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Free Accident and Health Practice Questions

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Sample Practice Questions

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

  1. 1A self-employed dentist wants disability coverage to keep the practice's rent, payroll, and utilities paid while she cannot work. Which policy best addresses that expense?

    1. A. Individual disability income insurance
    2. B. Business overhead expense disability insurance
    3. C. Key employee disability insurance
    4. D. Group disability income insurance

    Answer: B

    Explanation: "This type of provision covers standard business expenses such as payroll, utilities, rent, etc., while the business owner recovers from a disability." Business overhead coverage pays continuing operating costs during the owner's disability; the other policies protect personal income or a firm's loss of an employee.

    Reference: Small Business Insurance — Disability Insurance, Business overhead paragraph

  2. 2An individual sickness-and-accident policy has been in force for more than two years. The insurer discovers a nonfraudulent application misstatement and wants to void coverage for a loss beginning now. How does the time-limit provision apply?

    1. A. Any nonfraudulent misstatement can void the policy whenever discovered
    2. B. After two years only accident claims can be denied for a nonfraudulent error
    3. C. The nonfraudulent error cannot void the policy or deny this later loss
    4. D. Discovery of the error restarts the two-year defense period

    Answer: C

    Explanation: "Two years after the date of issue of this policy no misstatements, except fraudulent misstatements, made by the applicant in the application for such policy shall be used to void the policy" The defense is barred for this later loss. Fraud remains excepted, and neither claim type nor discovery restarts it.

    Reference: Colorado Revised Statutes 2026 Title 10 — C.R.S. 10-16-202(3)(a)

  3. 3A Medicare enrollee asks which part generally helps pay for an inpatient hospital stay rather than routine outpatient physician services. Which part applies?

    1. A. Part A hospital insurance
    2. B. Part B medical insurance
    3. C. Part C Medicare Advantage
    4. D. Part D drug coverage

    Answer: A

    Explanation: "Part A helps cover inpatient care in hospitals, skilled nursing facility care, hospice care, and home health care." Part A is the inpatient hospital component. Part B chiefly covers physicians and outpatient services; Part C is a plan delivery option and Part D covers drugs.

    Reference: Medicare.gov Parts of Medicare — Parts of Medicare, Part A

  4. 4A disabled architect returns to work part time but earns substantially less than before. Which disability policy feature is designed to help fill that lost-income gap?

    1. A. Residual disability benefit
    2. B. Accidental death benefit
    3. C. Hospital indemnity benefit
    4. D. Waiver of premium only

    Answer: A

    Explanation: "Residual Benefit(s) - This coverage fills the gap in income if you are partially disabled, resulting in reduced income." Residual benefits respond to partial disability with reduced earnings. The other benefits address death, hospitalization, or premium payment rather than the income gap.

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

  5. 5An insurer wants a consumer report containing an applicant's medical information for underwriting. What must happen before the reporting agency can issue that report?

    1. A. The producer's permission before the agency releases the medical report
    2. B. The applicant's permission before the agency releases the medical report
    3. C. The applicant's permission only after the insurer receives the medical report
    4. D. The insurer's underwriting authorization before the agency releases the report

    Answer: B

    Explanation: "If you need a consumer report that has medical information, you must get the applicant’s permission before the CRA can issue the report." The applicant must consent before release; producer or insurer authorization and later consent do not meet this rule.

    Reference: Federal Trade Commission Consumer Reports: What Insurers Need to Know — Getting and Using Medical Information

  6. 6A Colorado insurer asks which records the insurance commissioner must preserve as an official duty. Which answer is correct?

    1. A. A full permanent record of the commissioner's proceedings
    2. B. Only final disciplinary orders issued during the current year
    3. C. Only financial statements from domestic stock insurers
    4. D. A temporary log of license applications that were denied

    Answer: A

    Explanation: C.R.S. 10-1-108(1)(a) requires the commissioner to "keep and preserve in permanent form a full record of the commissioner's proceedings." Therefore the complete permanent proceedings record is required.

    Reference: Crs2026 Title 10 — C.R.S. 10-1-108(1)(a)

  7. 7A producer directs a small employer not to apply for health coverage because of the employees' claims experience. Is this allowed under Colorado fair-marketing law?

    1. A. Yes, when the producer discloses the carrier's underwriting guidelines
    2. B. Yes, if the direction is oral rather than written
    3. C. No, unless at least two carriers have already declined the group
    4. D. No; directing an applicant away because of claims experience is prohibited

    Answer: D

    Explanation: C.R.S. 10-16-108.5(2)(a)(I) prohibits encouraging or directing applicants to refrain from applying "because of the health status, claims experience, industry, occupation, or geographic location."

    Reference: Crs2026 Title 10 — C.R.S. 10-16-108.5(2)(a)(I)

  8. 8A design firm relies on one engineer whose disability would force it to hire and train a replacement. The firm wants to receive the benefit itself. Which coverage fits?

    1. A. Group disability income for all employees
    2. B. Individual disability income for the engineer
    3. C. Business overhead expense coverage for the owner
    4. D. Key employee disability coverage owned by the firm

    Answer: D

    Explanation: "if a key person is disabled the company can use insurance payouts to cover related costs until the employee can return to work or a replacement can be hired." Key employee coverage can pay the employer for the business loss. Overhead coverage responds to a disabled owner, and income coverage replaces the worker's earnings.

    Reference: Small Business Insurance — Disability Insurance, key employee paragraph

  9. 9An individual health policy is reinstated after a premium lapse. Assuming no other exclusion applies, which onset of a new sickness satisfies the reinstatement provision's waiting condition?

    1. A. A sickness that begins 7 days after reinstatement
    2. B. A sickness that begins 9 days after reinstatement
    3. C. A sickness that begins 10 days after reinstatement
    4. D. A sickness that begins 11 days after reinstatement

    Answer: D

    Explanation: "loss due to such sickness as may begin more than ten days after such date." The rule requires sickness to begin more than ten days after reinstatement. Day 11 is the first listed onset beyond the threshold; day 10 and earlier do not qualify.

    Reference: Colorado Revised Statutes 2026 Title 10 — C.R.S. 10-16-202(5)(a)

  10. 10A Medicare beneficiary wants to receive Part A and Part B benefits through a Medicare-approved private health plan instead of Original Medicare. What option is she considering?

    1. A. A stand-alone Part D drug plan
    2. B. A Medigap supplement policy
    3. C. Medicare Advantage (Part C)
    4. D. Original Medicare Part B alone

    Answer: C

    Explanation: "Medicare Advantage offers an alternative to Original Medicare for your health and drug needs." Part C delivers Medicare benefits through an approved private plan. Part D adds drug coverage, and Medigap supplements Original Medicare cost sharing.

    Reference: Medicare.gov Parts of Medicare — Parts of Medicare, Medicare Advantage

Topics in this practice bank

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

  • General knowledge — I. TYPES OF POLICIES (16 scored questions)
    • A. Disability income
    • A. Disability income > 1. Individual disability income policy
    • A. Disability income > 2. Business overhead expense policy
    • A. Disability income > 3. Business disability buyout policy
    • A. Disability income > 4. Group disability income policy
    • A. Disability income > 5. Key employee policy
    • B. Accidental death and dismemberment
    • C. Medical expense insurance
    • C. Medical expense insurance > 1. Basic hospital, medical, and surgical policies
    • C. Medical expense insurance > 2. Major medical policies
    • C. Medical expense insurance > 3. Health Maintenance Organizations (HMOs)
    • C. Medical expense insurance > 4. Preferred Provider Organizations (PPOs)
    • C. Medical expense insurance > 5. Point of Service (POS) plans
    • C. Medical expense insurance > 6. Flexible Spending Accounts (FSAs)
    • C. Medical expense insurance > 7. High Deductible Health Plans (HDHPs) and related Health Savings Accounts (HSAs)
    • C. Medical expense insurance > 8. Health Reimbursement Accounts (HRAs)
    • D. Medicare supplement policies
    • E. Group insurance
    • E. Group insurance > 1. Differences between individual and group contracts
    • E. Group insurance > 2. General characteristics
    • E. Group insurance > 3. COBRA
    • F. Individual/Group Long Term Care (LTC)
    • F. Individual/Group Long Term Care (LTC) > 1. Eligibility
    • F. Individual/Group Long Term Care (LTC) > 2. Levels of care
    • G. Other policies
    • G. Other policies > 1. Dental
    • G. Other policies > 2. Vision
    • G. Other policies > 3. Cancer
    • G. Other policies > 4. Critical illness or specified disease
    • G. Other policies > 5. Worksite (employer-sponsored)
    • G. Other policies > 6. Hospital indemnity
    • G. Other policies > 7. Short-term medical
    • G. Other policies > 8. Accident
  • General knowledge — II. POLICY PROVISIONS, CLAUSES, AND RIDERS (15 scored questions)
    • A. Mandatory and optional provisions
    • A. Mandatory and optional provisions > 1. Entire contract
    • A. Mandatory and optional provisions > 2. Time limit on certain defenses (incontestable)
    • A. Mandatory and optional provisions > 3. Grace period
    • A. Mandatory and optional provisions > 4. Reinstatement
    • A. Mandatory and optional provisions > 5. Notice of claim
    • A. Mandatory and optional provisions > 6. Claim forms
    • A. Mandatory and optional provisions > 7. Proof of loss
    • A. Mandatory and optional provisions > 8. Time of payment of claims
    • A. Mandatory and optional provisions > 9. Payment of claims
    • A. Mandatory and optional provisions > 10. Physical examination and autopsy
    • A. Mandatory and optional provisions > 11. Legal actions
    • A. Mandatory and optional provisions > 12. Change of beneficiary
    • A. Mandatory and optional provisions > 13. Misstatement of age or gender
    • A. Mandatory and optional provisions > 14. Change of occupation
    • A. Mandatory and optional provisions > 15. Illegal occupation
    • A. Mandatory and optional provisions > 16. Relation of earning to insurance
    • B. Other provisions and clauses
    • B. Other provisions and clauses > 1. Insuring clause
    • B. Other provisions and clauses > 2. Free look
    • B. Other provisions and clauses > 3. Consideration clause
    • B. Other provisions and clauses > 4. Probationary period
    • B. Other provisions and clauses > 5. Elimination period
    • B. Other provisions and clauses > 6. Waiver of premium
    • B. Other provisions and clauses > 7. Exclusions and limitations
    • B. Other provisions and clauses > 8. Preexisting conditions
    • B. Other provisions and clauses > 9. Coinsurance
    • B. Other provisions and clauses > 10. Deductibles
    • B. Other provisions and clauses > 11. Eligible expenses
    • B. Other provisions and clauses > 12. Copayments
    • B. Other provisions and clauses > 13. Pre-authorizations and prior approval requirements
    • B. Other provisions and clauses > 14. Usual, reasonable, and customary (URC) charges
    • B. Other provisions and clauses > 15. Lifetime, annual, or per cause maximum benefit limits
    • C. Riders
    • C. Riders > 1. Impairment/exclusions
    • C. Riders > 2. Guaranteed insurability
    • C. Riders > 3. Future increase option
    • D. Rights of renewability
    • D. Rights of renewability > 1. Noncancelable
    • D. Rights of renewability > 2. Cancelable
    • D. Rights of renewability > 3. Guaranteed renewable
  • General knowledge — III. SOCIAL INSURANCE (6 scored questions)
    • A. Medicare (Parts A, B, C, D)
    • B. Medicaid
    • C. Social Security benefits
  • General knowledge — IV. OTHER INSURANCE CONCEPTS (5 scored questions)
    • A. Total, partial, recurrent and residual disability
    • B. Owner’s rights
    • C. Dependent children benefits
    • D. Primary and contingent beneficiaries
    • E. Modes of premium payments
    • F. Nonduplication and coordination of benefits (e.g., primary vs. excess)
    • G. Occupational vs. non-occupational
    • H. Tax treatment of premiums and proceeds of insurance contracts (e.g., disability income and medical expenses, etc.)
    • I. Managed care
    • J. Workers Compensation
    • J. Workers Compensation > 1. Impact on health insurance benefits
    • K. Subrogation
    • L. Cost containment
  • General knowledge — V. FIELD UNDERWRITING PROCEDURES (8 scored questions)
    • A. Completing the application
    • B. Explaining sources of insurability and HIPAA privacy information (e.g., MIB Report, Fair Credit Reporting Act, etc.)
    • C. Initial premium payment and receipt and consequences of the receipt (e.g., medical examination, etc.)
    • D. Submitting application (and initial premium if collected) to company for underwriting
    • E. Policy delivery
    • F. Explaining policy and its provisions, riders, exclusions, and ratings to clients
    • G. Replacement
    • H. Contract law
    • H. Contract law > 1. Elements of a contract
    • H. Contract law > 2. Insurable interest
    • H. Contract law > 3. Warranties and representations
    • H. Contract law > 4. Unique aspects of the insurance contract
    • H. Contract law > 4. Unique aspects of the insurance contract > a. Conditional
    • H. Contract law > 4. Unique aspects of the insurance contract > b. Unilateral
    • H. Contract law > 4. Unique aspects of the insurance contract > c. Adhesion
    • H. Contract law > 4. Unique aspects of the insurance contract > d. Aleatory
  • Colorado specific — I. COLORADO STATUTES, RULES, AND REGULATIONS COMMON TO LIFE, SICKNESS AND ACCIDENT, PROPERTY (FIRE), AND CASUALTY INSURANCE (19 scored questions)
    • A. Insurance Commissioner
    • A. Insurance Commissioner > 1. Power and duties
    • A. Insurance Commissioner > 2. Hearings and penalties
    • A. Insurance Commissioner > 3. License suspension and revocation
    • A. Insurance Commissioner > 4. Records and requests for information
    • B. Licensing and producers’ legal responsibility
    • B. Licensing and producers’ legal responsibility > 1. Persons required to be licensed
    • B. Licensing and producers’ legal responsibility > 2. Payment and acceptance of commissions/fees
    • B. Licensing and producers’ legal responsibility > 3. Fiduciary/commingling
    • B. Licensing and producers’ legal responsibility > 4. Pre-licensing and continuing education
    • B. Licensing and producers’ legal responsibility > 5. Unauthorized entities
    • C. Unfair competition and deceptive practices
    • C. Unfair competition and deceptive practices > 1. Coercion
    • C. Unfair competition and deceptive practices > 2. Misrepresentation
    • C. Unfair competition and deceptive practices > 3. Unfair discrimination
    • C. Unfair competition and deceptive practices > 4. Controlled business
    • C. Unfair competition and deceptive practices > 5. Defamation
    • C. Unfair competition and deceptive practices > 6. Rebates
    • C. Unfair competition and deceptive practices > 7. Unfair claims practices
    • C. Unfair competition and deceptive practices > 8. Colorado Fraud Statute
  • Colorado specific — II. COLORADO STATUTES, RULES, AND REGULATIONS PERTINENT TO SICKNESS AND ACCIDENT INSURANCE ONLY (11 scored questions)
    • A. Common requirements for Sickness and Accident
    • A. Common requirements for Sickness and Accident > 1. Maternity/newborn coverage
    • A. Common requirements for Sickness and Accident > 2. Complications of pregnancy
    • A. Common requirements for Sickness and Accident > 3. Mammography/prostate screenings
    • A. Common requirements for Sickness and Accident > 4. Diabetes
    • A. Common requirements for Sickness and Accident > 5. Hospice/home health care
    • A. Common requirements for Sickness and Accident > 6. Guaranteed renewability
    • A. Common requirements for Sickness and Accident > 7. Prompt pay
    • A. Common requirements for Sickness and Accident > 8. Utilization review
    • A. Common requirements for Sickness and Accident > 9. Mandated benefits
    • A. Common requirements for Sickness and Accident > 10. Essential Health Benefits
    • B. Individual coverage
    • B. Individual coverage > 1. Required provisions
    • B. Individual coverage > 2. Replacement
    • B. Individual coverage > 3. Grace Period
    • B. Individual coverage > 4. Termination
    • B. Individual coverage > 5. Enrollment periods
    • C. Group coverage
    • C. Group coverage > 1. Continuation
    • C. Group coverage > 2. Maternity
    • C. Group coverage > 3. Mental health
    • C. Group coverage > 4. Leasing companies
    • D. Small group coverage
    • D. Small group coverage > 1. Definitions
    • D. Small group coverage > 1. Definitions > a. small employer
    • D. Small group coverage > 1. Definitions > b. eligible employee
    • D. Small group coverage > 2. Guaranteed issue/open enrollment/ special enrollment
    • D. Small group coverage > 3. Rating factors
    • D. Small group coverage > 4. Participation requirements
    • E. Fair marketing standards
    • F. Specified products
    • F. Specified products > 1. Medicare Supplement
    • F. Specified products > 2. Long Term Care
    • F. Specified products > 3. Benefit plan description
    • G. Commission Disclosure
    • H. Sales and Marketing of Health Insurance

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 Accident and Health details.