / Prohibited Practices / Suitability
    • Trade Practices / Prohibited Practices / Twisting
    • Trade Practices / Compensation of Licensees
    • Trade Practices / Compensation of Licensees / Commissions
    • Trade Practices / Compensation of Licensees / Fees for Service
    • Trade Practices / Advertising
    • Trade Practices / Agent Conduct and Insurance Marketing Standards
    • Trade Practices / Required Disclosures
    • Guaranty Association
  • Life & Health - Minnesota Specific — Minnesota Laws, Rules, and Regulations Pertinent to Health Insurance Only - 5 items
    • Policy Clauses and Provisions/Mandates
    • Policy Clauses and Provisions/Mandates / Coverage of Emotionally Disabled Children
    • Policy Clauses and Provisions/Mandates / Coverage of Physically Disabled Children
    • Policy Clauses and Provisions/Mandates / Coverage of Newborns and Adopted Children
    • Policy Clauses and Provisions/Mandates / Continuation/Conversion of Benefits
    • Policy Clauses and Provisions/Mandates / Continuation/Conversion of Benefits / Disabled Employees
    • Policy Clauses and Provisions/Mandates / Continuation/Conversion of Benefits / Survivors
    • Policy Clauses and Provisions/Mandates / Continuation/Conversion of Benefits / Termination of Employment
    • Policy Clauses and Provisions/Mandates / Continuation/Conversion of Benefits / Divorce
    • Policy Clauses and Provisions/Mandates / Maternity Benefits
    • Policy Clauses and Provisions/Mandates / Right to Cancel
    • Policy Clauses and Provisions/Mandates / Right to Cancel / Insured
    • Policy Clauses and Provisions/Mandates / Right to Cancel / Insurance Company
    • Policy Clauses and Provisions/Mandates / Benefits for Treatment of Mental Health and Chemical Dependency
    • Policy Clauses and Provisions/Mandates / Standard Provisions
    • Medicare Supplement Plans
    • Medicare Supplement Plans / Basic and Extended Basic
    • Medicare Supplement Plans / High Deductible Plans
    • Long-Term Care (LTC)
    • Health Maintenance Organizations (HMOs)
    • Nonprofit Health Service Plan Corporations
    • Small Employer Insurance Reform
    • Grace Period

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