practice insurance questions
What is the contract provision that allows the insurer to non-renew health coverage if certain events occur?
conditionally renewable
With the installment refund only option, when the annuitant dies, the beneficiary:
continues to receive guaranteed installments until the entire premium amount has been paid out
What losses does a health insurance policy cover?
losses caused by accidents and/or sickness
In group insurance, what is the policy called?
master policy
Accident-Only policies cover what costs?
medical costs caused by accidents, not sickness
All of the following are true about group disability income insurance:
the waiting period starts at the onset of the injury or sickness. The longer the waiting period, the lower the premium. Benefits are usually short term.
In case of disability, payments to the creditor will be made for them until
they are able to work by the definition in the policy
What is the purpose of COBRA?
to provide continuation of coverage for terminated employees
Under what condition are group disability income benefits received by an employee NOT taxable as income?
when the benefits received are equal or less the employee's percentage of the contribution
How can a deferred annuity be purchased?
with either a lump sum or through periodic payments
How is a FPDA (flexible premium deferred annuity) purchased?
with multiple payments (such as a portion of each paycheck)
A producer's license has been revoked for a violation of the Insurance Code. When can the producer apply for a new license?
within 1 year of the revocation
Gives both the employee and the employer benefits in deductibility of contributions and tax deferral of growth
qualified plan
All Medicare supplement plans (A-N) must be made available to who?
qualifying applicants regardless of age
Process of offering an inducement in the sale of insurance products that is not specified in the policy, including money, reductions in commissions, promised, and personal services
rebating
Purpose of the Fair Crediting Reporting Act:
regulates what information may be collected and how the information may be used
Which health insurance provisions describes the insured's right to cancel coverage?
renewal provision
Which of the following components of dental insurance does NOT require payment of deductible?
routine and preventive maintenance
If a business owner want coverage for the loss of their own income due to total disability, they need to purchase a:
separate individual disability income policy
Would be considered a hazard and may cause loss:
smoking and alcoholism
When do the benefit payments of FPDA begin?
sometime after one year from the date of purchase (payouts start at age 65)
Buy-sell benefits are
tax free
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months
Which of the following would NOT be considered an exception to the National Do Not Call List?
calls based from outside of the United States
A dread disease policy is a limited policy that is written to specifically cover what kind of expenses?
cancer
Are received income tax free by the individual:
disability income benefits, including those for medical expense and LTC policies
Which of the following would most directly affect the purchasing power of benefits paid on a fixed annuity?
economic inflation
For a retirement plan to be qualified, it must be designed for the benefit of:
employees
Under COBRA who is eligible to receive group health insurance under the employee's plan?
employees
COBRA requires what disease to be covered by an employer for 30 months before Medicare becomes the primary mode of coverage?
end stage renal failure
Any cash value life insurance policy that develops cash value faster than a 7-pay whole life contract is called a:
modified endowment contract
All of the following are factors that an underwriter could use to select and classify risk EXCEPT:
national origin
To who is a credit disability policy issued?
only to those in debt to a specific creditor
Gives the insurer the option to terminate the policy for any reason on the date specified in the contract (usually the renewal date)
optionally renewable
According to the telemarketing sales rules, what are the permissible calling hours for telemarketing calls?
8am-9pm
Which if the following Medicare supplement plans would be available to a reasonably healthy 91 year old female?
A-N
Is considered a pure form of accident insurance because coverage only pays for accidental losses:
AD&D coverage
While repairing the roof of his house an insured accidentally falls off and breaks his arm and sustains a head injury that results in total blindness of both eyes. His policy contains an Accidental Death & Dismemberment Rider. What is the extent of benefits that he will receive?
Principal Sum
Which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insured's death
a minor son of the insured
The accelerated benefits provision will provide for an early payment of the death benefit when the insured:
becomes terminally ill
Who can provide skilled nursing care?
doctor
A producer didn't realize that he had committed an act in violation of the Insurance Code. How much would he probability be penalized?
$1,000
Failure to notify the Commissioner within 30 days if a resident producer or solicitor has a change of residential or business address could result in a:
$50 fine
What is the best way for an underwriter to evaluate an insured's medical history?
APS (attending physician's statement)
All of the following violations may result in an agent's imprisonment EXCEPT:
Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction
To be eligible for a Health Savings Account an individual must be covered by?
HDHP (high deductible health plan)
Provide a package of comprehensive health care services (that include: routine physical, immunizations, well baby care, family planning) as well as the treatment of sickness and injury?
HMOs (health maintenance organization plan)
A qualified plan is approved by the
IRS
A Louisiana insurance company ran an advertisement in June 2008. When could the company discard the file on this advertisement?
June 2012
It is required by law that what must be printed on the first page of insurance policies?
Limited Policy Notice
Is a needs tested program administered by the states to provide assistance to persons who are not able to provide for themselves?
Medicaid
Which of the following programs expands individual public assistance programs for people with insufficient income and resources?
Medicaid
What is a policy's cash value?
amount available to the policyowner for a loan
The face of the term policy would be the same as the
face amount provided under the whole life policy
Both the offer and acceptance of a rebate is:
illegal
What type of annuity can be purchased with a single premium and provides benefit payments immediately?
immediate
In health insurance, if a doctor charges $50 more than what the insurance company considers usual, customary and reasonable, the extra cost:
is not covered
Which of the following is TRUE of a qualified plan?
it has a tax benefit for both employer and employee
Which of the following is true about the premium on the children's rider in a life insurance policy?
it remains the same no matter how many children are added to the policy
Which of the following do the Standard and Preferred risk categories share?
premiums are not elevated
Which of the following would an accident-only policy not cover?
surgery to repair a wrist damaged by tendonitis
An insured is dissatisfied with her insurance policy and wants to negotiate certain provisions of the contract. What entity would her producer present?
the insurer
Who is the beneficiary in a credit health policy?
the leading institution
When will benefits be coordinated?
when individuals are covered under 2 or more health plans
An insured decides to surrender his $100,00 Whole Life policy. The premiums paid into the policy added up to $15,000. At policy surrender, the cash surrender value was $18,000. What part of the surrender value would be income taxable?
$3,000 (difference in the premiums paid and the cash value)
What is the shortest possible elimination period for group short-term disability benefits provided by an employer?
0 days
What percentage of individually-owned disability income benefits is taxable?
0%
A temporary license in this state is valid for:
180 days
HIPPA applies for groups of
2 or more
An insurance company forwards annuity premiums to their general account, where the money is invested. The guaranteed minimum interest is set at 2.5%. During an economic downswing, the investments only drew 2%. What interest rate will the insurer pay to its policyholders?
2.5%
Which of the following must the patient pay under Medicare Part B?
20% of covered charges above the deductible
What is the max age for qualifying for a catastrophic plan?
30
In instances where a coordination of benefits provision is necessary, and two relevant plans cannot agree on the order of benefits, they have to pay the claim in equal shares. How long do they have to determine the order of benefits?
30 days
Employer health plans must provide primary coverage for individuals with end-stage renal disease before Medicare becomes primary for how many months?
30 months
In LA, insurance companies are required to keep files of all advertisements used for
4 years, or until the next examination by the Department
Requires any employer with 20 or more employees to extend group health coverage to terminated employees and their families after a qualifying event
COBRA
Provides payment for full coverage under the policy for covered services not available through network providers?
Medicare select policy
Benefit plan that is designed to be provided by a small employer for the benefit of the employees.
SEP (simple employee pension plan)
Which of the following statements concerning a Simple Employee Pension plan (SEP) is INCORRECT:
SEPs are suitable for large companies
Underwriting for disability insurance is unique due to the type of risk involved. Which of the following situations illustrates this?
a construction worker pays a higher premium and receives a poorer classification of disability
If a life insurance policy develops cash value faster than a seven-pay whole life contract, it is:
a modified endowment contract
All of the following individuals may qualify for Medicare Health Insurance benefits:
a person age 45 who has a permanent kidney failure. A person age 65 who is receiving Social Security disability benefits. A healthy person age 65.
A group blanket health policy is best suited for which of the following?
a summer camp
Which of the following groups would probably be covered by blanket insurance?
a university's sports team
What is the amount a physician or supplier bills for a particular service or supply?
actual charge
Both consumer reports and investigative reports provide:
additional information from an outside source about a consumer's character and reputation, and are used in the Fair Credit Reporting Act.
When the insured purchased his health policy he was a window washer. He has since changed occupations and now manages a library. If the insurer is notified of the insured's change of occupation, the insurer should
adjust the benefit in accordance with the decreased risk
The medical information bureau receives information that:
an applicant provides in insurance application and issues it in a coded format to insurers who request these reports
Under HIPPA, which of the following are correct regarding eligibility requirements for conversion to an individual policy:
an individual who has used up COBRA continuation coverage is eligible. an individual who doesn't qualify for Medicare maybe eligible The gap of coverage for eligibility is a period for 63 or less days
Under the 401 K bonus or thrift plan, the employer will contribute:
an undetermined percentage for each dollar contributed by the employee
If an insurance company wishes to order a consumer report on an application to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's:
ancestry
Under the Installments for a Fixed Period option who selection the time periods for the benefits, and how much each payment will be?
annuitant- time period insurer- payment amount
Do not pay a face amount upon the death of the annuitant
annuities
Disability benefits are paid to those who:
are unable to work as they normally would, due to an accident or illness
What document describes an insured's medical history, including diagnoses and treatments?
attending physician's statement
What do LTC policies define?
benefit period for how long coverage applies, after the elimination period
Which of the following is not true of Disability Buy-Sell coverage?
benefits are considered taxable income to the business
What is true of Disability Buy-Sell coverage?
benefits are tax free
A group policy used to provide accident and health coverage on a group of persons being transported by a common carrier, without naming the insured persons individually is called:
blanket policy
The First Street Church plans to sponsor a summer camp for the youth of their congregation. They would like to purchase insurance that would pay benefits should one of the youth get injured while participating in the camp activities. This type of policy they would likely need is/an:
blanket policy
A man bought an individual health insurance policy for himself. Which of the following roles does he now legally have?
both subscriber and insured
All of the following statements describe a MEWA:
can be self-insured can be sponsored by insurance companies employers retain full responsibility for any unpaid claims.
When an insurer offers services like pre-admission testing, second opinions regarding surgery, and preventative care, which term would best apply?
case management provisions
What limits the amount that a policy owner may borrow from whole life insurance policy?
cash value
A tax-sheltered annuity is a special tax-favored retirement plan available to:
certain groups of employees only
Affects the amount of money available to the annuity owner, but would not actually affect the purchasing power of benefits paid:
company investment performance guaranteed minimum payout interest rates
When the insurance company monitors the insured's hospital stay to make sure that everything is proceeding according to schedule and that the insured will be released form the hospital as planned?
concurrent review
Once a person become eligible for Medicare supplement plans, and during the open enrollment period:
coverage must be offered on a guaranteed issue basis
What would be considered a disadvantage of owning a fixed annuity?
decrease in purchasing power of the benefit in times of inflation
Once the primary insurer has paid the full available benefit, the secondary insurer will cover what the first company will not pay such as:
deductibles and coinsurance
When a company criticizes the financial situation of another company with the intention of injuring that company, it has committed an illegal trade practice:
defamation
When a producer was reviewing a potential consumers' 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
If an annuitant died before the Annuitization occurs, what will the beneficiary receive?
either the amount paid to the plan or the cash value of the plan, whichever is the greater amount
Which of the following statements is correct concerning taxation of long-term care insurance?
excessive benefits may be taxable
The annuity purchased with multiple payments, whose benefit is paid more than one year after the purchase is known as which type of annuity?
flexible premium deferred annuity
Which of the following expenses is NOT covered by a health insurance policy?
funeral
A producer's function as a field underwriter is to:
gather creditable information from an applicant that would assist the producer in screening marginal or unacceptable risks before taking an application for an insurance policy
It is a mandatory provision of life insurance policies that what be provided?
grace period
Mortality - Interest + Expenses =
gross premium
A creditor group (credit life and health insurance) is a specialized use of:
group life and group health insurance
Which of the following health care plans would most likely provide the insured/subscriber with comprehensive health care coverage?
health maintenance organization plan
An insured has mistaken failed to enroll in her husband's health plan. What would happen following a major health expense?
her insurance would pay up to its limit
All of the following would fall under the definition of Durable Medical Equipment EXCEPT:
hospital blankets
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following describes this act?
illegal under any circumstances
Disability income benefits, including those for medical expenses and LTC policies, are received
income tax free by the individual
In long-term care (LTC) policies, as the benefit period lengthens, the premium:
increases
In the event of deflation what happens to purchasing power of benefits?
increases
Young adults under age 30 and individuals who cannot obtain affordable coverage may be able to purchase?
individual catastrophic plans that cover essential benefits
All of the following statements concerning Medicaid are correct:
individuals claiming benefits must prove they do not have the ability or means to pay for their own medical care. persons, at least 65 years of age, who are blind or disabled and financially unable to pay, must qualify for Medicaid Nursing Home Benefits. Individual states design and administer the Medicaid program under broad guidelines established by the federal government.
Benefits are designed to help who?
insured recover income lost as a result of that disability
The amount of benefits that an insured receives is determined by what?
insured's earned income and is usually limited to a certain percentage of that amount
Persons covered by a health insurance and who receive benefits
insureds
Payments that the annuitant invests into the variable annuity are invested where?
insurer's separate account
A couple near retirement is planning for their golden years. They want to make sure that their retirement annuity provides monthly benefits for the rest of their lives. Should one of them die, the other would still like to continue receiving benefits. Which settlement option should they choose?
joint and survivor
A married couple owns a permanent policy which covers both their lives and pays the death benefit only upon the death of the first insured. Which policy is that?
joint life policy
Agents are required to have what license(s) to sell variable annuities?
life insurance and securities license
A policy owner is reading a statement on the first page of his health insurance policy, which says "this is a limited policy." What is the name of this statement?
limited policy notice
If a business owner becomes totally disables, a Business Overhead Expense policy will pay for all of the following EXCEPT:
loss of the owner's income
An insurance company wants to obtain the insurance history of an applicant? Which source releases coded information to insurers regarding information included on previous insurance applications?
medical information bureau
Fixed annuities guarantee a
minimum amount of interest to be credited to the purchase payment
During a sales presentation a producer intentionally makes a statement which may mislead the insurance application. This describes:
misrepresentation
An insured is in a car accident. After the accident is determined to be her fault, the police gives her a breathalyzer test to determine whether or not she has been drinking before the accident. Her blood alcohol level is over the legal limit. What type of health benefits will her health insurance policy pay for her injuries if the policy includes the narcotics and intoxicants provisions?
no benefits
An insured is involved in a car accident. In addition to general, less serious injuries, he permanently loses the use of his leg and is rendered completely blind. The blindness improves a month later. To what extent will he receive Presumptive Disability benefits?
no benefits
Your client uses $50,000 in inheritance money to purchase a single premium immediate annuity. How soon can he begin receiving income payments?
no later than 1 year from the time of purchase
In an individual long-term care insurance plan, the insured is able to deduct the premiums from taxes. What income taxation will be imposed on the benefits received?
no tax
A tax-sheltered annuity is a special tax-favored retirement plan available only to certain groups of employees such as:
non-profit charitable educational religious other 501c (3) organizations including all employees in public education
Premium payments for personally-owned disability income policies are
not tax deductible
Benefits received by the employee that are attributed to his or her portion of the contribution are
not taxable as income
When are deferred annuity benefits paid?
not until after one year or more has lapsed
If one time Social Security retirement benefits at age 62, what needs to be done at age 65 to qualify for Medicare?
nothing (because in this case because Medicare Part A and B will automatically be effective the month you turn 65)
An applicant is discussing his options for Medicare supplement coverage with his agent. The applicant is 65 years old and has just enrolled in Medicare Part A and Part B. What is the insurance company obligated to do?
offer the supplement policy on a guaranteed issue basis
Which renewable provision allows for insurer to terminate a policy for any reason, and to increase the premiums for any class of insured?
optionally renweable
What kind of disability plan states that if the insured cannot perform his/her current job for a period of up to two years, disability benefits will be issued; even if the insured would be capable of performing a similar job during that 2 year period?
own occupation disability plan
What does an APS report include?
past diagnoses treatments length of recovery time prognoses
A disability policy that typically requires the loss of the use of at least 2 limbs, total and permanent blindness, or loss of speech or hearing?
presumptive disability benefits
Under the Accidental Death and Dismemberment (AD&D) coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death?
principal sum
What is paid for accidental death?
principal sum
A Medicare Select policy does all of the following EXCEPT:
prohibit payment for regularly covered services if provided by non-network providers
Under which provision can a physician submit claim information prior to providing treatment?
prospective review
Under what provision can the physician submit claim information prior to providing treatment to know in advance if the procedure is covered under the insured's plan and at what rate it will be paid?
prospective review or precertification provision
When an employee is still employees upon reaching age 65 and eligibility for Medicare, which of the following is the employee's option?
remain on the group health insurance plan and defer eligibility for Medicare until retirement
Which of the following is an example of a peril covered in an accident and health insurance policy?
sickness
What are the two major causes of perils that are covered under a health insurance policy?
sickness and accident
Which of the following groups would most likely be covered under a blanket accident policy?
students at a public school
People in whose name the contract is issued
subscribers
Responsible for making premium payments
subscribers
Which of the following are responsible for making premium payments in an HMO plan?
subscribers
Which of the following is an example of a producer being involved in an unfair trade practices of rebating?
telling a client that his first premium will be waived if he purchased the insurance policy today
The face amount in what two policies is the same?
term policy and whole life policy
All of the following are beneficiary designations
tertiary, contingent, primary
What does a standard premium rating indicate?
that an individual represents a similar level of health and lifestyle quality as other members of the same age group.
A fixed annuity is characterized by a level benefit payments which means:
that in times of inflation, benefits have less purchasing power since costs increase as a result of inflation
A husband and wife are insured under group health insurance plans at their own places of employment, and as dependents under their spouse's coverage. If one of them incurs hospital expenses, how will those expenses likely be paid?
the benefits would be coordinated
In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?
the consumer's associates, friends, and neighbors provide the report's data
If an employee and the dependent become legally separated or divorced, of if the employee dies:
the dependent will be eligible for COBRA benefits for up to 36 months
Which of the following describes the tax advantages of a qualified retirement plan?
the earnings in the plan accumulate and are tax deferred
When a fixed annuity owner pays his/her insurance company a monthly annuity premium, where is this money placed?
the insurance company's general account
Which of the following factors does the insurer use the most to determine the extent of disability benefits that will promise in a contract?
the insured's income
Who does a creditor group protect?
the lending institution from losing money as the result of a borrower's death or disability
Twin brother and sister each purchased a retirement annuity. When they retired at the same age, each selected the life income option. Both have similar life styles and are in good health. Which of the following is true with respect to their monthly annuity payments?
the man's payments will be larger
A producer is charged with committing several crimes in Louisiana. Who is required to report the charges to the Commissioner?
the producer
Every health insurance application requires the signatures of who?
the proposed insured policyowner (different that the insured) agent who solicits the insurance
On a health insurance application, a signature is required from all of the following except?
the spouse of the policyowner
Hospice care is intended for:
the terminally ill
Which of the following is true regarding taxation of accelerated benefits under a life insurance policy?
they are tax free to terminally ill insured
Which of the following is NOT the purpose of HIPPA?
to provide immediate coverage to new employees who had been previously covered for 18 months
If a resident producer or solicitor has a change of residential or business address, how soon must the licensee notify the Commissioner?
within 30 days
In which of the following cases would a credit disability policy be issued?
if an individual is in debt to a specific creditor, payments will be made for him/her until they return to work
A health insurance policy lapses but is reinstated within an acceptable timeframe. How soon from the reinstatement date will coverage for accidents become effective?
immediately
Which of the following factors about the insured determines the amount of disability benefit that the insured will receive?
income
All of the following statements concerning dividends are true:
lower insurance company costs generate higher dividends. they stem from favorable underwriting experience. favorable investment results generate higher dividends
Can a group that is formed for the sole purpose of obtaining group insurance qualify for group coverage?
no, the group must be formed for a purpose other than obtaining group insurance
According to the PPACA metal levels of classification, is a health plan is expected to cover 90% of the cost for an average population, and the participants would cover the remaining 10%. What type of plan is that?
platinum
A guaranteed renewable health insurance policy allows the:
polcyholder to renew the policy to a stated age, with the company having the right to increase premiums on the entire class.
Which is true about a spouse term rider?
the rider is usually level term insurance
An insured was involved in an accident and could not perform her current job for 3 years. If the insured could reasonably perform another job utilizing similar skills after 1 month, for how long would she be receiving benefits under an "own occupation" disability plan?
2 years
To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters?
6 credits
When an insured purchased her disability income policy, she misstated her age to the agent. She told the agent that she was 30 years old. When the fact, she was 37. If the policy contains the optional misstatement of age provision:
amounts payable under the policy will reflect the insured's correct age
Under HIPPA, which of the following is INCORRECT regarding eligibility requirements for conversion to an individual policy?
an individual who was previously covered by group health insurance for 6 months if eligible
Which of the following statements is true concerning the alteration of optional policy provisions?
an insurer may change the wording of optional provisions, as long as the change does not adversely affect the policyholder.
What license or licenses are required to sell variable annuities?
both a life insurance license and a securities license
Which of the following is a true comparison between annuities and life insurance?
both annuities and life insurance use mortality tables
If an insured lives but loses a hand or a foot or the sight in one eye, the insured will be paid a percentage of the principal sum, usually 50%
capital sum
A small business owner is the insured under a disability policy that funds a buy-sell agreement. If the owner dies or becomes disabled, the policy would provide which of the following:
cash to the owner's business partner to accomplish a buyout
An insured is admitted to the hospital for surgery on herniated disk. The insurance company monitors the treatment and progress in order to make sure that everything proceeds according to the insurer's schedule. This is called:
concurrent review
What happens when a policy is surrendered for its cash value
coverage ends and the policy cannot be reinstated
Because of the history of cancer in her family, Julie purchased a policy that specifically covers the expense of treating cancer. Her policy would be classified as what type of policy?
dread disease policy
The insured has his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following
face amount of the policy the beneficiary's life expectancy projected interest rates
A producer is acting in what capacity when he or she is trying to obtain creditable information about an applicant for health insurance
field underwriter
Which of the following is a feature of a single premium immediate annuity?
income payment starts within one year
Your client's employer does not offer a company-wide annuity contract. What type of annuity contract could your client obtain?
individual
Under which of the following annuity options does the annuitant select the time period for the benefits, and the insurer determines how much each payment will be?
installments for a fixed period
A rider attached to a life insurance policy that provides coverage on the insured's family members is called
other-insured rider
An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this?
reinstatement provision
Health insurance underwriting is best defined as
selection, classification, and rating of risks
Which of the following is TRUE regarding variable annuities?
the annuitant assumes the risk on investment
If a life insurance policy has an irrevocable beneficiary designation:
the beneficiary can only be changed with written permission of the beneficiary
A father owns a life insurance policy on his 15 year old daughter. The policy contains the optional Payer Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums:
the insured's premiums will be waived until she is 21
The expense for an autopsy covered under the physical exam and autopsy provision is paid by:
the insurer
A policy with a 31 day grace period implies:
the policy remains in force without penalty for 31 days even though the premium due has not been paid.
Who is the master policy issued to?
the policyowner (which could be the employer, an association, union, or a trust)
How does a member of an HMO see a specialist?
the primary care physician refers the member
What is a major problem with naming a trust as the beneficiary of a life insurance policy?
they are expensive to administer
A health insurance policy clause that prevents an insurance company from denying payment of a claim after a specified period of time is known as the
time limit on certain defense clause
When the insurer issues an individual health insurance policy that is guaranteed renewable, the insurer agrees
to renew the policy until the insured has reached age 65
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
An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?
$50,000
An insured is covered under 2 group health plans- under his own and his spouse's. He had suffered a loss of $2,000. After the insured paid the total of $500 in deductibles and coinsurance, the primary insurer covered $1,500 of medical expenses. What amount, if any, would be paid by the secondary insurer?
$500
An annuitant died after receiving $200 monthly for 10 years ($24,000 total) from a $30,000 installment refund annuity. His wife, as beneficiary, will not receive the same monthly benefit until her payments total
$6,000
An insured's disability income policy includes an additional monthly benefit rider. For how many years can the insured expect to receive payment for the insurer before social security benefits begin?
1 year
In order to collect Social Security disability benefits, the claimant must be able to demonstrate that the disability will last at least
12 months
Which of the following individuals is eligible for a Health Savings Account?
Allison is insured by a High Deductible Health Plan (HDHP)
Kevin and Nancy are married; Kevin is the primary breadwinner and has a health insurance policy that covers both him and his wife. Nancy has an illness that requires significant medical attention. Kevin and Nancy decide to legally separate, which means that Nancy will no longer be eligible for health insurance coverage under Kevin. Which of the following options would be best for Nancy at this point?
COBRA
If the insured under a disability income insurance policy changes to a more hazardous occupation after the policy has been issued, and a claim is filed, the insurance company should do which of the following?
adjust the benefit in accordance with the increased risk
The accelerated death benefit provision allows the owner to be given:
advanced a significant portion of the death benefit when the insured is terminally ill
How can a new physician be added to the PPO's approved list?
agree to follow the PPO standards and charge the appropriate fees
