Arkansas Life and Health Insurance Practice Exam

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Prepare for the Arkansas Life and Health Insurance Exam. Utilize flashcards and multiple-choice questions with hints and explanations for each question. Get thoroughly ready for your certification test!

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When it comes to small group health insurance, what is a class defined as?

All employees of large companies
A type of individual health plan
A distinct grouping of small employers as shown on an insurer's records
Any group policy with fewer than 50 participants

The correct answer is: All employees of large companies

In small group health insurance, a class is defined as all employees of large companies. This is because in the small group market, a class is typically made up of employees of small employers, rather than employees of large companies. Classes are used to categorize individuals within a group to assess risk and determine insurance premiums. Options B, C, and D are incorrect: - Option B is wrong because a class in small group health insurance is not a type of individual health plan. - Option C is incorrect because a class does not refer to a distinct grouping of small employers as shown on an insurer's records. - Option D is inaccurate as a class is not any group policy with fewer than 50 participants.