Attempt 6

Most HMOs operate through what type of system?

A group enrollment system either at their place of employment or as a member of an association

What is the term used for an applicant's written request to an insurer for the company to issue a contract, based on the information provided?

Application

What type of policy allows the insurance company to cancel a policy at any time?

Cancellable

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as

Contracts of adhesion.

Applications to an insurer must include all of the following information, EXCEPT

Credit history report

The requirement that agents not commingle insurance monies with their own funds is known as

Fiduciary responsibility.

Underwriting a group health insurance plan that is paid for by the employer requires all of the following EXCEPT

Individual members of the group may select the level of benefits for their own coverage.

Which of the following is NOT true regarding a flexible spending account?

It does not have limits on contributions

Which document helps ensure that full and fair disclosure is provided to the recipient of a policy?

Outline of Coverage

Which of the following is NOT provided by an HMO?

Reimbursement

All of the following statements about Medicare supplement insurance policies are correct EXCEPT

They cover the cost of extended nursing home care.

When an HMO knowingly makes any misleading representations, incomplete or fraudulent comparisons for the purpose of inducing any person to lapse, forfeit, terminate, surrender or convert any insurance policy or contract with another insurance company or HMO, they are in violation of the unfair trade practice of

Twisting

The Office of Insurance Regulation is responsible for all of the following insurer activities EXCEPT

Issue of securities.