Insurance 2-15 Exam practice
Questions and Answers
Complete this sentence: "Typically, the shorter the premium-paying period, the
_________. - ANSWER-higher the premium
A life insurance contract is considered a valued contract because: - ANSWER-it pays a
predetermined amount with no way to assess loss.
Medicare patients have a lifetime reserve of _______ days of hospital coverage. -
ANSWER-60
A violation of a Cease and Desist Order carries a fine of up to: - ANSWER-$50,000
Business overhead expense (B.O.E.) Insurance does not provide benefits to cover the
business owner's salary, - ANSWER-1) TRUE Feedback: Business health insurance
and disability insurance indemnifies the business by providing funds to replace an
owner or key employee Replacement
_______ are most important factors in the health insurance underwriting process. -
ANSWER-Medical history and occupation.
Feedback: In disability Income underwriting, income is the most important factor. In
health insurance, medical history and occupation are the most important.
Which of the following is NOT a typical permanent exclusion in life insurance policies? -
ANSWER-Suicide
Feedback: Most suicide exclusions are enforced until two years after the policy's
effective date.
When considering COBRA conversion privileges, the insured typically has ______ days
to make the conversion. - ANSWER-30-31
Question: Of the key factors involved in the underwriting process of disability Income
coverage_______, is the most important factor. - ANSWER-Income
Feedback: health insurance, medical history and occupation are the most important
factors.
Which of the following does NOT describe one of the ways in which insurable interest
can be established? - ANSWER-Sympathy for a neighbor
, Feedback: The insurance industry implemented specific criteria defining the kinds of
insurable interest that are acceptable.
A PCP is a: - ANSWER-primary care physician
Feedback: HMOS require insureds to be assigned a primary care physician (PCP) who
oversees the subscriber's main health care and can provide specialist refferrals if
necessary
Question: The __________ assigns points to surgical procedures instead of dollar
amounts. - ANSWER-Relative Value Scale
Who is responsible for notifying the original insurer that a replacement policy may be
issued? - ANSWER-1) The replacing agent
Mortality Tables indicate the average number of Individuals from a given group who will
become disabled. - ANSWER-FALSE
Feedback: The primary purpose of a mortality table is to indicate the expectation of life
at given ages and the average number of deaths for a group of persons in given years.
Question: payout option provides guaranteed payments for a certain period of time and
if the annuitant dies before the period has expired, the policy pays the beneficiary
through the remainder of the period? - ANSWER-Period Certain Option
Feedback: Under the Period Certain option, payments strictly adhere to a specified
timeframe.
Question: The Free Look Period for long-term care policies is ____ days. - ANSWER-30
days
Question: The Time Payment of Claims provision allows insurers ____ days after
receiving notice and proof of loss in which to pay or deny a health insurance claim. -
ANSWER-45
Bob and ted both have disability income policies. Bob's policy provides a 15 day
elimination period and a 10 year benefit period. Ted's policy provides a 30 day
elimination period and a 7 year benefit period. Who pays higher premiums? - ANSWER-
Bob
Feedback: the shortest elimination period and the longest benefit period pays the
highest premium
Question: Florida law allows health insurance applicants ____ days to inspect a policy
that is delivered with the intent of issuing insurance coverage for the policyowner and if
the policy is not issued, the applicant must be given a full refund. - ANSWER-10 days
Feedback: Medicare supplements and long-term care policies allot a 30-day free look
period.
Questions and Answers
Complete this sentence: "Typically, the shorter the premium-paying period, the
_________. - ANSWER-higher the premium
A life insurance contract is considered a valued contract because: - ANSWER-it pays a
predetermined amount with no way to assess loss.
Medicare patients have a lifetime reserve of _______ days of hospital coverage. -
ANSWER-60
A violation of a Cease and Desist Order carries a fine of up to: - ANSWER-$50,000
Business overhead expense (B.O.E.) Insurance does not provide benefits to cover the
business owner's salary, - ANSWER-1) TRUE Feedback: Business health insurance
and disability insurance indemnifies the business by providing funds to replace an
owner or key employee Replacement
_______ are most important factors in the health insurance underwriting process. -
ANSWER-Medical history and occupation.
Feedback: In disability Income underwriting, income is the most important factor. In
health insurance, medical history and occupation are the most important.
Which of the following is NOT a typical permanent exclusion in life insurance policies? -
ANSWER-Suicide
Feedback: Most suicide exclusions are enforced until two years after the policy's
effective date.
When considering COBRA conversion privileges, the insured typically has ______ days
to make the conversion. - ANSWER-30-31
Question: Of the key factors involved in the underwriting process of disability Income
coverage_______, is the most important factor. - ANSWER-Income
Feedback: health insurance, medical history and occupation are the most important
factors.
Which of the following does NOT describe one of the ways in which insurable interest
can be established? - ANSWER-Sympathy for a neighbor
, Feedback: The insurance industry implemented specific criteria defining the kinds of
insurable interest that are acceptable.
A PCP is a: - ANSWER-primary care physician
Feedback: HMOS require insureds to be assigned a primary care physician (PCP) who
oversees the subscriber's main health care and can provide specialist refferrals if
necessary
Question: The __________ assigns points to surgical procedures instead of dollar
amounts. - ANSWER-Relative Value Scale
Who is responsible for notifying the original insurer that a replacement policy may be
issued? - ANSWER-1) The replacing agent
Mortality Tables indicate the average number of Individuals from a given group who will
become disabled. - ANSWER-FALSE
Feedback: The primary purpose of a mortality table is to indicate the expectation of life
at given ages and the average number of deaths for a group of persons in given years.
Question: payout option provides guaranteed payments for a certain period of time and
if the annuitant dies before the period has expired, the policy pays the beneficiary
through the remainder of the period? - ANSWER-Period Certain Option
Feedback: Under the Period Certain option, payments strictly adhere to a specified
timeframe.
Question: The Free Look Period for long-term care policies is ____ days. - ANSWER-30
days
Question: The Time Payment of Claims provision allows insurers ____ days after
receiving notice and proof of loss in which to pay or deny a health insurance claim. -
ANSWER-45
Bob and ted both have disability income policies. Bob's policy provides a 15 day
elimination period and a 10 year benefit period. Ted's policy provides a 30 day
elimination period and a 7 year benefit period. Who pays higher premiums? - ANSWER-
Bob
Feedback: the shortest elimination period and the longest benefit period pays the
highest premium
Question: Florida law allows health insurance applicants ____ days to inspect a policy
that is delivered with the intent of issuing insurance coverage for the policyowner and if
the policy is not issued, the applicant must be given a full refund. - ANSWER-10 days
Feedback: Medicare supplements and long-term care policies allot a 30-day free look
period.
