Name: Score:
137 Multiple choice questions
Definition 1 of 137
A participating insurance policy may do which of the following?
Require policyholders to pay a fee for each claim
Pay dividends to the policyowner
Charge higher premiums for policyholders
Limit coverage to specific types of events
Definition 2 of 137
which of the following individuals must have insurable interest in the insured?
beneficiary's age
option b
insurer
policyowner
Definition 3 of 137
Making use directly or indirectly of any methods of marketing which fail to disclose in a
conspicuous manner that a purpose of the method of marketing is solicitation of insurance and
that contract will be made by an insurance agent or insurance company is known as
Cold Lead Advertising
Misrepresentation
High Pressure Tactics
Twisting
,Definition 4 of 137
stranger-oriented life insurance policies are in direct opposition to the principle of
insurable interest
subrogation
speculative risk
consideration clause
Definition 5 of 137
Which is TRUE about the cash surrender nonforfeiture option?
The insurance contract
Only the initial premium paid is taxable.
Payment is limited to a certain period of time
Funds exceeding the premium paid are taxable as ordinary income.
Term 6 of 137
Notice Regarding Replacement
Following an injury, a policyowner covered under Medicare Parts A & B was treated by her
physician on an outpatient basis. How much of her doctor's bill will she be required to pay
out-of-pocket?
Shortly after a replacement transaction on a Medicare supplement policy, the insured
decided to cancel the policy, but is unsure whether the free-look provision applies. The
insured could find that information in the
Which of the following government health programs provides health insurance coverage to
children who do not have access to adequate health care services?
the transfer of an insured's right to seek damages from a negligent party to the insurer is
found in which of the following clauses?
,Definition 7 of 137
An individual purchased a Medicare supplement policy in March and decided to replace it 2
months later. His history of coronary artery disease is considered a pre-existing condition. Which
of the following is true?
The pre-existing condition waiting period fulfilled in the old policy will be transferred to
the new policy, the new one picking up where the old one left off
Policyholder to renew the policy to a stated age, with the company having the right to
increase premiums on the entire class
By state and local governments
The capital amount in a lump sum
Definition 8 of 137
For which of the following reasons may an insurer terminate a small employer health insurance
policy?
Change of beneficiary
Nonpayment of premium
Viatical settlement
Reduction of premium
Definition 9 of 137
what is the maximum age for qualifying for a catastrophic plan?
this is a form of insurance that covers part time workers
30
100%
Speaking
, Definition 10 of 137
a brain surgeon has an accident and develops tremors in her right arm. which of the disability
it does not have limits on contributions
"own occupation" - less restrictive than other definitions
"full recovery" - indicates no lasting effects from the accident
"temporary leave" - allows for a short break from work
Term 11 of 137
Needs substantial hands on or standby assistance with ADLs.
Qualified long-term care policies covering home care must provide benefits if the insured
is impaired in at least two of the six activities of daily living (ADL). The term "impaired"
means
an insured submitted a notice of claim to the insurer, but never received claims forms. he
later submits proof of loss, and explains the nature and extent of loss in a hand-written
letter. which of the following is true?
if an employee terminates her employment, which of the following provisions would allow
her to continue health coverage under and individual policy, if requested within 31 days?
In a situation when a Medicare insured uses the services of a non-participating provider,
which of the following is NOT true?
Definition 12 of 137
Following an injury, a policyowner covered under Medicare Parts A & B was treated by her
physician on an outpatient basis. How much of her doctor's bill will she be required to pay out-of-
pocket?
50% of the total bill regardless of the deductible
20% of covered charges above the deductible
no out-of-pocket expenses if treated as an outpatient
100% of all charges after the deductible
137 Multiple choice questions
Definition 1 of 137
A participating insurance policy may do which of the following?
Require policyholders to pay a fee for each claim
Pay dividends to the policyowner
Charge higher premiums for policyholders
Limit coverage to specific types of events
Definition 2 of 137
which of the following individuals must have insurable interest in the insured?
beneficiary's age
option b
insurer
policyowner
Definition 3 of 137
Making use directly or indirectly of any methods of marketing which fail to disclose in a
conspicuous manner that a purpose of the method of marketing is solicitation of insurance and
that contract will be made by an insurance agent or insurance company is known as
Cold Lead Advertising
Misrepresentation
High Pressure Tactics
Twisting
,Definition 4 of 137
stranger-oriented life insurance policies are in direct opposition to the principle of
insurable interest
subrogation
speculative risk
consideration clause
Definition 5 of 137
Which is TRUE about the cash surrender nonforfeiture option?
The insurance contract
Only the initial premium paid is taxable.
Payment is limited to a certain period of time
Funds exceeding the premium paid are taxable as ordinary income.
Term 6 of 137
Notice Regarding Replacement
Following an injury, a policyowner covered under Medicare Parts A & B was treated by her
physician on an outpatient basis. How much of her doctor's bill will she be required to pay
out-of-pocket?
Shortly after a replacement transaction on a Medicare supplement policy, the insured
decided to cancel the policy, but is unsure whether the free-look provision applies. The
insured could find that information in the
Which of the following government health programs provides health insurance coverage to
children who do not have access to adequate health care services?
the transfer of an insured's right to seek damages from a negligent party to the insurer is
found in which of the following clauses?
,Definition 7 of 137
An individual purchased a Medicare supplement policy in March and decided to replace it 2
months later. His history of coronary artery disease is considered a pre-existing condition. Which
of the following is true?
The pre-existing condition waiting period fulfilled in the old policy will be transferred to
the new policy, the new one picking up where the old one left off
Policyholder to renew the policy to a stated age, with the company having the right to
increase premiums on the entire class
By state and local governments
The capital amount in a lump sum
Definition 8 of 137
For which of the following reasons may an insurer terminate a small employer health insurance
policy?
Change of beneficiary
Nonpayment of premium
Viatical settlement
Reduction of premium
Definition 9 of 137
what is the maximum age for qualifying for a catastrophic plan?
this is a form of insurance that covers part time workers
30
100%
Speaking
, Definition 10 of 137
a brain surgeon has an accident and develops tremors in her right arm. which of the disability
it does not have limits on contributions
"own occupation" - less restrictive than other definitions
"full recovery" - indicates no lasting effects from the accident
"temporary leave" - allows for a short break from work
Term 11 of 137
Needs substantial hands on or standby assistance with ADLs.
Qualified long-term care policies covering home care must provide benefits if the insured
is impaired in at least two of the six activities of daily living (ADL). The term "impaired"
means
an insured submitted a notice of claim to the insurer, but never received claims forms. he
later submits proof of loss, and explains the nature and extent of loss in a hand-written
letter. which of the following is true?
if an employee terminates her employment, which of the following provisions would allow
her to continue health coverage under and individual policy, if requested within 31 days?
In a situation when a Medicare insured uses the services of a non-participating provider,
which of the following is NOT true?
Definition 12 of 137
Following an injury, a policyowner covered under Medicare Parts A & B was treated by her
physician on an outpatient basis. How much of her doctor's bill will she be required to pay out-of-
pocket?
50% of the total bill regardless of the deductible
20% of covered charges above the deductible
no out-of-pocket expenses if treated as an outpatient
100% of all charges after the deductible
