Free Kentucky Health Insurance Practice Exam Online

Correct answer: A. Agent

Correct. KRS 304.9-020 defines an agent as a person or business entity appointed by an insurer to sell, solicit, or negotiate insurance or annuity contracts on its behalf.

• B: A third-party administrator processes claims or plan functions under contract; it is a distinct role from a licensed selling agent.
• C: A utilization reviewer evaluates medical necessity of services; that function is unrelated to the statutory definition of 'agent.'
• D: An independent adjuster investigates and settles claims; adjusting is a separate licensed activity from selling or soliciting insurance.

Correct answer: B. A notification filed with the Department of Insurance that an insurer has established an agency relationship with the licensee

Correct. KRS 304.9-020 defines an appointment as the Department filing that documents an insurer has engaged a licensed producer to act on its behalf.

• A: A client meeting is a sales activity, not the regulatory concept of 'appointment' under Kentucky's licensing statute.
• C: An exam date is unrelated to the appointment concept, which concerns the insurer-producer relationship of record with the Department.
• D: A hearing to contest a denial is a separate administrative proceeding, not what the statute means by 'appointment.'

Correct answer: C. 20 hours

Correct. Kentucky generally requires resident applicants to complete a 20-hour prelicensing classroom or self-study course for each requested line of authority, including health, before sitting for the exam.

• A: 40 hours overstates Kentucky's standard prelicensing course length for a line of authority.
• B: 5 hours is far too low to satisfy Kentucky's classroom or self-study prelicensing course requirement.
• D: 60 hours overstates the requirement; Kentucky's standard prelicensing course is set at 20 hours per line of authority.

Correct answer: C. Variable life and variable annuities

Correct. KRS 304.9-105 directs the commissioner to establish prelicensing course requirements for all agents except for a variable life and variable annuities line of authority, which is handled through separate securities-related qualification.

• A: Health is a standard major line of authority and is subject to the prelicensing course requirement, not exempt from it.
• B: Property is a standard major line of authority and is subject to the prelicensing course requirement.
• D: Casualty is a standard major line of authority and is subject to the prelicensing course requirement.

Correct answer: A. Exempted from repeating prelicensing education or examination for the equivalent Kentucky line of authority

Correct. KRS 304.9-170 provides exemptions from prelicensing education or examination for applicants who already hold an equivalent, currently valid license, easing entry for already-qualified producers.

• B: Holding an out-of-state license does not bar Kentucky licensure; it can support an exemption from redundant coursework, not a permanent bar.
• C: The exemption reduces or waives duplicate requirements; it does not double the applicant's coursework burden.
• D: A properly licensed producer remains eligible for appointment by a Kentucky insurer; the exemption concerns education and exam, not appointment eligibility.