Any changes made on an insurance application requires the initials of whom?
Insured
Producer
Applicant
Beneficiary
applicant
Which type of plan normally includes hospice benefits?
Short-term disability plans
Group life plans
Workers' Compensation
Managed care plans
managed care plans
Which of these do NOT constitute policy delivery?
Policy mailed to applicant
Policy mailed to producer
Policy delivered to the applicant by the producer
Policy issued with a rating
policy issued with a rating
Which type of plan normally includes hospice benefits? Health Underwriting
Short-term disability plans
Group life plans
Workers' Compensation
Managed care plans
managed care plans
An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the
producer
applicant's spouse
National Association of Insurance Commissioners (NAIC)
applicant's physician
applicants physician
M completes an application for health insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT
policy is delivered
free-look period has expired
insurance company issues policy
initial premiu
free-look period has expired
P is self-employed and owns an Individual Disability Income policy. He becomes totally disabled on June 1 and receives $2,000 a month for the next 10 months. How much of this income is subject to federal income tax?
$20,000
$14,000
$6,000
$0
$0 - benefit income is not federally taxable
Which of the following BEST describes how pre-admission certifications are used?
Used to assist in underwriting
Used to prevent nonessential medical costs
Used to minimize hospital lawsuits
Used to help process claims
used to prevent nonessential medical costs
Which mode of payment is NOT used by health insurance policies?
Monthly premium
Annual premium
Single premium
Semi-annual premium
single premium
Which mode of payment is NOT used by health insurance policies?
Monthly premium
Annual premium
Single premium
Semi-annual premium
single premium
Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?
Have the customer sign a blank application, then take the application back to his office to complete prior to sending it off t
complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company
Which of the following are NOT managed care organizations?
Point-of-Service plan (POS)
Preferred Provider Organization (PPO)
Medical Information Bureau (MIB)
Health Maintenance Organization (HMO)
medical information bureau (MIB)
A prepaid application for individual Disability Income insurance was recently submitted to an insurer. When the insurer received the Medical Information Bureau (MIB) report, the report showed that the applicant had suffered a stroke 18 months ago, somethi
send a notice to the MIB that the applicant was declined
Which of these actions should a producer take when submitting an insurance application to an insurer?
Issue a binding receipt to applicant if no initial premium is submitted
Disclose to the applicant the amount of commissions to be earned on this transact
inform insurer of relevant information not included on the application
When an insurance application is taken by a producer, which of these statements is true?
The applicant should have an attorney present during the application process
Any changes made on the application require the applicant's initials
Any changes made on
any changes made on the application require the applicant's initials
Pre-hospitalization authorization is considered an example of
managed care
PPO care
Medicaid
Major Medical insurance
managed care
From what authority derives the requirement that an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant?
Fair Credit Reporting Act
Medical Information Bureau
Part lll of the application
fair credit reporting act
K completes an application for a disability policy but does not pay the initial premium. The company approves the policy standard and the agent delivers the policy. K then pays her initial premium 3 days later. At what point does K's policy take effect?
D
date the initial premium is collected
Which of the following statements about the classification of applicants is INCORRECT?
Substandard applicants are never declined by underwriters
Substandard applicants are occasionally declined by underwriters
Preferred risk applicants typically have bett
substandard applicants are never declined by underwriters
Which parts of a health insurance policy are guaranteed to be true?
Rating
Representation
Statement
Warranty
warranty
M applies for a health insurance policy and pays the initial premium. When the agent completes the application, a conditional receipt is left with the applicant. The insurance company's underwriting department request's M's medical records and determines
changing the policy's provisions
Consumer reports requested by an underwriter during the application process of a health insurance policy can be used to determine
driving history
probability of making timely premium payments
if applicant is a tobacco user
overall health of the applicant
probability of making timely premium payments
Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company.
return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company
T is receiving $3,000/month from a Disability Income policy in which T's employer had paid the premiums. How are the $3,000 benefit payments taxable?
Benefits are taxable to T
Benefits are tax-free to T
Benefits are partially taxable to T
Benefits are tax
benefits are taxable to T - when the employer pays the full premiums, it is the employer who gets tax benefit. the individual must pay taxes on benefits received
Why is an applicant's signature required on a health insurance application?
To attest that the statements on the application are warranties
To attest that the statements on the application are accurate to the best of the applicant's knowledge
To give Powe
to attest that the statements on the application are accurate to the best of the applicants knowledge
All of these are considered sources of underwriting information about an applicant EXCEPT
Inspection Report
Credit Report
Rating Services
Medical Information Bureau
rating services
What is being delivered during a policy delivery?
A binding receipt to the proposed insured
Insurance contract to the proposed insured
Application and initial premium to the insurer
Policy summary sheet and disclosure material to the proposed insured
insurance contract to the proposed insured
An underwriter determines that an applicant's risk should be recategorized due to a health issue. This policy may be issued with a(n)
delayed effective date
exclusion for the medical condition
extended Contestable period
Concealment clause
exclusion for the medical condition
Which Federal law allows an insurer to obtain an inspection report on a potential insured?
Medical Information Bureau Act
Freedom of Information Act
Fair Credit Reporting Act
Medical Information Act
fair credit reporting act
K applies for a health insurance policy on herself and submits the initial premium with the application. She is given a receipt by the producer stating that coverage begins immediately if the application is approved. What kind of receipt was used?
Binding
conditional (bc it says coverage starts once application is approved)
An incomplete health insurance application submitted to an insurer will result in which of these actions?
Application will be returned to the writing producer
Application will be approved with restrictions
Application will be pending until a MIB report is
application will be returned to the writing producer
Information obtained from a phone conversation to the proposed insured can be found in which of these reports?
Agent's report
MIB report
Inspection report
Attending physician's report
inspection report
What action should a producer take if the initial premium is NOT submitted with the application?
Keep the application until premium is paid
Forward the application to the insurer after giving the applicant a binding receipt
Forward the application to the
forward the application without the initial premium
Which of these factors do NOT play a role in the underwriting of a health insurance policy?
Avocations
Credit status
Marital status
Occupation
marital status
Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a Disability Income policy?
Issue the policy with a diabetes exclusion
Issue the policy with an altered Time of Payment of Claims
issue the policy with an altered time of payment of claims provision
An agent takes an individual Disability Income application, collects the appropriate premium, and issues the prospective insured a conditional receipt. The next step the insurance company will take is to
issue the policy only when the initial premium chec
determine if the applicant is an acceptable risk by completing standard underwriting procedures
What would the Medical Information Bureau (MIB) identify?
Testing positive for marijuana use from a previous screening
Existing life insurance coverage with other carriers
Credit scores
Primary physician
testing positive for marijuana use from a previous screening
An insurance company may NOT reject a prospective insured's insurance application on the basis of which of the following factors?
Hobbies
Weight
Gender
Medical history
gender
Which of these terms accurately defines an underwriter's assessment of information on a health insurance application?
Risk classification
Warranty review
Insurable interest
Inspection report
risk classification
Before a health insurance policy is issued, which of these components of the contract is required?
Applicant's signature on application
Beneficiary's signature
A conditional receipt
Attending Physician Statement (APS)
applicants signature
P is a producer who notices 5 questions on a health application were not answered. What actions should P take?
Mail incomplete application to applicant to be completed and returned to the agent
Submit the application as-is to the insurer
Call the applican
set up a meeting with the applicant to answer the remaining questions
Who is NOT required to sign a health insurance application?
Adult insured
Policyowner
Producer
Beneficiary
beneficiary