A. -offer the supplement policy on a guaranteed issue basis -exclude pre-existing conditions from coverage under the supplement policies, offer the supplement policy on a guaranteed issue basis U7, According to OBRA, what is the minimum number of employees required to constitute a large group? -4 years -2 years -1 year -3 years, A resident agent licensed in another state may obtain a nonresident license in Utah without taking the examination provided that: -the agent is currently licensed in the state of domicile -the agent has obtained that license by passing a test suitable to the Utah Department -the state where the agent lives affords the same privilege to residents of Utah -all of these requirements are met, An agent voluntarily surrendered her license. In what way can an agent demonstrate a high standard of ethics? Morale 4. Notify me of follow-up comments by email. -they allow several small employers purchase less expensive insurance together -they make deals with local hospital to provide low cost coverage to the needy -they provide insurance for larger corporations -they provide insurance companies with medical information on applicants, they allow several small employers purchase less expensive insurance together U6, In a noncontributory health insurance plan, what percentage of eligible employees must participate in the plan before the plan can become effective? A) Insurance cannot be mandatory. -decrease -increase -remain the same -either increase or decrease, Which of the following is NOT a cost-saving service in a medical plan? You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site. C. They could be sold for an amount greater than the current cash value. -when the employee is 59 -when the amount of the benefit is equal or less than the amount of contributed by the employer -when the benefits received are equal or less than the employee's percentage of the contribution -when the employer makes all the premium payments, when the benefits received are equal or less than the employee's percentage of the contribution U8, All of the following are true regarding Key Employee Disability Income insurance EXCEPT: -benefits are taxable to the employer -the employer owns the policy -benefits are paid to the employer to retrain a new person -premiums are not tax deductible for the employer, Under which of the following employer-provided plans are the benefits taxable to an employee in proportion to the amount of premium paid by the employer? Which statement regarding insurable risks is NOT correct? -if paid by the individual, the premiums are tax deductible -if the employer paid the premiums, income benefits are taxable to the insured as ordinary income -if the insured paid the premiums, any disability income benefits are tax-free -if the benefits are for a permanent loss, the benefits paid to the employee are not taxable, if the employer paid the premiums, income benefits are taxable to the insured as ordinary income (if an individual purchases his or her own disability insurance with before-tax dollars, any benefits paid are tax free, but the premium is not tax deductible. C)An insurable risk must involve a loss that is definite as to cause, time, place and amount. -only post-hospitalization benefits -full benefits -partial benefits -no benefits, Under the Physical Exam & Autopsy provision, how many times can an insurer have the insured examined, at its own expense, while a claim is pending? The insurable risk needs to be statistically predictable. -AD&D -Disability Buy Out -Medical Expense -Group Disability Income, group disability income (disability benefit payments that are attributed to employee contributions are not taxable, but benefits payments that are attributed to employer contributions are taxable to the employee) U4, Which of the following would best describe total disability? When an applicant is applying for an insurance contract, the statements he or she makes are generally not warranties, but representation. Preferred risks and poor risks are balanced, with average risks in the middle, To achieve the profitable distribution of exposures. D. They involve insurance policies with large face amounts. The. B. reduction. -20 -50 -100 -15, In long-term care (LTC) policies, as the benefit period lengthens, the premium -LTC premiums are not based on benefit periods -decreases -increases -remains unchanged, What type of health insurance policy provides an employer with funds to train a replacement if a valued employee becomes disabled? -an individual who was previously covered by group health insurance for 6 months is eligible -an individual who has used up COBRA continuation coverage is eligible -an individual who doesn't qualify for Medicare may be eligible -the gap of coverage for eligibility is a period of 63 days or less, an individual who was previously covered by group health insurance for 6 months is eligible (HIPAA requires that the individual have a previous continuous creditable health coverage for at least 18 months) U5, A medical insurance plan in which the health care provider is paid a regular fixed amount for providing care to the insured and does not receive additional amounts of compensation dependent upon the procedure performed is called: -reimbursement plan -fee-for-service plan -prepaid plan -indemnity plan. Study with Quizlet and memorize flashcards containing terms like Question 1 of 15 Which statement regarding insurable risks is NOT correct? This is considered to be a very important provision required by HIPAA, the federal Health Insurance Portability and Accountability Act of 1996) U3, When a group disability insurance policy is paid entirely by the employer, benefits paid to disabled employees are: -deductible income to the employee -deductible business expense to the employer -taxable income to the employer -taxable income to the employee, A small business owner is the insured under a disability policy that funds a buy-sell agreement. Which statement regarding insurable risks is NOT correct? C. retention. Expert answered| soumen314 |Points 17461| Log in for more information. What income taxation will be imposed on the benefits received? -community rating -individual rating -experience rating -district rating. A person who does not lock the doors or does not repair leaks shown an indifferent attitude. Adverse selection is a concept best described as Risks with higher probability of loss seeking insurance more often than other risks. A. Nothing can happen until they get the results. -Disability Buy-Sell -Business Overhead -Key Person Disability -Group Disability, Which of the following is INCORRECT concerning taxation of disability income benefits? A. An insurer can charge interest on outstanding policy loans C. A policy loan may be repaid after the policy is surrendered D. Money borrowed from the cash value is taxable, A. -in long-term plans, monthly benefits are limited to 75% of the insured's income -there are no participation requirements for employees -short-term plans provide benefits for up to 1 year -the extent of benefits is determined by the insured's income, the extent of benefits is determined by the insured's income U4, A business wants to make sure that if a key employee becomes disabled, the business will be protected from any resulting loss. Life Insurance Ch. 1 Quiz Flashcards | Chegg.com Catastrophe reinsurance protects catastrophe insurers from financial ruin in the event of a large-scale natural or human-made disaster. -5 days -7 days -10 days -3 days, If an insurer wants to raise its premium rates, the new rates must be submitted to the Commissioner for the review and will take how many days to go into effect? By putting the client's best interest before their own. An insurable risk must have the prospect of accidental loss, meaning that the loss must be the result of an unintended action and must be unexpected in its exact timing and impact. You have created 2 folders. Catastrophe accumulation refers to the aggregate claims that would need to be paid if one or more catastrophes were to occur across an entire region. D) The Insurance Department, A. Self-insurance B. What is the term for the entity that an agent represents regarding contractual agreements with third parties? Speculative risks are those that might produce a profit or loss, namely business ventures or gambling transactions. -preferred -Medicare SELECT -Medicare Advantage -Medicare Part A, Medicare SELECT (Medicare SELECT policies require insureds to use specific healthcare providers and hospitals, except in emergency situations. What is insurable interest example? - IronSet Which of the following is considered to be a morale hazard? General Insurance Exam Simulator Flashcards - Cram.com -guaranteed renewable -optionally renewable -conditionally renewable -cancellable, Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within: -60 days of a loss -90 days of a loss -20 days of a loss -30 days of a loss, Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned, will be paid to: -beneficiary of the death benefit -the spouse of the insured -the insured -creditors, While a claim is pending, an insurance company may require: -the insured to be examined only once annually -an independent examination only once every 45 days -an independent examination as often as reasonably required -the insured to be examined only within the first 30 days, an independent examination as often as reasonably required U3, Under an individual disability policy, the MINIMUM schedule of time in which claim payments must be made to an insured is: -within 45 days -weekly -biweekly -monthly, In an optionally renewable policy, the insurer has which of the following options? -full amount until a deductible is met, then a small copay -copayment -none -full amount until a deductible is met, then nothing for the rest of the year, Because of the history of cancer in her family, Julie purchased a policy that specifically covers the expense of treating cancer. D. To fund losses that cannot be insured. -Plan A -foreign travel provisions -outpatient drugs -Plan C coinsurance, An applicant is discussing his options for Medicare supplement coverage with his agent. They help pay to repair or replace your home or belongings if they are damaged by hazards such as fire, theft or vandalism. The insurable risk needs to be statistically predictable An insurance risk must involve a loss that is definite as to cause, time, place and amount. Which statement regarding insurable risks is NOT correct? Although he is still receiving benefits from his disability income policy, he does not have to pay premiums. C) Pure risk involves only the chance of loss; there is never a possibility of gain or profit. This insurance provides financial protection against physical damage and bodily injury resulting from traffic collisions. You should now have gotten the answer to your question Which statement regarding insurable risks is NOT correct?, which was part of Insurance MCQs & Answers. Answer B is correct. During this period of time the annuity payments grow interest tax deferred. It can pay to repair or rebuild your home after . A participating insurance policy may do which of the following? Feb. 2015. B. For an insurance company, catastrophic risk is simply any severe loss deemed too expensive, pervasive, or unpredictable for the insurance company to reasonably cover. A. Policyowners bear the investment risk B. the premiums are invested in the insurers general account C. the minimum death benefit is guaranteed D. the cash value is not guaranteed, A) It has the lowest annual premium of the three types of Whole Life policies. -excessive benefits may be taxable -benefits may be taxable as ordinary income -premiums may be taxable as income -premiums are not deductible in any case, Under what condition are group disability income benefits received by an employee NOT taxable as income? Exam #2 Flashcards | Quizlet When ambiguities exist, courts generally rule in favor of the insured.). Contract of Adhesion 3. -assumed -express -implied -apparent, implied (not written in agent's contract but is required in order for the agent to conduct business) U1, Because an agent is using stationery with the logo of an insurance company, applicants for insurance assume that the agent is authorized to transact on behalf of that insurer. If the owner dies or becomes disabled, the policy would provide which of the following? A. What privilege does the insured have in order to balance this order? (All insurers (domestic, foreign, or alien) must obtain a Certificate of Authority before transacting insurance within a given state. An industry loss warranty (ILW) is a reinsurance or derivative contract that kicks in When doing business in this state an insurance company that is formed under the laws of another state is know as which type of insurer? insureds cannot be randomly selected U1. -nonresident -temporary -broker -limited lines, Existing and replacing life insurers are required to keep copies of all summaries, notices, and statements used in sale transactions until the conclusion of their next examination by the Insurance Department, or for the current calendar year plus: -three years -five years -one year -two years, What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act? Which statement regarding insurable risks is NOT correct? Only the principal amount will be paid out within a specified period of time B. b) Health insurance: an insurance (CII study text on Liability insurances, 2016). Which of the following options best depicts how the eligibility of members for group health insurance is determined? -types of whole life policies -ownership -amount of death benefit -number of producers, ownership (mutual companies owned by policyholder; stock companies owned by stockholders) U1, An insurance contract must contain all of the following to be considered legally binding EXCEPT: -consideration -competent parties -beneficiary's consent -offer & acceptance, beneficiary's consent (4 parts: offer & acceptance, consideration, competent parties, legal purpose), Which authority is NOT stated in an agent's contract but is required for the agent to conduct business? -age is the only requirement; upon reaching age 65, LTC benefits are available -the insured must be unable to perform some activities of daily living -the insured must meet certain economic standards -he insured must have been receiving disability benefits for 6 months, the insured must be unable to perform some activities of daily living U7, OBRA requires which disease to be covered by an employer for 30 months before Medicare becomes the primary mode of coverage? The insurance industry normally refers to this as "due to chance." The person be insured must give consent before a policy is issued, even if the applicant has an insurable interest. All Of The Following Entities Regulate Variable Life Policies Except, All Of The Following Are Examples Of Risk Retention Except, Which Of The Following Is True Regarding The Annuity Period, Which Of The Following Is Not True Of Life Settlements, All Of The Following Are True About Variable Products Except, Which Statement Is Not True Regarding A Straight Life Policy, Which Of The Following Is Not True Regarding Policy Loans, Which Of The Following Best Describes Fixed Period Settlement Option, Fixed Annuities Provide All Of The Following Except, Which Of The Following Products Requires A Securities License, Which Statement Regarding Insurable Risks Is Not Correct. The insured must be able to rely on the insurer's promise to pay covered losses.). reduction. The other insurer is called the "Assuming insurer.". -medical expenses associated with a disability -income lost by the insured's inability to work -rehabilitation costs -copayment, -income lost by the insured's inability to work U2, Most policies will pay the accident death benefits as long as the death is caused by the accident & occurs within: -30 days -60 days -90 days -120 days, Which of the following statements regarding conditional receipts is true? Because if it does not, then there is no reason to insure against the loss. Your email address will not be published. Representations are statements that are true to the best of the applicant's knowledge.). B)The insurable risk needs to be statistically predictable. ), total and permanent blindness, or loss of speech or hearing. For example, a corporation may have an insurable interest in the chief executive officer (CEO), and an American football team may have an insurable interest in a star, franchise quarterback. Speculative risks lack the core elements of insurability and are almost never insured. An agreement between a ceding insurer and assuming insurer. Most insurance providers only cover pure risks, or those risks that embody most or all of the main elements of insurable risk. Free Standardized Tests Flashcards about Health&Life - StudyStack This is an example of: -breach of warranty -concealment -waiver -fraud, Peril is most easily defined as: -the cause of loss insured against -an unhealthy attitude about safety -the chance of a loss occurring -something that increases the chance of loss, What is the major difference between a stock company & mutual company? -24-hour care -relief for a major care giver -daily medical care, given by medical personnel -institutional care, Which of the following long-term care benefits would provide coverage for care for functionally impaired adults on a less than 24-hour basis? To reduce expenses and improve cash flow. Insurance is a game of statistics, and insurance providers must be able to estimate how often a loss might occur and the severity of the loss. B. Introduction. Which statement regarding insurable risks is NOT correct. He exercises daily & does not smoke or drink. -producer -insurer's executive officer -department of insurance -broker, insurer's executive officer (the insurer must have the insured's written agreement to the change) U3, What is the purpose of coinsurance provisions? -no tax -tax deductible -state income tax -federal income tax, no tax (daily benefits from the LTC policy are received income tax free, as long as they do not exceed the daily cost of long-term care) U8, The benefits received by the business in a Disability Buy-Sell policy are: -income tax free -tax deductible -partially taxable -fully taxable, Which type of insurance provides funds for a business organization to purchase the business interest of a disabled partner? B) The insurable risk needs to be statistically predictable C) an insurable risk must involve a loss that is definite as to cause, time, place and amount. Without this information, an insurance company can neither produce a reasonable benefit amount or premium cost. This means that the policy includes: -benefit of payment clause -waiver of all payment -waiver of premium feature -return of premium rider, An applicant is considered to be high-risk, but not so much that the insurer wants to deny coverage. A. Which of the following is NOT an essential element of an insurance contract? Retained Earnings is an alias of Multiple Choice Questions (MCQs) | Retained Earnings, Insurance Quiz Part 2 Multiple Choice Questions (MCQs) | Questions with Answers. What is the major difference between a Stock Company and a Mutual Company? Find out how you can intelligently organize your Flashcards. B) Its premium steadily decreases over time, in response to its growing cash value. -low risk -standard -superior -preferred, Which of the following do the Standard & Preferred risk categories share? -factory workers at the automobile assembly plant -independent contractors who work for a general contractor -students at a public school -office workers for a retail business, students at a public school (blanket insurance is issued on those groups that have members that are constantly changing), What document describes an insured's medical history, including diagnoses & treatments? D)Insureds cannot be randomly selected. (Only stock insurance companies are owned and controlled by stockholders.). Which statement regarding insurable risk is not correct? The agent has business cards and stationery printed. (Perils are the cause of loss insured against in an insurance policy.). Acceptance takes place when an insurer's underwriter approves the application and issues a policy.). -the cost the company is paying for monthly premiums -the policy benefits and exclusions -the procedures for filing a claim -the length of coverage, the cost the company is paying for monthly premiums U6, Which statement best defines a Multiple Employer Welfare Arrangement (MEWA)? The insurable risk needs to be statistically predictable B. C. An insurable risk must involve a loss that is definite as to cause, time, place and amount. Insurance is a contract by which one seeks to protect another from (Insurance will protect a person, business or entity from loss.). C. An insurable risk must involve a loss that is definite as to cause, time, place and amount. The risk needs to be commonly understood between each party, which is also one of the basic elements of a valid contract in the United States. Which of the following is NOT consideration on the part of an insured? D. Insureds cannot be randomly selected. Which of the following options would be best for Nancy at this point? This is an example of: All of the following actions by a person could be described as risk avoidance EXCEPT (Investing in the stock market is not an example of risk avoidance; it creates the possibility of a loss.). -18 months -2 years -6 months -1 year, Which of the following is considered a presumptive disability under a disability income policy? This is called: -prospective review -comprehensive review -schedule monitoring -concurrent review, concurrent review (under the concurrent review process, the insurance company will monitor the insureds hospital stay to make sure that everything is proceeding according to schedule and that the insured will be released from the hospital as planned) U5, What term is used to describe when the medical caregiver provides services to only members or subscribers of a health organization, and contractually is not allowed to treat other patients? A. Which kind of insurance will protect the business? Benefits are not income taxable) U8, In an individual long-term care insurance plan, the insured is able to deduct the premiums from taxes.
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