Life, Accident and Health Exam Questions and Answers Latest Version Already Passed

Life, Accident and Health Exam Questions and Answers Latest Version Already Passed What does an accidental death benefit rider do? Pays an additional benefit if the insured dies due to an accident Why is the “contestability period” important in life insurance? It allows the insurer to investigate and deny claims based on misstatements within a certain time frame What does “renewable term insurance” mean? The policy can be renewed at the end of the term without new evidence of insurability What is a “waiver of premium” rider in health insurance? It waives premium payments if the insured becomes disabled How does disability income insurance help the insured? It replaces a portion of income lost due to a disabling injury or illness 2 What is the “elimination period” in disability insurance? The waiting time before benefits begin after a disability occurs Why are “exclusions” included in accident and health insurance policies? To specify conditions or causes of loss that are not covered by the policy What does the term “insured” mean in an accident insurance policy? The person whose health or life is protected by the policy What is the difference between “accident” and “sickness” coverage in health insurance? Accident coverage pays for injuries from unexpected events; sickness coverage pays for illnesses What is the purpose of a “beneficiary” designation in life insurance? To identify who will receive the death benefit after the insured’s death What is a “policy loan” in whole life insurance? 3 A loan taken against the policy’s cash value What does “underwriting” mean in accident and health insurance? The process of evaluating risk and deciding whether to insure an applicant How does a “health savings account (HSA)” complement health insurance? It allows the insured to save money tax-free to pay for qualified medical expenses What is the function of “coordination of benefits” in health insurance? To prevent duplication of payment when a person has coverage under more than one plan Why might a policyholder choose a higher deductible in health insurance? To lower the premium cost What is “long-term care insurance” designed to cover? Costs related to extended care such as nursing homes or home health care What is the difference between “term life” and “whole life” insurance? 4 Term life provides coverage for a set period; whole life provides lifelong coverage with a cash value component What is “premium” in the context of insurance? The amount paid by the insured to maintain coverage Why do accident policies often exclude coverage for injuries sustained during illegal activities? To avoid insuring risks that are intentional or against public policy What is “disability income insurance” intended to replace? Lost wages due to the inability to work caused by illness or injury What does a “rider” do in an insurance policy? It modifies or adds coverage to the base policy What is the role of the “insurer” in an insurance contract? To assume financial risk in exchange for premium payments 5 How does “accidental death and dismemberment” insurance work? It pays benefits if the insured dies or loses a limb or eyesight due to an accident What is “pre-existing condition” in health insurance? A health problem that existed before the insurance coverage began What is “renewability” in health insurance policies?