Exam Wrong Answers 7 Flashcards
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
All of the following statements are true regarding installments for a fixed amount except
Payments will stop when the annuitant dies
A small business owner is the insured under a disability policy that funds a buy sell agreement. If the owner dies or becomes disabled, the policy would provide which of the following?
Cash to the owner’s business partner to accomplish a buyout
Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?
Family term rider
When an individual is covered under two health insurance policies that have duplicate benefits, which could make a claim for benefits because of an injury or illness profitable, it is called…
Overinsurance
The Federal Fair Credit Reporting Act
Regulates consumer reports
How often may a viatical settlement provider contact an insured regarding the insured’s health status if the insured’s life expectancy is more than one year?
Once every 3 months
An individual applied for a life insurance policy on January 10. The policy was issued on January 31; however because the insured’s agent was on vacation at that time, the policy was not delivered until Feb. 8. After reading through the policy provisions, the insured decided to return the policy to the insurer. When would the insured need to return the policy for a refund of premium?
By Feb. 18 or within 10 days of policy delivery
In which of the following situations is it legal to limit coverage based on marital status?
It is never legal to limit coverage based on marital status
An insured submitted a notice of claim to the insurer, but never received claims forms. He later submits proof of loss and explains the nature and extent of loss in a handwritten letter to the insurer. Which of the following would be true?
The insured was in compliance with the policy requirements regarding claims
An insured who had 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
An applicant is denied insurance because of information found on a consumer report. Which of the following required that the insurance company supply the applicant with the name and address of the consumer reporting company?
Fair Credit Reporting Act
An applicant wants to buy a life insurance policy in which he can count on receiving the same benefits as stated in the contract. What type should he buy?
Fixed
If one takes Social Security retirement benefits at age 62, what needs to be done at age 65 to qualify for Medicare?
Nothing
A tornado that destroys property would be an example of which of the following?
A peril
All of the following are Nonforfeiture options except…
Interest only
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
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?
The Fair Credit Reporting Act
