Health Insurance Exam-Illinois
questions and answers.
Risk type expenses - n
Ans ✔✔
cannot be planned and is unintended
Qs
Purpose of health insurance is - n
Ans ✔✔
to protect a insured against the risk of financial loss he/she
cannot individually afford caused by illness, injury, or disability
Qs
Indemnity - n
Ans ✔✔
Reimbursement
Qs
Coordination of Benefits provision - n
Ans ✔✔
is in some health insurance policies; allows insurance companies
to reduce benefits so that the insured will be paid no more that
his/her actual loss. prevents the insured from collecting under
multiple policies more than his/her actual loss
,Qs
Coordination policy - n
Ans ✔✔
is a policy that includes a coordination of benefits provision
Qs
Non-coordinating policy - n
Ans ✔✔
is a policy that does not include a coordination of benefits
provision
Qs
Accepted questions on application to base premiums - n
Ans ✔✔
age, family composition, geographic region of residency, tobacco
use
Qs
unacceptable question on application to base premiums - n
Ans ✔✔
past medical history, gender, occupation, ethnicity
Qs
Attending Physician Statement - n
Ans ✔✔
,the underwriter contacts physician who has treated the applicant
in the past for an evaluation; it's purpose is to confirm information
on the medical report
Qs
Errors and Changes on the Application - n
Ans ✔✔
if error on application, underwriter may require it be corrected
and changes must be approved and initialed by the applicant
Qs
Medical information bureau (MIB) report - n
Ans ✔✔
it is a clearing house for medical information for insurance
companies that belong to it
Qs
Credit Report - n
Ans ✔✔
Determines if total benefits are reasonable compared to
applicant's income so as to avoid disincentive
Qs
Inspection report - n
Ans ✔✔
to verify that the producer completed the application accurately
and completely is the first purpose of an inspection report
, Qs
Incontestability Clause - n
Ans ✔✔
after the policy has been in effect two years the insurance
company cannot contest a policy doe to any misstatement or
concealment unless it can prove fraud
Qs
(tax) premiums on ind. hospital/medical expense policies - n
Ans ✔✔
can sometimes be tax deducted; depends on whether an ind is
self-employed and if ind. itemizes on tax returm
Qs
(tax) premiums paid by an ind. on ind. diability income policies -
n
Ans ✔✔
usually cannot be tax deducted (non qualified)
Qs
(tax) ind. expense policies, ind disability income policies, are
usually - n
Ans ✔✔
tax free and have no tax on the benefits
Qs
questions and answers.
Risk type expenses - n
Ans ✔✔
cannot be planned and is unintended
Qs
Purpose of health insurance is - n
Ans ✔✔
to protect a insured against the risk of financial loss he/she
cannot individually afford caused by illness, injury, or disability
Qs
Indemnity - n
Ans ✔✔
Reimbursement
Qs
Coordination of Benefits provision - n
Ans ✔✔
is in some health insurance policies; allows insurance companies
to reduce benefits so that the insured will be paid no more that
his/her actual loss. prevents the insured from collecting under
multiple policies more than his/her actual loss
,Qs
Coordination policy - n
Ans ✔✔
is a policy that includes a coordination of benefits provision
Qs
Non-coordinating policy - n
Ans ✔✔
is a policy that does not include a coordination of benefits
provision
Qs
Accepted questions on application to base premiums - n
Ans ✔✔
age, family composition, geographic region of residency, tobacco
use
Qs
unacceptable question on application to base premiums - n
Ans ✔✔
past medical history, gender, occupation, ethnicity
Qs
Attending Physician Statement - n
Ans ✔✔
,the underwriter contacts physician who has treated the applicant
in the past for an evaluation; it's purpose is to confirm information
on the medical report
Qs
Errors and Changes on the Application - n
Ans ✔✔
if error on application, underwriter may require it be corrected
and changes must be approved and initialed by the applicant
Qs
Medical information bureau (MIB) report - n
Ans ✔✔
it is a clearing house for medical information for insurance
companies that belong to it
Qs
Credit Report - n
Ans ✔✔
Determines if total benefits are reasonable compared to
applicant's income so as to avoid disincentive
Qs
Inspection report - n
Ans ✔✔
to verify that the producer completed the application accurately
and completely is the first purpose of an inspection report
, Qs
Incontestability Clause - n
Ans ✔✔
after the policy has been in effect two years the insurance
company cannot contest a policy doe to any misstatement or
concealment unless it can prove fraud
Qs
(tax) premiums on ind. hospital/medical expense policies - n
Ans ✔✔
can sometimes be tax deducted; depends on whether an ind is
self-employed and if ind. itemizes on tax returm
Qs
(tax) premiums paid by an ind. on ind. diability income policies -
n
Ans ✔✔
usually cannot be tax deducted (non qualified)
Qs
(tax) ind. expense policies, ind disability income policies, are
usually - n
Ans ✔✔
tax free and have no tax on the benefits
Qs
