health insurance exam

d) Coercion.

A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases an insurance policy from the bank in the amount of the loan. This is an example of a) Loading. b) Defamation. c) Twisting. d) Coercion.

d) Commingling.

A producer who fails to separate premium monies from his own personal funds is guilty of a) Larceny. b) Embezzlement. c) Theft. d) Commingling.

b) Low maximum limits.

All of the following are characteristics of a Major Medical Expense policy EXCEPT al Consurance b) Low maximum limits. c) Deductibles d) Blanket coverage.

b) Emergency surgery.

All of the following may be excluded from coverage in a Major Medical Expense policy, EXCEPT al Coverage provided under workers compensation b) Emergency surgery. c) Custodial care d) Cosmetic surgery.

d) Waiver

An insurance company receives an application with some information missing and issues the policy anvway. What is this called? al Estonnel b) Subrogation c) Aleatory d) Waiver

$5,000

An insured has a primary group health plan and an excess plan, each covering losses up to $10,000. The insured suffered a loss of $15,000. Disregarding any copayments or deductibles, how much will the excess plan pay? a) $10,000 b) $7.500 c) $5,000 d) $0

c) No benefits

An insured is involved in a car accident. In addition to less serious injuries, he permanently loses the use of his leg and is rendered completely blind. The blindness improves a month later. To what extent will the insured receive Presumptive Disability benefits? a) Partial benefits b) Full benefits until the blindness lifts c) No benefits d) Full benefits

b) Time of Payment of Claims

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? a) Legal Actions b) Time of Payment of Claims c) Incontestability d)physical exam and autopsy

b) Nothing; illness is not covered during the first 20 days of the contract.

An insured purchased a disability income policy with a 10-year benefit period. The policy stated a 20-day probationary period for illness. If the insured is hospitalized with an illness 2 weeks after the policy was issued, how much will the policy pay? a ItwIll day until the insured is released from the hosdital. b) Nothing; illness is not covered during the first 20 days of the contract. c) The insured will receive a return of premium. d) It wIll Day up to lO vears or benetits.

a) The insurer

An insurer hires a representative to advertise its company at a local convention. The representative lies about the details of some of the policies, in an attempt to secure more business for the company. Who is responsible for the representative's claims? a) The insurer b) The representative c) The underwriters d) The agent

b) Consideration

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? a) Adhesion b) Consideration c) Good faith d) Representation

b) Needs approach.

Attempting to determine how much insurance a family would require based upon their financial objectives is known as al Viatical approach. b) Needs approach. c) human life value anproach d) Estate planning.

d) They are tax deductible.

How are emplover contributions to Health Reimbursement Accounts treated in regards to taxation? a) They are taxed as a regular business expense b) They are treated as income tax for the employer. c) They are excluded from all taxation. d) They are tax deductible.

c) 5 days

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? a) 10 days b) 3 days c) 5 days d) 7 days

d) 45 days

In the event a policy lapses due to nonpayment of premium, within how many days would the policy be automatically reinstated once the outstanding premium is paid? al 10 davs b) 25 davs c) 30 days d) 45 days

a) Are made by the business and are not tax-deductible.

Under a Key Person disability income policy, premium payments a) Are made by the business and are not tax-deductible. b) Are made by the employee and are not tax-deductible. c) Are made by the employee and are tax-free. d Are made by the business and are tax-deductible.

c) The insured.

Under a health insurance policy, benefits, other than death benefits. that have not otherwise been assigned, will be paid to a) Beneficiary of the death benefit. b) The spouse of the insured c) The insured. d)creditors.

b) 90 days of a loss.

Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within a) 60 days of a loss. b) 90 days of a loss. c) 20 days of a loss. d) 30 davs of a loss

d) As long as the policy is in force

What is the maximum period of time during which an insurer may contest fraudulent misstatements made in a health insurance application? a) 90 days after the effective policy date b) 6 months after the effective policy date c) 1 year after the effective policy date d) As long as the policy is in force

a) Implied

Which authority is NOT stated in an agent's contract but is required for the agent to conduct business? a) Implied b) Apparent c) Assumed d) Express

b) The aggregate amount of premiums due

Which of the following does NOT have to be disclosed in a long-term care (LTC) policy? a) Any riders or endorsements b) The aggregate amount of premiums due c) The meaning of the terms "reasonable" and "customary" d) Any limitations or conditions of eligibility for LTC benefits

a) The insurer can increase the policy premium on an individual basis.

Which of the following is NOT a feature of a guaranteed renewable provision? a) The insurer can increase the policy premium on an individual basis. b) The insured has a unilateral right to renew the policy for the life of the contract. c Coverage is not renewable beyond the insured's age 65. d) The insured's benefits cannot be reduced.

a) Counteroffer

Which of the following is NOT an essential element of an insurance contract? a) Counteroffer b Consideration c) Agreement d) Legal purpose

d) To create an estate

Which of the following is the best reason to purchase life insurance rather than an annuity? a) To liquidate a sum of money over a period of years b) To create regular income payments C) To liguidate a sum of monev over a lifetime d) To create an estate

d) Medicare will cover nursing home care if it is part of the treatment for a covered illness.

Which of the following statements is correct? a) Care needed because of aging is covered by Medicare but not by Medicare supplements. b) Care needed because of aging is covered by Medicare. c) Medicare does not pay for nursing home care in any case. d) Medicare will cover nursing home care if it is part of the treatment for a covered illness.

b) Time of Payment of Claims

Which provision states that the insurance company must pay Medical Expense claims immediately? a) Relation of Earnings to Insurance b) Time of Payment of Claims c Payment of Claims d) Legal Actions

A)The pre-existing condition waiting period fulfilled in the old policy will be transferred to the new policy, the new one picking up where the old one left off.

an individual purchased a Medicare supplement policy in March and decided to replace it 2 months later. His history of coronary artery disease is considered a pre-existing condition. Which of the following is true? A)The pre-existing condition waiting period fulfilled in the old policy will be transferred to the new policy, the new one picking up where the old one left off. B)Coronary artery disease coverage will be permanently excluded from the new policy. C) In replacement, pre-existing conditions must be waived, so sickness relating to coronary artery disease will be covered upon the policy's effective date. D) Because this is a new policy, the pre-existing condition waiting period starts over.