Health Insurance – Lesson 16 Flashcards
Are insurance companies required to use the exact wording of the uniform policy provisions?
No, they are allowed to reword the provisions as long as the wording is not less favorable to insureds.
The uniform individual accident and sickness policy provision law were developed by whom?
National Association of insurance commissioners
How many mandatory and optional provisions are there?
12 mandatory and 11 optional provisions
What is the minimum grace period for all disability policies other than monthly or weekly premium policies?
31 days
If a person suffers a disability that is expected to last at least two years, the injured will need to give the insurer proof of the continuation of the disability every how often?
Every six months
The insured has several disability income policies. The benefits from all policies exceed the insured’s monthly income when he suffers a disability. How will the claim be handled?
Each insurer is liable for a proportionate amount of benefits as the insured’s earnings are the total benefits under all contracts.
A person is considering 2 individual disability income policies from the same company. The premiums on both are exactly the same. Which policy will be the best choice?
Non-cancelable
A disability policy described as “guaranteed renewable” is one where the insurance company:
Surrenders the right to change any of its terms but may change the premiums.
What is the grace period for a disability policy that has a quarterly premium payment?
31 days
When an insured changes his occupation to a more hazardous one and his individual policy contains the optional change of occupation provisions; what will the insurer do?
The insurer will reduce the benefits.
The insurer adjust premiums by class of individuals. True or false?
False
The type of disability policy that is not favorable to the insured and, therefore, has the highest premium payment is:
Non-cancelable
A secretary purchases a disability policy with a change of occupation provision. She later becomes a lying tamer. What can the company do?
Reduce the benefits.
What happens if a disability policy has a provision that is in conflict with state law?
The provision in conflict will be amended to conform to state law.
What type of disability policy allow the insurer to cancel the policy on any premium due date or the anniversary date of the policy?
Optionally renewable
