Life and Health Insurance - Exam part 3
The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as:
legal actions
A nonresident agent is allowed to conduct insurance transactions in Georgia because his home state allows Georgia residents to transact insurance business in it, known as:
reciprocity agreement
A man decided to purchase a 100,000 annually renewable term life policy to provide additional protection until his children finished college. He discovered his policy:
required a premium increase at each renewal
It would be considered unfair discrimination to ask an insurance applicant about what and use the information as a rating factor to determine insurability ?
sexual orientation
How soon from the reinstatement of a health insurance policy would a loss be covered?
10 days
The violation of a cease and desist order may result in a fine of :
10,000
If a person is disabled at age 27 and meets social security's definition of total disability, how many work credits must they have earned to receive benefits?
12 credits
How long is the free look period for long term care policies in Georgia?
30 days
What is the other name for an authorized insurer?
Admitted
What statement accurately describes the change of beneficiary provision?
Any policy that has a death benefit must also have a change of beneficiary provision.
In the event of a divorce, what would allow a divorcee to continue receiving group health coverage under an insured spouse's plan for an additional 36 months?
COBRA
A small business owner is the insured under a disability policy that funds a buy sell agreement. If the owner dies or becomes disabled, the policy would provide what?
Cash to the owner's business partner to accomplish a buyout
An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. What contract characteristic does this describe?
Conditional
The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved, this is what type of contract?
Conditional
What is not a characteristic or service of an HMO plan?
Contracting with insurance companies
Which policy component decreases in decreasing term insurance?
Face amount
Circulating deceptive sales material to the public is what type of unfair trade practice?
False advertising
What is correct concerning the relationship between medicare and HMOs?
HMOS may pay for services not covered by medicare
What statement concerning medicare part B is correct?
It pays for physician services, diagnostic tests, and physical therapy
What is not true regarding the accumulation period of an annuity?
It would not occur in a deferred annuity
What is not true regarding a straight life policy?
Its premium steadily decreases over time, in response to its growing cash value
Which program expands individual public assistance programs for people with insufficient income and resources?
Medicaid
In long term care insurance, what type of care is provided with intermediate care?
Occasional nursing or rehabilitative care
What is incorrect concerning medicare part b coverage?
Part b is provided free of charge when an individual turns 65
What does basic medical expense not cover?
Surgeon's services
What is not true regarding an annuitant?
The annuitant cannot be the same person as an annuity owner
What happens if a nonmember physician is utilized under the point of service plan?
The attending physician will be paid a fee for service, but the member patient will have to pay a higher coinsurance amount.
An employee insured under a group health policy is injured in a car wreck while performing her duties for her employer resulting in a long hospitalization period. What next?
The group plan will not pay because the employee was injured at work
What is not true regarding qualifications for social security disability benefits?
The individual must be at least 65 years old
What best describes the first dollar coverage principle in basic medical insurance?
The insured is not required to pay a deductible
What is not a feature of a guaranteed renewable provision?
The insurer can increase the policy premium on an individual basis
What is not a feature of a noncancellable policy?
The insurer may terminate the contract only at renewal for certain conditions
What would provide an underwriter with information concerning an applicant's health history?
The medical information bureau
What is not covered under plan A in medigap insurance?
The medicare part A deductible
When transacting business in this state an insurer formed under the laws of another country is known as a :
alien insurer
A waiver of premium provision may be included with which kind of health insurance policy?
disability income
In disability income insurance, the time between the onset of an injury or sickness and when benefits begin is known as:
elimination period
An outline of coverage must be given to the applicant for a long term care policy no later than :
the time of initial solicitation
According to the rights of renewability rider for cancellable policies, all are correct about cancelling an individual insurance policy except:
unearned premiums are retained by the insurance company
If an insurance company makes a statement that its policies are guaranteed by the existence of the insurance guaranty association, that would be considered:
unfair trade practice