Idaho health field underwriting and other concepts practice questions
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On the Idaho Accident and Health exam's general part, section IV, Other Insurance Concepts, has 5 questions and section V, Field Underwriting Procedures, has 8. [1] Section IV lists total, partial, recurrent and residual disability; owner's rights; dependent children benefits; primary and contingent beneficiaries; modes of premium payments; nonduplication and coordination of benefits; occupational vs. non-occupational; tax treatment of premiums and proceeds; managed care; workers compensation; subrogation; and cost containment. Section V lists completing the application; explaining sources of insurability and HIPAA privacy information; initial premium payment and receipt; submitting the application to the company; policy delivery; explaining the policy to clients; replacement; and contract law. [1] This page sets out the Idaho Code and federal rules for those topics, with 10 practice questions.
Owners and dependents
- Third party ownership: the word "insured" in Idaho's disability chapter does not stop someone else with a proper insurable interest from applying for and owning a policy on the insured, and receiving its benefits. [2]
- Newborns: a policy that covers newborn children of the insured must cover them from the moment of birth, including adopted newborns placed within sixty days of birth, and must include congenital anomalies. [3]
- Complications of pregnancy: a policy with maternity benefits may not limit coverage for involuntary complications of pregnancy unless the limits apply to all benefits. Examples in the law include cesarean section delivery, ectopic pregnancy and eclampsia. [3]
- Disabled children: coverage of an unmarried child who became unable to support themselves because of intellectual or physical disability before the limiting age, and who depends on the insured, does not end at that age if the insured gives proof within thirty one days. [4]
Group policy features (Idaho Code 41-2203)
Statements by applicants, the policyholder or an insured person are representations, not warranties, in the absence of fraud. The insurer gives the policyholder a summary of the coverage for each member, and if dependents are covered, only one certificate is needed for each family unit. New eligible employees, members or dependents may be added over time. [5]
Premium refund at death
- When a disability policyholder dies, the insurer must immediately return any applicable unearned premium on a prorated basis from the month after the month of death. [6]
Outline of coverage at the point of sale (Idaho Code 41-4205)
For individual disability policies sold other than by direct response, the outline of coverage must be delivered to the applicant when the application is made, and the insurer gets an acknowledgment of receipt with the application. If the policy is issued on a different basis than applied for, an outline describing the actual policy must go with it, stating that it is not the policy applied for. [7]
Tax treatment of disability benefits (IRS)
If an employee paid the full cost of disability coverage with after-tax dollars, the benefits are not included in income. If the employer paid part, the part due to the employer's payments is reported as income. Premiums paid through a cafeteria plan and not taxed to the employee are treated as employer paid. [8]
Practice questions
1. A business owns a disability policy on its manager and has an insurable interest. Does Idaho's disability chapter allow that?
A. No, only the insured can own it
B. Yes, a person other than the insured with a proper insurable interest may apply for and own it
C. Only if the insured is a minor
D. Only for group policies
Answer: B. (Idaho Code 41-2130) [2]
2. When does coverage begin for a newborn under a policy that covers the insured's newborn children?
Answer: From the moment of birth. (Idaho Code 41-2140(1)) [3]
3. A family adopts a baby placed with them 45 days after birth. When does coverage start?
Answer: From the moment of birth, because placement was within sixty days. (41-2140(1)) [3]
4. Which is listed in Idaho law as an involuntary complication of pregnancy?
Answer: Examples include cesarean section delivery, ectopic pregnancy, eclampsia, toxemia and puerperal infection. (41-2140(3)) [3]
5. An insured's disabled son reaches the limiting age. How long does the insured have to give proof to keep him covered?
Answer: Thirty one days after he reaches the limiting age. (Idaho Code 41-2139) [4]
6. A group policy covers an employee, spouse and two children. How many certificates are required?
Answer: One for the family unit. (Idaho Code 41-2203(2)) [5]
7. A disability policyholder dies mid-quarter. What must the insurer refund?
Answer: Unearned premium on a prorated basis, starting with the month after the month of death. (Idaho Code 41-1332) [6]
8. An agent takes an application for an individual disability policy in person. When must the outline of coverage be given?
Answer: When the application is made, with an acknowledgment of receipt sent to the insurer. (Idaho Code 41-4205(1)(b)) [7]
9. An employee paid all disability premiums with after-tax money. Are the benefits taxable?
Answer: No. [8]
10. The employer paid the whole disability premium and did not include it in the employee's income. Are the benefits taxable?
Answer: Yes. Benefits due to the employer's payments are reported as income. [8]
Study tips for sections IV and V
- Newborns and adopted newborns placed within sixty days are covered from the moment of birth.
- Disabled dependents: proof within thirty one days of the limiting age.
- Taxes follow who paid the premium: after-tax employee money means tax free benefits; employer money means taxable benefits.
- Contract law (elements of a contract, insurable interest, warranties and representations, unique aspects of the insurance contract), replacement and HIPAA privacy information are also in section V. [1]
Practice more with the free Idaho accident and health practice test.
Prep Retention is independent and is not affiliated with Pearson VUE or the state.
Sources
Laws and exam documents quoted as of October 2026.
- Pearson VUE, Idaho content outlines 121301 (effective July 31, 2025): https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/publications/121301.pdf
- Idaho Code 41-2130: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH21/SECT41-2130/
- Idaho Code 41-2140: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH21/SECT41-2140/
- Idaho Code 41-2139: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH21/SECT41-2139/
- Idaho Code 41-2203: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH22/SECT41-2203/
- Idaho Code 41-1332: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH13/SECT41-1332/
- Idaho Code 41-4205: https://legislature.idaho.gov/statutesrules/idstat/Title41/T41CH42/SECT41-4205/
- IRS, Life Insurance and Disability Insurance Proceeds: https://www.irs.gov/faqs/interest-dividends-other-types-of-income/life-insurance-disability-insurance-proceeds