AHIP AHM-520 Exam - Topic 1 Question 123 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 123
Topic #: 1

Over time, health plans and their underwriters have gathered increasingly reliable information about the morbidity experience of small groups.

Generally, in comparison to large groups, small groups tend to

AHave more frequent and larger claims fluctuations

BGenerate lower administrative expenses as a percentage of the total premium amount the group pays

CMore closely follow actuarial predictions regarding morbidity rates

DAll of the above

Show Suggested Answer

Suggested Answer: A

by Sue at Apr 06, 2026, 05:47 AM

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3 days ago

A) is definitely true, small groups have more fluctuations.

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24 days ago

I thought all of these options could be true in some cases, but I need to double-check how they relate to small group dynamics.

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29 days ago

I feel like small groups might not follow actuarial predictions as closely as larger ones, but I can't recall the exact reasons.

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1 month ago

I think I saw a practice question that mentioned small groups having higher administrative costs, which makes me lean towards A.

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1 month ago

I remember studying that small groups can have more claim fluctuations, but I'm not sure if that's the only factor to consider.

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