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Iowa Health Practice Exam

20 exam-style questions drawn from the same bank as our full Iowa Health course (Iowa Accident and Health Producer Exam Prep). Answer all 20, then grade yourself — most state exams require 70% to pass. Explanations for every question are part of the full course.

1. An insured moves to a more hazardous occupation and is then injured. Under the optional change of occupation provision the insurer:
Pays what the premium would have boughtDenies the claim outrightPays in full and raises the rateCancels the policy retroactively
2. The six Activities of Daily Living (ADLs) codified by HIPAA 1996 for LTC qualification are:
Bathing, dressing, toileting, transferring, continence, and eatingBathing, cooking, cleaning, shopping, driving, and medication managementDressing, eating, sleeping, working, exercising, and socializingWalking, talking, hearing, seeing, breathing, and swallowing
3. The Iowa right to return a long-term care policy under 514G.105 runs for:
15 days of delivery20 days of delivery30 days of delivery10 days of delivery
4. Under IRC §162, Business Overhead Expense (BOE) insurance premium paid by the business is treated for federal income tax purposes as:
Non-deductible to the business as a capital expense; benefits paid out under the policy are taxable to the disabled owner personally on Schedule CDeductible as an ordinary and necessary business expense; benefits received are taxable to the business as ordinary incomeNon-deductible because the business is named as the beneficiary; benefits received under the reimbursement arrangement are tax-free under IRC §104(a)(3)Deductible to the owner personally on Schedule A as an itemized medical expense subject to the 7.5%-of-AGI floor; benefits paid are received tax-free
5. A non-grandfathered plan covers infertility treatment as an enrichment benefit and caps that benefit at $10,000 for the insured's lifetime. Under the ACA that cap is:
Prohibited, unless the plan raises the cap each year for medical inflationPermitted, because infertility treatment is not an Essential Health BenefitProhibited, because lifetime dollar limits are barred on every plan benefitPermitted, because lifetime caps are allowed on any benefit above $10,000
6. How does a binding receipt differ from a conditional receipt?
It applies only to group coverageIt requires a medical examination firstCoverage begins at once regardless of insurabilityCoverage begins only when the policy is issued
7. Under the legal actions provision, how soon after furnishing proof of loss may an insured sue?
After 30 daysImmediatelyAfter 90 daysAfter 60 days
8. Under Iowa Code 514A.6, an insurer that furnishes proof of loss forms has:
Admitted the claim is coveredStarted the payment clock runningNot waived any of its rightsWaived its defenses to the claim
9. In Medicare Part D, the 'coverage gap' or 'donut hole' refers to:
A historical phase of higher beneficiary cost sharing on prescription drugs between the initial coverage limit and the catastrophic threshold — now substantially closedThe portion of the Part D plan's formulary tier list that requires prior authorization or step-therapy approval before the plan will pay any portion of the drug claimThe 60-day waiting period between the end of the Initial Enrollment Period and the effective start of Part D prescription drug coverage under the IEP-aligned enrollment-window calendarThe premium-cost gap between the standard nationwide Part D base beneficiary premium and the income-related Part D adjustment (IRMAA) surcharge applied to higher-income enrollees by SSA each year
10. A §7702B(e) acceleration rider on a life/LTC combination policy differs from an extension-of-benefits rider in that:
The extension-of-benefits rider eliminates the requirement that the underlying life chassis satisfy §7702B because the additional LTC pool stands alone as a separately-qualified contract under the federal hybrid-product frameworkOnly the §7702B(e) acceleration rider produces federal tax-free LTC benefits under IRC §7702B(b); the extension-of-benefits rider is treated as a separate non-qualified arrangement and its LTC payouts are taxable as ordinary incomeThe §7702B(e) acceleration rider may be funded only by a single up-front premium at issue; the extension rider may be funded by recurring annual premium over the life of the underlying chassis under the standard NAIC funding rulesThe acceleration rider pays LTC benefits by drawing down the life policy's death benefit; the extension rider provides an additional LTC-only pool of money that activates after the death benefit is exhausted
11. The Iowa Insurance Division is a division of which department?
Department of Insurance and Financial ServicesDepartment of CommerceDepartment of RevenueDepartment of Inspections and Appeals
12. An applicant gives a corrected answer while the producer is completing the form. Correct practice is to:
Submit both answers and let underwriting pickNote the change in the agent report onlyStrike through and have the applicant initialErase the entry and write the new answer
13. Which service may a patient never waive through No Surprises Act notice and consent?
Anesthesiology and radiology servicesA routine annual physical examA scheduled dermatology consultationAn elective orthopedic procedure
14. FMLA generally entitles an eligible employee to:
Up to 12 weeks of unpaid, job-protected leave in a 12-month period for specified family and medical reasons, with continuation of group health coverageUp to 6 weeks of fully paid family or medical leave per qualifying event, with employer-paid continuation of group health coverage on the same terms as before the leave beganUnlimited unpaid leave taken at the employee's sole discretion without prior notice or medical certification under the federal employee-discretion safe harbor in 29 USC §2612Up to 26 weeks of paid maternity leave at full wage replacement under the federal short-term paid-leave program established by the original FMLA statute in 1993
15. Under Iowa Code 505B.1, electronic delivery of an insurance document requires that the party:
Has requested it in every yearHas signed a paper waiverHas affirmatively consented to itHas an electronic mail address
16. What distinguishes a residual disability benefit from a partial disability benefit?
It pays in proportion to lost incomeIt pays only for the first six monthsIt pays a flat half of the total benefitIt requires prior total disability first
17. Which of the following most accurately summarizes the federal income tax treatment of disability income insurance?
Group disability benefits are always tax-free under §106 because they flow through an employer plan; individual disability benefits are always taxable as ordinary income under §61 because they are not employer-sponsoredPremiums and benefits are always taxable regardless of who pays the premium because §61 treats employer-sponsored health-related arrangements as constructive compensation to the workerThe tax character of the premium controls the tax character of the benefit: after-tax premium produces tax-free benefits; pre-tax employer premium produces taxable benefitsPremiums and benefits are always tax-free regardless of who pays the premium because IRC §104(a)(3) blanket-exempts all accident-and-health benefits from gross income on the individual return
18. An Iowa employer pays the entire group premium. Under 509.1 the policy must insure:
A minimum of ten employeesSeventy five percent of eligible employeesOnly employees who enrol in writingAll eligible employees, subject to insurability
19. A child is covered by both married parents' plans. Under the birthday rule, the primary plan belongs to:
The parent with the earlier birthdayThe parent earning moreThe older parentThe parent who enrolled the child first
20. The principal difference between Medigap Plan F and Medigap Plan G is that:
Plan F covers outpatient prescription drugs under the legacy pre-2006 Medigap drug-benefit framework and Plan G provides only the Part D coordination option for newly eligible enrolleesPlan F covers the Part B annual deductible and Plan G does not — and Plan F is closed to anyone first eligible for Medicare on or after January 1, 2020Plan F is available only as a high-deductible variant priced for healthy retirees; Plan G is available only as a standard-deductible plan with no high-deductible alternative permittedPlan F is sold directly to consumers by private insurers under state filing; Plan G is sold directly by CMS through the federal Medicare.gov enrollment portal without an intermediary

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