Simulated Exam 3

True or False: Group health insurance is characterized by adverse selection.

False

True or False: The guaranteed insurability rider is available to all insureds with no additional premium.

False

As it pertains to group health insurance, COBRA stipulates that

Group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense

Which type of a hospital policy pays a fixed amount each day that the insured is in a hospital?

Indemnity

When a policy is replaced, replacing insurers must maintain a replacement register regarding that policy until the conclusion of the next regular examination by the Insurance Department for

3 years

What documentation grants express authority to an agent?

Agent's contract with the principal

Which of the following is INCORRECT regarding a $100,000 20-year level term policy?

At the end of 20 years, the policy's cash value will equal $100,000

LTC coverage may be available as any of the following options EXCEPT

Endorsement to a health policy

All the following are differences between individual and group health insurance EXCEPT

Individual insurance does not require medical examinations, while group insurance does require medical examinations

Which two terms are associated directly with the premium?

Level or flexible

Which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors?

Life expectancy

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report

Must be informed of the source of the report

Qualifications for soliciting, selling or negotiating a LTC partnership policy include all of the following EXCEPT

Obtaining a partnership policy license from the Commissioner

An insured has health insurance that covers them at work and at home. This policy was written on what basis?

Occupational

All of the following are examples of transacting insurance in GA EXCEPT

Placing advertisements for an insurer.

Which of the following describes taxation of individual disability income insurance premiums and benefits?

Premiums are not tax deductible, and benefits are not taxable

Under AD&D Insurance, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death?

Principal sum

Under the Fair Credit and Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must do what?

Respond to the consumer's complaint.

Which of the following is true about the requirements regarding HIV exams?

The applicant must give prior informed written consent.

How do employer contributions to a Health Savings Account affect the insured's taxes?

The employer contributions are not included in the individual insured's taxable income

An employee insured under a group health policy is injured in a car wreck while performing her duties for her employer. This results in a long hospitalization period. Which of the following is true?

The group plan will not pay because the employee was injured at work.

An outline of coverage must be given to the applicant for a long-term care policy no later than

The time of initial solicitation

An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation?

They are tax deductible

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