simulate exam 3.0

Which of the following is NOT a feature of a noncancellable policy?

the insurer may terminate the contract only at renewal for certain conditions

How many consecutive months of coverage (other that in an acute care unit of a hospital) must LTC insurance provide in this state?

12

COBRA applies to employers with at least

20 employees

How long must insurers keep records related to advertisement of insurance policies?

3 Years

Ray has an individual major medical policy that requires a coinsurance payment. Ray very rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arrangement would be best for Ray?

50/50

Employees can reduce health plan costs by coupling a Health Reimbursement Account HRA with

A high deductible health plan

An insured misstated her age on an application for an individual health insurance policy. The insurance company found the mistake after the contestable period had expired. The insurance company will take which of the following actions regarding any claim that has been issued?

Adjust the claim benefit to reflect the insureds true age

How can a new physician be added to the PPO's approved list?

Agree to follow the PPO standards and charge the approbate fees

When an insurered purchased her disability policy, she misstated her age to the agent. She told the agent that she was 30 years old, when she was 37. If the policy contains the optional misstatement of age provision.

Amounts payable under the policy will reflect the insureds correct age

While a claim is pending, an insurance company may require

An independent examination as often as reasonably required

When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of

Defamation

In disability income insurance, a deductible stated in days instead of dollars is known as

Elimination Period

Before an agent delivers a policy, the insurer makes a last-minute change to the policy. The agent informs the insured of this change, and he accepts it. In response, the agent must

Have the insured sign a statement acknowledging that he is aware of the change

An insured pays her Major Medical Insurance premium annually on March 1. Last March she forgot to mail her premium to the company. On march 19, she had an accident and broke her leg. The insurance company would

Pay the claim

An insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband named as what type of beneficiary?

Revocable

What is the purpose of CORBA?

To provide continuation of coverage for terminated employees

Under the Physical Exam and Autopsy provision, how many times can an insurer have the insured examined, at its own expense, while a claim is pending?

Unlimited

A medical expense policy that establishes the amount of benefit paid based upon the prevailing changes which fail within the standard range of fees normally charged for a specific procedure by a doctor or similar training and experience in that geographic area is known as

Usual, customary and reasonable

in a group health policy, a probationary period is intended for people who

join the group after the effective date

What is the purpose of the coinsurance provisions?

to help the insurance company to prevent over utilization of the policy

After an insurance company examination, the Commissioner or the Examiner appointed by the Commissioner must file a written report of the examination within

60 Days

Which of the following statements is true about business owners policies (BOPs)?

BOPs may be customized by adding optional coverages

The proposed insured makes the premium payment on a new insurance policy. if the insured should die, the insurer will pay the death benefit the beneficiary if the policy is approved. This is an example of what kind of contract?

Conditional

Which of the following reports will provide the underwriter with the information about a consumers credit?

Consumer Report

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as

Rebating

Which type of insurance is based on mutual agreements among subscribers?

Reciprocal insurance

When an insurer combines two periods of disability into one, the insured must have suffered a

Recurrent disability

Which of the following is INCORRECT concerning Medicaid?

it is solely a federally administered program