To determine financial strength of an insurance company
Primary purpose for a rating service company such as A.M best?
Provide death benefits
Primary reason for buying life insurance?
Liquidity
What is described as an insurers ability to make unpredictable payouts to its policy owners?
Self-Funded Plan
What is described as a plan in which an employer pays insurance benefits from a fund derived from the employers current revenue?
Nonparticipating policy
Which policy will not pay dividends?
Participating Life Insurance Policy
What is issued by a mutual insurer and provides a return of divisible surplus?
Mutual
What is a type of insurer that is owned by its policy owners?
The reinsurer
A life insurance company has transferred some of its risk to another insurer, the insurer assuming the risk is called the what?
Stock Insurer
A nonparticipating company is sometimes called what?
Risk Pooling
What is described as spreading risk by sharing the possibility of loss over a large number of people?
Risk
Described as a potential loss.
Peril
Described as something that can cause a financial loss.
Loss
Described as unintentional decrease in the value of an asset due to a peril.
Homogeneous Exposure Units
Similar objects of insurance that are exposed to the same group of perils.
Speculative Risk
What presents the chance for both loss and gain? Ex. Gambling
Pure Risk
What is the only insurable risk and presents a potential for loss only with no possibility of gain, such as injury, illness, and death?
Physical
Which type of hazard is poor health, overweight, blind, etc?
Moral
Which type of hazard is dishonesty, drugs, alcohol abuse, etc.?
Morale
Which type of hazard is careless and reckless?
Hazards
What are events or conditions that increase the chances of an insured's life?
Adverse Selection
People who have higher loss exposure have the tendency to purchase insurance more often, which is described as what?
Insurance Contract
What is a legally binding agreement between two or more parties, where a promise of benefits is exchanged for a consideration?
Concealment
What is intentional withholding of material facts that would affect an insurance policy validity?
Representations
What is an applicants statements concerning occupation, hobbies, and personal health history?
Express Authority
What type of authority gives an agent authority in writing?
Consideration
In an insurance contract, the element that shows each party is given something of value is called..
Errors and Omissions
A professional liability for which producers can be sued for mistakes of putting a policy into effect is called...
Apparent Authority
The deeds and actions of a producer indicates what authority?
Term Life Insurance
What is described as temporary life insurance provided for a specific period of time?
Term Life Insurance
Which type of insurance provides the greatest amount of coverage for the lowest premiums?
Whole Life Insurance
Which type of life insurance policy remains in effect to age 100 as long as the premium is paid?
Whole Life
Which type of life insurance has level premiums based on the age of the individual when originally purchased?
Whole Life
In which type of insurance can the policy owner borrow against the cash value while the policy is still in effect or when surrendered?
Straight
Describes the type of policy in which the policy owner pays a fixed premium for the time the policy is issued until they turn 100.
Limited Pay
Describes the type of policy in which it is paid-up before 100.
Single Life
Describes the type of policy in which a one-time lump sum payment is made.
Absolute Assignment
What is described as the permanent and total transfer of all the policy rights?
Collateral
What involves a transfer of partial rights to another person?
Survivorship Life Insurance
What policy is helpful in estate planning because it provides funds to help pay taxes?
Face amount
The word "level" in level term is described as the what?
Family Term
A spouse and child can be added to the primary insured's coverage as a what?
Joint Policy
What is written on one contract for two people and is payable on the first death?
Modified Endowment Contract
A death benefit is not taxable under what?
Variable Life Insurance
A securities license is required for a life insurance producer to sell what type of life insurance?
Variable whole life policy
A life insurance policy which contains cash value that vary according to its investments performance of stock is called what?
Decreasing term life
Which type of life insurance is often used to provide coverage for a home mortgage?
Owners Right Provision
The person who may name and change beneficiaries, select options available under the policy and receive any financial benefits from the policy is described as what provision?
Free-Look Provision
Gives policy owners the right to return the policy for a full premium refund within a limited period of time after the delivery of the policy is described as what provision?
Reinstatement Provision
A policy that is restored to its original status and its values are brought up to date is what provision?
Guaranteed Insurability Rider
Which type of rider is designed to permit young individuals to be able to purchase additional insurance as they grow older, regardless of insurability.
Incontestable Clause
What is protects a policy owner from a misrepresentation caused by his or her own innocent mistake?
The accelerated death benefit
What is considered to be a living benefit option in a life insurance policy?
The accumulation of interest
What is a taxable dividend option?
Non-forfeiture Provision
What provision allows a policy owner to terminate the policy in return for a reduced paid-up policy of the same type?
A partial surrender
What allows the policy owner to withdraw the policy's cash value interest free?
Reduced Paid-up Nonforfeiture option
The policy will have a decreased face amount under what option?
The Reduction of Premium Dividend Option
Which option allows a policy owner to use the dividends to pay all or part of the next premium due on the policy?
Mortality Factor
Describes a measure for the number of deaths in a given population.
Interest Factor
Invest the premiums they receive in an effort to earn interest is called what?
Spendthrift Trust Clause
What protects proceeds from the beneficiaries creditor?
A good health statement
Upon policy delivery, what must have an applicants signature if no initial premium was collect?
Preferred Risk
Because the insured has a better ability than average mortality experience, which type of risk are they?
Standard Risk
Risk described as average, no extra ratings or restrictions..
Substandard Risk
Risk described as high, rated up, and have higher premiums...
Declined Risk
Risk that is not insurable and has a potential of loss.
Blanket Life
What covers a group of people exposed to a common hazard?
Annuity
What provides income for a specific number of years or for life and protects a person against outliving their money?
Immediate Annuity
One that is purchased with a single lump sum payment and provides income payments that start within one year from the date of purchase is what?
Deferred Annuity
The income payments begin sometime after the first year and can be funded through lump sum or periodic payments is what?
Straight Life Option
What option will pay a specific amount for the remainder of the annuitant's life and provides the highest monthly benefit for an individual annuity?
Fixed Annuities
What provides a fixed guaranteed payout, payments that do not vary from one payment to another and guaranteed min. rate of interest?
Life Annuity Certain
What provides a guaranteed min. number of benefit payments, whether the annuitant lives or dies?
Deferred Annuity
What annuity accumulates interest earnings on a tax-deferred basis?
The exclusion ratio
The taxable and nontaxable portions of annuity payments are determined by what?
Law of Large Numbers
How do insurers predict the increase of individual risk?
Lloyds of London
Members of this association form syndicates to underwrite and issue insurance-like coverage.
Fraternal Benefit Societies
Special type of mutual companies/nonprofit religious, ethnic, or charitable organizations that provides insurance solely to their members.
The policy holders
Mutual company dividends are paid to who?
Participating Life Insurance Policy
What kind of insurance policy issued by a mutual insurer provides a return of divisible surplus?
Commercial Insurers
In the business of selling insurance to make a profit are what kind of insurers?
Mutual Companies
Commercial insurers that are owned by their policy holders are what?
Nonparticipating
Stock insurers are called _____ insurers because policy holders don't receive dividends.
Stockholders
Dividends from a stock company are paid to who?
Stock companies
Incorporated companies owned by their stock holders are what?
Multi-Line Insurer
An insurance company selling more than one insurance is called what?
Because dividends are considered to be a return of premium
Why are dividends from a mutual insurer not subject to taxation?
Adverse Selection
A non-contributory health insurance plan helps the insurer avoid ______.
Association of Labor Groups
A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is what?
20 days
A claimant normally must notify the insurance company of loss within how many days after the loss occurs?
GAINS
When a qualified plan starts making payments to its recipient, which portion of distribution is taxable?
60 days
Within how many days must a Traditional IRA be rolled over to another IRA in order to avoid tax consequences?
Contracts of Adhesion
Because the design and wording of a policy are in the hands of the insurer, insurance policies are said to be ______.
Accident
The double indemnity provision in a life insurance policy pertains to an insured's death caused by a(n) _________.
Medical Underwriting
A guaranteed issue insurance policy has no what?
Collateral
Ownership of a life insurance policy may be temporarily transferred with a(n) ______ assignment.
Viatical Settlement Contract
A policy owner can receive an immediate payment before the insured dies by using a(n) __________ contract.
65
At what age will a person normally enroll under a Part C Medicare plan?
An S-Corp owner with a greater than 2% share
What is ineligible to participate in a section 125 plan?
Survivorship
A ________ life policy pays on the death of the last person.
The recipient
Group disability benefits are tax-free to the insured when the premiums are paid by _________.
Variable Universal Life Policy
Combines the flexibility of a universal life policy with investment choices __________?
Limited Pay Life Insurance Policy
A whole life insurance policy where the premiums are paid-up after 20 years would be considered a __________.
Coordination of Benefits
_______ allows the secondary payor to reduce their benefit payments so that no more than 100% of the claim is paid.
A tax qualified plan
A defined contribution plan is considered a ______.
Interest Only
Which settlement option involves having the proceeds remain with the insurer and earning paid on a monthly basis to the beneficiary?
Concurrent review
_____ review involves monitoring the insured's hospital stay to ensure everything is going as plan.
Medicare In-House Deductible
What gap in medicare coverage is addressed with medicare supplement insurance?
Duplicate medicare supplements
Benefits provided by a medicare supplement policy must NOT _______.
Medicare Supplement Plan F
Which type of plan would be most appropriate for an individual on medicare and concerned that medicare will NOT pay for charges exceeding the approved amount?
Prescription drugs
What does Medicare Part D cover?
Variable Whole Life
A life insurance policy which contains cash values that vary according to its investment performance of stocks is called _________.
Increases
How is the cost of a policy affected when premiums are paid for frequently?
Spendthrift
A ________ clause is a statement in a settlement agreement that indicates that the proceeds of the policy will be free from attachment or seizures by the beneficiary creditors.
Viatical Settlement Option
A policy owner can receive a percentage payment of the death benefits prior to death by using what kind of contract?
Reduced death benefit prepayment
What is the primary feature of a viatical settlement?
Mortality Cost
What would be an expense factor in an insurance program?
Estate Conversion
Purchasing a life insurance policy in order to avoid the forced sale of assets upon death is called _______.
Irrevocable
An ______ beneficiary designation requires the beneficiaries signature.
Life Annuity Certain
Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them?
After the first premium payment is paid
When does an immediate annuity begin making payments?
It is taxable
What happens to interest earned if the annuitant dies before the payout start date?
Exclusion
What limits a company's liability to provide insurance coverage?
Wages
What is the primary factor that determines the benefits paid under a disability income policy?
6 Months
A life insurance policy can typically be backdated _____ months from the date of the written insurance application.
Policy Summary
What is the document that describes the critical segments of a life insurance policy?
Retirement Income
The principle use for an annuity is to provide ______.
Life Only
What annuity payout option makes no additional payments regardless of when the annuitant dies?
Limited Pay
A life insurance policy that has premiums fully paid within a stated amount of time is _____.
Only the insurer is legally bound
What makes an insurance policy an unilateral contract?
Roth IRA
What retirement plan does not qualify for federal income tax deduction?
Secondary payor to reduce their benefit payment so you are not overpaying
What does coordination of benefits allow?
Hospital Indemnity
Which type of coverage pays an amount per day for hospitalization directly to the insured regardless of the insured's other health insurance?
Guaranteed Renewable
An insurance policy that obligates the insurer to continue coverage as long as premiums are paid is ________.
Flexible Premium Deferred Annuity
Annuity that requires payments that vary from year to year.
The Insurer
Who assumes the investment risk with a fixed annuity contract?
Life Annuity
What type of annuity stops all payments upon the death of the annuitant?
Refund Annuity
An annuity that returns difference between the annuity value and the income payments made to a beneficiary when the annuitant dies during the distribution period is a _______ annuity.
1 Month
An immediate annuity has been purchased with a single premium. When does the annuitant typically begin receiving benefit payments?
Skilled Nursing Care
Continuous 24 hour care provided by licensed medical professionals under the direct supervision of a physician is called _______.
Subscriber
A person under a Blue Cross Blue Shield plan is called a ______.
Jan. 1st - March 31st.
Open enrollment for Medicare Part B is .....
Gatekeeper
Who typically authorizes treatment from a specialist?
General tax revenue and user premiums
How is Medicare part B funded?
65
Part C Medicare Advantage plan age is what?
Members part time employment status
A group health plan may exclude participation of a member due to....
Make unlimited contributions
A qualified plan DOES NOT allow the employee to do what?
Roth IRA
What retirement plan does NOT qualify for a federal income tax deduction?
When withdrawn
When are traditional IRA's taxable?
Deferred compensation option
What option enables an employee to defer their current receipt of income and have it paid at a later date?
Aletory
A term that describes the fact that both parties of a contract may NOT receive the same value.
Avoidance
Risk ________ will remove the risk of losing money in the stock marker by never purchasing stocks.
Results
Which military service exclusion clause would pay upon the death of an active duty serviceman who was killed in an accident while home on leave?
31
The typical grace period for a policy on a semi annual basis is how many days?
Modified provision is NOT less favorable to the insured
A company may change the wording of a uniform policy only if the _______.
Change of Occupation provision
When an insured changes to a more hazardous occupation, which disability policy provision allows an insurer to adjust policy benefits and rates?
15
It is the company's responsibility to supply a claim form to an insured within how many days after receiving the notice of claim?
Prohibits a specific practice listed in the order
A cease and desist order issued against a producer does what?
10
The free-look period provided in a life insurance policy is usually ______ days.
2 years
A life insurance policy becomes incontestable after it has been in force for how long?
1
What is the min. number of employees needed for a small business medical expense plan in Louisiana?
Explains some cost that may not be covered
What does the "Notice to Buyer" page say on the long-term policy?
30
Every licensee must notify the Louisiana Insurance Commissioner of personal OR business changes within how many days?
March 23, 2010
Health plans purchased before which date grandfathered and do not have to follow the ACA's rules and regulations?
Insurer
All ads for health insurance should make clear the identity of the ______.
Either the insurer or the insured.
Coverage under a cancelable health insurance policy may be terminated by _______.
Risk Retention Groups
Described as mutual companies formed by a group of people in the same industry or profession. Ex. pharmacist, dentist, engineers
Reciprocal Insurers
What are unincorporated groups of individual members that provide insurance for other members through indemnity contracts?
McCarran Ferguson Act
What states that while the federal government has authority to regulate the insurance industry, it would not exercise its right if the insurance industry was regulated effectively and adequately on the state level.
Recommending appropriate laws and regulations as well as Advertising Code and Unfair Trade Practice Act
What is the National Association of Insurance Commissioners responsible for?
Warranties
What are statements made by the applicant guaranteed* to be true? (name, DOB)
Representations
What are statements made by the applicant BELIEVED to be true? (height, weight)
Implied
The unwritten authority of a producer to perform incidental acts necessary to fulfill the purpose of the agency agreements.
Apparent
The authority that deals with the relationship between the insurer, the agent, and the customer and is a situation in which the insurer gives the customer reasonable belief that an agent has the power and authority to bind the principal.
Fraud
What is described as an intentional misrepresentation or concealment of material fact made by one party in order to cheat another party out of something that has economic value?
Increasing Term
Describes a type of term life insurance that provides an increasing face amount over time based on specific amounts or a percentage of the original face amount.
Straight Life
What is the type of whole life insurance that has a level face amount and fixed premiums payable over the insured's entire life?
Limited Pay Life
What is the type of whole life insurance that is covered for your entire life but premiums are paid for a limited time?
Waiver of Premium Rider
What allows the policy owner to waive premium payments during a disability and keeps the policy in force?
90 days, 6 months
Under the Waiver of Premium Rider, the disability must be total and permanent and have sustained through the waiting period of how many days/months?
The Primary
Beneficiary who is first in line to receive death benefits is what?
Secondary (Cotangent)
Beneficiary who is second in line to receive death benefit proceeds if primary beneficiary dies first?
Tertiary
Beneficiary who is third in line to receive death benefits.
Per Stripes
In the event that a beneficiary dies before the insured, benefits from that policy will be paid to that beneficiaries heirs (meaning by the bloodline).
Per Capita
Evenly distributed benefits amount all named living beneficiaries (meaning by the head)
Joint and Full Survivor Payout Option
Pays out the annuity to two or more people until the last annuitant dies.
Fixed Annuity
Provides a guaranteed rate of return
Taxable Income
In a qualified retirement plan, withdrawals by the employee are treated as ________.
10%
Withdrawals under a qualified retirement plan made by the employee prior to age 59 1/2 are assessed an additional ______% penalty tax.
A Pension Plan
Employees contribute to a plan based on the employee's compensation and years of service, not company profitability or performance is what?
401(k)
What plan allows employer to make tax-deferred contributions to the participant?
Simplified Employee Plans (SEP's)
What is described as arrangements where an employee establishes and maintains an IRA to which the employer contributes?
Keogh Plans
What's the plan for self-employed people such as doctors, farmers, lawyers, or other sole proprietors?
Roth IRA's
_____________ are designed so that withdrawals are received income tax-free.
Rollovers
What is described as a transfer of funds from one IRA or qualified plan to another?
20%
Rollovers are subjected to ______% withholding tax if eligible rollover funds are received personally by a participant in a qualified plan.
Human Life Value Approach
Calculates the amount of money a person is expected to earn over his lifetime to determine the face amount of life insurance needed, thereby placing a dollar value on the life of an individual.
Buy-Sell Plan
An attorney drafts what kind of plan stating that the employees agreement to purchase the proprietor's estate and sell the business at a price that has been agreed upon beforehand?
Cross-Purchase Plan
In what type of plan does each partner buys, pays the premiums, and is the beneficiary of a life insurance policy on each of the other partners?
Key Person Insurance
The purpose of _____________ is to prevent the financial loss that may ensue when an owner, officer or manager dies.
Split-Dollar Plan
What is an arrangement where an employer and an employee share in the cost of purchasing a life insurance policy on the employee?
The Employer
In health insurance, the contract for coverage is between the insurance company and the employer and a "Master Policy" is issued to who?
Noncontributory
Health: If the employer pays the entire premium, the plan is called what?
Contributory
Health: If the employees share a portion of the premium, it is called what?
True
Health: True or False: An individual cannot be denied coverage even if he/she has become insurable.
6
Health: The exclusion for preexisting conditions is now limited to conditions for which medical advice or treatment was recommended or received with the _______-month period ending on the enrollment date.
20
Health: How many employees are required to continue group medical expense coverage for terminated workers for up to 18 months following termination?
Health Savings Account
Health: What is considered to be a tax-favored vehicle for accumulating funds to cover medical expenses?
Premium Contributions
Health: Employers are entitled to take a tax deduction for what to make a group health plan?
Health Saving Accounts (HSA's)
Health: Earnings in what grow tax-free and count account beneficiaries can make tax-free withdrawals to cover current and future qualified health care cost.
Not taxable
Health: Disability benefit payments that are attributed to EMPLOYEE contributions are what?
Taxable
Health: Disability benefit payments that are attributed to EMPLOYER contributions are what?
A disabling illness or accident
Health: Disability income insurance is designed to provide an individual with a stated amount of periodic income in the event of what?
Monthly
Health: The benefits paid under a disability income policy are in the form of ________ income payments.
Percent-of-Earnings approach
Health: Used to establish disability benefits, which method determines the benefit using a percentage of the insured's pre-disability earnings and takes into account other sources of disability income?
Flat- Amount Method
Health: Used to establish disability benefits, which method specifies a flat income benefit amount that will be paid if the insured becomes totally disabled?
Any Occupation
Health: This term of total disability requires the insured to be unable to perform __________ for which he is reasonably suited by reason of education, training, or experience in order to qualify for disability income benefits.
Own Occupation
Health: This term of total disability requires the insure to be unable to perform the insured's _________ as a result of an accident or sickness. It is more expensive and difficult to qualify for.
Presumptive Disability
Health: This provision specifies certain conditions that automatically qualify the insured for the full benefit because the severity of the conditions presumes the insured is totally disabled even if he is able to work. This can include blindness, deafnes
Partial Disability
Health: A residual amount benefit is based on the proportion of income actually lost due to the __________, taking into account the fact that the insured is able to work and earn some income.
Unexpected and accidental
Health: Policies that use the accidental means provision require that the cause of the injury must have been _______ and _______.
Elimination Period
Health: The time immediately following the start of a disability when benefits are not payable is known as what period?
Lower Premiums
Health: The longer the elimination period will result to lower what for comparable disability benefits?
Benefit Period
Health: This can be described as the MAXIMUM length of time that disability income benefits will be paid to the disabled insured.
6 months to 2 years
Health: Individual short-term policies provide benefits for _____months to ______ years.
Principle Sum
Health: Represents the MAXIMUM AMOUNT the policy will pay.
Accidental Means
Health: Policies that base their benefit payments on the __________ require that both the cause and the results of an accident must be unintentional.
Recipient
Health: Taxation: Premiums paid for personal disability income insurance are not deductible by the insured but the disability benefits are tax-free to the __________.
EMPLOYER
Health: When a group disability income insurance plan is paid for entirely by the EMPLOYER and benefits are paid directly to individual EMPLOYEES who qualify, the premiums are deductible by the __________. The benefits, in turn, are taxable to the recipie
Accidental Results
Health: Policies that use the more liberal ___________ definition stipulate that only the injury resulting from an accident must be unintentional
Special Risk Policies
Health: Risk: This policy covers unusual hazards normally not covered under ordinary accident and health insurance. Ex. Actress insured her leg for $1 million or pilot insures his life when operating a particular experimental helicopter.
Blue Cross and Blue Shield
Health: Service providers that provide the majority of their benefits on a service basis which means that the insurer pays the provider directly for the medical treatment given to the subscriber. They also pay a set fee each month for medical services cov
Health Maintenances Organizations (HMO's)
Health: Which health insurance provider is distinguished by the fact that they not only finance health care services for their subscribers on a prepayment basis, but they also organize and deliver the health services as well? Has to be 25 or more employee
Preferred Provider Organization (PPO's)
Health: A _______________ is a collection of health care providers such as physicians, hospitals, and clinics who offer their services to certain groups at prearranged discount prices.
Medicare
Health: _______ purpose is to provide hospital and medical expense insurance protection to those 65 and older. It also provides protection to any individual who suffers from chronic kidney disease or to those who are receiving Social Security disability b
Social Security Disability Income
Health: A five-month waiting period is required before an individual will qualify for benefits, during which time he/she must remain disabled, impairment must last at least 12 months and individual must be so mentally or physically disabled that he cannot
Medicaid
Health: _______ purpose is to provide matching federal funds to states for their medical public assistance plans to help needy persons, regardless of age. Benefits are generally payable to low income individuals who are blind, disabled, or under 21 years
Medical Expense Insurance
Health: Which type of insurance provides financial protection against the cost of medical care for accidents and illness and coverage may be provided for hospital care, physician services, surgical expenses, diagnostic and laboratory services, drugs, nurs
Basic Medical Expense Plans
Health: Unlike major medical expense insurance, ___________ provides benefits up front without having to satisfy a deductible and classifies their coverage's according to general categories of medical care: hospital expense, surgical expense, and physicia
Hospital Expense
Health: _________ covers hospital room and board, miscellaneous expenses (such as lab and x-ray charges), medicines, use of operating room, and supplies. These expenses are covered when an insured is confined in a hospital.
Nurses' Expense Benefits
Health: Which plan usually pays only for private duty nursing care arranged according to a doctor's order while the insured is a hospital patient?
Major Medical Expense Plans
Health: _____________ plans offer broad coverage under one policy which includes comprehensive coverage for hospital expenses (room and board and miscellaneous expenses, nursing services, physicians' services, etc.) and catastrophic medical expense protec
Supplementary Major Medical
Health: This policy is used to supplement the coverage payable under a basic medical expense policy. After the basic policy pays, the ______________ will provide coverage for expenses that were not covered by the basic policy, and expenses that exceed the
Comprehensive Major Medical
Health: _______ combines the features of basic expense coverage and major medical coverage, sold as one policy and cover practically all medical expenses, hospital, physicians, surgical, nursing, drugs, laboratory tests, etc.
Health Savings Accounts (HSAs)
Health: What are designed to help individuals save for qualified health expenses that they, their spouse, or their dependents incur?
Out of pocket medical expense
Health: HSAs are tax deductible. An individual who is covered by a high- deductible health plan can make a tax-deductible contribution to an HSA and use it to pay for what?
Hospital Indemnity Policies
Health: Provide a specific amount on a daily, weekly or monthly basis while the insured is confined to a hospital and based only on the number of days confined in a hospital.
Long Term Care
Health: What refers to a broad range of medical, personal, and environmental services designed to assist individuals who have lost their ability to remain completely independent in the community?
Skilled Nursing Care
Health: LTC: _________is continuous, around-the-clock care provided by licensed medical professionals under the direct supervision of a physician and is usually administered in nursing homes.
Intermediate Nursing Care
Health: LTC: _______ is provided by registered nurses, licensed practical nurses, and nurse's aides under the supervision of a physician and is provided in nursing homes for stable medical conditions that require daily, but not 24-hour, supervision.
Custodial Care
Health: TLC: ______ provides assistance in meeting daily living requirements, such as bathing, dressing, getting out of bed, toileting, and so on.
Income
Health: Amounts received under an LTC contract are excluded from ______ because they are considered amounts received for personal injuries and sickness.
10 days with weekly
31 days for other policies
Health: Depending on the state, the minimum grace periods typically specified are seven days for policies with weekly premium payments, _____days for policies with premiums payable on a monthly basis, and ____ days for other policies,
10
Health: To protect the company against adverse selection, losses resulting from sickness are covered only if the sickness occurs at least ____ days after the reinstatement date.
Notice of Claim Provision
Health: Which provision describes the policyowner's obligation to the insurer to provide notification of loss within 20 days after the occurrence or a commencement of the loss, or as soon thereafter as is reasonably possible?
15
Health: It is the company's responsibility to supply a claim form to an insured within _____days after receiving notice of claim.
Proof of Loss
Health: After a loss occurs, or after the company becomes liable for periodic payments (e.g., disability income benefits), the claimant has 90 days in which to submit which provision?
60 days
Health: The insured cannot take legal action against the company in a claim dispute until after _____ days from the time the insured submits proof of loss.
Change Of Occupation Provision
Health: This provision also allows the insurer to reduce the maximum benefit payable under the policy if the insured switches to a more hazardous occupation or to reduce the premium rate charged if the insured changes to a less hazardous occupation.
Misstatement of Age
Health: The __________ provision allows the insurer to adjust the benefit payable if the age of the insured was misstated when application for the policy was made
45
Health: Though prohibited in a number of states, the provision for cancellation gives the company the right to cancel the policy at any time with ____ days' written notice to the insured.
10
Health: If the cancellation is for nonpayment of premium, the insurer must give ____ days' written notice to the insured, unless the premiums are due monthly or more frequently
Insuring Clause
Health: The _______ is the part of the health insurance policy that states the kind of benefits provided and the circumstances under which they will be paid.
Renewability
Health: The more favorable the ________ provision is to the insured policyholder, the higher the premium.
Optionally Renewable Policies
Health: The renewability provision in an _________ policy gives the insurer the option to terminate the policy on a date specified in the contract.
Conditionally Renewable
Health: A ______________ policy allows an insurer to terminate the coverage but only in the event of one or more conditions stated in the contract.
Guaranteed Renewable
Health: The renewal provision in a _____________ policy specifies that the policy must be renewed (as long as premiums are paid) until the insured reaches a specified age, such as 60 or 65.
Noncancellable
Health: A ________ policy cannot be cancelled nor can its premium rates be increased under any circumstances
...
Health: The more favorable the ________ provision is to the insured policyholder, the higher the premium.
A) Level death benefit with increased premiums
Renewable term insurance can be best described as what?
A) Level death benefit with increased premiums
B) Level death benefit with decreased premiums
C) Decreasing death benefit with level premiums
D) Increasing death benefit with level premiums