Life, Accident and Health Exam
Questions with Verified Solutions
-A contract between a person and an insurance company that requires the insurer to
make payments to you.
-You buy an annuity by making either a single payment or a series of payments
-Annuity Death benefits are NOT tax deductible or taxfree - ANSWER-Annuity
-Declared by the board of directors and cannot be guaranteed
-A sum of money paid regularly by a company to its shareholders out of its profits -
ANSWER-Dividends
-Owned by the stockholders who elect the board of directors.
-Profits are paid to the stockholders. - ANSWER-Stock Insurers
-When the pricing principle is defined in a disability policy by a financial loss in a certain
group occuring over a certain period of time. - ANSWER-Frequency
One who receives benefits - ANSWER-Beneficiary
health care program for the poor - ANSWER-Medi-Cal
A - provides coverage for hospital services, free to those who reach 65)
B - provides coverage for doctor services (optional)
C - does NOT cover prescription drugs
D - Prescription Drugs - ANSWER-Medicare
-Allows each party to rely on the representation made by other party - ANSWER-Utmost
Good Faith
This is the health care reform law. Focuses on reform of the private health insurance
market; providing better coverage for those with pre-existing conditions; improving
prescription drug coverage in Medicare. - ANSWER-Patient Protection & Affordable
Care Act (PPACA)
Probationary-
Elimination- the waiting period included in disability income policies
Grace-
Waiting (deductible)- The period of time the insured is not eligible for benefits once they
become disabled (30, 60, 90days) - ANSWER-Period
, -Feature of Major Medical insurance
-Defined as sharing the loss after the deductible has been satisfied
-Usually expressed as percentage sharing of the loss between the insurer and the
insured
-Insurer pays the larger percentage, such as 90/10 - ANSWER-Coinsurance
-Primary Care Physician
-Cannot be a specialist, must be a general practice doctor. - ANSWER-Gatekeeper
-Consolidated Omnibus Budget Reconciliation Act
-A law that allows people who leave employment to continue their health insurance
under the company plan for a limited period of time - ANSWER-COBRA
-Free counseling - ANSWER-HIPCAP
-Provision that applies in group insurance when an insured has coverage under multiple
plans at one time.
-Coordination of benefits is included in all group health insurance policies in order to
reinforce the principle of indemnity and determine which coverage is primary, which is
the coverage the insured has where they work. - ANSWER-Coordination of Benefits
-A retirement plan for the self-employed - ANSWER-Keogh plan
-Period of time when surviving family members are NOT eligible for Social Security
survivors benefits
-Begins at 16
-Ends at 60 - ANSWER-The Social Security Blackout
-The amount the insured pays the insurer for the coverage provided. - ANSWER-
Premium
Has enough reserves to pay for all its liabilities - ANSWER-Solvent Insurer
-Waiver of Premium- Waives the insured's premium if the insured becomes disabled
-Disability Income- Pays a replacement of the insured's lost income if the become
disabled.
-Accidental Death Benefit- Pays double the face amount if the insured dies in an
accident, and is also known as double indemnity.
-Guaranteed Insurability- Allows the insured to purchase additional amounts of life
insurance w/o having to prove insurability.
-Cost of Living- increases the policy death benefit based upon the rate of inflation -
ANSWER-Types of Life Policy Riders:
Questions with Verified Solutions
-A contract between a person and an insurance company that requires the insurer to
make payments to you.
-You buy an annuity by making either a single payment or a series of payments
-Annuity Death benefits are NOT tax deductible or taxfree - ANSWER-Annuity
-Declared by the board of directors and cannot be guaranteed
-A sum of money paid regularly by a company to its shareholders out of its profits -
ANSWER-Dividends
-Owned by the stockholders who elect the board of directors.
-Profits are paid to the stockholders. - ANSWER-Stock Insurers
-When the pricing principle is defined in a disability policy by a financial loss in a certain
group occuring over a certain period of time. - ANSWER-Frequency
One who receives benefits - ANSWER-Beneficiary
health care program for the poor - ANSWER-Medi-Cal
A - provides coverage for hospital services, free to those who reach 65)
B - provides coverage for doctor services (optional)
C - does NOT cover prescription drugs
D - Prescription Drugs - ANSWER-Medicare
-Allows each party to rely on the representation made by other party - ANSWER-Utmost
Good Faith
This is the health care reform law. Focuses on reform of the private health insurance
market; providing better coverage for those with pre-existing conditions; improving
prescription drug coverage in Medicare. - ANSWER-Patient Protection & Affordable
Care Act (PPACA)
Probationary-
Elimination- the waiting period included in disability income policies
Grace-
Waiting (deductible)- The period of time the insured is not eligible for benefits once they
become disabled (30, 60, 90days) - ANSWER-Period
, -Feature of Major Medical insurance
-Defined as sharing the loss after the deductible has been satisfied
-Usually expressed as percentage sharing of the loss between the insurer and the
insured
-Insurer pays the larger percentage, such as 90/10 - ANSWER-Coinsurance
-Primary Care Physician
-Cannot be a specialist, must be a general practice doctor. - ANSWER-Gatekeeper
-Consolidated Omnibus Budget Reconciliation Act
-A law that allows people who leave employment to continue their health insurance
under the company plan for a limited period of time - ANSWER-COBRA
-Free counseling - ANSWER-HIPCAP
-Provision that applies in group insurance when an insured has coverage under multiple
plans at one time.
-Coordination of benefits is included in all group health insurance policies in order to
reinforce the principle of indemnity and determine which coverage is primary, which is
the coverage the insured has where they work. - ANSWER-Coordination of Benefits
-A retirement plan for the self-employed - ANSWER-Keogh plan
-Period of time when surviving family members are NOT eligible for Social Security
survivors benefits
-Begins at 16
-Ends at 60 - ANSWER-The Social Security Blackout
-The amount the insured pays the insurer for the coverage provided. - ANSWER-
Premium
Has enough reserves to pay for all its liabilities - ANSWER-Solvent Insurer
-Waiver of Premium- Waives the insured's premium if the insured becomes disabled
-Disability Income- Pays a replacement of the insured's lost income if the become
disabled.
-Accidental Death Benefit- Pays double the face amount if the insured dies in an
accident, and is also known as double indemnity.
-Guaranteed Insurability- Allows the insured to purchase additional amounts of life
insurance w/o having to prove insurability.
-Cost of Living- increases the policy death benefit based upon the rate of inflation -
ANSWER-Types of Life Policy Riders:
