Accident and Health insurance basics

In order to comply w/ Fair Credit Reporting Act, at which times must a producer notify an applicant that a credit report may be requested? a. When the applicant's credit is actually checked b. When the policy is delivered c. At the time of application d. At the initial interview

At the time of application

All of the following statements about sources of underwriting info are true, EXCEPT? a. The application is typically the principal source of info b. An attending physician's statement is a good source of info c. A medical examination is typically used when benefits are large d. The contents of an inspection report cant be disclosed to the applicant

The contents of an inspection report cant be disclosed to the applicant

Health insurance rates may be based up all, EXCEPT? a. Gender b. Religion c. Age d. Medical history

Religion

An applicant for a disability insurance policy has a heart condition of which they are unaware and they answer no to the question regarding to heart problems. Their answer is considered to be a? a. Warranty b. Concealment c. Fraudulent answer d. Representations

Representation

Which of the following could an underwriter not use when determining the insurability of an indiv? a. MIB report b. Attending physician statement c. Producers report d. Results from genetic testing

Results from genetic testing

No type of health insurance covers? a. Injury sustained in an auto accident b. Death due to sickness c. Loss of income due to injury d. Accidental dismemberment

Death due to sickness

Which statement about a conditional receipt is true? a. Its a interim insuring agreement b. It guarantees that the applicant is acceptable to the insurance company c. Become part of the policy d. Its used to purchase temp insurance that terminates in 6 montsh

Its an interim insuring agreement

All of the following are true when a producer recommends that their client switch from 1 indiv medical exp policy to another in order to obtain a lower premium, EXCEPT? a. The probationary period could start over b. Its an unlawful practice known as "replacement" c. The time limit on certain defense clauses start over d. It could be grounds for error and omission

Its an unlawful practice known as "replacement"

The Fair Credit Reporting Act requires that? a. The applicant for insurance be advised, in advance, that a consumer report may be requested b. The applicant not be advised of the name and address of the reporting agency c. The insurance company furnish the Federal Trade Commission with a list of all applicants rejected during the previous month and the reasons for such actions d. The insurance company not use any info obtained from its producers as the basis for declining to issue a policy

The applicant for insurance be advised, in advance, that a consumer report may be requested

Health coverage becomes effective when the? a. 1st premium has been paid and the application has been approved b. Producer delivers the policy to the insured c. Medical examination has been completed and the premium paid d. 1st premium has been paid and received in the insurance company home office

1st premium has been paid and the application has been approved

A producer's underwriting responsibility would include which of the following? a. Issuing a binder b. Ordering the MIB report c. Making sure all material facts are included in the application d. Issuing the policy

Making sure all the material facts are included in the application

Most health insurance policies exclude all of the following, EXCEPT? a. Intentional injury b. Occupational injury c. Injury due to war d. Accidental injury

Accidental injury

Any death benefit under a health insurance contract is limited to deaths caused by? a. Accidental injury only b. Accidental injury and cardiovascular diseases only c. Accidental injury, cardiovascular and renal- impairment diseases d. Dread diseases

Accidental injury only

A specified policy would cover which of the following? a. Liposuction b. Insured throws out their back c. Broken leg d. Cancer

Cancer

The insuring clause of a disability policy usually states all of the following, EXCEPT? a. Identities of the insurance company and the insured b. That a loss must result directly from stated accidents or sickness c. That insurance against loss is provided d. The method of premium payment

The method of premium payment