Health and Accident***

Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale of a business? -Company becoming insolvent -Death of the business owner - Business owner becoming disabled -Key employee becoming disabled

Business owner becoming disabled

Which of the following claims are typically excluded from Medical expense policies? -Treatment for alcohol addiction -Intentionally self-inflicted injuries -Treatment for mental illness -Injuries sustained from an automobile accident

Intentionally self-inflicted injuries

A policyowner would like to change the beneficiary on an Accidental Death and Dismemberment (AD&D) insurance policy and make the change permanent. Which type of designation would fulfill this need? -Revocable -Contingent -Irrevocable -Primary

Irrevocable (designation may not be changed without the written consent of the beneficiary)

Which of the following characteristics is associated with a large group disability income policy? No waiting periods No medical underwriting No elimination periods No limit of benefits

No medical underwriting

The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as the - Grace Period -Waiting Period -Postponement Period - Elimination Period

Waiting Period

The reason for a business having a Business Overhead Expense Disability Plan is to cover -the cost of providing group disability insurance to the employees -fixed business expenses -the owner's loss of income -all business-related expenses and salaries

-fixed business expenses

The difference between group insurance and blanket health policies is -Blanket health policies do not issue certificates - Group health policies do not issue certificates -Group health plans may be issued to an airline to cover its passengers -Blanket health policies are sometimes called wholesale plans

Blanket health policies do not issue certificates

Which statement is true regarding a minor beneficiary? -Normally, the death proceeds are required to be held in trust until the beneficiary reaches the age of 21 -Normally, a guardian is required to be appointed in the Beneficiary clause of the contract - The minor must pay the debts of the insured's estate before receiving any of the proceeds - The minor is entitled to receive the death proceeds immediately

Normally, a guardian is required to be appointed in the Beneficiary clause of the contract

How does group insurance differ from individual insurance? -Evidence of insurability is required -Premiums are higher - Premiums are lower - Pre-existing conditions not covered

Premiums are lower

T is covered by two health insurance plans: a group plan through his employer and his spouse's plan as a dependent. Under the Model Group Coordination of Benefits provision, when T files a claim, his employer's plan is considered the Principal carrier Surplus carrier Primary carrier Secondary carrier

Primary carrier

Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy? Limited Special risk Reimbursement Blanket

Reimbursement

P is a new employee and will be obtaining non-contributory group Major Medical insurance from her employer. Which of the following actions must she take during the open enrollment period? -Authorize for payroll deductions -Agree to a physical examination - Sign an enrollment card -Register with her state of residency

Sign an enrollment card

The Health Insurance Portability and Accountability Act (HIPAA) gives privacy protection for -insolvency -health information - financial information -overinsurance

health information

Which of these types of coverage is best described as a short term medical policy? - interim coverage -provisional coverage - transitional coverage - conversion coverage

interim coverage

The Coordination of Benefits provision -allows an insured covered by two health plans to make a profit on a covered loss -prevents an insured covered by two health plans from making a profit on a covered loss -allows an insurer to defer paying a claim for a work-related injury until Workers' Compensation Benefits have expired -prevents an insured to change insurers during a claim for a covered loss

prevents an insured covered by two health plans from making a profit on a covered loss