Insurnace Practice Exam 1

What is true about underwriting?

primaruy source of information will be the application

If someone stays in the hospital for less than 10 days and is elligible for Medicare part A, what is true?

once deductible is paid, medicare will cover 100% of medical expenses

If somsone is 56 year old ex spouse of someone who was covered under work plan, what is true about the ex spouse?

they are able to continue coverage for 3 years as long as they pay 102% required for coverage

Which of the following has the largest effect on life isnurnace premium calcuaiton?

mortatliy

If there is a policy that says it will pay 3 times the amount for death benefit but someone commits suicide 3 uears after effective, what happens?

only orignalamount is paid

Major medical deductibles may be what?

integrated, flat, or corridor

The California Department of INsunrace does what?

taxes surplus lines brokers on premiums for insurance placed with nonadmitted insurers

For group health insrunace, participants may be classified by what?

type of payroll, duties, and length of service but NOT by age

Basic hospital expense insrunace provides insruance for alll of the following except what?

physician services

Whole life policy that makes it possilbe to stop premium payments at the end of a specified time wihtout a reductino in death beenfit is what?

limited pay

Individual or corporation selling insruance that is underwritten by a company that is NOT licensed in Caliofrnia becuase the coverage cannot be obtained from an aditted insurer is known as what?

surplus lines broker

Waiver of premium does what?

waives the need for a premium to be paid if the insrued is disbled

California HICAP provides what services?

legal, counseling, and community education

What is true about licensees transactions?

licenseees rescords must include amoutn of rpemiums receivd for eacht rasaction

When is insrunace policy effective?

once medical exam completed and conditionl receipt received

What is maxmum number of days skilled nursing faciltiy will pay benefits?

100 days

If policy illustration used in California, that illustration must NOT include what?

past and present performance

Can employee convert plan to another plan if he leaves compnay and has deferred compensation plan?

NO

Do Medicare supplement and Medigap policies pay for extended nursing home care?

NO

Under a nonqualified deferred compensation plan, can an emplpyee rely on guaranteed benefits?

NO

Accelerated death beenfit is ellifible when?

when insruned is expcted to die within 24 months

Which policy is ofr those who are medically indigent?

medical

Insurere providing worker's compensation must belogn to whom?

California Insurnace Guarantee Assocaition

Guaranteed insurablity rider is elligible to be attached to which type of policy?

Disablity income

The effective date of coverage when application sent wihtout intial premium but the premium is paid when policy is delivered, when is effective date?

when policy was issued

Medicare supplement polices and Medigap pay when?

all or most of Meicare's deductibles

Do long-term care policies require prior hospitalization for payment of benefits?

NO

Does group underwriting involve geographic location of the group?

NO

What plan integrates its coverage with basic medical providing beenfits in excess of the orignal plan?

supplementary major medical

Medicare Part A beneits are provided when?

when applicant is elligilbe for social security beenfits

Primary purpose of Califrinia life and Health Insurance Guarantee association is what?

protect against losses arigins from insurer insolvency

What type of premiums are deductible for business plans?

executive bonus pla,ns

Advising an aplicant to answer questions in such a way to pass underwriting is what?

NOT example of any kind of authority and is NOT allowed

Coversion of a policy must be made when?

before term policy expires

Meidcare is conviered what?

minimum essential coverage, NOT excepted beenfit

What orgazniation reimburses its insured for medical epxneses?

commercial insurerer

When employee's coverage terminates under group helaht policy, employee has optoin to elect continuatino within how long?

x60 days

Does California Commisioner of Insurnace draft hearings?

NO