Part 5

#50. The insured's health policy only pays for medical costs related to accidents. Which of the following types of policies does the insured have? a) Accident-only b) Restrictive c) Accidental Death d) Comprehensive

a) Accident-only Accident-only policies cover medical benefits related to an accident. Medical conditions related to sickness are not covered.

A health insurance policy lapses but is reinstated within an acceptable timeframe. How soon from the reinstatement date will coverage for accidents become effective? a) Immediately b) After 14 days c) After 21 days d) After 31 days

a) Immediately

Which is NOT true about beneficiary designations? a) The beneficiary must have insurable interest in the insured b) The beneficiary may be a natural person c) The policy does not have to have a beneficiary names in order to be valid d) Trusts can be valid beneficiaries

a) The beneficiary must have insurable interest in the insured

#42. What is the purpose of COBRA? a) To provide continuation of coverage for terminated employees b) To provide coverage for the dependents c) To provide health coverage for people with low income d) To protect the insureds against insolvent insurers

a) To provide continuation of coverage for terminated employees

#41. Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within a) 60 days of a loss. b) 90 days of a loss. c) 20 days of a loss. d) 30 days of a loss.

b) 90 days of a loss. Under the Uniform Required Provisions, proof of loss under a health insurance policy normally should be filed within 90 days of a loss.

When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option? a) Extended term b) Fixed amount c) Fixed period d) Life income period certain

b) Fixed amount

An insured purchased a 15-year term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement? a) $0 b) $100,000 c) $200,000 d) $100,000 plus the total of paid premiums

c) $200,000

#47. What is the purpose of a conditional receipt? a) It serves as proof that the applicant has been determined insurable. b) It is given only to applicants who fully prepay the premium. c) It is intended to provide coverage on a date prior to the policy issue. d) It guarantees that a policy will be issued in the amount applied for.

c) It is intended to provide coverage on a date prior to the policy issue. Coverage commences on the date of the application or the date of a medical examination, whichever is later, on the condition that the applicant is determined to be insurable at the rate applied for.

#48. Which of the following will be included in a policy summary? a) Comparisons with similar policies b) Primary and secondary beneficiary designations c) Premium amounts and surrender values d) Copies of illustrations and application

c) Premium amounts and surrender values A policy summary must be delivered along with the policy and will provide the producer's name and address, the insurance company's home office address, the generic name of the policy issued, and premium, cash value, surrender value and death benefit figures for specific policy years.

In a survivorship life policy, when does the insurer pay the death benefit? a) Half at the first death, and half at the second death b) If the insured survives to age 100 c) Upon the last death d) Upon the first death

c) Upon the last death