Missed insurance questions

When creating a fraternal benefit society, a bond must be filed. The amount of this bond may fall between

$300,000 and $1,500,000.

How many US citizens are required for the creation of the articles of incorporation for a fraternal benefit society?

10

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 days

An insured recently purchased long-term care insurance, but after speaking with a friend, he determined that the premiums are much higher than he could find elsewhere. How many days after delivery of the policy does he have to cancel the policy and receive a full refund of his premium payment?

30 days

If a consumer request additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

Which of the following would be considered an illegal inducement to purchase insurance?

Confirming future dividends in a life insurance proposal.

Which of the following riders would not increase the premium for a policy owner?

Impairment rider.

Underwriting a group health insurance plan that is paid for by the employer requires all of the following, except

Individual members of the group may select the level of benefits for their own coverage.

A guaranteed renewable disability insurance policy

Is renewable at the insured's option to a specified age. Guaranteed renewable means that the insured has the right to keep the policy until a specific age; however, while the insurer cannot increase the rates on an individual basis, the insurer can increase the rates for all insureds by class.

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

Reciprocal insurance. These types of companies are administered by an appointed attorney in fact.

Which of the following types of insurers is owned by stockholders?

Stock. Only stock insurance companies are owned and controlled by stockholders.

An individual whose employment is the basis for eligibility for enrollment in the health maintenance organization would best be described as a

Subscriber

Which of the following is not a consideration in a policy?

The application given to a prospective insured.

Who must give permission for the use of testimonial in an advertisement?

The author.

An insured goes on vacation and forgets that she must pay her monthly health insurance premium. She's treated for a broken leg during her trip. She then returns a week later and discovers that her premium due date was the day before she broke her leg. Her premium is now eight days late. Which of the following is true?

The claim will receive normal coverage.

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

They cover the cost of extended nursing home care. Medicare supplement policies (Medigap) do not cover the cost of extended nursing home care. Medigap plans are designed to fill the gap in coverage attributable to Medicare's deductibles, copayment requirements, and benefit periods. These plans are issued by private insurance companies.

In this state, long-term care benefits may be triggered by an ability to perform how many activities of daily living?

Three.

Producers must complete CE requirements every

Two years

What is the minimum number of employees a small employer must have?

Two, and no more than 50.

A medical expense policy that establishes the amount of benefit paid upon the prevailing charges which fall within the standard range of fees, normally charge for a specific procedure by a doctor of similar training and experience in that geographic area is known as

Usual, customary and reasonable.

Is it illegal in Wyoming for a health insurance policies to stipulate that it will only pay if all other policies are terminated?

Yes.

Group health insurance is characterized by all of the following except

adverse selection

All of the following are regulated areas of the insurance industry, except

commissions

An individual was just diagnosed with a medical condition. In order to avoid the restrictions associated with a pre-existing condition, this individual decided to wait a few months before applying for long-term care insurance. How many months should he wait?

6 months. Long term care, host to follow the definition "a condition for which medical advisor treatment was recommended by, or received from the provider of healthcare services, within six months proceeding the effective date of coverage of an insured person."

When twin brothers applied for life insurance from company A, the company found that while neither of them smoked and both had very similar lifestyles, one of the twins was in a much stronger financial position than the other brother. Because of this, the company charged him a higher rate for his insurance. This practice is considered.

Discrimination

The provision that states that both of printed contract and a copy of the application form the contract between the policy owner and the insurer is called

Entire Contract

If a long-term care insurance contract or certificate, replaces another long-term care insurance contract or certificate, the replacing insurer must waive any time periods, applicable to pre-existing conditions and probationary periods in the new, long-term care insurance contract

For similar benefits, to the extent that similar exclusions have been satisfied under the original contract.

Insurers must offer to each applicant for long-term insurance contracts, at the time of purchase, the option to purchase a contract with an inflation protection feature, which meets any of the following criteria, except

Guarantees that the insured will not outlive the benefits provided by the policy under normal circumstances as defined in the policy illustration.

In group health policy, a probationary period applies to employees who

Join after the effective date.

On its advertisement, a company claims that it has funds in it's possession that are, in fact, not available for the payment of losses or claims. The company is guilty of.

Misrepresentation

An applicant for a health insurance policy returns and completed application to her agent along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insured done by this point?

Neither approve the application nor issued the policy.

On a participating insurance policy, issued by a mutual insurance company, dividends paid to the policy holders are

Not taxable since the IRS treats them as a return of a portion of the premium paid

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

Physical examination and autopsy

All of the following are covered by part of Medicare, except

Physician's and surgeon's services (Part B)

Regarding the taxation of business overhead policies

Premiums are deductible, benefits are taxed.

Issuers of disability insurance policies or certificates that provide hospital or medical expense coverage on an expense incurred or indemnity bases to persons eligible for Medicare must

Provide to all such applicants the pamphlet "guide to health insurance for people with Medicare," develop jointly by the NAIC and the CMS.

The provision which prevents the insured from bringing any legal action against a company for at least 60 days after proof of loss is known as

legal actions