Health Insurance Exam-Illinois Questions and Answers 100% Pass

Health Insurance Exam-Illinois Questions and Answers 100% Pass Risk type expenses - Answer- cannot be planned and is unintended Purpose of health insurance is - Answer- to protect a insured against the risk of financial loss he/she cannot individually afford caused by illness, injury, or diability Indeminity - Answer- Reimbursement Coordination of Benefits provision - Answer- 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 Coordination policy - Answer- is a policy that includes a coordination of benefits provision Non-coordinating policy - Answer- is a policy that does not include a coordination of benefits provision Accepted questions on application to base premiums - Answer- age, family composition, geographic region of residency, tobacco use unacceptable question on application to base premiums - Answer- past medical history, gender, occupation, ethnicity Attending Physician Statement - Answer- 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 Errors and Changes on the Application - Answer- if error on application, underwriter may require it be corrected and changes must be approved and initialed by the applicant Medical information bureau (MIB) report - Answer- it is a clearing house for medical information for insurance companies that belong to it Credit Report - Answer- Determines if total benefits are reasonable compared to applicant's income so as to avoid disincentive Inspection report - Answer- to verify that the producer completed the application accurately and completely is the first purpose of an inspection report Incontestability Clause - Answer- 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 (tax) premiums on ind. hospital/medical expense policies - Answer- can sometimes be tax deducted; depends on whether an ind is self-employed and if ind. itemizes on tax returm (tax) premiums paid by an ind. on ind. diability income policies - Answer- usually cannot be tax deducted (non qualified) (tax) ind. expense policies, ind disability income policies, are usually - Answer- tax free and have no tax on the benefits (tax) premiums paid by employer usually - Answer- can be tax deducted by the employer (tax qualified) (tax) group expense coverage is usually - Answer- no tax on benefits (tax free)