Chapter 6

Question 1

Policy written on noncancellable with right to renew guaranteed

Irrevocable beneficiary
Guaranteed renewable
NAIC
Total disability

Answer 1

Guaranteed renewable

Question 2

Beneficiary who has a vested interest in policy and therefore policyowner may not exercise certain rights without the consent of beneficiary

NAIC
Waiver
Total disability
Irrevocable beneficiary

Answer 2

Irrevocable beneficiary

Question 3

National association of insurance commissioners an organization composed of ins commissioners from all 50 states the District of Columbia and the 5 US territories formed to resolve ins regulatory issues

Total disability
Waiver
Guaranteed renewable
Adhesion
NAIC

Answer 3

NAIC

Question 4

Inability of insured to perform any occupation for which insured is reasonably suited by education training or experience

Guaranteed renewable
Irrevocable beneficiary
NAIC
Total disability

Answer 4

Total disability

Question 5

Relinquishment of a right or interest

Waiver
Provision
Contract
Grace period

Answer 5

Waiver

Question 6

Established standard provision that are to be included in all individual health ins policies

Grace period
Reinstatement
Uniform individual accident and sickness policy provisions law

Answer 6

Uniform individual accident and sickness policy provisions law

Question 7

Insurers must include in individual health ins policies the standard provisions established under NAIC and

Uniform individual accident and sickness policy provision law

Office of security

Hmo homeland office

Answer 7

Uniform individual accident and sickness policy provision law

Question 8

Provision in a health ins policy that ensures that insurer cannot refer to any document that is not contained in the contract is the

Legal action against us clause
Entire contract clause
Incontestability clause

Answer 8

Entire contract clause

Question 9

Which is true regarding uniform individual accident and sickness policy provisions law

There are twelve optional policy provisions
Provisions may be reworded by insurer
Purpose of provision is to define right of policyholder; there is a separate law outlining rights of insurers

Answer 9

Provisions may be reworded by the insurer

Question 10

Provisions that states that both printed contract and copy of app form contract between policyowner and insurer is called

Aleatory
Master policy
Entire contract

Answer 10

Entire contract

Question 11

Which is true regarding the uniform individual accident and sickness policy provisions law

12 optional policy provisions
Te mandatory provisions
Provisions may be reworded by insurer

Answer 11

Provisions may be reworded by insurer

Question 12

insured pays monthly premium of 100 for her health ins. What would be the duration of the grace period under her policy

7
10
31
60

Answer 12

10

7 if weekly
10 if monthly
31 all other models

Question 13

Which has authority to make changes to ins policy

Broker
Producer
Insurer’s executive officer

Answer 13

Insurer’s executive officer

Question 14

A policy with a 31 grace period implies

Policy is incontestable after 31 days of delivery
May return for full refund within 31 days
Policy will not lapse for 31 days if premium is not paid when due

Answer 14

Policy will not lapse for 31 days if premiums is not paid when due

Question 15

Pays her major medical premiums annually 3/1. Last march she forgot to mail her premium. 3/19 she had an acccident and broke her leg. Ins would

Deny the claim
Pay half of her claim because insured had an outstanding premium
Pay the claim
Hold the claim as pending until end of grace period

Answer 15

Pay claim

Question 16

Health ins policy lapses but is reinstated within an acceptable timeframe

How soon from reinstatement date will coverage for accidents become effective

Immediately
After 14 days
After 21 days
After 31 days

Answer 16

Immediately

Question 17

Regarding changing of irrevocable beneficiary

Never be changed
May be changed only on anniversary date of policy
Changed at any time
Only changed with written consent of that beneficiary

Answer 17

Only only with written consent of beneficiary

Question 18

Wants to name her husband as beneficiary of her health policy. Also wishes to retain rights of ownership. Husband named as what

Irrevocable
Revocable
Primary
Contingent

Answer 18

Revocable

Question 19

All correct about required provisions of health ins policy except

Grace period is found in annual pay policy
Reinstated policy provides immediate coverage for an illness
Proof of loss forms must be sent to insured within 15 days of notice of claim

Answer 19

Reinstated policy provides immediate coverage for an illness

Question 20

Policy lapses due to nonpayment of premium. Within how many days would policy be automatically reinstated once outstanding premium is paid

21
31
45

Answer 20

45 days

Question 21

Which of the following will vary the length of grace period

Length of elimination period
Term of policy
Mode of premium payment

Answer 21

Mode of premium payment

Question 22

Would prevent ins company from paying a reimbursement claim to someone other than policyowner

Change of beneficiary
Entire contract clause
Proof of loss
Payment of claims

Answer 22

Payment of claims

Question 23

States that claims must be paid to policyowner unless death proceed need to be paid to beneficiary

Aleatory
Pays ment of claims
Change of beneficiary

Answer 23

Payment of claims

Question 24

States that ins company must pay medical expense claims immediately

Payment of claims
Legal actions
Relation of earnings to ins
Time of payment of claims

Answer 24

Time of payment of claims

Question 25

Under an individual disability policy the MIMIMUM sch of time in which claim must be made

Weekly
Biweekly
Monthly
45 days

Answer 25

Monthly

Question 26

High concerns duty to provide insurer with reasonable notice in event of loss

Loss notification
Claims initiation
Consideration
Notice of claim

Answer 26

Notice of claim

Question 27

First notice of injury or sickness covers under accident and health policy must contain

Complete physicians statement
Statement that is sufficiently clear to identify insured and nature of claim
Statement from employer showing that insured was unable to work

Answer 27

Statement that is sufficiently clear to identify the insured and the nature of the claim

Question 28

Insurance code requires that each code requires each policy must include written notice…within 20 days after occurrence or commencement of any loss or

Answer 28

As soon thereafter as is reasonably possible

Question 29

Under a health ins policy, benefits other than death benefits that have not otherwise been assigned will be paid to

Insured
Creditors
Spouse of insured

Answer 29

Insured

Question 30

Claims other than death benefits are to be paid to

Answer 30

Insured or insured’s estate