Practice Questions XCEL (Section 4-6 (14-16))

When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n).... A. Elimination B. Exclusion C. Limitation D. Exception

B. Exclusion

N is a student pilot with a large life insurance policy. Which of these features would limit the insurer's obligation in the event N was killed while flying as a student pilot? A. Misrepresentation B. Exclusion C. Collateral assignment D. Concealment

B. Exclusion (not cover)

Medicare Part B does NOT pay for... A. Occupational therapy B. Inpatient hospital services C. Physician and surgeon services D. Medical equipment rental

B. Inpatient hospital services

Which of the following types of care is typically not covered in a Long-Term Care policy? A. Acupuncture B. Skilled care C. Home Health care D. Custodial care

A. Acupuncture

N is covered under an individual Disability policy with a 30-day Elimination period and a monthly benefit of $500. N is totally disabled for 3 1/2 months. N's total benefit received on this claim is?

$1,250 (After the 30-day Elimination period has been satisfied, the total benefit paid on this claim is $1,250 ($500+$500+$250).)

The Consideration clause in an insurance policy indicates that a policyowner's consideration consists of a completed application and... A. The initial premium B. Agreeing to a physical examination C. Delivery of policy D. Disclosure of any medical conditions

A. The initial premium

Medicare is intended for all of the following groups EXCEPT A. Those enrolled as a full-time student B. Those receiving Social Security disability benefits for at least 24 months C. Those afflicted with chronic kidney failure D. Those 65 and older

A. Those enrolled as a full-time student

Periodic health claim payments MUST be made at least A. monthly B. weekly C. daily D. annually

A. monthly

The Notice of Claims provision requires a policyowner to A. provide proof of loss to an insurer within a specified time B. notify an insurer of a claim within a specified time C. wait 60 days after filing a claim to initiate a lawsuit against an insurer D. notify their physician of a claim within a specified time

B. notify an insurer of a claim within a specified time

Non-occupational disability coverage is designed for: A. 24 hour protection B. those who are exempt from Workers' Compensation coverage C. sole proprietors and self-employed individuals D. employees who suffer non-work related disabilities, since work-related disabilities are covered by Workers' Compensation

D. employees who suffer non-work related disabilities, since work-related disabilities are covered by Workers' Compensation

When does a Probationary Period provision become effective in a health insurance contract? A. At the policy's inception B. 30 days after the policy's inception C. When a claim is submitted D. When a covered loss occurs

A. At the policy's inception

The guarantee of insurability option provides a long-term care policyowner the ability to... A. Buy additional coverage at a later date B. Add the insured's spouse at a late date C. Pay the same premium for life D. Cancel the policy at anytime

A. Buy additional coverage at a later date

N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15. What action will the insurer take? A. Claim will be denied B. Claim will be paid in full C. Claim will be partially paid D. Claim will be decided by an arbitrator

A. Claim will be denied

A Disability income policyowner recent submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the application was take 5 years prior. The neck injury was never disclosed to the insurer at the time of application. How will the insurer handle this claim? A. Claim will be paid and coverage will remain in force B. Claim will be denied and coverage will be remain in force C. Claim will be denied and coverage will be cancelled D. Claim will be denied, the coverage cancelled, and all premiums paid will be refunded

A. Claim will be paid and coverage will remain in force

How do life insurance companies handle cases where the insured commits suicide within the contract's stated Contestable period? A. Claims are denied under the Suicide clause of the policy B. Company pays twice the face amount under the double indemnity clause C. Claims are paid in full D. Premiums are returned under the Consideration clause

A. Claims are denied under the Suicide clause of the policy

Which statement regarding the Misstatement of Age provision is considered to be true? A. Coverage will be adjusted to reflect the insured's true age if a misstatement of age is discovered B. Requires that a new policy must be applied for if a misstatement of age is found on the current policy C. Misstatement of Age provision is valid only during the contestable period D. Insurer may void the policy if a misstatement of age is discovered

A. Coverage will be adjusted to reflect the insured's true age if a misstatement of age is discovered

Medicare Part A and Part B do NOT pay for... A. Dental work B. Hospitalization C. Skilled nursing care D. Physical care

A. Dental work

When an insurance company sends a policy to the insured with an attached application, the element that makes the application part of the contract between the insured and the insurer is called the... A. Entire Contract provision B. Insuring clause C. Time Limit on Certain Defense provision D. Legal Contract clause

A. Entire Contract provision (it states that the application and policy contain all provisions and constitute the entire contract)

Insurance benefits not covered due to an act of war are... A. Excluded by the insurer B. Assigned to a reinsurer C. Given a longer probationary period D. Charged at a higher premium

A. Excluded by the insurer

With any insurance policy, what is the purpose of the Grace Period? A. Gives the policyowner additional time to pay past due premiums B. Gives the policyowner additional time to file a lawsuit C. Gives the policyowner additional time to file a claim D. Gives the policyowner additional time to provide proof of loss

A. Gives the policyowner additional time to pay past due premiums

Which of the following provisions specifies how long a policyowner's insurance coverage will remain in effect if the policyowner does not pay the premium when it is due? A. Grace Period B. Consideration C. Waiver of Premium D. Reinstatement

A. Grace Period

B purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this? A. Guaranteed insurability rider B. Additional coverage rider C. Paid-up option rider D. Extended insurability rider

A. Guaranteed insurability rider

Which of the following insurance policy provisions specifies the benefits or services a policy will provide? A. Insuring clause B. Usual, Customary, and Reasonable clause C. Consideration clause D. Benefit clause

A. Insuring clause

Which of these is considered a mandatory provision? A. Payments of Claims B. Insurance with Other Insurers C. Misstatement of Age D. Change of Occupation

A. Payments of Claims (this is considered a mandatory provision and directs where the claim benefits will go. The others are considered optional provisions)

R had received full disability income benefits for 6 months. When he returns to work, he is only able to resume half his normal daily workload. Which provision pays reduced benefits to R while he is not working at full capacity? A. Residual Disability B. Recurrent Disability C. Presumptive Disability D. Occupational Disability

A. Residual Disability

What does the ownership clause in a life insurance policy state? A. Who the policyowner is and what rights the policyowner is entitled to B. Who the beneficiary is and what rights the beneficiary is entitled to C. Ownership cannot be assigned after the incontestable period D. Allows the policyowner to adjust the death benefit and premium amount at anytime

A. Who the policyowner is and what rights the policyowner is entitled to

An insurer receives proof of loss for an acceptable medical expense claim under an Individual Health Insurance Policy. Under the Time of Payment of Claims provision, the insurer MUST pay the benefits A. immediately B. within a maximum of three months C. within a reasonable amount of time D. at least monthly

A. immediately (Under the Time of payment of Claims provision, the insurer must pay the benefits immediately after receiving proof of lose)

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 describes this policy is called A. noncancellable B. conditionally renewable C. cancellable D. guaranteed renewable

A. noncancellable

A disability elimination period is best described as a A. time deductible B. dollar deductible C. eligibility period D. probation period

A. time deductible

An assignment of benefits of a Health Policy A. transfers payments to someone other than the policyowner B. is prohibited by state law C. is allowed only on policies date after 1992 D. transfers rights from the company to the policyholder

A. transfers payments to someone other than the policyowner

Under a Long Term Care policy, which benefit would be typically excluded or limited? A. Intermediate nursing B. Skilled nursing C. Home health care D. Alcohol rehabilitation

Alcohol rehabilitation (Addictive behavior rehabilitation is normally excluded or limited under a Long Term Care policy.)

Monthly-premium Individual health insurance policies must provide a grace period of at least... A. 7 days B. 10 days C. 14 days D. 31 days

B. 10 days

What is the minimum number of Activities of Daily Living (ADL) an insured must be unable to perform to qualify for Long Term Care benefits? A. 1 B. 2 C. 3 D. 4

B. 2

An insured must notify an insurer of a medical claim within how many days after an accident? A. 10 B. 20 C. 30 D. 40

B. 20

A "reimbursement policy" pays what amount of covered Long-Term Care expenses? A. All expenses regardless of the policy limits B. Actual covered expenses up to the daily maximum C. A daily dollar amount regardless of the actual incurred expenses D. The usual, customary, and reasonable expenses regardless of the the policy limits

B. Actual covered expenses up to the daily maximum

When an insured changes to a more hazardous occupation, which disability policy provision allows an insurer to adjust policy benefits and rates? A. Relation of earnings to insurance provision B. Change of occupation provision C. Conformity of state statutes provision D. Modified occupation provision

B. Change of occupation provision

Which health policy clause stipulates that an insurance company must attach a copy of the application to the policy to ensure that it is part of the contract? A. Consideration B. Entire Contract C. Free-look D. Insuring

B. Entire Contract (The Entire Contract provision states that the health insurance policy, together with a copy of the signed application and attached riders and amendments, constitutes the entire contract)

The health insurance program which is administered by each state and funded by both the federal and state governments is called... A. Long-term care B. Medicaid C. Medicare Supplemental Program D. Medicare

B. Medicaid

Which of these is NOT considered to be a right given to a policyowner? A. Surrendering the policy's cash value B. Modify a provision in the insurance contract C. Assignment of ownership D. Change the beneficiary, if revocable

B. Modify a provision in the insurance contract

The Notice of Claims provision requires a policyowner to... A. Provide proof of loss to an insurer within a specified time B. Notify an insurer of a claim within a specified time C. Wait 60 days after filing a claim to initiate a lawsuit against an insurer D. Notify their physician of a claim within a specified time

B. Notify an insurer of a claim within a specified time

What is the purpose of the Time of Payment Claims provision? A. Requires the insured to wait 60 days after submitting Proof of Loss before filing a lawsuit B. Prevents delayed claim payments made by the insurer C. Requires a probation period for each claim filed by the insured D. Protects the insurer from frivolous lawsuits

B. Prevents delayed claim payments made by the insurer

K failed to pay a renewal premium within the time granted by the insurer. K then sends in a payment which the insurer subsequently accepts. Which policy provision specifies that coverage may be restored in this situation? A. Free-look B. Reinstatement C. Grace Period D. Consideration

B. Reinstatement (In this situation, coverage may be restored under the reinstatement provision)

S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy? A. Accelerated death benefit rider B. Return of premium rider C. Family income rider D. Term rider

B. Return of premium rider

What is the Suicide provision designed to do? A. Decline an applicant who is contemplating suicide B. Safeguard the insurer from an applicant who is contemplating suicide C. Protect the insurer from ever paying a claim that results from suicide D. Allows the insurer the potion to pay a death benefit in the event of suicide

B. Safeguard the insurer from an applicant who is contemplating suicide

Which of the following statements describes the purpose of the Insuring clause in an insurance policy? A. Specifies the additional time given to pay past due premiums B. States the scope and limits of the coverage C. Specifies a claim will be paid immediately upon receipt of proof of loss D. Prohibits the insured from suing the insurer for at least 60 days after filing a written proof of loss

B. States the scope and limits of the coverage

What should an insured do if the insurer does not send claims forms within the time period set forth in a health policy's Claims Forms provision? A. File a lawsuit B. Submit the claim in any form C. Wait for the claim form to arrive D. Resubmit the request for a claim form

B. Submit the claim in any form

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? A. The reinsurer B. The insured C. The insurer D. The Guaranty Association

B. 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? A. The insurer will pay the original benefit stated in the policy B. The insurer will adjust the benefit to what the premiums paid would have purchased at the insured's actual age C. The insurer will pay the original face amount minus any premium deficiencies owed D. The insurer will deny the claim and refund premiums paid

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

T files a claim on his Accident and Health policy after being treated for an illness. The insurance company believes that T misrepresented his actual health on the initial insurance application and is, therefore, disputing the claim's validity. The provision that limits the time period during which the company may dispute a claim's validity is called... A. Insuring B. Time Limit on Certain Defenses C. Grace Period D. Free-look

B. Time Limit on Certain Defenses

If an individual has an Accidental Death and Dismemberment policy and dies, an autopsy can be performed in all these situations EXCEPT... A. When the cause of death is unknown B. When the state prohibits this by law C. When consent for the autopsy is not obtained D. When foul play was a contributing factor

B. When the state prohibits this by law (Applicable state laws that prevent an autopsy take precedence)

An insured owns an individual Disability Income policy with a 30-day Elimination Period for sickness and accidents and a monthly indemnity benefit of $500. If the insured is disabled for 3 1/2 months, what is the MAXIMUM amount he would receive for an approved claim? A. $500 B. $1,000 C. $1,250 D. $1,750

C. $1,250

T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. Five years later, T commits suicide. How much will the insurer pay? A. The total premiums paid minus any policy loans B. Nothing C. $50,000 D. $100,000

C. $50,000

What is the maximum Social Security Disability benefit amount an insured can receive? A. 50% of the insured's Primary Insurance Amount (PIA) B. 75% of the insured's Primary Insurance Amount (PIA) C. 100% of the insured's Primary Insurance Amount (PIA) D. 100%% of the insured's Primary Insurance Amount (PIA) minus any monies received from a retirement plan

C. 100% of the insured's Primary Insurance Amount (PIA)

M's insurance company denied a reinstatement application for her lapsed health insurance policy. The company did not notify M of this denial. How many days from the reinstatement application date does the insurance company have to notify M of the denial before the policy will be automatically placed back in force? A. 10 days B. 30 days C. 45 days D. 60 days

C. 45 days

The individual most likely to buy a Medicare Supplement policy would be a(n) A. Unemployed 64-year old female B. 62-year old male covered by Medicaid C. 68-year old male covered by Medicare D. Uninsured 60-year old male

C. 68-year old male covered by Medicare

L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of Age provision, the insurer will... A. Pay the death benefit in full B. Adjust the death benefit to an increased amount C. Adjust the death benefit to a reduced amount D. Deny the claim

C. Adjust the death benefit to a reduced amount

Which of the following statements BEST describes what the Legal Actions provision of an Accident and Health policy requires? A. An insured must settle a claim within 60 days after Proof of Loss is submitted B. An insured must wait at lest 30 days after Proof of Loss has been submitted before a lawsuit can be filed C. An insured must wait at least 60 days after Proof of Loss has been submitted before a lawsuit can be filed D. An insured must settle a claim within 30 days after Proof of Loss is submitted

C. An insured must wait at least 60 days after Proof of Loss has been submitted before a lawsuit can be filed

P died five years after purchasing a life policy. While investigating the claim, the insurer discovered material misrepresentations made by P during the application process. Which of these actions will the insurer take? A. Beneficiary will be denied the claim B. Beneficiary will be denied the claim and refunded all paid premiums C. Beneficiary will be paid the Death Benefit D. Beneficiary will be paid a partial Death Benefit

C. Beneficiary will be paid the Death Benefit

Which of the following policy provisions states that the producer does NOT have the authority to change the policy or waive any of its provisions? A. Time Limit on Certain Defenses B. Reinstatement C. Entire Contract D. Change of Beneficiary

C. Entire Contract

Which provision prevents an insurer from changing the terms of the contract with the policyowner by referring to documents not found within the policy itself? A. Policy Exclusion B. Incontestable C. Entire Contract D. Assignment

C. Entire Contract

Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE? A. Coverage can be added at specific events such as marriage or having a child B. Evidence of insurability is not required when the option is exercised C. Evidence of insurability is required when the option is exercised D. Coverage can be added at specific ages

C. Evidence of insurability is required when the option is exercised

Long Term Care policies will usually pay for eligible benefits using which of the following methods? A. Delayed B. Fee for service C. Expense incurred D. Respite

C. Expense incurred

An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period? A. Refund of all premiums paid, plus interest B. Refund of all premiums paid C. Full face amount minus any past due premiums D. Full face amount

C. Full face amount minus any past due premiums

All of these statements about the Waiver of Premium provision are correct EXCEPT... A. A waiting period must pass before becoming eligible for benefits B. A Waiver of Premium is available on both permanent and term insurance policies C. Insured must be eligible for Social Security disability for claim to be accepted D. Insured must be totally disabled to qualify

C. Insured must be eligible for Social Security disability for claim to be accepted

The agreement in an insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called... A. Entire Contract provision B. Consideration clause C. Insuring agreement D. Assignment agreement

C. Insuring agreement

D, the beneficiary under her husband's AD&D policy, submits an accidental death claim on May 1, 2010, following his death. However, the company denies the claim on the basis that death was due to natural causes. She decides to talk to her attorney. What is the earliest date for taking legal action against the insurer? A. May 2, 2010 B. June 1, 2010 C. July 1, 2010 D. May 1, 2011

C. July 1, 2010

If a retiree on Medicare required five hospital stays in one year, which policy would provide the best insurance for excess hospital expenses? A. Long-term care B. Indemnity C. Medicare Supplement D. Medicaid

C. Medicare Supplement

Which of these statements concerning an individual Disability Income policy is TRUE? A. Premiums are normally tax-deductible B. Age of the insured determines the amount of the benefits C. Normally includes an Elimination period D. Benefits are normally taxable

C. Normally includes an Elimination period

P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability? A. P cannot borrow against the policy's cash value while disabled B. P will have to pay income taxes on the amount of premiums waived C. P will still receive declared dividends D. P cannot assign ownership of the policy while premiums are being waived

C. P will still receive declared dividends

M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take? A. Collect premium from M's estate B. Deny the claim C. Pay face amount minus the past due premium D. Subtract past due premium from cash value

C. Pay face amount minus the past due premium

J let her life insurance policy lapse 8 months ago due to nonpayment. She can reestablish coverage under which of the following provisions? A. Payor clause B. Automatic Premium Loan provision C. Reinstatement provision D. Waiver of Premium

C. Reinstatement provision

When a person returns to work after a period of total disability but cannot earn as much as he or she did before the disability, this situation is called which of the following? A. Waiver of premium B. Recurring disability C. Residual disability D. Presumptive disability

C. Residual disability

What does a Guaranteed Insurability rider provide a Disability Income policyowner? A. The guarantee that the premiums will never increase B. The guarantee that the policy will never be cancelled C. The ability to periodically increase the amount of coverage without evidence of insurability D. The ability to periodically increase the amount of coverage only with evidence of insurability

C. The ability to periodically increase the amount of coverage without evidence of insurability

Which Accident and Health policy provision addresses preexisting conditions? A. Proof of Loss B. Legal Actions C. Time Limit on Certain Defenses provision D. Payment of Claims

C. Time Limit on Certain Defenses (this provision limits the period during which an insurer can deny a claim on the basis of a preexisting condition)

The sections of an insurance contract which limit coverage are called A. waiver B. riders C. exclusions D. limitations

C. exclusions

An insurance company normally has 2 years to contest information provided on an accident and health application. This 2 year period begins on the date that the A. medical examination is given B. producer completes the application C. insurer dates the policy D. the first premium is paid

C. insurer dates the policy

The Legal Actions provision of an insurance contract is designed to do all of the following EXCEPT A. provide the insurer adequate time to research a claim B. protect the insured from having claim research delayed C. protect the producer D. give the insured guidelines for pursuing legal action against and insurer

C. protect the producer

An insured pays premiums on an annual basis for an individual health insurance policy. What is the MINIMUM number of days for the Grace Period provision? A. 7 days B. 10 days C. 20 days D. 31 days

D. 31 days

B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of... A. Additional Term Life coverage at any time B. Additional Term Life coverage at specified intervals C. Additional Whole Life coverage at any time D. Additional Whole Life coverage at specified time

D. Additional Whole Life coverage at specified time

Which of the following statements describes what an Accident and Health policyowner may NOT do? A. File a covered claim B. Assign ownership C. Cancel the coverage D. Adjust the premium payments

D. Adjust the premium payments

In insurance policies, a waiver of premium provision keeps the coverage in force without premium payments... A. Whenever an insured is unable to work B. During the time an insured is confined in a hospital C. Following an accidental injury, but not during sickness D. After an insured has become totally disabled as defined in the policy

D. After an insured has become totally disabled as defined in the policy

The Consideration clause in an insurance contract contains what pertinent information? A. Summary of benefits B. Offer and acceptance C. Entire contract D. Amount of premium payments and when they are due

D. Amount of premium payments and when they are due

P is a Major Medical policyowner who is hospitalized as a result of injuries sustained from participating in a carjacking. How will the insurer most likely handle this claim? A. Claim will be denied and policy terminated B. Claim will be partially paid C. Claim will be paid D. Claim will be denied

D. Claim will be denied

Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan? A. Revocable assignment B. Beneficiary change C. Irrevocable assignment D. Collateral assignment

D. Collateral assignment

An insurance company receives E's application for an individual health policy. E did not complete all of the medical history questions because she could not remember the exact dates. E signed the policy and submitted it to the insurance company anyway. A few weeks later, E suffers a heart attack and is hospitalized without completing the medical history questions and paying the initial premium. E is not insured. Which of the following clauses details the conditions that E did not meet? A. Entire Contract clause B. MIB clause C. Insuring clause D. Consideration clause

D. Consideration clause

The incontestable clause allows an insurer to... A. Disallow a change of ownership throughout the Contestable period B. Disallow a change of beneficiary during the Contestable period C. Contest a claim at anytime if the cause of death was accidental D. Contest a claim during the contestable period

D. Contest a claim during the contestable period

After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms? A. File a lawsuit B. Contract the insurer again requesting forms C. Nothing D. File written proof of loss

D. File written proof of loss

Which of the following will a Long Term Care plan typically provide benefits for? A. Disability income B. Death C. Unemployment D. Home health care

D. Home health care

According to the Time Payment of Claims provision, the insurer must pay Disability Income benefits no less frequently than which of the following options? A. Annually B. Semiannually C. Quarterly D. Monthly

D. Monthly

Which of the following statements is CORRECT about accelerated death benefits? A. The full face amount if available as an accelerated benefit B. Those on Social Security disability automatically qualify for this benefit C. This provision is usually provided with an increase in premium D. Must have a terminal illness to qualify

D. Must have a terminal illness to qualify

J has a Disability Income policy that does NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this? A. Limited coverage B. Workers' Compensation coverage C. Occupational coverage D. Nonoccupational coverage

D. Nonoccupational coverage (The coverage provided by a Disability Income policy that does not provide benefits for losses occurring as the result of the insured's employment is called nonoccupational coverage)

In a life insurance policy, which provisions states who may select policy options, designate and name a beneficiary, and be the recipient of any financial benefits from the policy? A. Nonforfeiture B. Entire Contract C. Insuring Clause D. Owner's Rights

D. Owner's Rights

The provision that defines to whom the insurer will pay benefits to is called... A. Entire Contract B. Proof of Loss C. Claim Forms D. Payment of Claims

D. Payment of Claims

Which Long Term Care insurance statement is true? A. Inflation protection is usually not offered B. Benefits are usually payable for alcohol rehabilitation C. Can only be offered to individuals under the age of 70 D. Pre-existing conditions must be covered after the coverage has been in force for six months

D. Pre-existing conditions must be covered after the coverage has been in force for six months (Pre-existing conditions are those for which medical advice or treatment was recommended by or received from a health provider within 6 months preceding the effective date of an individual long-term care policy)

Which of these statements accurately describes the Waiver of Premium provision in an insurance policy? A. Past due premiums on a lapsed policy are waived and coverage is restored B. The insured is paid a monthly benefit to keep insurance premiums current in the event of total disability C. Premiums are waived after the insured has been unemployed for a specified time period D. Premiums are waived (or paid) after the insured has been totally disabled for a specified time period

D. Premiums are waived (or paid) after the insured has been totally disabled for a specified time period

Which of the following provisions is NOT required in HMO contracts or certificates? A. Enrollment B. Rates shall not be excessive C. No preexisting exclusions for children D. Seven-day grace period

D. Seven-day grace period

D was actively serving in the Marines when he was killed in an automobile accident while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How much will D's beneficiary's receive? A. Refund of premiums paid plus interest B. Nothing, due to actively serving in the armed forces C. Double the face amount because cause of death was accidental D. The full face amount

D. The full face amount

The policy provision that entitles the insurer to establish conditions the insured must meet while a claim is pending is... A. Grace Period B. Physical Examination and Autopsy C. Entire Contract D. Time Limit on Certain Defenses

D. Time Limit on Certain Defenses

When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take? A. Void the policy if found during the Contestable period B. Void the policy, no matter when it is discovered C. Void the policy at any time only if it is found to be material D. Void the policy only if it is discovered during the Contestable period and proven to be material

D. Void the policy only if it is discovered during the Contestable period and proven to be material

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? A. Accidental Death and Dismembership rider B. Disability Income rider C. Guaranteed Insurability rider D. Waiver of premium rider

D. Waiver of premium rider