Exam 6 Wrong Answers Flashcards
Under a Key person disability income policy, premium payments
Are made by the business and are not tax deductible
Which of the following is true regarding a term health policy?
It is nonrenewable
What is the benefit of choosing extended term as a nonforfeiture option?
It has the highest amount of insurance protection
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 regarding HIV testing for life insurance purposes is Not true?
Insurers are barred from requesting HIV testing
Which of the following is Not a characteristic or a service of an HMO plan?
Contracting with insurance companies
Certain conditions, such a dismemberment or total and permanent blindness, will automatically qualify the insured for full disability benefits. Which disability policy provision does this describe?
Presumptive disability
Which of following best describes gross annual premium?
Net premium plus expenses
If a settlement option is not chosen by the beneficiary or policy owner, which option will be used?
Lump sum
All of the following are true regarding Medical Information Bureau (MIB) except
MIB reports are based upon information supplied by doctors and hospitals
All other factors being equal, the least expensive first year premium payment is found in…
Annually Renewable Term
Insurers are required to give the insured converting to an individual policy notice of their conversion privilege
15 days prior to group policy expiration
Issue age policy premiums increase in response to which of the following factors?
Increased benefits
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?
Level term
Which of the following entities must approve all continuing education courses in this state?
The Commissioner
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
What is the initial period of time specified in a disability income policy that must pass, after the policy is in force, before a loss can be covered?
Probationary period
Which provision states that the insurance company must pay Medical Expense claims immediately?
Time of Payment of Claims
Which benefits would a disability plan most likely pay?
Income lost by the insured’s inability to work
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
What is the amount a physician or supplier bills for a particular service or supply?
Actual charge
The insurer may suspect that a moral hazard exists if the policy holder…
Is not honest about his health on an application for insurance
An insured purchased a life policy in 2010 and died in 2017. The insurance company discovers at that time that the insured had concealed information during the application process. What can they do?
Pay the death benefit
Variable whole Life a insurance is based on what type of premium?
Level fixed
All of the following are ways in which a Major Medical policy premium is determined except…
The average age of the group
All of the following are true statements regarding the accumulation at interest option Except…
The interest is not taxable since it remains inside the insurance policy
In long term care policies, the term “chronically ill” means an individual who is unable to perform at least 2 activities of daily living for at least…
90 days
Which nonforfeiture option has the highest amount of insurance protection?
Extended term
Which of the following does not have to be disclosed in a long term care (LTC) policy?
The aggregate amount of premiums due
In a group prescription drug plan, the insured typically pays what amount of the drug cost?
Copayment
Medicaid provides all of the following benefits except…
Income assistance for work related injury
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?
$2,500
When health care insurers negotiate contracts with health care providers or physicians to provide health care services for services for subscribers at a favorable cost, it is called…
Preferred Provider Organization (PPO)
Are insurance company underwriters allowed to discriminate?
Yes, but not unfairly
Which provision allows a person to return a Medicare supplement policy within 30 days for a full premium refund?
Right to examine
The insurer must be able to rely on the statements in the application, and the insured must be able to rely on the insurer to pay valid claims. In the forming of an insurance contract, this is referred to as…
Utmost good faith
With regards to premium rates, which of the following is not true?
The Commissioner sets all insurance premium rates used in Pennsylvania
