XCEL Chapter 5 Final Exam Practice Test.
A non-contributory health insurance plan helps the insurer avoid?
A. adverse selection
B. state compliance
C. the underwriting process
D. tax deductions - CORRECT ANSWER adverse selection
All of the following are characteristics of a Group Life Insurance Plan EXCEPT? A. Group underwriting
B. Master contract
C. Individual underwriting
D. Probationary period - CORRECT ANSWER Individual underwriting
What does the Group Life underwriting risk selection process help protect insurance companies from?
A. Risk aversion
B. Natural selection
C. Adverse selection
D. Risk management - CORRECT ANSWER Adverse selection
Tim is covered under a group plan and would like to change his group coverage to an individual policy with the same insurer because of employment termination. Which of these describes the change that will take place?
A. Coordination of benefits
B. Conversion
C. Extension of benefits
D. Rollover - CORRECT ANSWER Conversion
A non-contributory health insurance plan helps the insurer avoid?
A. adverse selection
B. state compliance
C. the underwriting process
D. tax deductions - CORRECT ANSWER adverse selection
All of the following are characteristics of a Group Life Insurance Plan EXCEPT? A. Group underwriting
B. Master contract
C. Individual underwriting
D. Probationary period - CORRECT ANSWER Individual underwriting
What does the Group Life underwriting risk selection process help protect insurance companies from?
A. Risk aversion
B. Natural selection
C. Adverse selection
D. Risk management - CORRECT ANSWER Adverse selection
Tim is covered under a group plan and would like to change his group coverage to an individual policy with the same insurer because of employment termination. Which of these describes the change that will take place?
A. Coordination of benefits
B. Conversion
C. Extension of benefits
D. Rollover - CORRECT ANSWER Conversion
