NJ Accident and Health Producer Practice Exam Fully Solved 2024.

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 - Answer for claims involving periodic payments INSURERS MUST PAY LUMP SUM CLAIMS IMMEDIATELY AFTER RECEIVING PROOF OF LOSS What does coinsurance mean? - a policy covers the insured and the any additional named persons -the insurer and the insured share expenses over the deductible -the insurer and the insured share ALL expenses -the policy owner holds multiple policies through the same insurer - Answer The insurer and the insured share expenses over the deductible COINSURANCE IS THE SHARING BETWEEN THE INSURER AND THE INSURED OF COVERED EXPENSES THAT EXCEED THE DEDUCTIBLE AMOUNT. THE SHARING ENDS WHEN THE "STOP LOSS LIMIT" IS REACHED The life insurance policy will not be truly effect until all of the following occur EXCEPT: -the statement of good health is obtained by the insurer -the first premium is collected -the policy is delivered to the applicant -the producer has explained the policy to the client - Answer -the producer has explained the policy to the client EFFECTIVE DATE BASED ON :