Section 17 - health insurance policy provisions

Question 1

Richard owns an insurance policy that is renewable only at the option of the insurance company. His policy is considered to be
A. Cancelable
B. Guaranteed renewable
C. Conditionally renewable
D. Optionally renewable

Answer 1

Optionally renewable

Question 2

The reinstatement provision in a health insurance policy is
A. Mandatory
B. Optional
C. Voluntary
D. Discretionary

Answer 2

Mandatory

Question 3

Kathy pays a monthly premium on her health insurance policy. How long is her grace period?
A. 10 days
B. Seven days
C. 31 days
D. 45 days

Answer 3

10 days

Question 4

A health insurance policy where the insurer has the right to terminate the policy for reasons other than the insured’s health is called
A. Limited renewable
B. Conditionally renewable
C. Guaranteed renewable
D. Conditionally cancelable

Answer 4

Conditionally renewable

Question 5

This MANDATORY health policy provision states that the policy, including endorsements, and attached papers, constitutes
A. The partial insurance contract between the parties
B The entire insurance contract between the parties
C. The conformity of state statutes
D. The legal purpose of the contract

Answer 5

The entire insurance contract between the parties

Question 6

The time limit for filing claim disputes is addressed in which provision of an accident and health policy?
A. Legal actions
B. Entire contract
C. Time of payment of claims
D. Payment of claims

Answer 6

Legal actions

Question 7

Craig submits a $500 claim for medical expenses. With a past premium of $100, the insurer pays $400. Which of the Uniform Optional Provisions covers this situation?
A Payment of claims
B. Legal actions
C. Unpaid premium
D. Time of payment of claims

Answer 7

Unpaid premium

Question 8

An accident and health insurer has just received written proof of loss from one of its insureds. The insured must now wait 60 days before
A. Submitting another claim
B. Bringing legal action against the insurer
C. The insurer will pay the claim
D. Purchasing more insurance from this insurer

Answer 8

Bringing legal action against the insurer

Question 9

Disability income plans which required that the insurer can NEVER change or alter premium rates are usually considered
A. Guaranteed renewable
B. Optionally renewable
C. Conditionally renewable
D. Noncancelable

Answer 9

Noncancelable

Question 10

A beneficiary change can occur:
A. Only upon the request of the revocable beneficiary
B. Only unspecified dates within the policy
C. Normally at any time during the policy term
D. At no time

Answer 10

Normally at any time during the policy term