Accident and Health Insurance Basics
Evaluating information that establishes adverse selection risk is the purpose of which stage of insurance? A Contract Review B Application C Underwriting D Contract negotiation
C
If an applicant for a health insurance policy is found to be a substandard risk, the insurance company is most likely to A Charge an extra premium. B Require a yearly medical examination. C Lower its insurability standards. D Refuse to issue the policy.
A
What document describes an insured's medical history, including diagnoses and treatments? A Attending Physician's Statement B Physician's Review C Individual Medical Summary D Comprehensive Medical History
A
Which document is used to assess risk associated with an applicant's lifestyle and character? A Investigative Consumer Report B Character Assessment C Non-medical Risk Assessment D Applicant Lifestyle Assessment
A
The most the Insurance Guaranty Association will pay for net cash surrender values is A $500,000. B $1,000,000. C $100,000. D $250,000.
C
When benefits are paid directly to the insured under a health insurance policy, the policy provides benefits on what type of basis? A Limited B Scheduled C Reimbursement D Service
C
Health coverage becomes effective when the A Medical examination has been completed and the premium paid. B First premium has been received in the insurance company's home office. C First premium has been paid and the application has been approved. D Producer delivers the policy to the insured.
C/
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 A Blanket Policy. B Activity policy. C Specified disease policy. D Certificate of Coverage Policy.
A
When is the insurability conditional receipt given? A When the premium is paid at the time of application B After the application has been approved and the premium has been paid C When an insured individual needs to obtain an insurability receipt for tax purposes. D If the application is approved before the premium is paid
A
Which of the following is true regarding health insurance underwriting for a person with HIV? A The person may only be declined if he/she has symptoms. B The person may not be declined for medical coverage solely based on HIV status. C A person may be declined for HIV but not AIDS. D The person may be declined.
B
Which term describes a situation in which people who are the most likely to have claims are also the most likely to seek insurance? A Law of large numbers B Adverse selection C Insurable interest D Double indemnity
B
Which of the following do the Standard and Preferred risk categories share? A Permanent coverage B Premiums are not elevated. C More medical evaluations are required. D Possible modifications to include expanded coverage
B/
An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy? A The capital amount in monthly installments B The principal amount in monthly installments C The capital amount in a lump sum D The principal amount in a lump sum
C
To comply with Fair Credit Reporting Act, when must a producer notify an applicant that a credit report may be requested? A When the applicant's credit is checked B When the policy is delivered C At the initial interview D At the time of application
D
Which of the following losses will be covered by a group medical expense policy? A An injury resulting from active military duty B An intentionally self-inflicted injury C An elective cosmetic surgery D A pre-existing condition
D
