Chapter 7: Health insurance underwriting Flashcards
Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a disability income policy?
issue the policy with an altered time of payment of claims provision
Which type of plan normally includes hospice benefits?
managed care plans
On the test
Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take?
Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company
A prepaid application for individual Disability Income insurance was recently submitted to an insurer. When the insurer received the Medical Information Bureau (MIB) report, the report showed that the applicant had suffered a stroke 18 months ago, something that was not disclosed on the application. Which of the following actions would the insurance company NOT take?
Send a notice to the MIB that the applicant was declined
Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?
Complete the application and review the information with the customer prior to obtaining the customer’s signature, then send the application off to the insurance company
T is receiving $3,000/month from a disability income policy in which T’s employer had paid the premiums. How are the $3,000 benefit payments taxable?
Benefits are taxable to T
An agent takes an individual disability income application, collects the appropriate premium, and issues the prospective insured a conditional receipt. The next step the insurance company will take is to:
determine if the applicant is an acceptable risk by completing standard underwriting procedures
Which of the following are NOT managed care organizations?
Medical Information Bureau (MIB)
Which of the following BEST describes how pre-admission certification is used?
Used to prevent nonessential medical costs
Which mode of payment is NOT used by health insurance policies?
Monthly premium
Annual premium
**Single Premium
Semi-annual premium
P is self-employed and owns an individual disability income policy. He becomes totally disabled on June 1 and receives $2,000 a month for the next 10 months. How much of this income is subject to federal income tax?
$20,000
$14,000
$6,000
**$0
