Life, Accident and Health Pearson Final Exams - Exam 5 Questions With 100% Correct Answers

Life, Accident and Health Pearson Final Exams - Exam 5 Questions With 100% Correct Answers Which of the following health insurance policy provisions allows an insurer to deny a claim that does not occur during the policy period? AReinstatement provision BInsuring clause COwnership provision DConsideration clause - answerB insuring clause The insuring clause specifies the time frame of the policy period which is generally one year. Therefore, accidents or illnesses occurring prior to the policy's inception date are not covered. (1416) Which of the following statements is true with regard to limited health policies? ALimited policies protect against gaps in coverage that exist in other plans BLimited policies provide benefits for cancer only CLimited policies must state clearly what coverage they provide DLimited policies cover scheduled surgical expenses if not covered by major medical plans - answerc limited policies must state clearly what coverage they provide Limited policies pay benefits for an individual illness or an accident. These policies must state prominently that they are limited in nature. Cancer only or dread disease plans are two common types of limited health insurance policies. (1175) AD&D coverage provides all of the following benefits, EXCEPT: ADeath as a result of an accident BCapital sum benefits CBenefits for loss of sight due to an illness DLoss of use of limbs caused by an accident - answerc benefits for loss of sight due to an illness Accidental death and dismemberment coverage, whether provided as a rider or an individual policy, does not provide benefits for an insured as a result of an illness. (1318) To be eligible for coverage under Part C of Medicare, an individual does not have to prove that he or she is insurable if enrollment occurs during what period of time following the attainment of age 65? AOne month BThree months CSix months DTwelve months - answerc six months No evidence of insurability is required if enrollment occurs during a six-month period following the individual's 65th birthday. After this six month period the individual must prove that he or she is insurable. (4132) In most States, domestic insurers must be examined or audited: AAt least once every year BAt least once every three years CAt least once every five years DAt least once every ten years - answerc at least once every five years Most states require that licensed insurers be audited at least every fifth year to ensure solvency. A few State Departments of Insurance require it every year (e.g., New Jersey). Please consult your State law chapter in your textbook. (2127) The main purpose of the underwriting department is? ATo support the field underwriting BTo compute the necessary profit CTo issue contracts DTo review applications - answerd to review applications The function and purpose of underwriting is to review applications for insurance coverage to determine if the proposed insured is insurable. (1461) If a life insurance policy becomes a modified endowment contact, it may revert back to an ordinary life policy within: AOne year BThree years CSeven years DIt is not allowed to revert back to an ordinary life contract - answerD it is not allowed to revert back to an ordinary life contract Once a whole life policy is determined to be a Modified Endowment Contract (MEC) it may not revert back. This means that the tax benefits included in a whole life policy will be suspended when there are any distributions of cash from the contract. Interest credited to the cash value is general tax deferred. Once labeled as a MEC, a policy loan may be subject to taxation when it otherwise would not be. The policy become a MEC when the owner violates the 7 pay test. (4184) If an individual makes a payment to fund an annuity contract today and the benefit commences thirty days later, which of the following contracts has been purchased? AFixed annuity BImmediate annuity CDeferred annuity DLife annuity - answerb immediate annuity