Exam 23 Wrong Answers Flashcards
Which of the following is true regarding a term health policy?
It is nonrenewable
Because an agent is using stationary with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe?
Apparent
If an employee terminates her employment, which of the following provisions would allow her to continue health coverage under an individual policy, if requested within 31 days?
Conversion
To avoid violations of unfair claims settlement regulations, insurers are required to acknowledge the receipt of a claim within how many days?
10 days
Concerning Medicare Part B, which statement is incorrect?
It is fully funded by Social Security taxes (FICA)
The risk of loss may be classified as
Pure risk and speculative risk
Which component increases in the increasing term insurance?
Death benefit
In order to minimize adverse selection, employer group dental plans may require employees who enroll after they were initially eligible to participate to do all of the following except
Increase benefits for a period of one year
An agent selling variable annuities must register with
FINRA
An insured committed suicide one year after his life insurance policy was issued. The insurer will
Refund the premiums paid
The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the
One year term option
Which of the following best describes the bailout provision?
It allows the owner to surrender the annuity without a charge
All of the following long term care coverages would allow an insured to receive care at home except
Skilled care
The causes of loss insured against in an insurance policy is known as
Perils
What happens when a policy is surrendered for its cash value?
Coverage ends and the policy cannot be reinstated
