Illinois Statutes and Regulations Pertinent to Life Only

Benefit periods for individual short-term disability policies will usually continue from

6 months to 2 years

Most policies will pay the accidental death benefits as long as the death is caused by the accident and occurs within ___ days

90 days

According to the life insurance replacement regulations, which of the following would be an example of policy replacement?

A policy is reissues with a reduction in cash value

If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered

An unfair trade practice

Occasional visits by which of the following medical professionals will NOT be covered under LTC's home health care?

Attending physician

What coverage, written in conjunction with hospital policies, covers surgeons' fees, anesthesiologist, and operating room?

Basic surgical expense

When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of

Defamation

What is an important feature of a dental expense insurance plan that is NOT typically found in a medical expense insurance plan?

Diagnostic and preventative care

What entity determines if an advertisement is complete and truthful?

Director

ERISA

Employee Retirement Income Security Act: defines federal standards for private pension plans

Health Savings Accounts (HSAs) are designed to

Help individuals save for qualified health expenses.

Which of the following types of LTC is NOT provided in an institutional setting?

Home health care

Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital?

Indemnity

The Life Solicitation Rule applies to which of the following?

Individual life

What is NOT a benefit of a POS plan?

It allows guaranteed acceptance of all applicants.

Variable life, group life, and annuities are EXEMPT under which rule?

Life Solicitation

The Replacement Regulation minimizes

Misrepresentation

To which of the following situations does the Replacement Regulation apply?

Nonrenewable coverage expiring in 8 years

How many pairs of glasses in a 12-month period will a vision expense plan cover?

One

What type of care is Respite care?

Relief for a major care giver

All of the following long-term care coverages would allow an insured to receive care at home EXCEPT

Skilled Care

Which of the following would be a qualifying event as it relates to COBRA?

Termination of employment due to downsizing

Which of the following is true regarding optional benefits with long-term care policies?

They are available for an additional premium

Reciprocity/Reciprocal

a mutual interchange of rights and/or privileges

Dividend

a payment made by a policy (distribution of profits or return of unused funds)

Suitability

a requirement to determine if an insurance product is appropriate for a customer

In comparison to a policy that uses the accidental means definition, a policy that uses the accidental bodily injury definition would provide a coverage that is

broader in general

Policy proceeds

in life insurance, the death benefit

nonguaranteed elements

policy components that are not guaranteed in the contract or that may fluctuate (e.g. dividends, interest)

Lapse

policy termination due to nonpayment of premium

A transaction where new life insurance is purchased, and as part of the transaction, existing life insurance is lapsed or surrendered, is known as

replacement

disclosure

revealed information to help someone make an intelligent and educated decision

How many consecutive months of coverage (other than in an acute care unit of a hospital) must LTC insurance provide in this state?

12 months

How many accounts must the Illinois Life and Health Insurance Guaranty Association Maintain?

2 accounts: life insurance and health insurance

COBRA applies to employers with at least ___ employees

20 employees

An insured's long-term care policy is scheduled o pay a fixed amount of coverage of $120 per day. The long-term care facility only charged $100 per day. How much will the insurance company pay?

$120