Question 1

With Accidental Death and Dismemberment policies, what is the purpose of the Grace Period?

Accepted Answer

Gives the policyowner additional time to pay past due premiums

Question 2

Which of the following statements about a Guaranteed Renewable Health Insurance policy is CORRECT? Premiums normally decrease at time of renewal Premiums normally increase at time of renewal Policy can renewed at any time by the company Policy can be cancelled at any time by the company

Accepted Answer

Premiums normally increase at time of renewal

Question 3

M’s insurance company denied a reinstatement application for her lapsed health insurance policy. The company did not notify M of this denial. How many days from the reinstatement application date does the insurance company have to notify M of the denial before the policy will be automatically placed back in force??

Accepted Answer

45 Days

Question 4

Which of these statements accurately describes the Waiver of Premium provision in an Accident and Health policy? Past due premiums on a lapsed policy are waived and coverage is restored The insured is paid a monthly benefit to keep insurance premiums current in the event of total disability Premiums are waived after the insured has been unemployed for a specified time period Premiums are waived after the insured has been totally disabled for a specified time period

Accepted Answer

Premiums are waived after the insured has been totally disabled for a specified time period

Question 5

An insurer receives proof of loss for an acceptable medical expense claim under an Individual Health Insurance Policy. Under the Time of Payment of Claims provision, the insurer MUST pay the benefits

Accepted Answer

Immediately

Question 6

An assignment of benefits of a Health Policy: transfers payments to someone other than the policyowner is prohibited by state law is allowed only on policies dates after 1992 transfers rights from the company to the policyholder

Accepted Answer

transfers payments to someone other than the policyowner

Question 7

The clause identifying which losses resulting from an accident or sickness are insured by the policy is called the

Accepted Answer

Insuring clause

Question 8

According to the Time Limit of Certain Defenses provision in an Individual Health Insurance Policy, nonfraudulent misstatements first become incontestable

Accepted Answer

two years from the date of the policy was issued

Question 9

Which of the following policy provisions prohibits an insurance company from incorporating external documents into an insurance policy? Waiver Exceptions and Reductions Incontestable Entire Contract

Accepted Answer

Entire Contract

Question 10

J purchased a Disability Income Policy that ONLY J can terminate and on which the rates will never increase about those illustrated in the policy. Which of the following types of policies did J purchase? Guaranteed Renewable Noncancelable Optionally Renewable Conditionally Renewable

Accepted Answer

Noncancelable

Question 11

According to the Time Payment of Claims provision, the insurer must pay Disability Income benefits no less frequently than which of the following options? Annually Semiannually Quarterly Monthly

Accepted Answer

Monthly

Question 12

Which of the following statements describes the purpose of the Insuring clause in Health and Accident policies? Specifies the additional time given to pay past due premiums States the scope and limits of the coverage Specifies a claim will be paid immediately upon receipt of proof of loss Prohibits the insured from suing the insurer for at least 60 days after filing a written proof of loss

Accepted Answer

States the scope and limits of the coverage

Question 13

What is the purpose of the Time of Payment of Claims provision?

Accepted Answer

Prevents delayed claim payments made by the insure

Question 14

Which health policy clause specifies the amount of benefits to be paid?

Accepted Answer

Insuring

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Chapter 5 Health Flashcards

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