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Free Arkansas Health Producer Examination Practice Questions

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Sample Practice Questions

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

  1. 1Under Arkansas insurance law, which state official appoints the Insurance Commissioner?

    1. A. The Governor
    2. B. The Attorney General
    3. C. The Secretary of State
    4. D. The State Treasurer

    Answer: A

    Explanation: Arkansas law places appointment of the Insurance Commissioner with the Governor; the other listed statewide officers do not make this appointment.

    Reference: Arkansas General Assembly — Arkansas Insurance Code, provisions governing the Insurance Commissioner

  2. 2An Arkansas resident plans to sell, solicit, and negotiate accident and health insurance. What license must the person hold?

    1. A. A producer license for the accident and health or sickness line
    2. B. A consultant license with no producer authority
    3. C. A claims-adjuster license only
    4. D. An insurer certificate of authority

    Answer: A

    Explanation: Ark. Code § 23-64-503 says a person may not sell, solicit or negotiate insurance unless licensed for that line; § 23-64-507(a)(2) names accident and health or sickness.

    Reference: Arkansas General Assembly — Act 580 of 2001, §§ 23-64-503 and 23-64-507(a)(2), pp. 3, 7

  3. 3Unless payment is made first, by when must an Arkansas insurer acknowledge receipt of a claimant communication concerning a claim?

    1. A. By the fifth working day
    2. B. By the tenth working day
    3. C. By the thirtieth working day
    4. D. By the fifteenth working day

    Answer: D

    Explanation: 23 CAR § 15-105 requires acknowledgment within fifteen (15) working days unless payment is made within that period.

    Reference: Rule and Regulation 43 § 1 Purpose — 23 CAR § 15-105(a)

  4. 4What free-look period applies to an Arkansas Medicare supplement policy issued through direct response?

    1. A. 10 days
    2. B. 15 days
    3. C. 30 days
    4. D. 45 days

    Answer: C

    Explanation: 23 CAR § 86-401 provides a thirty (30) day return period for Medicare supplement policies issued by direct response.

    Reference: 23 Car Part 86 — 23 CAR § 86-401

  5. 5A group health carrier nonrenews an Arkansas plan. What information must its notice to affected employees identify?

    1. A. Only the producer's commission
    2. B. Only the insurer's annual loss ratio
    3. C. Only the employer's tax identification number
    4. D. The date on which coverage terminates

    Answer: D

    Explanation: 23 CAR § 120-104 requires notice to each employee and COBRA participant and requires the notice to state the coverage termination date.

    Reference: 23 Car Part 120 — 23 CAR § 120-104

  6. 6An individual seeks authority in Arkansas to act as an HMO agent. Which examination standard applies under the HMO agent rule?

    1. A. No written examination may ever be required
    2. B. Only a property examination is acceptable
    3. C. The disability examination or another appropriate examination and required prelicensing qualification
    4. D. Only an insurer officer may qualify

    Answer: C

    Explanation: 23 CAR § 95-104 requires the applicant to pass the written disability examination or an appropriate examination and satisfy applicable prelicensing requirements.

    Reference: 23 Car Part 95 — 23 CAR § 95-104

  7. 7A self-employed worker buys disability income insurance so that an insurer will bear a contractually defined portion of the financial consequences of disability. Which method of handling risk does this illustrate?

    1. A. Avoidance
    2. B. Retention
    3. C. Transfer
    4. D. Reduction

    Answer: C

    Explanation: NAIC describes insurance as "an economic device transferring risk from an individual to a company". The purchase transfers defined financial consequences to the insurer. Retention keeps the exposure, avoidance eliminates the activity, and reduction lowers the likelihood or severity rather than shifting it.

    Reference: NAIC Glossary of Insurance Terms — Glossary of Insurance Terms, Insurance

  8. 8An individual health policy contains the uniform entire-contract provision. After delivery, a producer orally promises to waive a stated exclusion, but no executive officer approves an endorsed or attached change. What is the effect on the policy?

    1. A. The exclusion is waived because the producer delivered the policy.
    2. B. The exclusion is waived because the insured relied on the promise.
    3. C. The exclusion is waived when the next renewal premium is accepted.
    4. D. The exclusion remains because the agent cannot make this policy change.

    Answer: D

    Explanation: The provision states, "No agent has authority to change this policy or to waive any of its provisions." A valid change requires executive-officer approval endorsed on or attached to the policy. The unapproved oral promise does not satisfy the contractual change procedure.

    Reference: NAIC Uniform Individual Accident and Sickness Policy Provision Law — Section 3(A)(1), Entire Contract; Changes, printed page MO-180-2

  9. 9When an Arkansas employee has active group coverage and also continuation coverage that would otherwise overlap, which coverage is primary under the state's coordination rule?

    1. A. The continuation coverage
    2. B. Both are always equal
    3. C. The active employee coverage
    4. D. Whichever policy was issued in Arkansas first

    Answer: C

    Explanation: Arkansas Rule 21 makes coverage as an active employee primary and continuation coverage secondary, subject to the rule's ordering provisions.

    Reference: Rule 21 Coordination — Rule 21, order-of-benefit provisions for continuation coverage

  10. 10An employer pays 60% of a disability plan's premiums, and the employee pays 40% with after-tax dollars. The employee receives a $5,000 disability benefit attributable to those contributions. How much is generally included in federal taxable income?

    1. A. $3,000
    2. B. $2,000
    3. C. $5,000
    4. D. $0

    Answer: A

    Explanation: IRS says that with employee after-tax contributions, "only the amount you receive for your disability that’s due to your employer’s payments is reported as income." The taxable amount is 60% × $5,000 = $3,000. $2,000 reverses the funding shares; $5,000 treats the entire benefit as employer-funded; zero treats it as entirely employee after-tax funded.

    Reference: IRS: Life insurance and disability insurance proceeds, Question 1 — Life Insurance & Disability Insurance Proceeds FAQ, shared premium funding

Topics in this practice bank

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

  • ARKANSAS STATUTES, RULES, AND REGULATIONS COMMON TO LIFE AND HEALTH INSURANCE — The Insurance Commissioner
    • Appointment
    • General duties and powers
    • Examination of records
    • Hearings/notice of hearings/orders
    • Penalties
  • ARKANSAS STATUTES, RULES, AND REGULATIONS COMMON TO LIFE AND HEALTH INSURANCE — Definitions
    • Authorized and unauthorized companies
    • Domestic, foreign, and alien companies
    • Fraternals
    • Stock and mutual companies
    • Certificate of authority
    • Insurance transaction
  • ARKANSAS STATUTES, RULES, AND REGULATIONS COMMON TO LIFE AND HEALTH INSURANCE — Licensing
    • Persons required to be licensed
    • Persons required to be licensed / Producer
    • Persons required to be licensed / Consultant
    • Persons required to be licensed / Resident/nonresident
    • Persons required to be licensed / Temporary license
    • Producer appointment/termination of contract
    • Exemptions/exceptions
    • Maintaining a license
    • Maintaining a license / Continuing education
    • Maintaining a license / Change of Contact Information
    • Maintaining a license / Administrative fees
    • Renewal, suspension, or revocation of license
  • ARKANSAS STATUTES, RULES, AND REGULATIONS COMMON TO LIFE AND HEALTH INSURANCE — Producer Responsibilities
    • Fiduciary capacity
    • Commissions
    • Fraud reporting
  • ARKANSAS STATUTES, RULES, AND REGULATIONS COMMON TO LIFE AND HEALTH INSURANCE — Life and Health Insurance Guaranty Association Act
  • ARKANSAS STATUTES, RULES, AND REGULATIONS COMMON TO LIFE AND HEALTH INSURANCE — Marketing Practices
    • Unfair claims practices
    • Unfair methods of competition
    • Unfair methods of competition / Rebating
    • Unfair methods of competition / Misrepresentation
    • Unfair methods of competition / False advertising
    • Unfair methods of competition / Defamation
    • Unfair methods of competition / False financial statements
    • Unfair methods of competition / Boycott, coercion, intimidation
    • Unfair methods of competition / Unfair discrimination
    • Unfair methods of competition / Twisting
    • Unfair methods of competition / Churning of business
    • Advertising: producer responsibilities
  • ARKANSAS LAWS, RULES, AND REGULATIONS PERTINENT TO HEALTH INSURANCE ONLY — Policy Provisions
    • Policy requirements
    • Coverages
    • Coverages / Coverage for newborns
    • Coverages / Coverage for Adoptions
    • Coverages / Coverage for mental health services
    • Coverages / Coverage for maternity benefits
    • Coverages / Coverage for chiropractic services
    • Coverages / Coverage for substance abuse
  • ARKANSAS LAWS, RULES, AND REGULATIONS PERTINENT TO HEALTH INSURANCE ONLY — Medicare Supplement
    • Minimum standards
    • Provisions
  • ARKANSAS LAWS, RULES, AND REGULATIONS PERTINENT TO HEALTH INSURANCE ONLY — Health Advertising
  • ARKANSAS LAWS, RULES, AND REGULATIONS PERTINENT TO HEALTH INSURANCE ONLY — Long Term Insurance Care Act
    • Minimum standards
    • Provisions
  • ARKANSAS LAWS, RULES, AND REGULATIONS PERTINENT TO HEALTH INSURANCE ONLY — Group/Blanket Health
    • Standards
    • Provisions
  • ARKANSAS LAWS, RULES, AND REGULATIONS PERTINENT TO HEALTH INSURANCE ONLY — Small Group Coverage
    • Small employer
    • Eligible employee
    • Provisions
  • ARKANSAS LAWS, RULES, AND REGULATIONS PERTINENT TO HEALTH INSURANCE ONLY — Health Maintenance Organizations (HMOs)
  • ARKANSAS LAWS, RULES, AND REGULATIONS PERTINENT TO HEALTH INSURANCE ONLY — COBRA Health - State Continuation
  • HEALTH GENERAL KNOWLEDGE CONTENT OUTLINE — Federal Laws and Regulations
    • Fair Credit Reporting Act - Purpose
    • Privacy [Gramm Leach Bliley]
    • Prohibited Persons in Insurance (18 United States Code (USC) Sections 1033 and 1034) waiver
    • Affordable Care Act (ACA)
    • National Do Not Call List
    • CAN-SPAM Act
  • HEALTH GENERAL KNOWLEDGE CONTENT OUTLINE — General Insurance Concepts
    • Risk
    • Risk / Methods of Handling Risk (Avoidance, Retention, Sharing, Reduction, Transfer)
    • Risk / Elements of Insurable Risks
    • Risk / Definitions (Risk, Hazard, Peril, Loss)
    • Elements of a Contract
    • Elements of a Contract / Consideration
    • Elements of a Contract / Competent Parties
    • Elements of a Contract / Legal Purpose
    • Elements of a Contract / Offer
    • Elements of a Contract / Acceptance
    • Authority and Powers of Producers
    • Authority and Powers of Producers / Express
    • Authority and Powers of Producers / Implied
    • Authority and Powers of Producers / Apparent
    • Authority and Powers of Producers / The Law of Agency
    • Legal Interpretations Affecting Contracts
    • Legal Interpretations Affecting Contracts / Reasonable Expectations
    • Legal Interpretations Affecting Contracts / Indemnity
    • Legal Interpretations Affecting Contracts / Good Faith
    • Legal Interpretations Affecting Contracts / Fraud
    • Legal Interpretations Affecting Contracts / Warranties, Representations, Misrepresentations, and Concealment
  • HEALTH GENERAL KNOWLEDGE CONTENT OUTLINE — Accident and Health Insurance Basics
    • Field Underwriting
    • Field Underwriting / Application Procedures
    • Field Underwriting / Disclosures and Privacy
    • Underwriting Requirements (Varies by Insurer)
    • Sources of Underwriting
    • Sources of Underwriting / Application
    • Sources of Underwriting / Producer's report
    • Sources of Underwriting / Medical information bureau (MIB)
    • Sources of Underwriting / Inspection report
    • Sources of Underwriting / Medical examination
    • Sources of Underwriting / Attending physician's report
    • Policy Delivery
    • Policy Delivery / Effective Date of Coverage
    • Policy Delivery / Policy Review
    • Policy Delivery / Premium Collection Methods (e.g., Electronic, Physical, EFT, ACH)
    • Policy Delivery / Statement of Good Health
    • Definitions of Perils
    • Definitions of Perils / Accidental Injury
    • Definitions of Perils / Sickness
    • Types of Losses and Benefits
    • Types of Losses and Benefits / Loss of Income from Disability (Short-Term/Long-Term Disability)
    • Types of Losses and Benefits / Medical Expense
    • Types of Losses and Benefits / Long-Term Care Expense
    • Classification of Risks
    • Classification of Risks / Preferred
    • Classification of Risks / Standard
    • Classification of Risks / Substandard
  • HEALTH GENERAL KNOWLEDGE CONTENT OUTLINE — Individual Accident and Health Insurance Policy Provisions
    • Uniform Required Provisions
    • Uniform Required Provisions / Time Limit on Certain Defenses
    • Uniform Required Provisions / Grace Period
    • Uniform Required Provisions / Reinstatement
    • Uniform Required Provisions / Claim Forms
    • Uniform Required Provisions / Proof of Loss
    • Uniform Required Provisions / Time of Payment of Claims
    • Uniform Required Provisions / Physical Examinations and Autopsy
    • Uniform Required Provisions / Legal Actions
    • Uniform Required Provisions / Entire Contract
    • Uniform Required Provisions / Payment of Claims
    • Uniform Required Provisions / Change of Beneficiary
    • Uniform Required Provisions / Notice of Claim
    • Uniform Optional Provisions
    • Uniform Optional Provisions / Change of Occupation
    • Uniform Optional Provisions / Misstatement of Age/Sex
    • Uniform Optional Provisions / Illegal Occupation
    • Uniform Optional Provisions / Intoxicants, Narcotics, or Other Controlled Substances
    • Other General Provisions
    • Other General Provisions / Right to Examine/Free Look
    • Other General Provisions / Insuring Clause
    • Other General Provisions / Consideration Clause
    • Other General Provisions / Coinsurance
    • Other General Provisions / Probationary Period
    • Other General Provisions / Elimination Period
    • Other General Provisions / Exclusions
  • HEALTH GENERAL KNOWLEDGE CONTENT OUTLINE — Disability Income and Related Insurance
    • Benefits Determination for Disability
    • Benefits Determination for Disability / Indemnity
    • Benefits Determination for Disability / Loss of Income
    • Qualifications of Disability
    • Qualifications of Disability / Total (Own Occupation, Any Occupation)
    • Qualifications of Disability / Partial
    • Qualifications of Disability / Permanent
    • Qualifications of Disability / Presumptive
    • Qualifications of Disability / Recurrent
    • Qualifications of Disability / Residual
    • Qualifications of Disability / Inability to Perform Duties
    • Qualifications of Disability / Occupational versus Non-Occupational
    • Individual Disability Income Insurance
    • Individual Disability Income Insurance / Basic Total Disability Plan
    • Individual Disability Income Insurance / Cost of Living Rider
    • Individual Disability Income Insurance / Future Increase Option Rider
    • Individual Disability Income Insurance / Change of Occupation
    • Individual Disability Income Insurance / Other Cash Benefits - (Accidental Death and Dismemberment (AD&D), Rehabilitation Benefit, Medical Reimbursement Benefit)
    • Individual Disability Income Insurance / Refund Provisions
    • Individual Disability Income Insurance / Exclusions
    • Individual Disability Income Insurance / Waiver of Premium
    • Individual Disability Income Insurance / Probationary Period
    • Individual Disability Income Insurance / Elimination Period
    • Individual Disability Income Insurance / Benefit Limits
    • Unique Aspects of Individual Disability Income Underwriting
    • Unique Aspects of Individual Disability Income Underwriting / Occupational Considerations
    • Unique Aspects of Individual Disability Income Underwriting / Benefit Limits
    • Unique Aspects of Individual Disability Income Underwriting / Policy Issuance Alternatives
    • Group Disability Income Insurance
    • Group Disability Income Insurance / Short-Term Disability
    • Group Disability Income Insurance / Long-Term Disability
    • Group Disability Income Insurance / Coordination of Benefits (Workers' Compensation Benefits and Social Insurance)
    • Group Disability Income Insurance / At-work benefits
    • Business Disability Income Insurance
    • Business Disability Income Insurance / Key Employee Disability Income
    • Business Disability Income Insurance / Disability Buy-Sell Policy
    • Business Disability Income Insurance / Business Overhead Expense
    • Social Security Disability Income
    • Social Security Disability Income / Qualification for Disability Benefits
    • Social Security Disability Income / Definition of Disability
    • Social Security Disability Income / Waiting Period
  • HEALTH GENERAL KNOWLEDGE CONTENT OUTLINE — Medical Plans
    • Medical Plan Concepts
    • Medical Plan Concepts / Fee-for-Service
    • Medical Plan Concepts / Prepaid
    • Medical Plan Concepts / Specified disease/Dread disease insurance
    • Medical Plan Concepts / Comprehensive Coverage
    • Medical Plan Concepts / Dependent Coverage
    • Provisions and Clauses
    • Provisions and Clauses / Deductibles
    • Provisions and Clauses / Stop-Loss Provision
    • Provisions and Clauses / Impairment rider
    • Types of Medical Plans
    • Types of Medical Plans / Major Medical Insurance
    • Types of Medical Plans / Health Maintenance Organizations (HMOs)
    • Types of Medical Plans / Health Maintenance Organizations (HMOs) / Preferred Provider Organzations (PPOs)
    • Types of Medical Plans / Health Maintenance Organizations (HMOs) / Point-of-Service (POS) Plans
    • Cost Containment in Health Care Delivery
    • Cost Containment in Health Care Delivery / Managed Care
    • Cost Containment in Health Care Delivery / Preventive Care
    • Cost Containment in Health Care Delivery / Outpatient Benefits
    • Cost Containment in Health Care Delivery / Utilization Management
    • Cost Containment in Health Care Delivery / Preauthorization
    • Cost Containment in Health Care Delivery / Primary Care Physician
    • Limited Health Insurance Policies
    • Limited Health Insurance Policies / Accidental Death and Dismemberment
    • Limited Health Insurance Policies / Hospital indemnity
    • Limited Health Insurance Policies / Critical Illness/Dread Disease
    • Limited Health Insurance Policies / Vision Care
    • Limited Health Insurance Policies / Hearing
    • Limited Health Insurance Policies / Dental
    • Limited Health Insurance Policies / Health Insurance Portability and Accountability Act (HIPAA)
    • Limited Health Insurance Policies / Health Insurance Portability and Accountability Act (HIPAA) / Eligibility Requirements
    • Limited Health Insurance Policies / Health Insurance Portability and Accountability Act (HIPAA) / Terms
    • Limited Health Insurance Policies / Health Insurance Portability and Accountability Act (HIPAA) / Privacy
    • Limited Health Insurance Policies / Health Insurance Portability and Accountability Act (HIPAA) / Portability
    • Affordable Care Act (ACA)
    • Affordable Care Act (ACA) / Eligibility
    • Affordable Care Act (ACA) / Dependent coverage
    • Affordable Care Act (ACA) / Essential health benefits
    • Affordable Care Act (ACA) / Levels of Coverage (Metallic Plans)
  • HEALTH GENERAL KNOWLEDGE CONTENT OUTLINE — Group Health Insurance
    • Characteristics of Group Health Insurance
    • Characteristics of Group Health Insurance / Group Contract
    • Characteristics of Group Health Insurance / Certificate of Coverage
    • Characteristics of Group Health Insurance / Eligible Groups
    • Characteristics of Group Health Insurance / Contributory versus Non-Contributory
    • Employer Group Health Insurance
    • Employer Group Health Insurance / Underwriting Criteria
    • Employer Group Health Insurance / Eligibility for Insurance
    • Employer Group Health Insurance / Conversion of Coverage
    • Employer Group Health Insurance / Open Enrollment
    • Employer Group Health Insurance / Probation/Waiting Period
    • Employer Group Health Insurance / Coordination of Benefits
    • COBRA
    • COBRA / Eligibility
    • COBRA / Duration of Coverage
    • COBRA / Premium
  • HEALTH GENERAL KNOWLEDGE CONTENT OUTLINE — Specialized Health Insurance for Qualified Individuals
    • Medicare
    • Medicare / Eligibility
    • Medicare / Part A
    • Medicare / Part B
    • Medicare / Part C
    • Medicare / Part D
    • Medicare Supplement Insurance
    • Medicare Supplement Insurance / Enrollment Periods
    • Medicare Supplement Insurance / Standardized Plan Benefits
    • Medicaid
    • Medicaid / Eligibility
    • Long-Term Care Policies
    • Long-Term Care Policies / Eligibility for Benefits (Activities of Daily Living)
    • Long-Term Care Policies / Benefit/Elimination Periods
    • Long-Term Care Policies / Levels of care (Skilled, Intermediate, Custodial)
  • HEALTH GENERAL KNOWLEDGE CONTENT OUTLINE — Federal Tax Considerations for Health Insurance
    • Health Insurance Premiums and Benefits
    • Health Insurance Premiums and Benefits / Individual
    • Health Insurance Premiums and Benefits / Group
    • Health Insurance Premiums and Benefits / Disability Income (Individual and Group)
    • Health Insurance Premiums and Benefits / Business Disability Insurance
    • Consumer-Driven Health Plans
    • Consumer-Driven Health Plans / Health Savings Accounts (HSAs)
    • Consumer-Driven Health Plans / Health Savings Accounts (HSAs) / High Deductible Health Plans (HDHPs)
    • Consumer-Driven Health Plans / Health Reimbursement Accounts (HRAs)
    • Consumer-Driven Health Plans / Flexible Spending Accounts (FSAs)

How to use these free practice questions

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These are independent study questions, not actual examination items. For examination requirements and official information, view Arkansas Health Producer Examination details.