Arkansas Health Insurance Practice Exam Free - 2026

• A. From the 31st day after birth, if the child is enrolled
• B. From birth, but only if the insurer receives notice within 30 days
• C. From the moment of birth; the insurer may require notice within 90 days of birth or before the next premium due date, whichever is later
• D. Only after the first premium is paid for the child

Correct answer: C. From the moment of birth; the insurer may require notice within 90 days of birth or before the next premium due date, whichever is later

Explanation: Arkansas requires every accident and health policy that covers family members to cover newborn children of the insured from the moment of birth, including illness, injury, congenital defects, premature birth, and specified screening tests, plus routine well-newborn nursery care for up to five days or until the mother is discharged, whichever is less. The insurer may require notice of the birth within 90 days of the birth or before the next premium due date, whichever is later. Coverage does not begin on day 31, is not conditioned on 30-day notice, and is not conditioned on first paying a premium for the child. See Ark. Code Ann. § 23-79-129.

• A. Up to 18 months; request within 60 days
• B. Up to 36 months; request within 30 days
• C. Up to 6 months; request within 31 days
• D. Up to 120 days after continuation begins; request not later than 10 days after termination of employment

Correct answer: D. Up to 120 days after continuation begins; request not later than 10 days after termination of employment

Explanation: Arkansas requires group accident and health policies to let a certificate holder continue coverage after termination of employment or a change in marital status; continuation ends at the earliest of several dates, including 120 days after continuation began, and the individual must request continuation not later than 10 days after the termination or change in marital status and pay the premium monthly in advance. Continuation is unavailable to those eligible for Medicare or fully covered under another group policy, and dental, vision, and prescription drug coverage need not be included. The 18- and 36-month periods are federal COBRA figures, not the Arkansas state rule. See Ark. Code Ann. § 23-86-114.

• A. No fewer than 1 nor more than 50
• B. No fewer than 2 nor more than 25
• C. No fewer than 2 nor more than 50
• D. No fewer than 3 nor more than 100

Correct answer: B. No fewer than 2 nor more than 25

Explanation: Arkansas's small employer statute defines a small employer as a person, firm, corporation, partnership, or association actively engaged in business that, on at least 50% of its working days during the preceding year, employed no fewer than 2 nor more than 25 eligible employees. The 1-50 and 2-50 ranges reflect federal ACA definitions rather than the Arkansas statute, and 3-100 is not used. See Ark. Code Ann. § 23-86-202.

• A. In writing, not later than 30 days after termination of the group coverage
• B. In writing, within 60 days after termination
• C. Orally or in writing, within 10 days after termination
• D. In writing, within 120 days after termination

Correct answer: A. In writing, not later than 30 days after termination of the group coverage

Explanation: Arkansas requires group policies providing hospital, surgical, or major medical expense coverage to entitle a terminated employee, member, or dependent to a conversion policy, and the individual must apply for it in writing not later than 30 days after termination of the group coverage; the insurer may decline if the person is eligible for Medicare or has comparable group coverage. Ten days is the deadline to request state continuation, 120 days is the maximum continuation period, and 60 days is not a statutory figure. See Ark. Code Ann. § 23-86-115.

• A. The former employee pays the full premium plus up to a 2% administrative fee
• B. The plan's insurer absorbs the cost until the employee finds new coverage
• C. The former employer pays the full premium for the first 18 months
• D. The employee pays the same share he or she paid while actively employed

Correct answer: A. The former employee pays the full premium plus up to a 2% administrative fee

Explanation: Under COBRA, the person continuing coverage - typically the former employee - pays the full premium cost (including the portion the employer previously paid) plus up to a 2% administrative fee, which is often far more than the payroll share paid while employed. COBRA rights can also follow a reduction in hours or a dependent qualifying event such as divorce, so the continuing enrollee is not always someone who left the company.

• A. All companies regardless of size
• B. Employers with 20 or more employees
• C. Only government employers
• D. Only Fortune 500 companies

Correct answer: B. Employers with 20 or more employees

Explanation: COBRA applies to employers with 20 or more employees who offer group health plans. Smaller employers may be subject to state continuation laws (often called 'mini-COBRA').

• A. Federal law that lets workers continue group coverage after leaving a job
• B. Federal law that created Medicare and Medicaid for seniors and the poor
• C. Federal law that reformed health insurance and expanded coverage access
• D. Federal law that protects the privacy and portability of health information

Correct answer: C. Federal law that reformed health insurance and expanded coverage access

Explanation: The Affordable Care Act (also known as 'Obamacare') is a comprehensive federal law enacted in 2010 that reformed health insurance markets, expanded Medicaid, created health insurance marketplaces, and established consumer protections.

• A. Services that Medicare Advantage plans must add beyond Parts A and B
• B. Benefits an insurer may offer as optional riders for an extra premium
• C. Emergency and hospital services that every short-term plan must include
• D. Ten categories of services ACA marketplace plans must cover

Correct answer: D. Ten categories of services ACA marketplace plans must cover

Explanation: Essential health benefits are 10 categories of services that ACA marketplace plans must cover, including hospitalization, prescription drugs, maternity care, mental health services, preventive care, and pediatric services.

• A. A platform where individuals can shop for and purchase ACA-compliant health plans
• B. A private exchange where employers buy stop-loss coverage for self-funded plans
• C. A federal agency that sets the premium rates insurers may charge for health plans
• D. A network of hospitals and clinics that agree to accept marketplace plan members

Correct answer: A. A platform where individuals can shop for and purchase ACA-compliant health plans

Explanation: A health insurance marketplace (also called an exchange) is a platform, either state-run or federally-facilitated (HealthCare.gov), where individuals and families can shop for, compare, and purchase ACA-compliant health insurance plans.

• A. Deductions employers claim for the premiums they pay on behalf of workers
• B. Subsidies to help eligible individuals afford marketplace health insurance
• C. Reductions in deductibles and copays for eligible members who choose a silver plan
• D. Refunds insurers must pay when they spend too little of premiums on care

Correct answer: B. Subsidies to help eligible individuals afford marketplace health insurance

Explanation: Premium tax credits are subsidies available to individuals who purchase health insurance through the marketplace and have income within certain limits. They reduce monthly premium costs.

• A. Insurers must renew coverage each year unless the insured stops paying premiums
• B. Insurers must charge every applicant the same premium regardless of age or tobacco use
• C. Insurers must accept all applicants regardless of health status or pre-existing conditions
• D. Insurers must cover a pre-existing condition after a waiting period of no more than a year

Correct answer: C. Insurers must accept all applicants regardless of health status or pre-existing conditions

Explanation: Guaranteed issue means the insurer must accept all applicants regardless of health status or pre-existing conditions during open enrollment or a qualifying special enrollment period. It governs acceptance, not price. Premiums may still vary by age, tobacco use, geographic area, and family size, but not by health status or gender.

• A. The window after a qualifying life event when someone may enroll outside the normal season
• B. The period each fall when Medicare beneficiaries may switch Advantage or drug plans
• C. The first months after issue during which a plan may exclude pre-existing conditions
• D. The annual period when individuals can enroll in or change marketplace plans

Correct answer: D. The annual period when individuals can enroll in or change marketplace plans

Explanation: The open enrollment period is the annual timeframe (typically in the fall) when individuals can enroll in new marketplace health plans or make changes to existing coverage. Outside this period, enrollment requires a qualifying life event.