Accident Health Or Sickness Ins Basics

Question 1

Under a credit disability policy, payments to the creditor will be made for the insurer until what point in time?

Answer 1

Until the period of disability ends or until the debt is repaid

Question 2

Who is a field underwriter?

Answer 2

Agent/producer

Question 3

Most health policies will pay the accidental death benefits if the death is caused by an accident and occurs within how many days?

Answer 3

90 days

Question 4

What is the term used for a written request for an insurer to issue an insurance contract based on the provided information?

Answer 4

Application

Question 5

What is adverse selection?

Answer 5

People who are more likely to submit insurance claims are seeking insurance more often than preferred risks

Question 6

What is the capital sum in accidental death and dismemberment coverage?

Answer 6

A percentage of the principal sum

Question 7

What is the entire contract in health insurance underwriting?

Answer 7

The application and the policy issued

Question 8

In health insurance, what is considered a sickness?

Answer 8

An illness that first arises while the policy is in force

Question 9

Who is responsible for paying the cost of a medical examination required in the process of underwriting?

Answer 9

Insurer

Question 10

Who must sign a health insurance application?

Answer 10

The policyowner, the insured (if different), and the agent

Question 11

What are the two types of expenses covered by health ins?

Answer 11

Expenses related to health care, and expenses that compensate for loss of income

Question 12

What type of hospital policy pays a fixed amount each day that the insured is in the hospital?

Answer 12

Hospital indemnity

Question 13

In health insurance, the policy itself and the insurance application form what?

Answer 13

The entire contract

Question 14

During which stage in the insurance process do insurers evaluate information that identifies adverse selection risks?

Answer 14

Underwriting

Question 15

What do limited health policies cover?

Answer 15

A specified accident or disease

Question 16

When should an agent obtain a statement of good health from the insured?

Answer 16

When the premium was paid upon policy delivery and not at the time of application

Question 17

If an agent makes a correction on the application for health insurance, who must the initial the correct answer?

Answer 17

The applicant

Question 18

Under an individual disability income policy, the benefits must be paid on at least what schedule?

Answer 18

Monthly

Question 19

What health policy provision defines the insureds duty to provide the insurer with reasonable notice in the event of loss?

Answer 19

Notice of claim

Question 20

What will determine the length of the grace period in a health insurance policy?

Answer 20

The mode of the premium payment

Question 21

What health policy renewability provision allows the insurer to terminate coverage for any reason, and to increase the premiums for any class of insureds?

Answer 21

Optionally renewable

Question 22

What health policy provision prevents the insured from bringing a lawsuit against the insurance company for at least 60 days after proof of loss is provided?

Answer 22

Legal actions

Question 23

What health policy provision states to whom the claim benefits must be paid?

Answer 23

Payment of claims

Question 24

Who pays the expense for an autopsy under the physical examination and autopsy provision?

Answer 24

The insurer

Question 25

Who decides which optional provisions would be included in a health policy?

Answer 25

The insurance company

Question 26

Health policy provision that allows the insured a period of time to examine the policy and determine whether or not to keep it?

Answer 26

Free-look period

Question 27

What renewability provision will most likely appear on a travel accident policy?

Answer 27

Period of time

Question 28

Monthly premium payment grace period length?

Answer 28

10 days

Question 29

What will happen if there is no payment during the grace period?

Answer 29

The policy will be cancelled

Question 30

If a health ins policy has a 31 day grace period, what does that mean?

Answer 30

The policy remains in effect for 31 days after the premium is due and not paid

Question 31

How will changing one’s occupation to be more hazardous affect the health insurance policy in force?

Answer 31

Claim benefits will be reduced to what the premium would have bought for a more hazardous occupation

Question 32

When can an irrevocable beneficiary be changed?

Answer 32

With the written consent of the beneficiary

Question 33

According to the reinstatement provision, once a lapsed policy is reinstated, how soon will coverage be available for accidents?

Answer 33

Immediately

Question 34

According to the time limit on certain defenses provision in health insurance policies, when can an insurer contest fraudulent misstatements on a health insurance application?

Answer 34

Any time while the policy is in force

Question 35

What is the name of the act by the insured to voluntarily give up insurance?

Answer 35

Cancellation

Question 36

What health policy provision allows the insurer to non renew health coverage if certain events occur?

Answer 36

Conditionally renewable

Question 37

What health insurance policy provision describes the insureds right to cancel coverage?

Answer 37

Renewability provision

Question 38

What does the free look period allow the insured to do?

Answer 38

Return the policy for a full refund of premium within a specific time period, usually 10 days

Question 39

Insurance is defined as the transfer

Answer 39

of pure risk to the insurance company in return for a premium

Question 40

Pure risk is

Answer 40

the chance of loss without any gain

Question 41

Risk is

Answer 41

the chance of loss

Question 42

A condition that could result in loss

Answer 42

Exposure

Question 43

Hazard

Answer 43

something that increases the chance of loss

Question 44

A peril

Answer 44

cause of loss such as a fire

Question 45

To be insurable losses must be

Answer 45

Calcuable

Question 46

This allows insurers to predict claims more accurately

Answer 46

Law of large numbers

Question 47

Most insurers buy what to protect themselves in the event of catastrophic loss

Answer 47

Reinsurance

Question 48

Are insurance laws required to be the same from state to state?

Answer 48

No

Question 49

An offer is

Answer 49

A specific and definite proposal to enter into a contract

Question 50

Does consideration on a policy need to be equal?

Answer 50

No

Question 51

Under the consideration clause what must be exchanged?

Answer 51

Something of value

Question 52

Are stock insurer dividends guaranteed?

Answer 52

No

Question 53

Who manages a reciprocal ins co?

Answer 53

An attorney in fact

Question 54

Reciprocal insurer

Answer 54

Unincorporated association of individuals who insure each other

Question 55

A foreign company has their home office where

Answer 55

Another state

Question 56

Company incorporated outside the US

Answer 56

Alien