Health Insurance Underwriting

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

Inspection report

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

Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a Disability Income policy?

Issue the policy with an altered Time of Payment of Claims provision

Which type of plan normally includes hospice benefits?

Managed care plans

Which of the following are NOT managed care organizations?

Medical Information Bureau (MIB)

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 correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?

Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company

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 the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company

A prepaid application for individual Disability Income insurance was recently submitted to an insurer. When then insurer received the Medical Information Bureau (MIB) report, the report shoed that the applicant had suffered a stroke 18 months ago, something that was not disclosed on the application. Which of the following actins would the insurance company NOT take?

Send a notice to the MIB that the applicant was declined

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

Single premium

Which of the following statements about the classification of applicants is INCORRECT?

Substandard applicants are never declined by underwriters

Which of the following BEST describes how pre-admission certifications are used?

Used to prevent nonessential medical costs

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

Pre-hospitalization authorization is considered an example of:

managed care