Chapter 11 Health Basics

Question 1

period begins at the effective date; affects sickness only; one time

Answer 1

Probationary Period

Question 2

period begins with the benefit period; accident & sickness; could occur multiple times

Answer 2

Elimination Period

Question 3

this provision states that if the insured uses the policy at the end of the year, the insured can apply those expenses toward next year’s deductible

Answer 3

Carryover Provision

Question 4

guarantees the insured the right to renew and maintain coverage BUT does not lock in price

Answer 4

Guaranteed Renewable

Question 5

the insured has the right to renew and maintain protection at a locked in price that cannot be altered

Answer 5

Noncancellable

Question 6

policy that is renewable under certain conditions

Answer 6

Conditionally Renewable

Question 7

health conditions that exist prior to purchase of the policy

Answer 7

Preexisting conditions

Question 8

after deductible the % shared until the stop loss is reached

Answer 8

Coinsurance

Question 9

when the insured begins paying 100%

Answer 9

Stop Loss

Question 10

excludes coverage for a specific impairment

Answer 10

Impairment rider

Question 11

allows the insured to purchase additional amounts of insurance at predetermined times without proving insurability

Answer 11

Guaranteed insurability rider

Question 12

rider that pays multiples of the original benefit due to qualifying events

Answer 12

Multiple Indemnity Rider