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Question ID 17136	Indigo Health Plan advertised a specific individual health insurance policy through a direct mail advertisement that provided detailed information about the product. In order to comply with theNAIC Model Rules Governing Advertisements of Accident and Sickness Insurance, Indigo must disclose whether the advertised policy contains any exceptions, reductions, or limitations. Thus, Indigo disclosed in the advertisement that one policy provision limits coverage for dental exams to $50 per exam and to one exam per calendar year. This information indicates that, with respect to the definitions in the NAIC Model Rules, Indigo's advertisement is an example of an
Option A	Invitation to contract, and it discloses a policy provision known as an exception
Option B	Invitation to contract, and it discloses a policy provision known as a reduction
Option C	Invitation to inquire, and it discloses a policy provision known as an exception
Option D	Invitation to inquire, and it discloses a policy provision known as a reduction
Correct Answer	B

Explanation

Question ID 17137	The Westchester Health Plan is using a pricing strategy that involves setting a low price in a highly price-sensitive market to stimulate revenue growth. In following this strategy, Westchester is sacrificing short-term profits for fast growth in selected markets. This information indicates that Westchester is following the pricing strategy known as
Option A	Market skimming
Option B	Buying market share
Option C	Price skimming
Option D	Unitary pricing
Correct Answer	B

Explanation

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