Final NJ Accident and Health Producer PRACTICE EXAMS Questions and Answers

A Basic Hospital Policy pays expenses for: - hospital room and board -physician office visits -routine medical treatment -surgical services - CORRECT ANSWER--hospital room and board BASIC HOSPITAL EXPENSE COVERS HOSPITAL ROOM AND BOARD WITH DAILY LIMIT OF COVERAGE. BASIC SURGICAL PROCEDURES AND BASIC MEDICAL COVERS OFFICE VISITS AND ROUTINE MEDICAL TREATMENT a group conversion option may be used in all the following instances EXCEPT: -loss of coverage due to loss of employment -a life changing event, such as marriage, divorce, or childbirth -the termination of the master policy -loss of eligibility on the part of a class of insureds. - CORRECT ANSWER-- a life changing event such as marriage, divorce, or childbirth CONVERSION PRIVILEGE ALLOWS EMPLOYEES TO CONVERT FORM GROUP TO INDIVIDUAL POLICY WITHOUT PROOF OF INSURABILITY UPON TERMINATION OF ELIGIBILITY OR GROUP PLAN A life insurance policy may be returned for a cancellation and a full refund if it is returned NO later than -30 days after receipt by the policyholder -30 days after the issue -10 days after issue -20 days after receipt by the policyholder - CORRECT ANSWER--20 days after receipt by the policyholder A producer who makes false statements about the financial condition of an insurer may be found guilty of -fraud -unfair discrimination -defamation -twisting - CORRECT ANSWER--defamation DEFAMATION IS AN ORAL OR WRITTEN STATEMENT MALICIOUSLY CRITICAL OF THE FINANCIAL CONDITION OF A PERSON OR COMPANY According to the Time Payment of Claims provision, the insurer must make the payment immediately after receiving proof of loss EXCEPT: - if the insured is able to eventually return to work -if the death is suicide or due to a pre existing condition -when the policy is in the incontestability period -for claims involving periodic payments - CORRECT ANSWER-for claims involving periodic payments INSURERS MUST PAY LUMP SUM CLAIMS IMMEDIATELY AFTER RECEIVING PROOF OF LOSS All life insurance and health insurance contracts contain all of the following EXCEPT: -insuring clause -conditions -inmaterial representations -policy face - CORRECT ANSWER--immaterial representations are statements that do not affect the acceptance or rating of risk All of the following are elements of an uninsurable loss EXCEPT: -expected losses are measurable -expected losses will be accidental -types of losses that occur can be expected -affordable premiums can be charged - C