Free AHIP North Carolina Questions and Answers — Questions and Answers
Question 1: Due to concerns it has regarding the applicant's credit history, Statewide Insurers is requesting an investigative consumer report. What needs to be done before Statewide can get a report?
- Obtain the report only after receiving the applicant's written approval.
- Inform the applicant that he has the right to be contacted for an interview regarding the report. (Correct answer)
- compel the applicant to sign an affidavit attesting to the veracity of the report's claims.
- notifying the applicant of his right to create a report on his own
Correct answer: Inform the applicant that he has the right to be contacted for an interview regarding the report.
Under the Fair Credit Reporting Act (FCRA), when an insurer requests an investigative consumer report, which involves personal interviews with third parties about an applicant's character or reputation, specific disclosures are required. The applicant must be informed that such a report is being requested and, importantly, they have the right to be contacted for an interview regarding the information contained within that report. This ensures transparency and allows the applicant to address any potential inaccuracies.
Question 2: All of the following are prerequisites for obtaining an insurance agent's license, WITH THE EXCEPTION of:
- 18 years of age
- College degree (Correct answer)
- Licensing fee
- Good reputation and character
Correct answer: College degree
To obtain an insurance agent's license, common prerequisites typically include being at least 18 years of age, paying a licensing fee, and demonstrating good reputation and character. While a college degree can be advantageous for career advancement, it is generally not a mandatory requirement for the initial licensing process itself. Many individuals successfully become licensed agents with a high school diploma or equivalent.
Question 3: The following benefits are ALL provided to insured workers by workers' compensation policies, EXCEPT
- expenses of running a business until a disabled worker can return to work (Correct answer)
- wage replacement benefits for disability
- medical treatment
- vocational rehabilitation
Correct answer: expenses of running a business until a disabled worker can return to work
Workers' compensation policies are designed to provide benefits directly to employees who suffer work-related injuries or illnesses. These benefits typically include coverage for medical treatment, wage replacement for lost income due to disability, and vocational rehabilitation to help the worker return to employment. However, workers' compensation does not cover the expenses of running a business; these are separate operational costs for the employer, distinct from employee benefits.
Question 4: Which of the following applies to contributions that are tax deductible, grow tax-free, and provide tax-free payouts for eligible medical expenses?
- flexible spending accounts (FSAs)
- health savings accounts (HSAs) (Correct answer)
- individual retirement accounts (IRAs)
- medical savings accounts (MSAs)
Correct answer: health savings accounts (HSAs)
Health Savings Accounts (HSAs) are unique savings accounts available to individuals enrolled in high-deductible health plans (HDHPs). They offer a "triple tax advantage": contributions are tax-deductible, the funds grow tax-free, and withdrawals for qualified medical expenses are also tax-free. This makes HSAs a powerful tool for saving for healthcare costs, both in the present and for retirement.
Question 5: Every time Maverick visits a doctor, he must pay $15 under his primary medical insurance. What is the name of this payment?
- the co-payment (Correct answer)
- the deductible
- the doctor visit limit
- the policy's out-of-pocket maximum
Correct answer: the co-payment
The fixed amount of $15 that Maverick pays each time he visits a doctor is known as a co-payment (or copay). A copay is a predetermined fee that an insured individual pays at the time of receiving a covered medical service, such as a doctor's visit or prescription fill, with the insurance company covering the remaining eligible cost. It is distinct from a deductible or coinsurance.
Question 6: In order to be covered by a group health insurance policy issued in North Carolina, which of the following is not required?
- cervical cancer screening
- mammograms every year beginning at age 30 (Correct answer)
- prostate cancer screening tests
- medicine and treatment for diabetes
Correct answer: mammograms every year beginning at age 30
While health insurance policies in North Carolina are mandated to cover essential health benefits, including various preventive screenings and treatments, the specific frequency and age for mammograms can vary. General guidelines often recommend mammograms starting at age 40 or 50, or earlier for high-risk individuals, and typically annually or biennially. A mandate for "mammograms every year beginning at age 30" is a more aggressive and specific requirement that is not universally mandated for all women under group health policies in NC, making it the exception among the listed items which are generally required coverages.
Question 7: Which form of rider in a health insurance policy allows an insurance company to deny coverage for a particular medical condition?
- impairment (Correct answer)
- specified disease or illness
- pre-existing condition
- cancelation
Correct answer: impairment
An impairment rider, also known as an exclusion rider, is an attachment to a health insurance policy that specifically excludes coverage for a particular pre-existing medical condition or a known health impairment. This rider allows the insurance company to issue a policy to an applicant who might otherwise be uninsurable or would face significantly higher premiums, by explicitly denying coverage for that specific condition.
Free AHIP North Carolina Questions and Answers
Due to concerns it has regarding the applicant's credit history, Statewide Insurers is requesting an investigative consumer report.
What needs to be done before Statewide can get a report?