Chapter 2 practice questions
All of the following statements concerning accidental death and dismemberment coverage are correct EXCEPT
Death benefits are paid only if death occurs within 24 hours of an accident
A policy that covers medical costs related to a specific condition is called a
Dread Disease policy
Who is involved in completing the agent's report?
Only the agent
Which document helps ensure that full and fair disclosure is provided to recipient of a policy?
Outline of Coverage
An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy?
The capital amount in a lump sum
Which of the following is NOT required for a producer to tell a prospect?
What requirements the producer needed to meet to obtain the insurance license.
A typical Accidental Death & Dismemberment policy covers all of the following losses EXCEPT
income
Most policies will pay the accidental death benefits as long as the death is caused by the accident and occurs within
90 days
A hospital indemnity policy will pay
A benefit for each day the insured is in a hospital.
Which of the following is the most common time for errors and omissions to occur on the part of an insurer?
Policy delivery
When the policy premium wasn't submitted with the application, what should an agent obtain from the insured upon policy delivery?
Statement of good health
Which of the following would an accident only policy NOT cover?
Surgery to repair a wrist damaged by tendonitis.
If an insurer becomes insolvent, which of the following would pay benefits to policyholders?
The Guaranty Association
Which of the following statements regarding conditional receipts is true?
They are temporary insuring agreements
In a group prescription drug plan, the insured typically pays what amount of the drug cost?
co-payment