Health&Life Ch16 Test
Which of the following provisions specifies for how long a policyowner's health coverage will remain in effect if the policyowner does not pay the premium when it is due?
Grace Period
Which type of renewability best describes a disability Income policy that covers an individual until the age of 65 but the insurer has the right to change the premium rate for the overall risk class?
Guaranteed Renewable
X is insured with a disability income policy that provides coverage until age 65. This policy allows the insurer to change the premium rate for the overall risk class assigned. Which of these renewability features does this policy contain?
Guaranteed Renewable
An insurer must provide an insured with claim forms within ___ days after receiving notice of a loss.
Maximum of 15 days
A disability Income policy that only the policyowner can terminate and which the rates will never go up is considered to be
Noncancellable
P is a Major Medical policyowner who is hospitalized as a result of injuries sustained from participating in a carjacking. How will the insurer most likely handle this claim?
claim will be denied
What type of renewability guarantees premium rates and renewability?
noncancellable
The legal actions provision of an insurance contract is not designed to do what?
protect the producer
With Optionally Renewable Health policies, the insurer may
review the policy annually and determine whether or not to renew it
When an insured changes to a more hazardous occupation, which disability policy provision allows an insurer to adjust policy benefits and rates?
Change of Occupation Provision
An insured pays premiums on an annual basis for an individual health insurance policy. What is the MINIMUM number of days for the grace period provision?
31
Which of the following statements describes what an Accident and Health policyowner may NOT do?
Adjust the premium payments
Which of the following statements best describes what the legal actions provision of an accident and health policy requires?
An insured must wait atleast 60 days after proof of loss has been submitted before a lawsuit can be filed
A Disability Income policyowner recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the application was taken 5 years prior. The neck injury was never disclosed to the insurer at the time of application. How will the insurer handle this claim?
Claim will be paid and coverage will remain in force
An insurance company receives E's application for an individual health policy. E did not complete all of the medical history questions because she could not remember the exact dates. E signed the policy and submitted it to the insurance company anyway. A few weeks later, E suffers a heart attack and is hospitalized without completing the medical history questions and paying the initial premium. E is not insured. Which of the following clauses details the conditions that E did not meet?
Consideration Clause
"A producer does not have the authority to change a policy or waive any of its provisions". The health provision that best describes this statement is called the
Entire Contract
Which of the following is considered to be the time period after a Health Policy is issued, during which no benefits are provided for illness?
Probationary Period
After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?
file written proof of loss
T applied for a Disability Income policy and has a history of back injuries. The insurer issued the policy with a statement that excludes coverage for back injuries. This statement is called a(n)
impairment rider
What is considered to be a characteristic of a Conditionally Renewable Health Insurance Policy?
premiums may increase at time of renewal
