17 Free Iowa Life & Health Practice Questions: Accident & Health Insurance Products and Provisions (2026)
How to Use This Accident and Health Products Set
Accident & Health products and provisions combine the first two blocks of that exam's general-knowledge section: types of policies (16 scored items) and policy provisions, clauses and riders (15). That is 31 of the Accident & Health exam's 80 scored items, the largest of the Accident & Health chapters. Iowa tests Accident & Health on its own exam, separate from Life, and this set belongs to it.
Pearson VUE's list of policy types begins with disability income and runs through AD&D, medical expense, Medicare supplement, group and long-term care. Iowa's licensing statute lets both the life line and the accident and health line carry disability income benefits (Iowa Code 522B.6(2)), but on the exam disability income sits in this outline.
These 17 questions come from LanePrep's Iowa L&H quiz bank and fall into three groups: disability income and coinsurance arithmetic with the uniform provisions; entire contract, claim notice, exclusions and employer plans; and renewability, short-term and overhead coverage, and COBRA.
Do the arithmetic on paper. Take off the elimination period or the deductible first, then apply the percentage or the monthly limit. Several wrong answers are exactly what you get by skipping a step.
Practice Questions 1-6: Elimination Periods, Coinsurance Math and the Uniform Provisions
Arithmetic first: what a disability policy pays after its elimination period and what a major medical policy pays after the deductible and coinsurance. Then four of the provisions every accident and health policy is built from, two mandatory and two optional.
Question 1 (Chapter 6)
An insured has a disability income policy with a 30-day elimination period and a $2,000 monthly benefit. If the insured is disabled for 45 days, how much will the policy pay?
- A) $3,000
- B) $2,000
- C) $0
- D) $1,000
Show answer & explanation
Answer: D
The elimination period acts as a time deductible. The policy only pays for the duration of the disability that exceeds the elimination period. In this case, 45 days of disability minus a 30-day elimination period equals 15 days of payable benefits. Since 15 days is half a month, the payment is half of the $2,000 monthly benefit, which is $1,000.
Question 2 (Chapter 6)
A disability income policy includes a 'Change of Occupation' optional provision. If the insured changes from a low-risk office job to a high-risk construction job without notifying the insurer and then becomes disabled, what will the insurer do?
- A) Cancel the policy for fraud.
- B) Pay the full benefit as stated in the policy.
- C) Refund all premiums and deny the claim.
- D) Adjust the benefit to what the premium would have purchased for the more hazardous job.
Show answer & explanation
Answer: D
The 'Change of Occupation' provision allows the insurer to adjust benefits. If the insured moves to a more hazardous occupation, the insurer will pay the benefit that the premium paid would have purchased at the higher risk classification. If they moved to a less hazardous job, the insurer would reduce the premium and refund excess pro-rata premium.
Question 3 (Chapter 6)
Under the mandatory 'Time Limit on Certain Defenses' provision (Incontestable), after how many years can an insurer generally no longer deny a claim based on misstatements in the application (except for fraudulent misstatements)?
- A) 2 years
- B) 1 year
- C) 3 years
- D) 5 years
Show answer & explanation
Answer: A
The 'Time Limit on Certain Defenses' provision states that after a policy has been in force for 2 years, no misstatements (except fraudulent ones) made by the applicant in the application shall be used to void the policy or deny a claim.
Question 4 (Chapter 6)
An insured has a major medical policy with a $500 deductible and an 80/20 coinsurance clause. If the insured incurs $2,500 in covered medical expenses, how much will the insurer pay?
- A) $2,000
- B) $1,500
- C) $2,100
- D) $1,600
Show answer & explanation
Answer: D
Calculation: Total expenses ($2,500) minus Deductible ($500) = $2,000 of billable expenses. The insurer pays 80% of that $2,000, which is $1,600. The insured pays the $500 deductible plus 20% of $2,000 ($400), totaling $900.
Question 5 (Chapter 6)
A disability income policy contains a 'Relation of Earnings to Insurance' provision. If the insured's total disability benefits from all sources exceed their current monthly earnings, what will the insurer do?
- A) Pay the full amount regardless of earnings.
- B) Cancel the policy for over-insurance.
- C) Pay nothing until the insured's income increases.
- D) Reduce the benefit proportionally and refund excess premium.
Show answer & explanation
Answer: D
This optional provision prevents the insured from profiting from a disability. If benefits exceed earnings, the insurer reduces the benefit to a proportionate amount of the insured's earnings and returns the portion of the premium that paid for the excess coverage.
Question 6 (Chapter 6)
Under the 'Physical Examination and Autopsy' provision, who is responsible for the costs if the insurer requests an examination of a claimant?
- A) The claimant
- B) The claimant's physician
- C) The insurer
- D) The state insurance department
Show answer & explanation
Answer: C
The mandatory 'Physical Examination and Autopsy' provision gives the insurer the right to examine the insured at its own expense while a claim is pending.
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Practice Questions 7-12: Entire Contract, Claim Notice, Exclusions and Employer Plans
What counts as the entire contract, how a dismemberment benefit is paid, how an employer-funded health reimbursement account works, how quickly a claim must be reported, when an intoxicants clause lets the insurer refuse a claim, and the vocabulary of cost sharing.
Question 7 (Chapter 6)
Which of the following is NOT part of the 'Entire Contract' in a health insurance policy?
- A) The policy document
- B) The signed application
- C) Any attached riders
- D) The insurer's corporate bylaws
Show answer & explanation
Answer: D
The 'Entire Contract' provision states that the policy, the application, and any attached riders or endorsements constitute the entire agreement. The insurer cannot refer to its bylaws or any other outside documents to deny a claim unless they are part of the policy.
Question 8 (Chapter 6)
Marcus is covered by a High Deductible Health Plan (HDHP) and wants to set up a tax-advantaged account to pay for his out-of-pocket medical expenses. Which account is Marcus eligible for that allows him to keep the funds even if he changes employers?
- A) Flexible Spending Account (FSA)
- B) Health Reimbursement Account (HRA)
- C) Medical Savings Account (MSA)
- D) Health Savings Account (HSA)
Show answer & explanation
Answer: D
An HSA is specifically designed for individuals with an HDHP. It is portable (meaning the employee keeps it if they leave the job) and the funds roll over year to year. FSAs are generally 'use-it-or-lose-it,' and HRAs are employer-owned and usually not portable.
Question 9 (Chapter 6)
An employer in Davenport sets up a Health Reimbursement Account (HRA) for its employees. Which of the following is a true characteristic of this plan?
- A) Employees contribute a portion of their pre-tax salary to the HRA.
- B) HRAs can only be used by employees who do not have any other health insurance.
- C) The HRA is funded solely by the employer.
- D) HRAs are prohibited under Iowa insurance regulations.
Show answer & explanation
Answer: C
Health Reimbursement Accounts (HRAs) are employer-funded and employer-owned. Employees do not contribute to them. They reimburse employees for qualified medical expenses up to a certain dollar amount per year.
Question 10 (Chapter 6)
According to the mandatory 'Notice of Claim' provision in an individual health insurance policy, an insured should notify the insurer of a loss within how many days, or as soon as reasonably possible?
- A) 20 days.
- B) 10 days.
- C) 30 days.
- D) 90 days.
Show answer & explanation
Answer: A
The mandatory 'Notice of Claim' provision requires the insured to give written notice of a claim to the insurer within 20 days after the occurrence or commencement of any loss covered by the policy, or as soon thereafter as is reasonably possible.
Question 11 (Chapter 6)
Under the optional 'Intoxicants and Narcotics' provision, an insurer can deny a claim if the loss was sustained while the insured was:
- A) Under the influence of any intoxicant or narcotic unless administered on the advice of a physician.
- B) Taking a prescription medication as directed by a physician.
- C) Drinking alcohol at a social event, regardless of blood alcohol level.
- D) In the presence of someone using illegal narcotics.
Show answer & explanation
Answer: A
The provision excludes liability for losses occurring while the insured is intoxicated or under the influence of narcotics, unless the narcotic was administered on the advice of a physician.
Question 12 (Chapter 6)
An insured's policy states that the insurer will pay 80% of covered expenses after the deductible is met, and the insured will pay the remaining 20%. This 20% is known as:
- A) The Coinsurance.
- B) The Copayment.
- C) The Corridor Deductible.
- D) The Stop-Loss.
Show answer & explanation
Answer: A
Coinsurance is a percentage-based sharing of expenses between the insured and the insurer. A copayment (B) is usually a fixed dollar amount paid per service.
Practice Questions 13-17: Renewability, Short-Term Medical, Business Overhead and COBRA
The difference between guaranteed renewable and noncancelable, which policy fits a four-month gap in coverage, two business overhead expense calculations, and how long COBRA continuation coverage lasts after a reduction in hours.
Question 13 (Chapter 6)
A 'Guaranteed Renewable' health policy differs from a 'Noncancelable' policy in that for a Guaranteed Renewable policy:
- A) The insurer can cancel the policy for any reason.
- B) The insurer can increase premiums for an entire class of insureds.
- C) The insurer can never increase the premium.
- D) The insured can cancel the policy at any time, but the insurer cannot.
Show answer & explanation
Answer: B
Both types guarantee that the insurer cannot cancel as long as premiums are paid. However, in a 'Noncancelable' policy, the premium is also guaranteed. In a 'Guaranteed Renewable' policy, the insurer has the right to increase premiums, but only if they do so for an entire rating class (not just one individual).
Question 14 (Chapter 6)
A recent college graduate is between jobs and needs health coverage for exactly four months until their new employer's plan begins. Which type of policy is best suited for this situation?
- A) Short-Term Medical insurance.
- B) Long-Term Care insurance.
- C) Hospital Indemnity insurance.
- D) Major Medical insurance.
Show answer & explanation
Answer: A
Short-term medical insurance is designed to provide temporary coverage for individuals in transition (between jobs, waiting for group coverage). These policies are typically written for periods of 1 to 11 months.
Question 15 (Chapter 6)
Elena, a partner in an architecture firm, is covered by a Business Overhead Expense (BOE) policy. She suffers a stroke and is totally disabled for 18 months. The policy has a 30-day elimination period and a maximum benefit period of 24 months. The firm's monthly overhead expenses are $45,000. The BOE policy has a monthly benefit limit of $40,000. How much will the policy pay in total benefits over the 18-month disability, assuming expenses remain constant?
- A) $720,000
- B) $680,000
- C) $765,000
- D) $810,000
Show answer & explanation
Answer: B
B is correct: BOE policies pay after the elimination period. 18 months disability minus 1 month elimination period = 17 months of benefits. Monthly benefit is the lesser of actual expenses ($45,000) or policy limit ($40,000) = $40,000. Total = 17 × $40,000 = $680,000. A incorrectly calculates 18 months × $40,000 ignoring the elimination period. C and D use incorrect benefit amounts or periods.
Question 16 (Chapter 6)
A small business owner in Iowa purchases a Business Overhead Expense (BOE) policy with a $5,000 monthly benefit and a 30-day elimination period. The policy has a maximum benefit period of 12 months. The owner becomes totally disabled on January 1. The business's actual monthly overhead expenses are $4,800. How much will the policy pay in total benefits if the owner remains disabled for the full 12-month benefit period?
- A) $60,000
- B) $57,600
- C) $52,800
- D) $48,000
Show answer & explanation
Answer: B
BOE policies reimburse actual overhead expenses up to the monthly benefit limit. The elimination period is 30 days, so benefits begin February 1. With a 12-month maximum benefit period, the policy pays for 12 months (February through January of the following year). The actual expense is $4,800/month, which is less than the $5,000 limit, so the policy pays $4,800 × 12 = $57,600. A is incorrect because it uses the policy limit ($5,000) rather than actual expenses. C is incorrect because it assumes only 11 months of benefits (misunderstanding the benefit period). D is incorrect because it uses 10 months of benefits.
Question 17 (Chapter 6)
An employee is covered under a group health plan subject to COBRA. The employee's hours are reduced, causing loss of eligibility for the group plan. This is a qualifying event. The employee elects COBRA continuation coverage. What is the maximum duration of COBRA coverage for this qualifying event?
- A) 29 months
- B) 18 months
- C) 36 months
- D) 12 months
Show answer & explanation
Answer: B
Reduction in hours (or termination of employment) is a qualifying event that provides 18 months of COBRA continuation coverage for the employee and dependents. A (29 months) applies if the qualified beneficiary is disabled under SSA criteria at the time of the qualifying event. C (36 months) applies to other qualifying events like divorce, death of covered employee, or dependent child aging out. D is not a standard COBRA period.
The Mistakes That Cost Marks
Paying from day one. An elimination period is a time deductible. Benefits are owed only for the time beyond it, so a 45-day disability against a 30-day elimination period leaves 15 payable days. Do the same subtraction on the business overhead questions, counting months rather than days.
Applying coinsurance to the wrong base. Take the deductible off first, then apply the percentage to what is left. The insured's total outlay is the deductible plus the insured's share of the remainder.
Paying more than the loss. A business overhead expense policy pays the lesser of actual expenses and the monthly limit. A question that gives you both numbers is testing which one is smaller.
Mixing mandatory and optional provisions. Notice of claim, time limit on certain defenses, and physical examination and autopsy are mandatory. Change of occupation, relation of earnings to insurance, and intoxicants and narcotics are optional. Know which side of the line each one sits.
Confusing guaranteed renewable with noncancelable. Neither lets the insurer cancel while premiums are paid. In a noncancelable policy the premium is guaranteed too; in a guaranteed renewable policy the insurer can raise premiums for a whole class of insureds, but not for one person.
Treating COBRA as one length. The period depends on the qualifying event. A reduction in hours or a termination of employment gives 18 months, other events give longer, and a disability extension adds more. Read for the event.
Your Next Step
Try the free preview of LanePrep's Iowa Life & Health course and hear the material on the road, or work through all the free Iowa Life & Health practice questions. The next Accident & Health set is social insurance, other concepts and field underwriting.
Question counts and content weighting come from Pearson VUE's Iowa Insurance Content Outlines, effective January 1, 2026. Checked October 2026.
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