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AHIP AHM-510 Practice Test Questions Answers

Exam Code: AHM-510 (Updated 76 Q&As with Explanation)
 Exam Name: Governance and Regulation
 Last Update: 12-Jul-2025
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Questions Include:

  • Single Choice: 76 Q&A's

    • AHM-510 Overview

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    AHM-510 Questions and Answers

    Question # 1

    The Tidewater Life and Health Insurance Company is owned by its policy owners, who are entitled to certain rights as owners of the company, and it issues both participating and nonparticipating insurance policies. Tidewater is considering converting to the type of company that is owned by individuals who purchase shares of the company's stock. Tidewater is incorporated under the laws of Illinois, but it conducts business in the Canadian provinces of Ontario and Manitoba.

    Tidewater established the Diversified Corporation, which then acquired various subsidiary firms that produce unrelated products and services. Tidewater remains an independent corporation and continues to own Diversified and the subsidiaries. In order to create and maintain a common vision and goals among the subsidiaries, the management of Diversified makes decisions about strategic planning and budgeting for each of the businesses.

    In order to become the type of company that is owned by people who purchase shares of the company's stock, Tidewater must undergo a process known as

    A.

    management buy-out

    B.

    piercing the corporate veil

    C.

    demutualization

    D.

    mutualization

    Question # 2

    The following answer choices describe various approaches that a health plan can take to voice its opinions on legislation. Select the answer choice that best describes a health plan's use of grassroots lobbying.

    A.

    The Delancey Health Plan is launching a media campaign in an effort to persuade the public that proposed health care legislation will increase the cost of healthcare.

    B.

    The Stellar Health Plan is using direct mail and telephone calls to encourage people who support a patient rights bill to contact key legislators and voice their support for the bill.

    C.

    The Bestway Health Plan is encouraging its employees to contribute to a political action committee (PAC) that is funding the political campaign of a pro-health plan candidate.

    D.

    A representative of the Palmer Health Plan is attending a one-on-one meeting with a legislator to present Palmer's position on pending managed care legislation.

    Question # 3

    In examining accountability in the current managed care environment, one is likely to find that combinations of various models of accountability are in operation. Under one model of accountability, the primary mechanisms for accountability are the mechanisms of the marketplace-failure to meet standards will result in a loss of demand for services. By definition, this model of accountability is called the

    A.

    Professional model of accountability

    B.

    Political model of accountability

    C.

    Due diligence model of accountability

    D.

    Economic model of accountability

    Question # 4

    Health plans should monitor changes in the environment and emerging trends, because changes in society will affect the managed care industry. One true statement regarding recent changes in the environment in which health plans operate is that

    A.

    Women as a group receive more healthcare and interact more often with health plans than do men over the course of a lifetime

    B.

    The focus of healthcare during the past decade has shifted away from outpatient care to inpatient hospital treatment

    C.

    The uninsured population in the United States has been decreasing in recent years

    D.

    The decline in overall inflation in the 1990s failed to slow the growth in healthcare inflation

    Question # 5

    One example of health plan's influence on the practice of medicine is that, during the past decade, the focus of healthcare has moved toward _________________, which is designed to reduce the overall need for healthcare services by providing patients with decision-making information.

    A.

    Demand management

    B.

    Managed competition

    C.

    Comprehensive coverage

    D.

    Private inurement

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