Health 2

Regarding the taxation of Business Overhead policies,

Premiums are deductible, and benefits are taxed.

A hospital indemnity policy will pay

A benefit for each day the insured is in a hospital.

The insured's health policy only pays for medical costs related to accidents. Which of the following types of policies does the insured have?

Accident-only

Health coverage becomes effective when the

First premium has been paid and the application has been approved.

Under HIPAA, 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 is eligible.

Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to

15-day waiting period / 10-year benefit period

An employee group with which of the following number of employees would qualify for a medical savings account?

23 employees

Unreimbursed medical expenses paid for the insured may be claimed as deductions if the expenses exceed what percentage of the adjusted gross income?

7.5%

Which of the following groups seeking group health insurance would represent a bad risk for underwriters?

A group that changes insurance annually

What document describes an insured's medical history, including diagnoses and treatments?

Attending Physician's Statement

Every subscriber of a health insuring corporation is entitled to a/an

Evidence of coverage.

In insurance transactions, fiduciary responsibility means

Handling insurer funds in a trust capacity.

Medical Savings Accounts (MSAs) are available to small business employees and self-employed individuals who have

High deductible health insurance.

In which of the following locations would skilled care most likely be provided?

In an institutional setting

Which insurance principle states that if a policy allows for greater compensation than the financial loss incurred, the insured may only receive benefits for the amount lost?

Indemnity

The section of a health policy that states the causes of eligible loss under which an insured is assumed to be disabled is the

Insuring clause.

The type of dental plan which is incorporated into a major medical expense plan is a/an

Integrated dental plan.

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

Misrepresentation.

Which renewal option does NOT guarantee renewal and allows the insurance company to refuse renewal of a policy at any premium due date?

Optionally renewable

All of the following refer to specialty health care services EXCEPT

Services that are provided in combination with other health care services.

If an individual enrolls in a Medicare Advantage Plan on his 65th birthday, when would coverage begin?

The first day of the following month

Which is NOT true regarding an insured who is considered to be a standard risk?

The insured may have to pay slightly higher premiums.

Who is the beneficiary in a credit disability income policy?

The lending institution

Because an agent is using stationery with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. What type of agent authority does this describe?

Apparent

Which of the following types of agent authority is also called "perceived authority"?

Apparent

Which of the following is required for a Medicare Advantage Plan to provide supplemental benefits?

Benefits must aid in the prevention of illness.

By what date in each licensing period are agents required to renew their license?

By the last day of their birth month