Accident and Health Insurance Basics Test Questions

Most health insurance policies exclude all of the following EXCEPT: Occupational injury Injury due to war Accidental injury Intentional injury

Accidental Injury

Any death benefit under a health insurance contract is limited to deaths caused by: Accidental injury, cardiovascular and renal-impairment diseases Dread diseases Accidental injury and cardiovascular diseases only Accidental injury only

Accidental injury only

The pre-existing Condition Exclusion in disability insurance is designed to protect the insurance company against: Over-utilization Adverse selection Malingering Over-insurance

Adverse Selection

In order to comply with Fair Credit Reporting Act, at which times must a producer notify an applicant that a credit report may be requested: When the policy is delivered At the time of the application When the applicant's credit is actually checked At the initial interview

At the time of the application

A specified policy would cover which of the following: Insured throws out their back Cancer Liposuction Broken leg

Cancer

Policy delivery refers to the delivery of the: Insurance policy cost disclosure materials to the applicant Completed insurance policy to the applicant Premium and receipt for the insurance policy to the agency office Completed application for the insurance policy to the agency office

Completed insurance policy to the applicant

A limited health insurance policy that will pay a lump-sum to the insured if they are diagnosed with life-threatening cancer, stroke, heart attack or Alzheimer's disease is known as: Dread Disease insurance Accidental Death and Dismemberment Hospital Confinement Indemnity Critical illness insurance

Critical illness insurance

Which statement about a Conditional Receipt is true: It guarantees that the applicant is acceptable to the insurance company It is used to purchases temporary insurance that terminates in six months It is an interim insuring agreement It becomes part of the policy

It is an interim insuring agreement

All of the following are true when the producer recommends that their client switch from one individual medical expense policy to another in order to obtain a lower premium, EXCEPT: The time limit on certain defense clauses starts over The probationary period could start over It is an unlawful practice known as "replacement" It could be grounds for errors and omissions

It is an unlawful practice known as "replacement"

A producers underwriting responsibility would include which of the following: Making sure all material facts are included in the application Insuring a binder Insuring the policy Ordering the Medical Information Bureau (MIB) report

Making sure all material facts are included in the application

Under the Fair Credit Reporting Act, persons rejected for insurance, employment or credit due to information contained in a consumer report: Must be advised that a copy of the report is available to anyone who requests it Are entitled to obtain a copy of the report from the party who ordered it Must sue the reporting agency in order to get inaccurate data corrected Must be informed of the source of the report

Must be informed of the source of the report

An underwriter could most likely use all of the following sources of underwriting information when evaluating the insurability of an applicant, EXCEPT: Physical exam report National Association of Health Underwriters (NAHU) MIB Application

National Association of Health Underwriters (NAHU)

On an Accidental Death and Dismemberment (AD&D) policy, the death benefit payable is known as the: Face amount Principle sum Capital sum Policy limit

Principle sum

Which of the following could an underwriter not use when determining the insurability of an individual: Results from genetic testing Producers report MIB report Attending physician statement

Results from genetic testing

A persons eligibility for Workers Compensation coverage is determined by the: Insurer Claimant Insurance Director or Commissioner State

State

The insuring clause of a disability policy usually states all of the following EXCEPT: The identities of the insurance company and the insured The insurance against loss is provided The method of premium payment That a loss must result directly from stated accidents or sickness

The method of premium payment