Practice L&H Exam
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?
Consideration The binding force in any contract is consideration. Consideration on the part of the insured is the payment of premiums and the health representations made in the application. Consideration on the part of the insurer is the promise to pay in the event of loss.
What is another name for interest-sensitive whole life insurance?
Current assumption life. Interest, sensitive whole life, also referred to as current assumption life, is a whole life policy that provides a guaranteed death benefit to age 100.
Which of the following is considered a qualifying event under COBRA
Divorce. Other qualifying events include the voluntary termination of employment; an employee's change from full time to part time; or the death of the employee.
There you go Darren and Agent is ready to deliver a policy to an applicant, but has not yet received payment. Upon delivery, the agent collects the applicants, premium check, answer any questions applicant may have, and then leaves. What did he forget to do?
He forgot to ask her to sign a statement of good health. If the premium is not collected and saw the policy is delivered, the agent must receive a statement of good health, which acknowledges that the insurance health status has not changed, since the policy was approved.
When would a misrepresentation of the insurance application be considered fraud?
If it is intentional and material
Which of the following riders would not increase the premium for a policy owner?
Impairment rider. The impairment writer, excuse as specified condition from coverage, therefore, reducing benefits. As insurance company will not charge extra for a rider that reduces benefits.
The type of dental plan which is incorporated into a major medical expense plan is an
Integrated dental plan
Which of the following is true about the 10 day free look period in life insurance policy?
It begins when the policy is delivered. The 10 day free look provision is a mandatory provision that allows the insured to examine a policy, and if dissatisfied, for any reason, return the policy for a full refund of any premiums paid.
Which of the following is true about the premium on the children's writer in a life insurance policy?
It remains the same amount how many children are added to the policy. The premium does not change on the inclusion of additional children; it is based on an average number of children.
A writer attached to a life insurance policy that provides coverage on the insurance family members is called the
Other insured rider. The other and shirt writer is useful in providing insurance for more than one family member. The type of insurance offered by this writer is usually time insurance, with the right to convert to permanent insurance.
And insured pays her major medical insurance premium annually on March 1. Last March she forgot to mail her premium to the company. On March 19, she had an accident and broke her leg. The insurance company would.
Pay the claim. Because the accident occurred during a grace period, the insurance company will pay the claim.
The following would be qualified as a dependent under the dependent care flexible spending account
Person who cannot dress, clean, or feed themselves, because of physical or mental problems, are considered not able to care for themselves. Also, persons who have constant attention to prevent them from injuring themselves, or others are considered not able to care for themselves.
Define provision is mandatory for health insurance policies
Physical examination and autopsy. They are mandatory provision required by law.
The following statements about suicide clause in a life insurance policy is true
Suicide is excluded for a specific period of years and covered there after. In most states, if death results from suicide within a certain period, the insurer is not obligated to pay the death benefit.
The interest earned on policy dividends is
Taxable. Dividends are a return of unused premiums on which the insured has already paid taxes. Any interest earned is taxable as ordinary income.
Who bears all the investment risk in a fixed annuity?
The insurance company. Fixed annuities guarantee a minimum amount of interest to be credited to the purchase payment. Income payments do not vary from one payment to the next. The insurance company can afford to make guarantees because the money of a fixed annuity is placed in the general account of the insurance company, which is part of its investment portfolio. The company makes conservative enough investments to insure a guaranteed rate to the annuity owners.
And Agent is in the process of replacing the insurance current health policy with a new one. Which of the following would be a proper action?
The old policy should stay in force until the new policy is issued.
Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child with a parent is the policy owner
Third-party ownership. Contacts that are owned by someone other than insurance oh, known as third-party ownership. Most policies involving third-party ownership, Saarinen business situation, or for minors in which the parent on the policy.
The following statement is correct about Social Security
To be eligible, one must meet certain requirements. A person must have been employed in a job that is covered under Social Security, or the spouse, of a deceased covered worker.
Social Security was created to provide all of the following benefits, except
Unemployment income. Social Security is designed to provide protection against financial loss, due to old age, disability, or death. It also provides income during retirement.
But it was for a group, medical and dental expense insurance, what percentage of premium paid by the employer is deductible as a business expense?
100%, for group, medical and dental expenses Sherance any premium paid by the employer is deductible as a business expense.
