key

An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the "grace period" under her policy?

10 days "monthly"

Under the "uniform required provisions", proof of loss under a health insurance policy normally should be filed within

90 days

Stop-Loss Limit (Out-of-Pocket Limit)

is a specified dollar amount beyond which the insured no longer participates in the sharing of expenses The insurer will pay 100 percent of eligible medical expenses once the insured incurs a certain amount of out-of-pocket expenses.

In the event a policy lapse due to non-payment of premium, within how many days should the policy be automatically reinstated once the outstanding premium is said?

45

Claims Procedures Provision

notice of claim-within 20 days of the loss claims forms:issued upon receipt of a notice of claim Proff of loss within 90 days or as soon as reasonably possible but not to exceed 1 year

All of the following are correct about the required provisions of a health insurance policy except

A reinstated policy provides immediate coverage for an illness This is false because coverage for illness is not immediate is is 10 days later.

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

Consideration

What happens when a policy is surrendered for its cash value

Coverage ends the policy cannot be reinstated

The insured had his wife as beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option.

Fixed amount

Which of the following would not increase the premium for a policy owner?

Impairment rider

In health insurance, if a doctor charges 50 more than what the insurance company considers usual, customary and reasonable, the extra cost

It is not covered

If a contract provides a set amount of income for two or more persons with the income "stopping upon the first death" of the insured, it is called a

Joint life Annuity

Under an individual disability income policy, the minimum schedule of time in which claim payments must be made to an insured is

Monthly

An insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband named as what type of beneficiary?

Revocable

When would a 20-pay whole life policy endow?

When the insured reaches age 100

Which statement accurately describes the Change of Beneficiary provision.

any policy that has a death benefit must also have a change of beneficiary provision

An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. This indicates that his policy is written with a 30-day

elimination

Which of the following describes the specified dollar amount beyod which the insured not longer participates in the sharing of expenses?

Stop-loss limit

An insured notifies the insurance company that he has become disabled. What provision states that claims must be paid immediately upon written proof of loss?

TIme of Payment of claims

When Linda suffered a broken hip, she notified her agent, in writing, within 12 days of the loss. However, her agent did not notify the insurance company until 60 days after the loss. Which of the following statements correctly explains how this claim would be handled?

The insurer is considered to be notified since the notification to agent equals noticfication to the insurer.

When an insurer issue an individual isurance policy that is guaranteed renewable, the insurer agrees

To renew the policy until the insured has reached age 65

A couple receives a set amount of income from their annuity. When the wife dies, the husband no longer receives annuity payments. What type of annuity did the couple buy?

joint life-stops upon death of the first

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report

respond to the consumer's complaint

Coinsurance

the sharing of expenses by the policyholder and the insurance company 80/20 or 50/50