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which of the following would NOT be considered limited coverage policy? a. accident-only insurance b. travel policy c. major medical expense insurance d. special risk policy - c. major medical exoense insurance limited policies cover only expense incurred from specific diseases, or specific causes which of the following is NOT mandatory under the uniform provision law as applied to accident and health policies? a. physical examination and autopsy b. entire contract c. probationary period d. time limit on certain defenses - c. probationary period probationary period is an optional provision with respect to the entire contract clause in health policies, who has the authority to make changes to an existing policy? - only an executive office of the company no changes may be made to the policy without the express written agreement of both parties, and any changes must be also made a part of the contract. only an executive officer of the company, not an agent, has authority to make any changes to the policy. if a life insurance company uses HIV testing as part of its underwriting, when must an applicant be notified of the procedure? - prior to the performance of the testprior to testing, the insurer must disclose in writing its intent to test the applicant for the HIV or for a specific health condition derived from HIV. the insurer must obtain the applicant's written informed consent to administer the test. a major medical expense would exclude coverage for all of the following treatments EXCEPT a. dental care b. cosmetic surgery c. drug addiction d. eye refractions - c. drug addiction treatment for drug & alcohol addiction is provided on a limited basis to purchase insurance, the policy owner must face the possibility of losing money or something of value in the event of loss. what is this concept called? - insurable interest to purchase insurance, the policy owner must face the possibility of losing money or something of value in the event of loss. which of the following is provided by skilled medical personnel to those who need occasional medical assistance or rehabilitative care? - intermediate care changes bandages or administers medications which of the following is NOT correct concerning taxation of disability income benefits? a. if paid by the individual, the premiums are tax deductible b. if the employer paid the premiums, income benefits are taxable to the insured as ordinary income c. if the insured paid the premium, any disability income benefits are tax-free d. if the benefits are for permanent loss, they are subject to income taxation no matter who paid the premium - a. if paid by the individual, the premiums are tax deductiblepremium payments on personally owned disability income policies are non-deductible by the individual. however disability income benefits are received income tax free by the individual all of the following would be classified as "limited insurance coverage" EXCEPT a. accidental death & dismemberment policy b. supplement social security coverage c. travel insurance policy d. dread disease policy - b. supplement social security coverage supplement social security coverage is a rider to a disability policy When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option? - extended term the automatic nonforfeiture option is extended term. a whole life policy is surrendered for a reduced-paid up policy. the cash value in the new policy will - continue to increase the new policy continues to build its own cash value and will remain in force until the insured's death or maturity life insurance creates a immediate estate. which of the following best explains this statement? a. the death benefit will always be paid to estate of insured b. the face value of the policy is payable to the beneficiary upon death of the insured c. the policy has cash value & nonforfeiture values d. the policy generates immediate cash value - b. the face value of the policy is payable to the beneficiary upon death of the insured unlike a traditional estate where the value of personal wealth is usually built up over time,