Quiz Review 3

According to the state regulations pertaining to claims settlements, after receiving a notification of claim from an individual policy owner, the insurer must acknowledge that notice within

3 working days

For the purpose of insurance, risk is defined as

The uncertainty of loss

Items stipulated in the contract that the insurer will not provide coverage for are found in the

Exclusions

The authority granted to an agent through the agent's contract is referred to as

Express authority

Which of the following is NOT a characteristic of a group long-term disability plan?

The benefit can be up to 50% of one's yearly income

Which statement accurately describes group disability income insurance?

The extent of benefits is determined by the insured's income

Under a Key Person disability income policy, premium payments

Are made by the business and are not tax deductible

Paula applied for Medicare Supplement policy 1 month before her 65th birthday. The policy was issued on her birthday, Jan 31st. Her agent mailed the policy by certified mail, and Paula received the policy on Feb. 5th. How long does Paula have to examine the policy and decide whether to keep it?

30 days from the date it was received

Events or conditions that increase the chances of an insured loss occurring are referred to as

Hazards

In the event of loss, after a notice of claim is submitted to the insurer, who is responsible for providing the claims forms and to which party?

Insurer to the Insured

Which of the following is not true of Disability Buy-Sell coverage?

Benefits are considered taxable income to the business

All of the following are true regarding Key Employee Disability Income insurance EXCEPT?

Benefits are taxable to the employer

Which of the following statements regarding Business Overhead Expense policies is NOT true?

Benefits are usually limited to 6 months

All of the following statement concerning Medicaid are correct EXCEPT

Medicaid is a state funded program that provides health care to persons over the age of 65, only

A producer is selling a client a Variable Life Insurance policy and as an inducement shows the client a projection based upon shares or dividends paid on a similar policy. This is ?

Misrepresentation

Which of the following is NOT covered under Plan A Medigap insurance?

The Medicare Part A deductible

Which of the following is true regarding elimination periods and the cost of coverage?

The longer the elimination period the lower the cost of coverage

If a producer has procured insurance coverage for a policyowner through an unauthorized insurer, which of the following could happen

The producer may be held personally liable for policy claims