Chapter 6 Pt 5

Question 1

Not feature of guaranteed renewable provision

Insured’s benefit cannot be reduced
Insurer can increase policy premium on individual basis
Insured has unilateral right to renew policy for life of contract

Answer 1

Insurer can increase policy premium on an individual basis

Grp not= ib

Question 2

Has all same features that noncancellable provision does with exception that insurer can increase policy premium on policy anniversary date

Executive provision
Aleatory provision
Guaranteed renewable provision
Renewable provision

Answer 2

Guaranteed renewable provision

Grp can increase on anniversary
Grpanni

Question 3

Premiums can only be increased on class basis not on individual policy

Consideration
Waiver
Change of beneficiary
Guaranteed renewable provision

Answer 3

Guaranteed renewable provision

Grp=cb
Grp=rbc

Question 4

Policy alllows ins company to cancel policy at any time

Renewable
Noncancellable
Cancellable

Answer 4

Cancellable

Question 5

Under mandatory uniform provision notice of claim first notice of injury or sickness covered under accident and health policy must contain

Statement that is sufficient clear to identify insured and nature of claim
Complete physician’s statement
Estimate of medical expense for loss

Answer 5

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

Question 6

Accidental injury is covered immediately but to protect insurer against adverse selection losses resulting from sickness are covered only if sickness

Occurs 12 days after reinstatement date
Occurs 13 days after reinstatement date
Occurs 10 days after reinstatement date

Answer 6

Occurs 10 days after reinstatement date

Question 7

All correct about required provisions of health ins policy except

Proof of loss forms must be sent within 15 days of notice of claim
Grace period of 31 days is found in annual pay policy
Reinstated policy provides immediate coverage for illness

Answer 7

Reinstated policy provides immediate coverage for an illness

Reinstates is NOT immediate

Question 8

Which is not a feature of noncancellable policy

Insurer may terminate contract only at renewal for certain conditions

Premiums cannot be increased beyond amount stated in policy
Insured has right to renew for life of contract

Answer 8

Insurer may terminate contract only at renewal for certain conditions

Nc NOT= cc

Question 9

Insurers May change which of following on guaranteed renewable health ins policy

Rates by class
Coverage
Individual rates

Answer 9

Rates by class

Grp=rbc

Question 10

Grp Insurer may increase premiums on class basis only and not on an

Answer 10

Individual policy

This is noncancellable

Question 11

Not a feature of guaranteed renewable provision

Coverage is not renewable beyond age 65
Insured’s benefits cannot be reduced
Insurer can increase policy premium on individual basis
Insured has a unilateral right to renew policy for life of contract

Answer 11

Insurer can increase policy premium on an individual basis

Grp=not ib
Grope not in banana

Question 12

In group health policies probationary period applies to employees who

Join the group after effective date
Want lower premiums
Have additional coverage through their spouse

Answer 12

Join the group after the effective date

Question 13

When insurer issues an individual health ins policy that is guaranteed renewable insurer agrees

To renew policy indefinitely
Not to change premium rate for any reason
To renew policy until insured has reached age 65

Answer 13

To renew until insured has reached age 65

Grp=65