Get a glimpse of the real AHM-520 certification exam challenges with our free AHIP AHM-520 practice test questions.
Question 1
An investor deposited $1,000 in an interest-bearing account today. That sum will accumulate to $1,200 two years from now. One true statement about this transaction is that:
Question 2
The following information relates to the Hardcastle Health Plan for the month of June:
Incurred claims (paid and IBNR) equal $100,000
Earned premiums equal $120,000
Paid claims, excluding IBNR, equal $80,000
Total health plan expenses equal $300,000
This information indicates that Hardcastle's medical loss ratio (MLR) for the month of June was approximately equal to:
Question 3
The following transactions occurred at the Lane Health Plan:
Transaction 1 --- Lane recorded a $25,000 premium prior to receiving the payment
Transaction 2 --- Lane purchased $500 in office expenses on account, but did not record the expense until it received the bill a month later
Transaction 3 --- Fire destroyed one of Lane's facilities; Lane waited until the facility was rebuilt before assessing and recording the amount of loss
Transaction 4 --- Lane sold an investment on which it realized a $14,000 gain; Lane recorded the gain only after the sale was completed.
Of these transactions, the one that is consistent with the accounting principle of conservatism is:
Question 4
The Essential Health Plan markets a product for which it assumed total expenses to equal 92% of premiums. Actual data relating to this product indicate that expenses equal 89% of premiums. This information indicates that the expense margin for this product has:
Question 5
The following statements are about state health coverage reinsurance programs.
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