Ch 2 Quiz Flashcards
A policy owner is reading a statement on the first page of his health insurance policy, which says "this is a limited policy." What is the name of this statement? A policy limitation notice B statue of limitation C Limited benefit statement capital D limited policy notice
Limited policy notice
It is required by law but a limited policy notice must be printed on the first page of insurance policies. The statement reads “this is a limited policy,” which means that the benefits offered by the policy are limited.
Which of the following is true regarding limited health insurance policies?
A they are limited to those in rolled in a group health plan.
B they cover every need of a health insurance policy holder.
C they only cover specific accidents or diseases.
D they cover all sickness or accidents that are not specifically excluded.
C they only cover specific accidents or diseases.
Limited health insurance policies only cover specific accidents or diseases. A comprehensive plan would cover all sickness or accidents that are not specifically excluded
Are insurance company underwriters allowed to discriminate?
A yes, but not unfairly
B no, higher risk pay a higher premium
C no, discrimination is an unfair practice
D yes, but only for gender
A yes, but not unfairly
The company will discriminate in favor of good risks and not of poor risk; however, it cannot discriminate unfairly by using factors such as race or national origin in their underwriting.
A typical Accidental Death and Dismemberment policy covers all the following losses EXCEPT A life B income C eyesight D limb
B income
Accidental death and dismemberment policies cover loss of body parts or life only.
On a health insurance application, a signature is required from all the following individuals EXCEPT A the agent B the spouse of the policy owner C the proposed insured D the policy owner
B the spouse of the policy owner
Which of the following is an example of a peril covered in an accident and health insurance policy? A death B sickness C alcoholism D smoking
B sickness
There are two major causes of loss or Perros covered under health insurance policy: sickness and accident. Smoking and alcoholism would be considered hazards that may cause a loss
If during the underwriting process an insurer obtains personal information about an applicant from the applicant, when must the insurer provide notice of its information practices?
A at the time the insurer first collects the information
B at the time of policy delivery
C never, since the information was obtained from the applicant
D at the time of application
B at the time of policy delivery
The notice is usually required at the time an insurer or producer first collect personal information from a source other than the applicant or public records, or at policy delivery if the information is collected from the applicant or from public records.
What is the best way to change an application?
A white out the previous answer
B draw a line to the incorrect answer and insert the correct one
C start over with a fresh application
D erase the previous answer and replace it with a new answer
C start over with a fresh application
There are two ways to correct an application. The first and best is to simply start over with a fresh application. If that is not practical, draw a line through the incorrect answer and inserted the correct one. The applicant must initial the correct answer.
Under a credit disability policy, until what point will payments to the creditor be made for the insured?
A until age 65
B until the disability ends or the debt is satisfied, whichever is sooner
C only for six months after the onset of a disability
D until the insurer cancels the policy
B until the disability ends or the debt is satisfied, whichever is sooner
A credit disability policy is issued only to those in debt to a specific creditor. In case of disability, payments to the creditor will be made for the insured until he or she is able to return to work.
An agent is in the process of replacing the insured’s current health insurance policy with a new one. Which of the following would be a proper action?
A there should be at least a 10 day gap between the policies
B policies must overlap to cover pre-existing conditions
C the old policy must be canceled before the new one can be issued
D the old policy should stay in force until the new policy is issued
D the old policy should stay in force until the new policy is issued
If insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guarantee Association, that would be considered
A a misrepresentation
B a required statement
C a legal representation of the Association
D an unfair trade practice
D an unfair trade practice
It is an unfair trade practice to make any statement that an insurer’s policies are guaranteed by the existence of the Insurance Guarantee Association.
A person steps off a street car and trips and breaks his ankle. This type of injury can be described as A sudden and unforeseen B a recent injury C intentional D not covered
A sudden and unforeseen
Accidental bodily injuries and unforeseen unintended injury that resulted from an accident rather than a sickness.
When is the insurability conditional receipt given?
A after the application has been approved and the premium has been paid
B when an insured individual needs to obtain an insurability receipt for tax purposes
C if the application is approved before the premium is paid
D when the premium is paid at the time of application
D when the premium is paid at the time of application
Under the terms of the insurability conditional receipt, the insurance coverage becomes effective as of the date of the receipt, provided the application is approved. This receipt is generally provided to the applicant with the initial premium is paid at the time of application.
Hospital indemnity/hospital confinement indemnity policy will provide payment based on
A the type of illness
B the premiums paid into the policy
C the medical expense incurred
D the number of days confined in a hospital
D the number of days confined in a hospital
What is an important feature of a dental expense insurance plan that is NOT typically found in a medical expense insurance plan? A a broad coverage area B a low monthly premium C low-cost deductibles D diagnostic and preventive care
D diagnostic and preventive care
Dental expense insurance is a form of medical expense health insurance that covers the treatment, care and prevention of dental disease or injury to the insured’s teeth.
