Practice Test Flashcards
What does it mean if a health policy is conditionally renewable?
Insurer may elect NOT to renew under conditions specified in the policy
In order for an insurer to increase the premium on a noncancelable policy, which of the following must be true?
The premium increase must be in contract at the time it is issued
How are term riders used?
To purchase insurance on a family member of the originally insured
What does first dollar coverage mean?
As soon as covered medical expenses are incurred, the policy begins to pay
What is the return of premium rider?
An increasing amount of term insurance that always equals the total of premiums paid up to the current point
What is an impairment rider?
It lists specific conditions in the contract that are excluded from the contract
What is the maximum amount of time for reinstatement of the policy?
45 days
According to the time of payment claims provision, the insurer must make the payment immediately after receiving proof of loss except…
For claims involving periodic payments
Who notifies the company of a death claim?
The producer (agent)
How does per capita rule apply to proceeds from a life insurance policy?
The proceeds are divided equally among living primary beneficiaries
What is the maximum amount of time the insured has to file a legal claim against the insurer?
3 years
Which of the following must be given to the insurer within 20 days after occurrence of any loss covered by a policy?
Notice of claim form
What specific new procedure does the USA Patriot Act require of insurance companies ?
Establish an anti-money laundering program
What occurs immediately after the application is submitted and the initial premium is collected?
The underwriting process begins
What time of receipt makes the insurer liable regardless if applicants insurability?
Binding receipt
