17 Free Kansas Life & Health Practice Questions: Social Insurance, Other Health Concepts and Field Underwriting (2026)

Question 1 (Chapter 7)

A 66-year-old retiree requires a series of diagnostic tests and physical therapy sessions at an outpatient clinic. Which Medicare component covers these specific medical services, typically requiring the payment of a monthly premium?

• A) Medicare Part A
• B) Medicare Part D
• C) Medicaid
• D) Medicare Part B

Question 2 (Chapter 7)

An individual purchases an individual Disability Income policy and pays the premiums with after-tax dollars. If they become disabled and receive monthly benefit payments, how are those benefits treated for federal income tax purposes?

• A) Fully taxable as ordinary income
• B) Only the portion exceeding the cost basis is taxed
• C) Tax-deferred until retirement
• D) Tax-free

Question 3 (Chapter 7)

In an insurance contract, the insured pays a relatively small premium in exchange for the insurer's promise to pay a much larger benefit if a specific event occurs. This imbalance of values defines the contract as:

• A) Aleatory
• B) Unilateral
• C) Personal
• D) Adhesion

Question 4 (Chapter 7)

Which of the following is a cost-containment measure used by managed care plans that requires a second opinion before a non-emergency surgical procedure is performed?

• A) Mandatory Second Surgical Opinion
• B) Concurrent Review
• C) Retrospective Review
• D) Pre-admission Testing

Question 5 (Chapter 7)

To qualify for Social Security Disability Income (SSDI) benefits, a worker must meet a very strict definition of disability. Which of the following best describes this requirement?

• A) The inability to perform the worker's 'own occupation' for at least 12 months.
• B) A partial disability that reduces the worker's income by at least 50%.
• C) A temporary disability that prevents work for at least 90 days.
• D) The inability to engage in any 'gainful employment' due to a physical or mental impairment expected to last at least 12 months or result in death.

Question 6 (Chapter 7)

An individual has a High Deductible Health Plan (HDHP) and contributes to a Health Savings Account (HSA). They withdraw $500 from the HSA to pay for a non-medical luxury vacation. What are the tax consequences?

• A) The $500 is subject to ordinary income tax plus a 20% penalty (if the individual is under age 65).
• B) The withdrawal is tax-free as long as it does not exceed the annual contribution limit.
• C) The withdrawal is permitted tax-free if the individual has held the account for more than 5 years.
• D) HSAs do not allow withdrawals for non-medical purposes under any circumstances.

Question 7 (Chapter 7)

Which of the following statements regarding the Medical Information Bureau (MIB) is correct?

• A) The MIB is a government agency that regulates insurance companies.
• B) The MIB provides a centralized database of full medical records for all insured individuals.
• C) The MIB is a non-profit association that shares coded medical information among member insurers to prevent fraud.
• D) Insurers can deny an application solely based on information found in an MIB report.

Question 8 (Chapter 7)

Which of the following is an eligibility requirement for enrolling in a Medicare Advantage (Part C) plan?

• A) The individual must be under age 65.
• B) The individual must not have any pre-existing conditions.
• C) The individual must be enrolled in both Medicare Part A and Part B.
• D) The individual must be eligible for Medicaid.

Question 9 (Chapter 7)

An insurance contract is 'Aleatory' because the exchange of value is unequal. Which scenario best illustrates this?

• A) An insured pays $500 in premiums over 10 years and never files a claim.
• B) The insurer can cancel the policy if the insured stops paying premiums.
• C) An insured pays a $100 premium and the insurer pays a $100,000 claim one month later.
• D) The insured must meet a $1,000 deductible before the insurer pays anything.

Question 10 (Chapter 7)

Two business partners enter into a Disability Buy-Sell agreement. The business purchases a policy on each partner to fund the buyout if one becomes totally disabled. How are the premiums and benefits treated for tax purposes?

• A) Premiums are deductible; benefits are taxable.
• B) Premiums are deductible; benefits are received tax-free.
• C) Premiums are not deductible; benefits are received tax-free.
• D) Premiums are not deductible; benefits are taxable.

Question 11 (Chapter 7)

A disability policy defines 'partial disability' as the inability to perform one or more important duties of the insured's occupation. This benefit is typically paid as:

• A) A variable amount based on the exact percentage of income lost.
• B) A lump sum payment equal to six months of premiums.
• C) A flat 50% of the total disability benefit for a limited time.
• D) Full benefits for the first 90 days, then zero.

Question 12 (Chapter 7)

In an insurance application, a 'warranty' is a statement that:

• A) Is true to the best of the applicant's knowledge and belief.
• B) Cannot be used to void a policy if found to be false.
• C) Is guaranteed to be true in every respect.
• D) Is only required for group insurance contracts.

Question 13 (Chapter 7)

A client is choosing between paying health insurance premiums annually, semi-annually, or monthly. Which of the following is true regarding the 'mode of premium'?

• A) The monthly mode will result in the lowest total annual cost.
• B) The annual mode will result in the lowest total annual cost.
• C) The mode of premium has no effect on the total cost.
• D) The insurer is required by Kansas law to charge the same amount regardless of the mode.

Question 14 (Chapter 7)

In an insurance contract, the applicant provides 'consideration' in the form of the premium and the statements made in the application. What is the 'consideration' provided by the insurance company?

• A) The commission paid to the producer.
• B) The physical policy document delivered to the insured.
• C) The promise to pay for valid losses covered by the policy.
• D) The underwriting expenses incurred during the application process.

Question 15 (Chapter 7)

To be eligible for Social Security survivor benefits for a dependent child, a deceased worker must have earned at least 6 credits (quarters of coverage) during the 13-quarter period ending with the quarter in which the worker died. This status is known as:

• A) Fully Insured.
• B) Currently Insured.
• C) Permanently Insured.
• D) Disability Insured.

Question 16 (Chapter 7)

A 65-year-old individual misses their Initial Enrollment Period for Medicare Part B. They decide to sign up during the General Enrollment Period, which runs from January 1 through March 31 each year. When will their coverage typically begin?

• A) Immediately upon application.
• B) The first day of the month following the month they enrolled.
• C) July 1st of that year.
• D) January 1st of the following year.

Question 17 (Chapter 7)

Why is an insurance contract considered 'conditional'?

• A) Because it can be cancelled by either party at any time without reason.
• B) Because certain events (like the payment of premium and proof of loss) must occur before the insurer is required to pay.
• C) Because the terms are negotiated between the producer and the applicant.
• D) Because the benefits are always equal to the premiums paid.