Exam 19 Wrong Answers Flashcards
The policyowner 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
Which of the following is not true regarding a flexible spending account?
It does not have limits on contributions
To sign up for Medicare prescription drug plan, individuals must first be enrolled in
Medicare Part A
Variable whole Life insurance is based on what type of premium?
Level fixed
Peril is most easily defined as
The cause of loss insured against
Which clause allows both the insured and dentist to know in advance which benefits will be paid?
Precertification
Which of the following is true regarding Medicare supplement policies?
They must be guaranteed renewable
Which of the following factors would be an underwriting consideration for a small employer carrier?
Percentage of participation
Which component increases in the increasing term insurance?
Death benefit
An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. This indicates that his policy is written with a 30 day
Elimination period
Following hospitalization because of an accident, Bill was confined in a skilled nursing facility. Medicare will pay full benefits in this facility for how many days?
20
Which of the following is an example of a peril covered in an accident and health insurance policy?
Sickness
Who must sign the notice regarding replacement?
Both the applicant and agent
An insured purchased a life policy in 2010 and died in 2017. The insurance company discovers at the time that the insured had concealed information during the application process. What can they do?
Pay the death benefit
What is the elimination period for Social Security disability benefits?
5 months
The coverage provided by disability income policy that does not pay benefits occurring as a result of the insured’s employment is called
Nonoccupational coverage
Issue age policy premiums increase in response to which of the following factors?
Increased benefits
A Straight Life policy has what type of premium?
A level annual premium for the life of the insured
Which type of care is not covered by Medicare?
Long term care
In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?
5
An insured owns a general disability policy and is injured during a war, rendering him disabled. What will be the extent of benefits that he will receive?
0%
An insured who has a life insurance policy for $1 million died. In filing the claim, his wife and children discovered that there was no beneficiary named on the policy. What will happen to the death benefit in this case?
It will go to the insured’s estate
Which of the following entities has the authority to make changes to an insurance policy?
Insurer’s executive officer
What is the purpose of coinsurance provisions?
To help the insurance company to prevent overutilization of the policy
Within how many days of requesting an investigative report must an insurer notify the consumer in writing that the report will be obtained?
3 days
Which of the following is not an example of insurance interest?
Debtor in creditor
Which of the following is not true regarding the needs approach method of determining the value of an individual’s life?
Need is predicted using the number of years until the insured’s retirement
Which of the following is incorrect concerning taxation of disability income benefits?
If paid by the individual, the premiums are tax deductible
