Insurance Quiz 2

After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?

• File a lawsuit

• Contact the insurer again requesting forms

• Nothing

• File written proof of loss

If an insurance company issues a Disability Income policy that it cannot cancel or for which it cannot increase premiums, the type of renewability that best describes this policy is called:

• noncancellable

• conditionally renewable

• cancellable

• guaranteed renewable

An insured must notify an insurer of a medical claim within ___ days after an accident.

• 10

• 20

• 30

• 40

Select the appropriate response: T files a claim on his Accident and Health policy after being treated for an illness. The insurance company believes that T misrepresented his actual health on the initial insurance application and is, therefore, disputing the claim’s validity. The provision that limits the time period during which the company may dispute a claim’s validity is called:

• Insuring

• Time Limit on Certain Defenses

• Grace Period

• Free-look

Which health policy clause stipulates that an insurance company must attach a copy of the application to the policy to ensure that it is part of the contract?

• Consideration

• Entire Contract

• Free-look

• Insuring

Which of the following policy provisions prohibits an insurance company from incorporating external documents into an insurance policy?

• Waiver

• Exceptions and Reductions

• Incontestable

• Entire Contract

Select the appropriate option: The insuring clause

• Specifies the additional time given to pay past due premiums

• States the scope and limits of the coverage

• States the amount of premium to be collected

• Prohibits the insured from suing the insurer for at least 60 days after filing a written proof of loss

T applied for a Disability Income policy and has a history of back injuries. The insurer issued the policy with a statement that excludes coverage for back injuries. This statement is called a(n)

• back exclusion

• impairment rider

• rating

• encumbrance

S filed a written Proof of Loss for a Disability Income claim on September 1. The insurance company did not respond to the claim. S can take legal action against the insurer beginning:

• September 21

• October 16

• November 1

• December 1

Health insurance benefits NOT covered due to an act of war are:

• excluded by the insurer in the contract provisions

• assigned to a reinsurer

• given a longer probationary period

• charged a higher premium