Exam 17 Wrong Answers Flashcards
Who is the beneficiary in a credit health policy?
The lending institution
What is the civil penalty for the first violation of the Pennsylvania Insurance Fraud Prevention Act?
$5,000
Which of the following types of policies allows the policy owner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?
Universal life
All of the following are requirements for life insurance illustrations except
They must be part of the contract
In order to become licensed to become a viatical settlement provider, an application must be made with
The Insurance Department
Which of the following is not a cost saving service in a medical plan?
Denial of coverage
An insured receives an annual life insurance check. What term best describes this arrangement?
Cash option
For the purpose of examination by the department, insurers must keep a record of all financial files for at least
5 years
What would a physician utilize if he/she wanted to know if a treatment is covered under an insured’s plan and at what rate it will be paid?
Prospective review
In the event of loss, after a notice of claim is submitted to the insurer, who is responsible for providing claims forms and to which party?
Insurer to the insured
Which of the following ultimately determines the interest rates paid to the owner of a fixed annuity?
Insurer’s guaranteed minimum rate of interest
All of the following are characteristics of group life insurance except
Premiums are determined by the age, sex and occupation of each individual certificate holder
An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy?
The capital amount in a lump sum
Prior to purchasing a Medigap policy, a person must be enrolled in which of the following?
Parts A and B of Medicare
Which of the following policies would be classified as a traditional level premium contract?
Straight life
In order for an insured under Medicare Part A to receive benefits for care in a skilled nursing facility, which of the following conditions must be met?
The insured must have first been hospitalized for 3 consecutive days
Which of the following is true regarding a term health policy?
It is nonrenewable
In a group policy, who is issued a certificate of insurance?
The individual insured
The policy owner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
The death benefit can be increased by providing evidence of insurability
All of the following are characteristics of group life insurance plan except
There is a requirement to prove insurability on the part of the participants
The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years?
2 years
To be eligible under HIPAA regulations, for how long should an individual converting to an individual health plan have been covered under the previous group plan?
18 months
If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a
Settlement option
A rider attached to a life insurance policy that provides coverage on the insurer’s family members is called the
Other insured rider
Which of the following are not fundable by annuities?
Death benefits
Which of the following allows the insurer to relieve a minor insured from premium payments if the minor’s parents have died or become disabled?
Payor benefit
