Colorado Life & Health Insurance Exam Questions with
Verified Answers
What is a major concern for Underwriters, especially during the open enrollment
period? - ANSWER -Adverse selection
Allows individual policy conversion upon plan group termination - ANSWER -
Conversion privilege
Benefits are taxable or non-taxable (?) to employees. - ANSWER -Non-taxable
Employers with ___ + employees are required to offer COBRA for up to 18 months
after an employee is terminated. - ANSWER -20
In group health insurance a ______ type of policy is issued to the group sponsor. -
ANSWER -Master policy
Temporary or permanent rider added to a policy that includes specific conditions which
would normally cause a policy to be declined. - ANSWER -Impairment rider
The period of time for the insured to look over a policy after it is issued (10 days for
health insurance, 15 for life) - ANSWER -Free Look Period
The guaranteed renewable provision states that premiums can only be increased by
_________. - ANSWER -Class
The ___________ states that one has 60 days after proof of loss with a 2-year limit on
certain defenses. - ANSWER -Legal Actions Provision
The insuring clause includes ____________'s promise to pay benefits. - ANSWER -
Insurers
This provision states that the insured must provide proof of loss within 90 days, up to a
1-year maximum. - ANSWER -Proof of loss provision
waiting period after a loss occurs before benefit period begins (30, 90 days, up to 1
year) - ANSWER -elimination period
Medicare Advantage plan, substitution for original benefits (A & B) - ANSWER -Part C
Hospital insurance, covers inpatient and hospice - ANSWER -Medicare Part A
Outpatient treatment, ER treatment, preventive care is looped under Part ___ -
ANSWER -Medicare Part B
, Also known as Medigap, this part covers core benefits, including hospice care;
premiums vary. - ANSWER -Supplement Part A
Optional rider that enables the policyowner to purchase additional amounts of coverage
at predetermined times without proof of insurability - ANSWER -Guaranteed Insurability
Rider
doubles the face amount of life insurance if death occurs as a result of an accident -
ANSWER -Accidental Death Benefit Rider
Often added to a whole life policy to increase coverage.
Coverage more affordable. Insured buys some whole life and some term (TERM
coverage may be level or decreasing). - ANSWER -Term Insurance Rider
A part of the insurance contract that states that both parties must give something of
value for the transfer of risk, and specifies the conditions of the exchange. - ANSWER -
Consideration clause
The more frequent premium payment, the ______ (higher or lower) the premium. -
ANSWER -Higher premium
Covers two or more lives and provides for the payment of the proceeds at the death of
the first among those insured, at which time the policy automatically terminates. -
ANSWER -Joint Life Policy
Joint life policy in which the policy proceeds are paid out upon the death of the second
insured. Synonymous with second-to-die joint life policy. - ANSWER -Survivorship Life
Policy
A rider that costs extra; nursing home covered - ANSWER -Long-term care rider
the charge consistent with what other medical vendors would assess - ANSWER -
usual, customary, and reasonable (UCR)
A type of health plan that contracts with medical providers, such as hospitals and
doctors, to create a network of participating providers. You pay less if you use providers
that belong to the plan's network. - ANSWER -PPO (Preferred Provider Organization)
A managed care organization that provides comprehensive medical services for a
predetermined annual fee per enrollee. PCP = gatekeeper; subscribers = members. -
ANSWER -HMO (Health Maintenance Organization)
Physician coordinated plan that combines characteristics of both HMO and PPO plans.
- ANSWER -POS plan (point-of-service)
Verified Answers
What is a major concern for Underwriters, especially during the open enrollment
period? - ANSWER -Adverse selection
Allows individual policy conversion upon plan group termination - ANSWER -
Conversion privilege
Benefits are taxable or non-taxable (?) to employees. - ANSWER -Non-taxable
Employers with ___ + employees are required to offer COBRA for up to 18 months
after an employee is terminated. - ANSWER -20
In group health insurance a ______ type of policy is issued to the group sponsor. -
ANSWER -Master policy
Temporary or permanent rider added to a policy that includes specific conditions which
would normally cause a policy to be declined. - ANSWER -Impairment rider
The period of time for the insured to look over a policy after it is issued (10 days for
health insurance, 15 for life) - ANSWER -Free Look Period
The guaranteed renewable provision states that premiums can only be increased by
_________. - ANSWER -Class
The ___________ states that one has 60 days after proof of loss with a 2-year limit on
certain defenses. - ANSWER -Legal Actions Provision
The insuring clause includes ____________'s promise to pay benefits. - ANSWER -
Insurers
This provision states that the insured must provide proof of loss within 90 days, up to a
1-year maximum. - ANSWER -Proof of loss provision
waiting period after a loss occurs before benefit period begins (30, 90 days, up to 1
year) - ANSWER -elimination period
Medicare Advantage plan, substitution for original benefits (A & B) - ANSWER -Part C
Hospital insurance, covers inpatient and hospice - ANSWER -Medicare Part A
Outpatient treatment, ER treatment, preventive care is looped under Part ___ -
ANSWER -Medicare Part B
, Also known as Medigap, this part covers core benefits, including hospice care;
premiums vary. - ANSWER -Supplement Part A
Optional rider that enables the policyowner to purchase additional amounts of coverage
at predetermined times without proof of insurability - ANSWER -Guaranteed Insurability
Rider
doubles the face amount of life insurance if death occurs as a result of an accident -
ANSWER -Accidental Death Benefit Rider
Often added to a whole life policy to increase coverage.
Coverage more affordable. Insured buys some whole life and some term (TERM
coverage may be level or decreasing). - ANSWER -Term Insurance Rider
A part of the insurance contract that states that both parties must give something of
value for the transfer of risk, and specifies the conditions of the exchange. - ANSWER -
Consideration clause
The more frequent premium payment, the ______ (higher or lower) the premium. -
ANSWER -Higher premium
Covers two or more lives and provides for the payment of the proceeds at the death of
the first among those insured, at which time the policy automatically terminates. -
ANSWER -Joint Life Policy
Joint life policy in which the policy proceeds are paid out upon the death of the second
insured. Synonymous with second-to-die joint life policy. - ANSWER -Survivorship Life
Policy
A rider that costs extra; nursing home covered - ANSWER -Long-term care rider
the charge consistent with what other medical vendors would assess - ANSWER -
usual, customary, and reasonable (UCR)
A type of health plan that contracts with medical providers, such as hospitals and
doctors, to create a network of participating providers. You pay less if you use providers
that belong to the plan's network. - ANSWER -PPO (Preferred Provider Organization)
A managed care organization that provides comprehensive medical services for a
predetermined annual fee per enrollee. PCP = gatekeeper; subscribers = members. -
ANSWER -HMO (Health Maintenance Organization)
Physician coordinated plan that combines characteristics of both HMO and PPO plans.
- ANSWER -POS plan (point-of-service)
