exam fx study guide 2022 with complete solution
What phase begins after a new policy is delivered?
Free look period
In insurance policies, the insured is not legally bound to any particular action in
the insurance contract, but the insurer is legally obligated to pay losses covered
by the policy. What contract element does this describe?
Unilateral
What is the term used for an applicant's written request to an insurer for the
company to issue a contract, based on the information provided?
application
Whose responsibility is it to determine if all of the questions on an application
have been answered?
the agent
An insured is upset that her new health insurance policy was delivered to her by
certified mail and not through her agent. Which of the following is true?
(there is nothing wrong with this form of policy delivery) Although it is advisable for an
agent to personally deliver a policy, in order to answer any questions and insure
delivery, it is legal for a policy to be effectively delivered without the presence of an
agent. It is legal to deliver a policy through some types of mail
The Medical Information Bureau (MIB) was created to protect
Insurance companies from adverse selection by high risk persons
An insurance contract requires that both the insured and the insurer meet certain
conditions in order for the contract to be enforceable. What contract
characteristics does this describe?
conditional
Which of the following is a statement that is guaranteed to be true, and if untrue,
may breach an insurance contract?
warranty - an absolutely true statement upon which the validity of the insurance policy
depends
In insurance, an offer is usually made when
An applicant submits an application to the insurer
Which of the following is available to employers of all sizes?
HRAs - Health reimbursement Accounts consist of funds set aside by employers to
reimburse employees for qualified medical expenses; they are available to all sizes of
employers.
Occasional visits by which of the following medical professionals will NOT be
covered under LTC's home health care?
Attending physician
Under HIPAA, which of the following in INCORRECT regarding eligibility
requirements for conversion an individual policy?
1. An individual who was previously covered by group health insurance for 6
months is eligible
2. An individual who has used up COBRA continuation coverage is eligible
, 3. An individual who doesn't qualify for Medicare may be eligible
4. The gap of coverage for eligibility is a period of 63 or less days
An individual who was previously covered by group health insurance for 6 months is
eligible
In a disability policy, the probationary period refers to the time:
During which illness-related disabilities are excluded from coverage
Which is NOT a characteristic of group health insurance?
A policy is issued to each insured individual
Which of the following is NOT true of a major-medical health insurance policy?
It is designed to pay on a first dollar of expense basis
Who determines the eligibility and contribution limits of an HRA?
The employer
When an employee covered under a health reimbursement account changes
employers, The HRA:
Stays with the employer
When an insurer combines two periods of disability into one, the insured must
have suffered a
Recurrent disability
What is the purpose of COBRA?
To provide continuation of coverage for terminated employees
All of the following are the most common variation in Long-Term Care policy
EXCEPT
1. the number of days of confinement covered
2. the number of home health visits covered
3. the amount paid for nursing home care, and other contract provisions
4. Number of family dependents
Number of family dependents
All of the following statements concerning Accidental Death and Dismemberment
coverage are correct EXCEPT
Death benefits are paid only if death occurs within 24 hours
the death penalty will be paid if the accidental death occurs within 90 days of the
accident
In a disability policy, the probationary period refers to the time
During which illness-related disabilities are excluded from coverage
A small company offers group health insurance to its employees, but recently has
decided to terminate the health insurance contract, leaving the workers without
insurance. What can the employees do regarding their insurance?
Convert to an individual health policy
Regarding long-term care coverage, as the elimination period gets shorter, the
premium
gets highier
In the event of a loss, business overhead insurance will pay for:
rent
What phase begins after a new policy is delivered?
Free look period
In insurance policies, the insured is not legally bound to any particular action in
the insurance contract, but the insurer is legally obligated to pay losses covered
by the policy. What contract element does this describe?
Unilateral
What is the term used for an applicant's written request to an insurer for the
company to issue a contract, based on the information provided?
application
Whose responsibility is it to determine if all of the questions on an application
have been answered?
the agent
An insured is upset that her new health insurance policy was delivered to her by
certified mail and not through her agent. Which of the following is true?
(there is nothing wrong with this form of policy delivery) Although it is advisable for an
agent to personally deliver a policy, in order to answer any questions and insure
delivery, it is legal for a policy to be effectively delivered without the presence of an
agent. It is legal to deliver a policy through some types of mail
The Medical Information Bureau (MIB) was created to protect
Insurance companies from adverse selection by high risk persons
An insurance contract requires that both the insured and the insurer meet certain
conditions in order for the contract to be enforceable. What contract
characteristics does this describe?
conditional
Which of the following is a statement that is guaranteed to be true, and if untrue,
may breach an insurance contract?
warranty - an absolutely true statement upon which the validity of the insurance policy
depends
In insurance, an offer is usually made when
An applicant submits an application to the insurer
Which of the following is available to employers of all sizes?
HRAs - Health reimbursement Accounts consist of funds set aside by employers to
reimburse employees for qualified medical expenses; they are available to all sizes of
employers.
Occasional visits by which of the following medical professionals will NOT be
covered under LTC's home health care?
Attending physician
Under HIPAA, which of the following in INCORRECT regarding eligibility
requirements for conversion an individual policy?
1. An individual who was previously covered by group health insurance for 6
months is eligible
2. An individual who has used up COBRA continuation coverage is eligible
, 3. An individual who doesn't qualify for Medicare may be eligible
4. The gap of coverage for eligibility is a period of 63 or less days
An individual who was previously covered by group health insurance for 6 months is
eligible
In a disability policy, the probationary period refers to the time:
During which illness-related disabilities are excluded from coverage
Which is NOT a characteristic of group health insurance?
A policy is issued to each insured individual
Which of the following is NOT true of a major-medical health insurance policy?
It is designed to pay on a first dollar of expense basis
Who determines the eligibility and contribution limits of an HRA?
The employer
When an employee covered under a health reimbursement account changes
employers, The HRA:
Stays with the employer
When an insurer combines two periods of disability into one, the insured must
have suffered a
Recurrent disability
What is the purpose of COBRA?
To provide continuation of coverage for terminated employees
All of the following are the most common variation in Long-Term Care policy
EXCEPT
1. the number of days of confinement covered
2. the number of home health visits covered
3. the amount paid for nursing home care, and other contract provisions
4. Number of family dependents
Number of family dependents
All of the following statements concerning Accidental Death and Dismemberment
coverage are correct EXCEPT
Death benefits are paid only if death occurs within 24 hours
the death penalty will be paid if the accidental death occurs within 90 days of the
accident
In a disability policy, the probationary period refers to the time
During which illness-related disabilities are excluded from coverage
A small company offers group health insurance to its employees, but recently has
decided to terminate the health insurance contract, leaving the workers without
insurance. What can the employees do regarding their insurance?
Convert to an individual health policy
Regarding long-term care coverage, as the elimination period gets shorter, the
premium
gets highier
In the event of a loss, business overhead insurance will pay for:
rent
