Exam 22 Wrong Answers

Question 1

Which of the following is true regarding a term health policy?

Answer 1

It is nonrenewable

Question 2

Which of the following hospice expenses would not be covered in a cost containment setting?

Answer 2

Antibiotics

Question 3

A policy will pay the death benefit if the insured dies during the 20 year premium paying period, and nothing if death occurs after the 20 year period. What type of policy is this?

Answer 3

Level term

Question 4

What is the purpose of the Insurance Guarantee Association?

Answer 4

To protect policyowners against insurer insolvency

Question 5

All of the following are characteristics of a Major Medical Expense policy except

Answer 5

Low maximum limits

Question 6

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

Answer 6

5 days

Question 7

Which of the following is not covered by Health Maintenance Organizations (HMOs)?

Answer 7

Elective services

Question 8

To avoid violations of unfair claims settlement regulations, insurers are required to acknowledge the receipt of a claim within how many days?

Answer 8

10 days

Question 9

Which of the following is best describes annually renewable term insurance?

Answer 9

It is level term insurance

Question 10

Which of the following provisions must be included on the first page of a Medicare supplement policy, which states the insurer’s right to change premium amounts?

Answer 10

Continuation provision

Question 11

Which of the following statements about group life is correct?

Answer 11

The cost of coverage is based on the ratio of men and women in the group

Question 12

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?

Answer 12

Guaranteed insurability option

Question 13

According to the Time Limit on Certain Defenses provision, the insurer cannot void the policy for any misstatements on the application (except for fraud) if the policy was in force for what time period?

Answer 13

3 years

Question 14

Guarantee of insurability option in long term care policies allows the insured to

Answer 14

Increase benefit levels without providing proof of insurability

Question 15

Which of the following is the best reason to purchase life insurance rather than annuities?

Answer 15

To create an estate

Question 16

How long is an open enrollment period for Medicare supplement policies?

Answer 16

6 months

Question 17

A long term care policy may not lapse because of unpaid premiums unless the insurer gives at least

Answer 17

30 days’ notice

Question 18

Which of the following health care plans would most likely provide the insured/subscriber with comprehensive health care coverage?

Answer 18

Health Maintenance Organization plan

Question 19

How long will the beneficiary receive payments under the single life settlement option?

Answer 19

Until the beneficiary’s death

Question 20

What is an important feature of a dental expense insurance plan that is not typically found in a medical expense insurance plan?

Answer 20

Diagnostic and preventative care

Question 21

An insured was involved in an accident an could not perform her current job for 3 years. If the insured could East ably perform another job utilizing similar skills after 1 month, for how long would she be receiving benefits under an own occupation disability plan?

Answer 21

2 years

Question 22

Which of the following insurance options would be considered a risk sharing arrangement?

Answer 22

Reciprocal