Chapter 8

Question 1

Does long term care underwriting usually include a paramed exam?

Answer 1

No

Question 2

The purchase of an existing life insurance policy from the insured/owner

Answer 2

Viatication

Question 3

Benefit Payment methods for long term care claims

Answer 3

indemnity method, expense incurred method, disability method

Question 4

Type of benefit payment method in long term care claim in which the benefit is a set dollar amount

Answer 4

indemnity method

Question 5

Type of benefit payment method in long term care claim in which the benefits are paid if the insured is eligible for benefits and if the claim is for eligible services

Answer 5

expense incurred method

Question 6

Type of benefit payment method in long term care claim in which, once the insured meets the benefit eligibility criteria, the full daily benefit is paid even if the insured is not receiving any long term care services.

Answer 6

disability method

Question 7

Individual disability insurance policies have three type of renewability provisions available:

Answer 7

conditionally renewable, guaranteed renewable, non-cancelable

Question 8

Office overhead expense (11)

Answer 8

1. rent
2. property tax
3. utilities
4. depreciation
5. leased and rented equipment
6. business liability insurance
7. dues for professional associations
8. interest on debt
9. accounting fees
10. certain employee wages
11. other fixed expenses

Question 9

Commonly covered conditions in critical illness insurance (10)

Answer 9

1. heart attack
2. stroke
3. MS
4. Kidney failure
5. blindness
6. deafness
7. coronary artery bypass surgery
8. life-threatening cancer
9. loss of limbs
10. paralysis

Question 10

Counteroffers for disability insurance. Actions the underwriter can take if it is determined there is increased morbidity risk (4)

Answer 10

1. premium ratings
2. change of policy type
3. benefit adjustments
4. exclusions

Question 11

Benefit period

Answer 11

the maximum length of time an insured is eligible to collect benefits while on a disability claim

Question 12

Collateral Assignment

Answer 12

The legal transfer of one person’s interest in a policy to a creditor as security for debt.

Question 13

policy type in which the company can change the premium, policy provisions or cancel the policy as long as it does so for all insureds with a specific class.

Answer 13

conditionally renewable

Question 14

riders that are included in the wording of every policy of a particular type and outline situations where benefits would not be payable.

Answer 14

contractual exclusion riders

Question 15

policy type in which the insurance company cannot cancel the policy, change any provision, or add any restrictions as long as premiums are paid

Answer 15

Guaranteed Renewable

Question 16

A type of disability business insurance in which the monthly benefit payable is contingent on the covered business expenses incurred by the business during each month of disability

Answer 16

office overhead expense insurance