NJ Accident And Health 2 Flashcards
Which feature in a health insurance policy is primarily designed to address the problem of adverse selection?
Preexisting conditions limitations
On an application for a disability income policy, which misrepresentation would NOT be considered material risk?
Lying about the number of your dependents
The right to change the beneficiary or dispose of the policy or its benefits in any manner one chooses is reserved to the policyowner UNLESS which of the following is true?
The policyowner has named an irrevocable beneficiary.
The national do not call list pertains what type of calls?
Unsolicited sales calls
Which federal law provides for the continuation of group medical expense coverage for departing employees and their dependent in the same group plan?
COBRA
In comparing Medicare supplement policies, what is the difference between A and Plan G?
Plan G offers more benefits
The group conversion option is allowed for all of the following Except
During the annual benefits enrollment period
Medicare supplements policies can exclude coverage on preexisting conditions for up to how many months?
6
Which health policy required provision requires action to be initiated by the policy owner?
Proof of Loss
A business disability buy-sell policy is designed to assist in the sale of a business for the
Disability of a businessowner
Which is NOT a benefit of a long-term care policy?
Acute hospital care
To be valid, all life insurance and health insurance contracts must include which of the following elements?
Consideration
Whose responsibility is it to make sure that the company is notified of a death claim at the earliest possible opportunity (in most cases)?
The producer
Which statement is TRUE concerning long-term care policy?
The policy may be issued on a guaranteed renewable basis.
Which benefit exists solely to encourage a disabled policy owner to attempt to return to work?
Recurrent Disability
Which health coverage could provide reimbursement for medical expenses incurred as the result of a broken arm?
Basic Hospital
Which health policy features first dollar (no deductible) coverage?
Base Plan
What does a hospital indemnity policy pay?
A stated amount for each day the insured is hospitalized
Which describes the tax consequences of a key employee disability policy?
Premiums are not tax deductible, and benefits are untaxed.
Compared to basic hospital, medical, and surgical policies, which type of insurance provides broader coverage, fewer gaps, higher individual benefits, and higher policy maximums?
Major Medical insurance
Which principle holds that the insurer relies on the truthfulness of the applicant and in return promises and has the ability to pay claims?
Good Faith
What is the Health insurance policy clause that identifies the contracting parties and briefly states the company’s responsibilities under the contract?
Insuring Clause
Which insuranplans are commonly offered through the worksite (employer sponsored)?
Medicare
How many years must credit information be retained?
7 years
A producer accepted a life insurance application without the initial premium. Once the underwriting process was completed, the company issued the policy by mailing it to the producer. What is the producer’s responsibility?
The producer should personally deliver the policy to collect the premium, explain the coverages, and obtain a signed statement of good health.
A producer is asked to collect money from a policy owner when delivering the policy. What else might the producer be asked to collect?
A statement of continued good health
When several members of a family insured under the same Major Medical policy are injured in the same accident, what does the policy typically require?
Only one individual deductible to be paid
All of the following can be used to qualify for Medicare A and B except
Financial Need
