215B (3)

In a disability policy, the probationary period refers to the time

During which illness-related disabilities are excluded from coverage. -The probationary period limits coverage on new policies for certain illness-related conditions.

When a disabled dependent child reaches the age limit for coverage, how long does the policyowner have to provide proof of dependency in order for the dependent to remain covered under the policy?

31 days

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6 months

Which of the following is NOT a characteristic or a service of an HMO plan?

Contracting with insurance companies

A health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is known as

Critical illness.

Social Security disability definition includes all of the following EXCEPT

Disability expected to last for at least 6 months.

Which of the following is true regarding taxation of dividends in participating policies?

Dividends are not taxable.

Which of the following policy components contains the company's promise to pay?

Insuring clause

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called

Joint and survivor.

An insured submitted a notice of claim to the insurer, but never received claims forms. He later submits proof of loss, and explains the nature and extent of loss in a hand-written letter to the insurer. Which of the following would be true?

The insured was in compliance with the policy requirements regarding claims.

Which of the following statements is true regarding coinsurance?

The larger the percentage that is paid by the insured, the lower the required premium will be.

What happens when a policy is surrendered for its cash value?

Coverage ends and the policy cannot be reinstated.

Which two terms are associated directly with the premium?

Level or flexible -A level premium is one in which the premium payment never changes. A flexible premium is found in Universal life policies where the insured changes their premium payment.

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?

Level term

Which of the following provisions is mandatory for health insurance policies?

Physical examination and autopsy

Which of the following individuals must have insurable interest in the insured?

Policyowner

Which of the following statements is correct regarding a whole life policy?

The policyowner is entitled to policy loans.

The paid-up addition option uses the dividend

To purchase a smaller amount of the same type of insurance as the original policy.

An insured's long-term care policy is scheduled to pay a fixed amount of coverage of $120 per day. The long-term care facility only charged $100 per day. How much will the insurance company pay?

$120 a day -Most LTC policies will pay the benefit amount in a specific fixed dollar amount per day, regardless of the actual cost of care.

L has a major medical policy with a $500 deductible and 80/20 coinsurance. L is hospitalized and sustains a $2,500 loss. What is the maximum amount that L will have to pay?

$900 (deductible + 20% of the bill after the deductible [20% of $2,000])

What is the term used for an applicant's written request to an insurer for the company to issue a contract, based on the information provided?

Application

If an annuitant dies before annuitization occurs, what will the beneficiary receive?

Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount

What does "level" refer to in level term insurance?

Face amount

An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?

If the primary beneficiary predeceases the insured

Which of the following best describes annually renewable term insurance?

It is level term insurance.

Which of the following is an example of a limited-pay life policy?

Life Paid-up at Age 65

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

Purchase a single premium policy for a reduced face amount.

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?

The insured may choose to convert to term or permanent individual coverage.

According to the rights of renewability rider for cancellable policies, all of the following are correct about the cancellation of an individual insurance policy EXCEPT

Unearned premiums are retained by the insurance company.

which of the following entities can legally bind coverage

insurer

who chooses the primary care physician in an HMO

the individual member

Which of the following is the best reason to purchase life insurance rather than annuities?

To create an estate

All of the following statements about Medicare supplement insurance policies are correct EXCEPT

They cover the cost of extended nursing home care.

Which of the following is TRUE for both equity indexed annuities and fixed annuities?

They have a guaranteed minimum interest rate.

All of the following are requirements for life insurance illustrations EXCEPT

They must be part of the contract.

An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy?

10 days -The grace period is 7 days if the premium is paid weekly, 10 days if paid monthly, and 31 days for all other modes.

What is the maximum age for qualifying for a catastrophic plan?

30