Life and Health exam chapter 8

An applicant determined to have below average risk of loss would be:

issued a preferred policy

A premium is paid at the time of application and a conditional receipt is issued. If the policy is issued as applied fo, coverage becomes effective:

the date of the conditional receipt

A policy issued as a preferred risk will be issued with a:

lower than standard rate

It is determined that Charles, an agent representing the Timely Payment Insurance Company, has misled the consuming public in an advertisement for one of the company's products. As a result of such action, which of the following is true?

Both Charles and the Timely Payment Insurance Company will be held accountable

This type of policy covers various expenses that an insured may incur due to a routine accident or sickness.

medical expense

Which of the following statements best describes what we would define as being the co-pay provision in a health insurance policy?

A stated dollar amount applied per claim, in addition to any other cost-sharing

For an accidental means policy to pay a claim, the injury must be an:

Unintentional in both the cause and the result of the injury

An applicant for accident and health insurance works for two different employers. Which of the applicant's occupations will be used to underwrite the policy?

The most hazardous of the two

____________ is the initial step of the total process of insuring a health risk.

field underwriting

Policy replacement is the process of:

Cancelling an existing policy and issuing a new policy

Company expenses to issue and administer a policy include all of the following

commissions paid to the producer, employee salary and operating costs

Premium is considered the policyowner's:

consideration

If an application is submitted with a question left unanswered, which of the following should occur?

The insurer would require an answer before issuing a policy

Upon receipt of an application, the insurer's underwriter may issue the contract with exclusions or limitations. This means that:

Coverage is issued, but there are limits on the insurer's obligation to pay

Which of the following must be given to consumers under the provisions of the Fair Credit Reporting Act (FCRA)?

Notice of Information Practices

This type of coverage is used for replacing the insured's loss of earnings

disability insurance

Other than the applicant, which signature is required on an application?

the agent

The chart that shows the chance of a disability at any given age is called a:

morbidity

Which is true regarding the advertising of Accident and Sickness Insurance?

When insurers advertise that a group endorses a certain health product, the public must be made aware of any control the insurer may have regarding the group

A medical condition that was treated prior to the effective date of a policy is a

pre existing condition

accidental injury is a

Sudden, unexpected and unforeseen event

A specified period that must elapse before new coverage goes into effect for a given condition is known as which of the following?

a probationary period

Which Government health plan is available for military personnel?

TRICARE

When Harold became no longer eligible for coverage under his employer's group benefit program, which of the following statements accurately reflects the conversion privilege defined by his group contract?

Harold had 31 days to convert his policy to an individual plan

What health insurance product is designed to provide coverage for necessary diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services provided in a setting other than an acute care unit of a hospital?

long term care

If questions are incomplete on an application and the insurer issues the policy, a claim is:

Covered since the insurer issued the contract based on an incomplete application

When it comes to underwriting a health insurance policy, and HIV or AIDS

The insurer must approach the topic in a way that avoids unfair discrimination