Exam 16 Wrong Answers Flashcards
When an insurer issued an individual health insurance policy that is guaranteed renewable, the insurer agrees
To new the policy until the insured has reached age 65
Within how many days must a producer respond to an inquiry from the Commissioner?
30 days
Violation of unfair discrimination law may result in all of the following penalties except
Fines of up to $1,000 for each act
Which of the following is true regarding a term health policy?
It is nonrenewable
Which of the following is not a goal of risk retention?
To minimize the insured’s level of liability in the event of loss
The type of term insurance that provides increasing death benefits as the insured ages is called
Increasing term
What is the civil penalty for violating a cease and desist order of the Commissioner?
$10,000
An insured’s disability income policy includes an additional monthly benefit rider. For how many years can the insured expect to receive payment from the insurer before Social Security benefits begin?
1
An employee insured under a group health policy is injured in a car wreck while performing her duties for her employer. This results in a long hospitalization period. Which of the following is true?
The group plan will not pay because the employee was injured at work
Which of the following is not covered under Plan A in Medigap insurance?
The Medicare Part A deductible
Which of the following is not considered to be a basic service under a nonscheduled plan?
Dentures
On a major medical insurance policy, the amount that an insured must pay on a claim before the insurer will pay is known as
Deductible
Adopting parents must inform their insurer that a child has been added to the family within
31 days
All of the following statements are true of a combination dental plan except
It is also known as the superimposed plan
How must a replacing producer respond to an applicant wishing to replace existing life insurance?
The producer must provide the applicant with a Notice Regarding Replacement
Your client has a Social Insurance Supplement (SIS) rider on his disability policy. After he becomes disabled, he receives payments from the company. Shortly thereafter, he also begins receiving Social Security benefit payments. Which of the following will happen.
The SIS payments will be reduced dollar for dollar by the Social Security benefits payment
All of the following are differences between individual and group health insurance except
Individual insurance does not require medical examinations while group insurance does require medical examinations
An individual has been diagnosed with Alzheimer’s disease. He is insured under a life insurance policy with the accelerated benefits rider. Which of the following is true regarding taxation of the accelerated benefits?
A portion of the benefit up to a limit is tax free, the rest is taxable income
The policy owner of a Universal Life policy may skip paying the premium and the policy will not lapse as long as
The policy contains sufficient cash value to cover the cost of insurance
An insured gave birth to her first child by Ceasarean section. Her health insurance covered a stay up to 96 hours in the hospital, but her doctor allowed her and the baby to leave after only 72 hours. What other coverage must the insured’s health insurance now allow her?
At least 1 home healthcare visit within 48 hours of discharge from the hospital
What type of benefit helps to pay for accidental injuries that are not severe enough to qualify as disabilities?
Medical Reimbursement Benefit
All of the following are characteristics of a group life insurance plan except
Thee is a requirement to prove insurability on the part of the participants
According to the Future Increase Option Rider (FIO), which of the following is not a qualifying event to increase an insured’s benefit level?
Death of a spouse
Which of the following statements is not true concerning Medicaid?
It consists of 3 parts: Part A hospitalization, Part B doctors services, Part C disability income
In forming an insurance contract, when does acceptance usually occur?
When an insurer’s underwriter approves coverage
The provision which prevents the insured from bringing legal action against the company for at least 60 days after proof of loss is known as
Legal actions
According to the entire contract provision, what document must be made part of the insurance policy?
Copy of the original application
Another name for substandard risk classification is
Rated
Which of the following statements concerning group health insurance is correct?
The employer is the policy holder
Which of the following statements is correct regarding a whole life policy?
The policy owner is entitled to policy loans
During replacement of life insurance, a replacing insurer must do which of the following?
Obtain a list of all life insurance policies that will be replaced
Insurers are required to give the insured converting to an individual policy notice of their conversion privilege
15 days prior to group policy expiration
When is the annual open enrollment for state insurance exchanges?
November 1 through January 31
Elijah and Mary are to receive the proceeds of a life insurance policy jointly until the first one dies. If either one should die within a specified time, the other one will receive benefits until the end of the specified time. This settlement option is known as
Joint Life with Term Certain
