Kansas Health Insurance Practice Exam Free - 2026

• A. 7 days
• B. 31 days
• C. 30 days
• D. 10 days

Correct answer: D. 10 days

Explanation: K.S.A. 40-2203(A)(3) requires every individual accident and sickness policy to grant a grace period of not less than 7 days for weekly premium policies, 10 days for monthly premium policies, and 31 days for all other premium modes, during which the policy stays in force. Seven days applies only to weekly premiums, 31 days to quarterly or less frequent premiums, and 30 days is the individual life policy grace period under K.S.A. 40-420. See K.S.A. 40-2203.

• A. The 45th day following the date of the conditional receipt
• B. The 30th day following the date of the conditional receipt
• C. The 60th day following the date of the conditional receipt
• D. The 10th day following the date of the conditional receipt

Correct answer: A. The 45th day following the date of the conditional receipt

Explanation: The reinstatement provision required by K.S.A. 40-2203 states that if the insurer requires a reinstatement application and issues a conditional receipt, the policy is reinstated on approval or, lacking approval, on the 45th day following the date of the conditional receipt unless the insurer has previously given written notice of disapproval. Thirty and 60 days are not Kansas reinstatement figures, and 10 days is the waiting period after reinstatement before sickness is covered, not the approval deadline. See K.S.A. 40-2203.

• A. Not before 60 days after proof of loss, and not after 3 years
• B. Not before 30 days after proof of loss, and not after 5 years
• C. Not before 60 days after proof of loss, and not after 5 years
• D. Not before 90 days after proof of loss, and not after 2 years

Correct answer: C. Not before 60 days after proof of loss, and not after 5 years

Explanation: The Kansas legal actions provision in K.S.A. 40-2203 bars suit on an individual accident and sickness policy before the expiration of 60 days after written proof of loss is furnished and after the expiration of five years from the time proof of loss is required; the same 60-day/five-year rule appears in the blanket policy statute, K.S.A. 40-2210. Three years is the NAIC model outside limit used in many states but not Kansas; 30 and 90 days are not the Kansas waiting period (90 days is the proof-of-loss deadline). See K.S.A. 40-2203.

• A. 30 days
• B. 31 days
• C. 60 days
• D. 90 days

Correct answer: B. 31 days

Explanation: K.S.A. 40-2,102(a) requires Kansas individual and group health policies covering family members to cover a newborn from the moment of birth, and permits the policy to require that notification of the birth and payment of any required premium be furnished within 31 days after birth for coverage to continue beyond that 31-day period. Thirty days is the address-change reporting period, not the newborn rule; 60 days is not a Kansas figure; and 90 days is the window for an adoptive parent to elect coverage of the birth mother's delivery expenses under the same statute. See K.S.A. 40-2,102.

• A. Leave the question blank and submit the application, so the underwriter can request the details directly from the applicant
• B. Record it in a private note kept in the producer's own office file, in case the insurer asks about it later
• C. Record the information accurately and completely, and explain that omitting it could void coverage at claim time
• D. Leave it off as requested, since the applicant who signs the form bears sole responsibility for its accuracy

Correct answer: C. Record the information accurately and completely, and explain that omitting it could void coverage at claim time

Explanation: The producer is the insurer's field underwriter and has a duty to record answers truthfully; omitting a known material fact is a misrepresentation that can support rescission during the contestable period and could expose the producer to license action. The applicant's signature does not cure a known omission the producer helped conceal. Private notes and blank applications both keep material information out of the underwriting file, which is the same problem.

• A. Immediate coverage for a fixed number of days regardless of insurability, with the insurer bearing the full risk of loss until it formally decides on the application
• B. No coverage of any kind until the policy is physically delivered to the applicant and the first premium is formally accepted by the home office
• C. Permanent coverage on the terms applied for, which the insurer may not later rescind even if the application contained a material misrepresentation
• D. Coverage effective as of the receipt's stated date only if the applicant proves to be insurable under the insurer's rules for the policy applied for

Correct answer: D. Coverage effective as of the receipt's stated date only if the applicant proves to be insurable under the insurer's rules for the policy applied for

Explanation: A conditional receipt makes coverage contingent on the applicant meeting the insurer's underwriting standards, typically dating back to the application or the completed medical exam, whichever is later. Coverage regardless of insurability describes a binding receipt, which is far less common in health insurance. Coverage does exist before delivery when the condition is met, and it remains subject to the ordinary contestable period.

• A. A statement of continued good health confirming no change in the applicant's health since the application date
• B. A signed conditional receipt so that coverage is backdated to the date the application was originally completed
• C. A new attending physician statement because the original medical underwriting expires once the policy is issued
• D. A signed delivery receipt in which the applicant waives the right to return the policy during the free look period

Correct answer: A. A statement of continued good health confirming no change in the applicant's health since the application date

Explanation: Because coverage was not in force during underwriting, the insurer needs assurance that the risk has not changed between application and delivery, which the statement of continued good health provides. Waiving the free look would strip a consumer protection and is not permitted as a routine delivery step. A conditional receipt is issued only when premium accompanies the application, so it cannot be created at delivery to backdate coverage, and an approved application does not require a fresh attending physician statement at delivery.

• A. On the date the application was signed, because the signed application itself serves as the applicant's consideration
• B. On the date the policy is delivered and the initial premium is collected, provided the applicant is still in good health
• C. On the date the underwriter approved the application, with coverage backdated to that date once the premium is received
• D. On the date of the applicant's medical exam, since that is when the insurer first accepted the risk for underwriting

Correct answer: B. On the date the policy is delivered and the initial premium is collected, provided the applicant is still in good health

Explanation: Without a premium and receipt, there is no consideration and therefore no coverage during underwriting, so the contract takes effect at delivery when premium and the good health statement are obtained. Signing an application is only an offer. Internal approval and exam dates matter for backdating under a conditional receipt, but no receipt was issued in this fact pattern.

• A. Cancel the existing policy as soon as the new application is signed so that the client does not pay two premiums while the new insurer's underwriting is still pending
• B. Provide the required replacement notice and then cancel the existing policy once the new insurer's conditional receipt has been issued
• C. Provide the required replacement notice and make sure the existing coverage stays in force until the new policy is actually issued and effective
• D. Obtain the existing insurer's written consent to the replacement before the new application may be submitted for underwriting

Correct answer: C. Provide the required replacement notice and make sure the existing coverage stays in force until the new policy is actually issued and effective

Explanation: Replacement rules exist to prevent coverage gaps and uninformed switches, so the client gets a comparison notice and the old policy is not dropped until the replacement is genuinely in force. Canceling first, or dropping the old policy on the strength of a conditional receipt, can leave the client uninsured if the new application is declined or rated. The existing insurer's consent is not a prerequisite to replacement, and no producer can guarantee claim outcomes.

• A. It transfers ownership of the applicant's medical records to the insurer, which may then share them with any other insurer without further consent from the applicant
• B. It authorizes the insurer to obtain protected health information from providers for underwriting purposes, and once signed it cannot be revoked until the policy is issued
• C. It waives the applicant's right under the Fair Credit Reporting Act to be told when an adverse underwriting decision is based on information from a consumer report
• D. It gives the insurer permission to obtain protected health information from providers for underwriting and claims purposes, and it may be revoked by the applicant

Correct answer: D. It gives the insurer permission to obtain protected health information from providers for underwriting and claims purposes, and it may be revoked by the applicant

Explanation: The authorization is a limited, revocable permission that lets providers release protected health information to the insurer for the stated purposes, and it must describe what will be disclosed and to whom. It does not convey ownership of records, which remain with the provider and the patient. It also does not waive adverse action disclosures under FCRA, and it remains revocable by the applicant at any time.

• A. So that a given plan letter provides the same core set of benefits from any insurer, letting consumers compare on price and service
• B. So that every insurer offering a given plan letter must charge the same premium, leaving consumers to compare only on service quality
• C. So that Medicare itself pays the standardized benefits directly, with the private insurer serving only as the administrator of the plan letter
• D. So that each plan letter is assigned to a single insurer in each state, preventing duplicate offerings of the same benefits

Correct answer: A. So that a given plan letter provides the same core set of benefits from any insurer, letting consumers compare on price and service

Explanation: Standardization fixes the benefit package attached to each letter, which converts a confusing market into an apples-to-apples comparison where price, rating method, and service are the real variables. Premiums are emphatically not standardized and vary widely by insurer, rating approach, and area. The federal government does not underwrite or pay Medigap benefits, and many insurers may offer the same letter in a state.

• A. The Medicare Part A hospital deductible for each benefit period, which every standardized plan letter must pay in full
• B. Hospitalization coinsurance for Part A plus coverage of an additional 365 lifetime hospital days after Medicare benefits end
• C. Skilled nursing facility coinsurance for days 21 through 100, paid in full by every standardized plan letter
• D. Coverage of the Medicare Part B annual deductible, which every standardized plan sold since Part D began must include

Correct answer: B. Hospitalization coinsurance for Part A plus coverage of an additional 365 lifetime hospital days after Medicare benefits end

Explanation: Core benefits found in every lettered plan include Part A hospital coinsurance with 365 extra lifetime days, Part B coinsurance, the first several pints of blood, and Part A hospice coinsurance. The Part A deductible, skilled nursing facility coinsurance, and the Part B deductible are additional benefits found only in certain plan letters, not in the core package that every letter must carry.