Health Insurance Underwriting and Policy Issue

Which type of plan normally includes hospice benefits? Short-term disability plans. Group life plans. Workers compensation. Managed care plans.

managed care plans

P is self-employed and owns an Individual Disability Income policy. He becomes totally disabled on June 1 and receives $2,000 a month for the next 10 months. How much of this income is subject to federal income tax?

$0

Which of these terms accurately defines an underwriters assessment of information on a Health insurance application? Risk classification Warranty review Insurable interest Inspection report

Risk classification

When an insurance application is taken by a producer, which of these statements is true? The applicant should have an attorney present during the application process. Any changes made on the application require the applicant's initials. Any changes made on the application can later be initiated by the producer if the applicant is unavailable. The producer has the discretion to ask or not to ask any of these questions listed on the application.

Any changes made on the application required the applicants initials

Before a health insurance policy is issued, which of these components of the contract is required? Applicants signature on application Beneficiary signature A conditional receipt Attending physician statement

Applicant's signature on application

What is being delivered during a policy delivery? The binding receipt to the proposed insured. Insurance contract to the proposed insured. Application and initial premium to the insurer Policy summary sheet and disclosure material to the proposed insured

Insurance contract to the proposed insured

Which of the following actions will an insurance company most likely not take an applicant, who has diabetes, flies for disability and comp policy? Issue the policy with a diabetes exclusion. Issue the policy with an altered time of payment that cleans provision. Issue a policy with a rating. Decline the applicant.

Issue The policy with an altered time of payment of claims provision

Consumery reports requested by underwriter during the application process of a health insurance policy can be used to determine: Driving history Probability of making timely premium payments If Applicant is a tobacco user Overall health of the applicant

Probability of making timely premium payments

Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take?

Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company

Which mode of payment is NOT used by health insurance policies?

Single Premium

What would the Medical Information Bureau (MIB) identify? Testing positive of marijuana use from a previous screening. Existing life insurance coverage of other carriers. Credit scores. Primary physician.

Testing positive for marijuana use from a previous screening

Why is an applicant's signature required on a health insurance application? To attest that the statements on the application are warranties. To attest that the statements on the application are accurate to the best of the applicants knowledge. To give power of attorney to the producer if needed. To attest the all statements on the application are guaranteed to be true

To attest that the statements on the application are accurate to the best of the applicant's knowledge

Which parts of a health insurance policy are guaranteed to be true? Rating Representation Statement Warranty

Warranty

K applies for a health insurance policy on herself and submits the initial premium with the application. She is given a receipt by the producer stating that coverage begins immediately if the application is approved. What kind of receipt was used? Binding. Initial premium. Conditional. Contingent.

conditional