Chapter 7: Health Insurance Underwriting

Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take?

return to customer and collect new check

which of the following correctly explains the actions an agent should take if a customer wants insurance

...

P is self-employed and owns an Individual Disability Income policy. He becomes totally disabled on June 1 and receives $2,000 a month for the next 10 months. How much of this income is subject to federal income tax?

0$

which of the following are NOT managed care organiztions

MIB

Prehopiitalization authorization is condersidered an example of

Managed care

T is receiving $3,000/month from a Disability Income policy in which T's employer had paid the premiums. How are the $3,000 benefit payments taxable?

benefits are taxable to T

An agent takes an individual Disability Income application, collects the appropriate premium, and issues the prospective insured a conditional receipt. The next step the insurance company will take is to

determine if the applicant is an acceptable risk by completing standard underwriting procedures

Information obtained from a phone conversation to the proposed insured can be found in which of these reports?

inspection

which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for disability income

issue the policy with an altered time of payment claims

which type of plan normally includes hospice benefits

managed care plans

A prepaid application for individual disability income was recently submitted to an insurer. When the insurer received the Medical Info Beaur , the report shows that the application had suffered a stroke 18 months ago, something that ws not disclosed on the application. which of following actions would the insurance company NOT take

Send a notice the MIB that the applicant was denied

Which mode of payment is NOT used by health insurance policies?

single premium

which of the following statements about the classification of applicants is incorrect

substandard applicants are never declined by udnerwriters

which the following best describes how pre admission certificate is used

usd to prevent non essential medical costs