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Insurance Quiz 7

Total questions: 21

Worksheet time: 11mins

Name
Class
Date
1.

Which of these is considered a mandatory provision?

a)

Payment of Claims

b)

Insurance with Other Insurers

c)

Misstatement of Age

d)

Change of Occupation

2.

T sends proof of loss to her insurer for an acceptable medical expense claim under her individual Health Insurance policy. Upon receipt, the insurer must pay the benefits.

a)

immediately

b)

within 6 months

c)

at the insurer's discretion

d)

within 3 months

3.

According to the Time Payment of Claims provision, the insurer must pay Disability Income benefits no less frequently than which of the following options?

a)

Annually

b)

Semiannually

c)

Quarterly

d)

Monthly

4.

Which Accident and Health policy provision addresses preexisting conditions?

a)

Proof of Loss

b)

Legal Actions

c)

Time Limit on Certain Defenses

d)

Payment of Claims

5.

P is a Major Medical policyowner who is hospitalized as a result of injuries sustained from participating in a carjacking. How will the insurer most likely handle this claim?

a)

Claim will be denied and policy terminated

b)

Claim will be partially paid

c)

Claim will be paid

d)

Claim will be denied

6.

Which of the following BEST describes a short-term medical expense policy?

a)

Conditionally renewable

b)

Noncancellable

c)

Guaranteed renewable

d)

Nonrenewable

7.

J, an Accidental Death and Dismemberment (AD&D) policy holder, dies after injuries sustained in an accident. J's age, as stated on the application five years ago, was found to be understated by ten years. Which of the following actions will the insurance company take?

a)

The insurer will pay the original benefit stated in the policy

b)

The insurer will adjust the benefit to what the premiums paid would have purchased at the insured's actual age

c)

The insurer will pay the original face amount minus any premium deficiencies owed

d)

The insurer will deny the claim and refund premiums paid

8.

Which of these statements accurately describes the Waiver of Premium provision in an Accident and Health policy?

a)

Past due premiums on a lapsed policy are waived and coverage is restored

b)

The insured is paid a monthly benefit to keep insurance premiums current in the event of total disability

c)

Premiums are waived after the insured has been unemployed for a specified time period

d)

Premiums are waived after the insured has been totally disabled for a specified time period

9.

The provision that defines to whom the insurer will pay benefits to is called:

a)

Entire Contract

b)

Proof of Loss

c)

Claim Forms

d)

Payment of Claims

10.

In health insurance policies, a waiver of premium provision keeps the coverage in force without premium payments:

a)

Whenever an insured is unable to work

b)

During the time an insured is confined in a hospital

c)

Following an accidental injury, but not during sickness

d)

After an insured has become totally disabled as defined in the policy

11.

An insured pays premiums on an annual basis for an individual health insurance policy. What is the MINIMUM number of days for the Grace Period provision?

a)

7

b)

10

c)

20

d)

31

12.

What is considered to be a characteristic of a Conditionally Renewable Health Insurance policy?

a)

Premiums may increase at time of renewal

b)

Premiums may increase at any time

c)

Policy may be renewed at the discretion of the insured

d)

Policy may be amended by insurer at any time

13.

Select the appropriate response: Which of the following statements describes what an Accident and Health policyowner may NOT do?

a)

File a covered claim

b)

Assign ownership

c)

Cancel the coverage

d)

Adjust the premium payments

14.

With Optionally Renewable Health policies, the insurer may:

a)

renew the policy only if no claims have been filed the previous year

b)

renew the policy only with the insured's consent

c)

review the policy whenever they please and determine whether or not to renew it

d)

review the policy annually and determine whether or not to renew it

15.

X is insured with a Disability Income policy that provides coverage until age 65. This policy allows the insurer to change the premium rate for the overall risk class assigned. Which of these renewability features does this policy contain?

a)

Guaranteed Assignable

b)

Guaranteed Renewable

c)

Optionally Cancellable

d)

Noncancellable

16.

Periodic health claim payments MUST be made at least:

a)

monthly

b)

weekly

c)

daily

d)

annually

17.

Under a Guaranteed Renewable health insurance policy, the insurer

a)

may refuse to continue coverage upon policy renewal

b)

is permitted to require proof of insurability upon policy renewal

c)

will typically decrease the premium upon policy renewal

d)

may cancel the policy for nonpayment only

18.

What is the initial requirement for an insured to become eligible for benefits under the Waiver of Premium provision?

a)

Insured must be unemployed

b)

Insured must be hospitalized

c)

Insured must demonstrate financial need

d)

Insured must be under a physician's care

19.

Under an individual Health Insurance policy, the Time Limit of Certain Defenses provision states that nonfraudulent misstatements first become incontestable two years

a)

from the date that the policy was issued

b)

from the date that the application was signed

c)

from the date initial premium was collected

d)

from the date of the sales appointment

20.

If an individual is covered under an Accidental Death Policy and dies, an autopsy can be performed in all these situations, EXCEPT:

a)

When the cause of death is unknown

b)

When the state prohibits this by law

c)

When consent for the autopsy is not obtained

d)

When foul play was a contributing factor

21.

which health policy clause specifies the amount of benefits to be paid

a)

insuring

b)

payment mode

c)

free look

d)

Consideration