Life, Accident And Health Exam With 100% Correct Answers 2023

Life, Accident And Health Exam With 100% Correct Answers 2023 Annuity -A contract between a person and an insurance company that requires the insurer to make payments to you. -You buy an annuity by making either a single payment or a series of payments -Annuity Death benefits are NOT tax deductible or taxfree Dividends -Declared by the board of directors and cannot be guaranteed -A sum of money paid regularly by a company to its shareholders out of its profits Stock Insurers -Owned by the stockholders who elect the board of directors. -Profits are paid to the stockholders. Frequency -When the pricing principle is defined in a disability policy by a financial loss in a certain group occuring over a certain period of time. Beneficiary One who receives benefits Medi-Cal health care program for the poor Medicare A - provides coverage for hospital services, free to those who reach 65) B - provides coverage for doctor services (optional) C - does NOT cover prescription drugs D - Prescription Drugs Utmost Good Faith -Allows each party to rely on the representation made by other party Patient Protection & Affordable Care Act (PPACA) This is the health care reform law. Focuses on reform of the private health insurance market; providing better coverage for those with pre-existing conditions; improving prescription drug coverage in Medicare. Period Probationary- Elimination- the waiting period included in disability income policies Grace- Waiting (deductible)- The period of time the insured is not eligible for benefits once they become disabled (30, 60, 90days) Coinsurance -Feature of Major Medical insurance -Defined as sharing the loss after the deductible has been satisfied -Usually expressed as percentage sharing of the loss between the insurer and the insured -Insurer pays the larger percentage, such as 90/10 Gatekeeper -Primary Care Physician -Cannot be a specialist, must be a general practice doctor. COBRA -Consolidated Omnibus Budget Reconciliation Act -A law that allows people who leave employment to continue their health insurance under the company plan for a limited period of time HIPCAP -Free counseling Coordination of Benefits -Provision that applies in group insurance when an insured has coverage under multiple plans at one time. -Coordination of benefits is included in all group health insurance policies in order to reinforce the principle of indemnity and determine which coverage is primary, which is the coverage the insured has where they work. Keogh plan -A retirement plan for the self-employed The Social Security Blackout -Period of time when surviving family members are NOT eligible for Social Security survivors benefits -Begins at 16 -Ends at 60 Premium -The amount the insured pays the insurer for the coverage provided. Solvent Insurer Has enough reserves to pay for all its liabilities Types of Life Policy Riders: -Waiver of Premium- Waives the insured's premium if the insured becomes disabled -Disability Income- Pays a replacement of the insured's lost income if the become disabled. -Accidental Death Benefit- Pays double the face amount if the insured dies in an accident, and is also known as double indemnity. -Guaranteed Insurability- Allows the insured to purchase additional amounts of life insurance w/o having to prove insurability. -Cost of Living- increases the policy death benefit based upon the rate of inflation Indemnity -Security or protection against a loss or other financial burden. Hospital Confinement Policy -Pays a set amount per day if the insured in confined in the hospital. Stop Loss -The max the insured would have to pay of the coinsurance A person who is transacting insurance w/o a license in guilty of a: Misdemeanor