Questions on the Pretest Flashcards
An insurer must provide an insured with claim forms within __ days after receiving notice of a loss
An insurance company is required to send forms for filing proof of loss to a claimant within __ days after company receives notice of a claim.
15 Days
P is a producer who is licensed in Iowa but a resident of Nebraska. P is a(n) _____producer.
nonresident
A Disability Income policy that only the policy owner can terminate and which the rates will never go up is considered to be
Noncancellable
Insuring Clause
states the amount of benefits to be paid in an Accident and Health policy
M’s insurance company denied a reinstatement application for her lapsed health insurance policy. The company did NOT notify M of this denial. How many days from the reinstatement application date does the insurance company have to notify M of the denial before the policy will be automatically place back in force?
45 days
Many small business owners worry how their business would survive financially if the owner becomes disabled. The policy which BEST addresses this concern is
Business overhead expense
Which of the following is NOT included in the policy face?
Exclusions are Not included
The reason for a business having a Business Overhead Expense Disability Plan is to cover:
Fixed Business Expenses
In a Disability Income Policy, Which of these clauses acts as a deductible?
Elimination Period
How much of Individual Disability Income Policy payouts are subject to Federal Income Tax?
$0000
Disability income benefits that derive from an individual policy which was paid entirely by the policy owner is not subject to federal income tax.
Which of the following statements BEST describes dental care indemnity coverage?
Services are reimbursed after insurer receives the invoice
The sections of an insurance contract which limit coverage are called
exclusions
Taking receipt of premiums and holding them for the insurance company is an example of
Fiduciary responsibility
If a Medicare Supplement Policy involves replacement, it must be verified on a question located
on the application
Which Accident and Health policy provision addresses preexisting conditions?
Time Limit on Certain Defenses
The Notice of Claims provision requires a policyowner to:
notify an insurer of a claim within a specified time
Which of the following statements BEST defines usual, customary, and reasonable (UCR) charges?
The maximum amount considered eligible for reimbursement by an insurance company under a health plan.
“UCR charges are the maximum amount the insurer will consider eligible for reimbursement under a health insurance plan.”
Under what system do a group of doctors and hospitals in a designated are contract with an insurer to provide services at a prearranged cost to the insured?
PPO
Under Iowa law, which of the following provisions is NOT required in a Medicare Supplement policy?
Limitation on pre-existing conditions for up to 12 months
During the course of a Medicare Supplement sale, T the producer determines there is an existing policy being replaced. Which of these actions is T NOT required to perform?
Notify the replaced insurance company
XYZ Company pays the entire premium for its group health plan. The MINIMUM percentage of eligible employees that must be covered is:
100%
The percentage of an individuals Primary Insurance Amount (PIA) determines the benefits paid in which of the following programs?
Social Security Disability Income
Long Term Care policies will usually pay for eligible benefits using which of the following methods?
Expense Incurred
C is the policyowner of a Comprehensive Individual Major Medical Policy. C pays an annual premium which is due September 1. If C forgets to pay the premium and is hospitalized September 10, how will the insurer handle this claim?
Pay the claim in full minus the premium due
What is the initial requirement for an insurd to become eligible for benefits under the Waiver of Premium provision?
Insured must be under a physicians care
Under Waiver of Premium, which is a rider that will pay your premium while you’re disabled, you must have a doctor certify that you meet the definition of disability as contained in the rider.
When must insurable interest be present in order for a life insurance policy to be valid?
When the application is made
The benefits under a Disabiltiy Buy-Out policy are:
payable to the company or another shareholder
Insurers may request a hearing within _____ if their policy is rejected
20 Days
S is a producer. His appointment with his insurer has been terminated. The insurer is required to mail a notice of termination to S within ____ days.
15 days
An insurance company normally has 2 years to contest information provided on an accident and health application. This 2 year period begins on the date that the:
insurer dates the policy
Which of the Following BEST describes a short-term medical expense policy?
Nonrenewable
The required free-look period in a Medicare Supplement policy is ___days
30
According to the Mandatory Uniform Policy Provisions, what is the maximum amount of time after the premium due date during which the policy remains in force even though the premium has not been paid?
31 days
An individual must submit an application for a producers license within ___ days after successfully passing the state examination
90 days
A disability elimination period is best described as a
time deductible
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers (and their families) whose employment has been terminated the right to;
continue group health benefits
Insured losses are covered immediately after a health policy is reinstated when
the losses result from accidental injuries
How long is the typical free look period for Long Term care insurance policies?
30 days
A life insurance policy would be considered a wagering contract WITHOUT:
insurable interest
