Final exam Flashcards
Before an insurer can increase the rates for individual accident and health policyowners, the insurer must provide written notice at least how many days before the effective rate increase.
30 days, Insurer must provide written notice at least 30 days before the effective date of a rate increase.
a Life insurance company cannot declare a policy lapsed or forfeited within one year after default in premium payment, unless it has mailed a notice indicating the amount of premium due. This requirement only applies to policies with a
Annual premium schedule
This requirement only applies to policies with an annual premium schedule, and not to policies that are payable monthly (or shorter intervals), or to group insurance and term insurance contracts for one year or less.
An insurance applicant was recently denied insurance coverage. The applicant is requesting access from the insurer to recorded personal information regarding this decision. Under the information and privacy protection Act, the insurer MUST make the information available within how many business days.
30 days,
According to the information and privacy act, when access to recorded personal information is requested following an adverse underwriting decision, the insurer must make the information available with in 30 days
Disability policies do NOT normally pay for disabilities arising from which of the following
War,
Disability policies do NOT normally pay for disabilities arising from an act of war
Which of the following MUST be included with the continuation of coverage of a group hospital, surgical, and Major medical policy?
Hospital expenses,
continuation of coverage of a group hospital, surgical, and major medical policy MUST include hospital expenses
A disability elimination period is best described as a
Time deductible
When does a Guaranteed insurability rider allow the insured to buy additional coverage
at future dates specified in the contract with no evidence of insurability required
XYZ insurance company would like to begin conducting business in North Carolina. Before XYZ can issue or deliver a health policy, the form, classification of risk, and premium rates MUST be filed with the
Commissioner of insurance
In North Carolina, which of the following MUST be delivered to a policyowner upon the sale of an individual life insurance policy
A policy summary and a buyers guide
Each agent who initiates an application for life insurance or annuity for replacement of an existing policy shall submit which of the following as a part of the application?
A signed statement by the applicant regarding the replacement
The health insurance program which is administered by each state and funded by both the federal and state governments is called:
Medicaid
What type of annuity has a cash value that is based upon the performance of it’s underlying investment funds?
Variable
Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to j instead of the insurance company. What action should j take?
Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company
P is an employee who quits her job and wants to convert her group health coverage to an individual policy. After the expiration of COBRA laws, which of the following statements is TRUE?
She does NOT need to provide evidence of insurability
A life insurance application must be signed by all of these, EXCEPT:
beneficiary
Under which of the following circumstances will the benefits under
COBRA continuation coverage end?
All group health plans are terminated by the employer
The Life and Health Insurance Guaranty Association is funded by authorized insurers in this State. One of the roles of this organization is to
assist in the prevention of insurer insolvencies
K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective?
The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured
How long is the free-look period for accident and health policies sold in North Carolina?
10 days
Which of these is NOT a type of agent authority?
Principal
Which of these statements concerning an Individual Straight Life annuity is accurate?
Payments are made to an annuitant for life
When an existing life insurance policy is terminated so that a new life insurance policy can be purchased, this transaction is referred to as
Replacement
Under what system do a group of doctors and hospitals in a designated area contract with an insurer to provide services at a prearranged cost to the insured?
PPO
Under a Preferred Provider Organization (PPO), a group of doctors and hospitals in a designated area contract with an insurer to provide services at a prearranged cost to the insured.
An insured covered by Accidental Death and Dismemberment (AD&D) insurance has just died. What will happen if the primary beneficiary had already died before the insured and contingent beneficiary?
Proceeds will go to the contingent beneficiary
All of these are characteristics of an Adjustable Life policy, EXCEPT:
face amount can be adjusted using policy dividends
An individual who purchases a Life annuity is given protection against:
the risk of living longer than expected
What kind of Accidental Death and Dismemberment (AD&D) insurance beneficiary requires his/her consent when a change of beneficiary is made?
Irrevocable beneficiary
Which statement regarding a Key Employee Life policy is NOT true?
The beneficiary is named by the key employee
Which of the following actions require a policyowner to provide proof of insurability in an Adjustable Life policy?
increase face amount
The phrase “This policy will only pay for a semi-private room” is an example of a(n):
internal limit
An agent takes an individual Disability Income application, collects the appropriate premium, and issues the prospective insured a conditional receipt. The next step the insurance company will take is to:
determine if the applicant is an acceptable risk by completing standard underwriting procedures
Which health policy clause specifies the amount of benefits to be paid?
Insuring
Why is an applicant’s signature required on a life insurance application?
To attest that the statements on the application are accurate to the best of the applicant’s knowledge
j is a subscriber to a plan that contracts with doctors, and hospitals to provide medical benefits at a predetermined price. what type of plan is this?
A heath maintenance organization (HMO) f
T/F: substandard applicants are never declined by underwriters
False
When an insured has the same disability within a specified time period an the insurance company provides the same benefits without a new waiting period, the second disability is covered under which of the following benefits?
Recurrent disability
In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What kind of contract is this?
Unilateral
The commissioner may exempt an applicant from the licensing exam if an applicant has obtained what designations ?
1: life underwriter training council fellow (LUTCF)
2: Chartered life underwriter (CLU)
3: Fellow of life management institute (FLMI)
What is Medicare
A hospital and medical expense insurance program
Chemical dependency treatment under a Group Heath policy MUST include (over the life of the contract) a minimum benefit of ?
$16,000
