Chapter 5

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

If an insurance company issues a Disability Income policy that it cannot cancel or for which it cannot increase premiums, the type of renewability that best desribes this policy is called

noncancellable

What type of renewability guarantees premium rates and renewability?

noncancellable

the notice of claims provision requires a policyowner to

notify an insurer of a claim within a specified time

which of these is considered a mandatory provision

payment of claims

Which of these do NOT constitute policy delivery?

policy issued with a rating

the underwriting process involves all of these except for

policy loan

which of these statements accurately describes the waiver of premium provision in an accident and health policy

premiums are waived after the insured has been totally disabled for a specified time period

which of the following statements about a guaranteed renewable health insurance policy is correct

premiums normally increase at the time of renewal

the legal actions provision of an insurance contract is designed to do all of the following except

protect the producer

An insurer must provide an insured with claim forms within __ days after receiving notice of a loss.

15

An insured must notify an insurer of a medical claim within how many days after an accident?

20 days

the USA patriot act was enacted in

2001 - cuz the prez was/is a war criminal

S filed a written Proof of Loss for a Disability Income claim on September 1. The insurance company did not respond to the claim. S can take legal action against the insurer beginning

November 1 - 60 days after written proof of loss before legal action can be brought against the company

who is NOT required to sign a life insurance application

beneficiary

a statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as

a representation

in health insurance policies, a waiver of premium provision keeps the coverage in force without premium payments

after an insured has become totally disabled as defined in the policy

When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n)

anti-money laundering violation

When an insurance application is taken by a producer, which of these statements is true?

any changes made on the application require the applicant's initials

health insurance benefits NOT covered due to an act of war are

excluded by the insurer in the contract provisions

An underwriter determines that an applicant's risk should be recategorized due to a health issue. This policy may be issued with a(n)

exclusion for the medical condition

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 owns an Accident & Health policy and notifies her insurance company that she has chosen a less hazardous occupation. Under the Change of Occupation provision, which of the following actions may her insurance company take?

increase her policy's coverage amount

Which of these actions should a producer take when submitting an insurance application to an insurer?

inform insurer of relevant information not included on the application

the clause identifying which losses resulting from an accident or sickness are insured by the policy is called the

insuring clause

what would the medical information bureau identify

testing positive for marijuana use from a previous screening - cuz they're fvckin cvnts

On delivery of a policy, a signed statement of good health is typically requested if

the application was submitted without the initial premium

In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and

the initial premium

G is involved in an automobile accident as a result of driving while intoxicated and suffers numerous injuries. According to the Intoxicants and Narcotics exclusion in G's policy, who is responsible for paying the medical bills?

the insured

J, an Accidental Death and Dismemberment (AD&D) policy holder, dies after injuries sustained in an accident. J's age as stated on the application five years ago was found to be understated by ten years. Which of the following actions will the insurance company take?

the insurer will adjust the benefit to what the premiums paid would have purchased at the insured's actual age

What type of rider would be added to an Accident and Health policy if the policyowner wants to ensure the policy will continue if he/she ever becomes totally disabled?

waiver of premium rider

when does a life insurance contract become effective if the initial premium is not collected during the application process

when producer delivers policy and collects initial premium