health and life

Which needs to have an insurable interest for an underwriter to issue an insurance policy?

Beneficiary

Which of the following will have to meet an insurable interest requirement in order for a policy to issue?

Beneficiary

Life insurance underwriters look at a variety of factors when determining the acceptance of an applicant. These factors can include:

Health history Occupation Hobbies

Which of the following is a rider that allows a terminally ill person to access at least a portion of the death benefit proceeds prior to death?

Living benefit A living benefit on a life insurance policy is typically a policy rider that allows an insured who has a qualifying terminal illness to access some or all of the death benefit proceeds in order to pay medical bills or other financial obligations. The death benefit proceeds on the policy will be reduced by the amount that is accessed by the insured.

Living benefits on a life insurance policy can be typically be accessed via

Lump sum or. Regular installments With the installment method, the insured may wish to use these funds to pay his or her ongoing monthly bills

What type of notice is used to show all of the services or supplies that were billed to Medicare during a 3-month period, what Medicare paid, and what the patient may owe the provider?

MSN

As a marketing tool, Ted, a health insurance agent, offered to send an applicant and his wife on a weekend vacation to a local resort to induce the applicant to purchase a policy. Is this practice permitted and, if not, what is it called? No; Rebating No; Bait and switch No; Twisting

NO Twisting

As a professional surgeon, which type of disability coverage would offer the most liberal definition of benefit triggers for the policy holder in terms of benefit receipt if the insured were to break his or her hand?

Own occupation

The components of a long-term care insurance policy include all of the following EXCEPT: a. Elimination period b. Benefit amount c. Own occupation d. Benefit duration

Own occupation Own occupationis a type of benefit trigger that is found in a disability insurance policy, not in long-term care insurance policies. An elimination period in a long-term care insurance policy is the number of days that an insured must pay for their care after a qualifying claim, but before benefits begin to pay (such as with a deductible). The benefit duration in a long-term care policy states how long benefits will be paid to an insured, and the benefit amount may be stated either as a daily or monthly amount. (Some recent long-term care insurance plans also offer a lump-sum benefit payout option).

What life insurance should always be used in buy / sell agreements.

Permanent life insurance should be used with buy / sell agreements in order to ensure that the insured will not need to re-qualify for life insurance after a certain amount of time elapses.

When constructing a major medical insurance policy, several criteria must be established, including

Policy deductible and Maximum out-of-pocket amount

Interest-sensitive whole life insurance is appropriate life insurance coverage for which group of individuals?

Potential insureds requiring permanent insurance and desire a fixed premium. Interest-sensitive whole life insurance is most desirable for those insureds who need coverage for a lifetime, starting as early as an infant. A big selling factor for this coverage is that the premium will not change despite health changes over the course of the policy.

Jack and his wife Lyn just purchased a home with a 15-year mortgage. Wanting to make sure that Lyn would be able to pay off the mortgage balance in the event of Jack's death, Jack had a "temporary" need for life insurance. What type of policy should Jack purchase?

Term Life Insurance

Ralph obtained a very basic life insurance policy from his local agent. His policy will expire on a set date, and his benefits from the policy are determined at the date he purchased coverage. What type of life insurance policy did Ralph purchase?

Term life

What will happen if an insured decides he or she no longer would like to make payments on a traditional whole life policy and ask the carrier to cancel the policy?

The insured would collect part of the premium already paid to the carrier

Which of the following is not a form of health insurance? I. Dental insurance II. Vision insurance III. Disability insurance IV. Long-term care insurance

They all All are types of health insurance

All of the following are parties to a life insurance contract EXCEPT: Insurer Underwriter Beneficiary Owner Insured

Underwriter Beneficiary Owner

Which type of life insurance is considered to be more risky based on its investment component?

Variable Life Insurance

Which type of life insurance policy has the key advantage of being able to take premium dollars and invest it in multiple types of investment options?

Variable life insurance

John, who had a life insurance policy with a death benefit, died on August 31st, after a long bout with cancer. He had been hospitalized for a month before his death. His wife contacted the insurance company to file her claim for the death benefit on September 5th, after John's burial, and after she had time to collect her emotions to deal with her personal loss. The insurance agent filed the papers to process the claim with his supervisor, and the death benefit was settled on October 30th. Were any laws violated in this scenario?

Yes, the claim was not settled within 30 days of the claim.

Margaret is 23 years of age and new to the workforce. She was approached by her human resources department to purchase life insurance. Margaret thought at her age she would just get a basic policy and wanted to pay the *lowest amount possible for coverage. She also, however, knew that *she would want to up her coverage as she got older. What would be a good option for Margaret?

annual renewable term life insurance policy. This type of policy typically is the lowest in premiums at such a young age. The insured would be able to renew the policy after each year if it still fit her needs.

A __________ is the amount that an insured person is expected to pay for a medical expense at the time of the visit.

co-payment

What is the most common component in all life insurance policies?

death benefit

Permanent life insurance policies always have two components. What are they?

death benefit and cash value

Adjustable life insurance policies differ from other life insurance policies in what way?

do not require the insured to purchase additional coverage or cancel when they have a life change

A long-term care insurance policy's elimination period is _____ that the insured must pay for services out-of-pocket until the insurance coverage begins to pay.

the number of days

Tamara was tight with money one month due to unforeseen bills. She was worried she would not be able to pay her life insurance premium that month and risk coverage being cancelled. Tamara could use the *interest gained on the policy to pay this premium due if she had what type of life insurance?

universal life insurance, the insured would be able to take from the interest accrued on the policy and use that money to pay the premium due. Universal life insurance is also appealing to policyholders because they can amend their savings plans, premiums, and death benefits if any life changes occur.

Universal life insurance is different from whole life in a couple areas. One important difference potential insureds should be aware of is that with universal life, the cash value from investments grows at what rate?

At a variable rate that is adjusted monthly

Tyler is a newly married 33-year-old who is talking to an agent about purchasing a life insurance policy for him and his wife. Tyler is nervous to commit to a policy as he is young and unsure of how much he can afford to pay in premiums in case of a job or life change. What type of policy may Tyler's agent suggest to help ease Tyler's *fear of committing to a policy for life*?

An adjustable life insurance policy

On a health insurance claim form, the exact procedures that were performed for the insured are represented by standard codes that are referred to as

CPT

All of the following can be considered life-changing events that could result in a change in the amount of life insurance coverage needed EXCEPT: I. Birth of a child II. Divorce III. Marriage IV. Change in job title

Change in job title While a new job with a drastic change in income and / or hazardous duties could result in a change of life insurance coverage needs, simply changing job titles will not.

The insured party has no part in determining the wording of an insurance contract. In this respect, insurance contracts are considered to be

Contracts of Adhesion

What type of life insurance proceeds may be used for the following purposes:I. To find, replace, and train a new employee or executiveII. To fund other corporate debt obligationsIII. To redeem the deceased employee's stock

Corporate owned life insurance

The "deductible" in a long-term care insurance policy is referred to as the

Elimination period

Which type of life insurance policy is typically less expensive than a variable policy? This type of life insurance policy also offers the benefit of higher security against a decline in stock market values.

Equity-indexed universal life policy

The amount that is paid to the policy beneficiary upon the death of the insured. Should a permanent life insurance policy holder decide to cancel the policy prior to the insured's death, they will receive the amount of the cash surrender value.

Death benefit value

Richard is 58 years of age and is looking for a new life insurance policy. Richard's future plans are to retire in 3 years and downsize his house to better suit his needs as his children are all out of house. What type of policy may Richard be interested in purchasing?

Decreasing term insurance

A business client is looking for ways to decrease its monthly premiums. To get down to the premium level sought after by the company, the agent realizes they have to go to a high deductible health plan. As part of your advice to the business, what should you include in your discussion?

Health savings accounts (HSA) are used with high deductible health insurance policies. With an HSA, money that is saved on the premium may be put into the account and then funds are used for certain medical fees. Because the funds in the HSA account can be used for medical services, participants often use them for un-covered procedures such as chiropractic visits or other health-related services that are not covered by their insurance policy.

Mary and John are a newly married couple who are meeting with an agent to purchase a life insurance policy. The couple wants to pay a low premium for now because they are young with no dependents. Mary and John, however, plan to one day have children and want a policy whose coverage will grow as their lives change. What policy may Mary and John's agent suggest for their needs?

Increasing term life insurance

A(n) __________ in an insurance contract is a statement by the issuing insurance company that sets out the essential element of insurance - to pay for losses covered in the policy.

Insuring clause

Traditional whole life policies are a type of insurance policy that will provide coverage only under what circumstance?

It is for the entire life of the insured

What deals with a set of relationships where one person is authorized to act on behalf of another in order to create a legal relationship with a third party.

Law of agency

Sara was researching life insurance policies to see which was best to fit her needs. She was interested in a premium that would not change over time but also wanted to avoid the hassle of having to search for a new policy each year. What type of policy would fit Sara's needs?

Level premium term

Which type of policy should an insured obtain if he or she *does not want to continue making premium payments after a set number of years*?

Limited-pay life insurance