Test Questions Flashcards
The gatekeeper of an HMO helps……
Control Specialist Costs
If an annuitant dies before annuitization occurs, what will the beneficiary receive?
Either the amount paid into the plan or the cash value of the plan whichever is the greater amount
1. How soon following the occurrence of a covered loss must an insured submit written proof of such a loss to the insurance company?
A) as soon as possible
B) within 20 days
C) within 60 days
D) within 90 days or as soon as reasonably possible, but not to exceed one year
D) Within 90 days or as soon as reasonably possible, but not to exceed one year.
The “proof of loss” provision states the claimant must submit a proof of loss within 90 days; however, if it is not possible to comply, the time parameter is extended to one year. The one-year limit does not apply if the claimant is not legally competent to comply with this provision.
2. Who must pay the cost of a medical examination required in the process of underwriting?
A) applicant
B) underwriters
C) department of insurance
D) insurer
The insurer
If an insurer requests a medical examination, the insurer is responsible for the cost of the exam.
4. All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT
a) most term policies contain a convertibility option.
b) upon conversion, the premium for the permanent policy will be based upon attained age.
c) upon conversion, the death benefit of the permanent policy will be reduced by 50%
d) evidence of insurability is not required.
c) upon conversion, the death benefit of the permanent policy will be reduced by 50%.
Convertible term insurance is convertible without Proof of insurability up to the fall term definite fit. However, upon conversion, the premium for the permanent policy will be based on the insured’s attained age.
In a policyholder takes a policy loan after the 4th year of the policy and dies before the loan is repaid, what portion of the death benefit will be paid?
Any outstanding policy loan balance plus interest will be deducted from the policy death benefit.
Which of the following determines the cash value of a variable life policy?
The performance of the policy portfolio.
The section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the?
Insuring clause
Which health insurance provision describes the insureds right to cancel coverage?
Renewal provision
An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard & Poor’s 500 index
Equity indeed annuity
What is eligibility requirement for all Social Security disability income benefits?
Have attained fully insured status
What is true about the premium on the children’s rider in a life insurance policy?
It remains the same no matter how many children are added to the policy
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries?
The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive
An insured pays $100 premium every month for his insurance coverage, yet then insurer promises to pay $10,000 for a covered loss. What characteristic of insurance contract does this describe?
Aleatory
What type of insurance would be used for a return of premium rider?
Increasing term
