NJ Insurance Practice Exams + Review Notes Exam with
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Terms in this set (130)
What are the elements of a legal contract? Agreement, Consideration, Competent parties, Legal purpose
What types of groups are eligible for group health Employer-sponsored and association-sponsored groups
insurance?
What is the relative value approach? A surgical procedure is assigned points relative to the maximum coverage
allowed for a given surgery.
What is a conversion factor in insurance? The amount payable per point in the relative value approach.
What is the tax penalty for unqualified distributions 20%
from a medical savings account?
What is first dollar coverage? Insurance where the insured is not required to pay a deductible.
What is a Medicare select policy? A policy that requires insureds to use specific healthcare providers except in
emergencies.
What does subrogation mean in insurance? A provision that prevents the insured from collecting twice for the same loss.
What is the national do not call list? A federal service that allows people to list their numbers to reduce unsolicited
telemarketing calls.
What are the allowed telemarketing call hours? 8 AM to 9 PM
, What do the terms level and flexible refer to in They refer to the premium.
insurance?
What is rebating in insurance? Offering something of value to induce someone to buy something.
What are nonforfeiture benefits? Benefits in a life insurance policy that the policyowner cannot lose.
What is twisting in insurance? Misrepresentation or fraudulent comparison of insurance policies that
persuades an applicant to switch insurers.
What was the ruling in Paul vs. Virginia (1869)? Insurance was not commerce and not subject to federal regulation.!
What was the ruling in U.S. vs. South-Eastern Insurance is a matter of interstate commerce and subject to federal regulation.!
Underwriters Association (1944)?
What does the McCarran-Ferguson Act state? It reaffirms the federal government's right to regulate insurance but allows
states to do so adequately.!
What is medical expense insurance? Policies that provide benefits for the cost of medical care resulting from
accidents or sickness.
What are the three basic coverages in medical expense Hospital, surgical, and medical coverages.
insurance?
What is major medical insurance? Insurance that functions through reimbursement to the medical service
provider.
What is a genetic characteristic in insurance terms? A chromosomal defect that may predispose a person to a disease.
What size companies are eligible for health Companies of all sizes.
reimbursement arrangements (HRAs)?
By what date must an insurer notify the Commissioner 14 days
after canceling a contract?
Are group health insurance policies assessed No, they cover everyone in the group regardless of individual health.
individually?
What is the fine for violating solicitation regulations? Up to $2,000 per violation.
What is a critical illness policy? A health insurance policy that pays a lump sum if the insured suffers a heart
attack or stroke.
What benefits does a noncontributory group disability $2,000 a month after a 30-day elimination period.
income plan offer?
100% Correct Answers | Verified | Latest Update 2026
Leave the first rating
Save
Students also studied
Flashcard sets Study guides
Alpha Phi Alpha Fraternity Incorpor... MHIC Exam HCD 303 Final Exam Study Guide AI
Teacher 30 terms Teacher 47 terms Teacher 266 terms Te
Forester3p Preview fred_moses Preview isaac_muthike Preview
Terms in this set (130)
What are the elements of a legal contract? Agreement, Consideration, Competent parties, Legal purpose
What types of groups are eligible for group health Employer-sponsored and association-sponsored groups
insurance?
What is the relative value approach? A surgical procedure is assigned points relative to the maximum coverage
allowed for a given surgery.
What is a conversion factor in insurance? The amount payable per point in the relative value approach.
What is the tax penalty for unqualified distributions 20%
from a medical savings account?
What is first dollar coverage? Insurance where the insured is not required to pay a deductible.
What is a Medicare select policy? A policy that requires insureds to use specific healthcare providers except in
emergencies.
What does subrogation mean in insurance? A provision that prevents the insured from collecting twice for the same loss.
What is the national do not call list? A federal service that allows people to list their numbers to reduce unsolicited
telemarketing calls.
What are the allowed telemarketing call hours? 8 AM to 9 PM
, What do the terms level and flexible refer to in They refer to the premium.
insurance?
What is rebating in insurance? Offering something of value to induce someone to buy something.
What are nonforfeiture benefits? Benefits in a life insurance policy that the policyowner cannot lose.
What is twisting in insurance? Misrepresentation or fraudulent comparison of insurance policies that
persuades an applicant to switch insurers.
What was the ruling in Paul vs. Virginia (1869)? Insurance was not commerce and not subject to federal regulation.!
What was the ruling in U.S. vs. South-Eastern Insurance is a matter of interstate commerce and subject to federal regulation.!
Underwriters Association (1944)?
What does the McCarran-Ferguson Act state? It reaffirms the federal government's right to regulate insurance but allows
states to do so adequately.!
What is medical expense insurance? Policies that provide benefits for the cost of medical care resulting from
accidents or sickness.
What are the three basic coverages in medical expense Hospital, surgical, and medical coverages.
insurance?
What is major medical insurance? Insurance that functions through reimbursement to the medical service
provider.
What is a genetic characteristic in insurance terms? A chromosomal defect that may predispose a person to a disease.
What size companies are eligible for health Companies of all sizes.
reimbursement arrangements (HRAs)?
By what date must an insurer notify the Commissioner 14 days
after canceling a contract?
Are group health insurance policies assessed No, they cover everyone in the group regardless of individual health.
individually?
What is the fine for violating solicitation regulations? Up to $2,000 per violation.
What is a critical illness policy? A health insurance policy that pays a lump sum if the insured suffers a heart
attack or stroke.
What benefits does a noncontributory group disability $2,000 a month after a 30-day elimination period.
income plan offer?
