Health 3 (Chapters 21, 22, & 23)
Which of the following is not considered a primary risk factor in health insurance?
Physical Condition
Moral Hazards
Morbidity statistics
Occupation - Answer Morbidity statistics
A health insurance policy becomes effective when the first premium has been paid and
the:
application has been approved by the insurance company
application has been received by the insurance company's home office
medical examination has been completed
agent has issued a conditional receipt to the proposed insured - Answer application has
been approved by the insurance company
All of the following unreimbursed medical expenses may be considered and lumped
together to determine their deductibility except:
I. Prescription drugs
II. Contributions to group disability
III. Contributions to group AD&D
IV. Contributions to a group medical plan
1&3
3&4
1&4
2 & 3 - Answer 2 & 3
Incurred medical expenses that are not reimbursed may be deducted only to the extent
that they exceed:
25% of adjusted gross income
7.5% of A.G.I..
25% of ordinary income
7.5% of ordinary income - Answer 7.5% of A.G.I..
Optional Provisions 1 and 2, addressing changes of occupation and misstatement of
age, permit the insurer to do which of the following?
cancel the policy
request a revised application to correct the previous misstatements or alter information
that has changed since the application was originally submitted
charge a back-end premium to adjust for the premium that should have been charged
for the true situation
pay indemnities equal to the benefits that correspond to the premiums that have been
paid - Answer pay indemnities equal to the benefits that correspond to the premiums
that have been paid
When receiving disability income payments for longer than two years, the insured must
submit proof of loss how often?
every month
, Health 3 (Chapters 21, 22, & 23)
every three months
every six months
every year - Answer every six months
Which of the following is NOT an objective of the State Partnership program for long
term care?
stimulating the sale of long term care insurance
removing the fear of impoverishment
improving the understanding of the financing of long term care
eliminating the need for Medicaid - Answer eliminating the need for Medicaid
If an insurance company is allowed to cancel the policy if two conditions are met, except
health conditions, it is said to be:
Noncancellable
Guaranteed Renewable
Conditionally Renewable
Optionally Renewable - Answer Conditionally Renewable
After filing Proof of Loss an insured must wait how many days before filing suit for
payment against an insurance company?
20
30
60
45 - Answer 60
Which of the following policy provisions defines a specific period in which an insured
who has not paid the premium due remains covered by the policy?
Ownership Rights
Grace Period
Consideration
Waiver of Premium - Answer Grace Period
Personal Health Insurance policies do not normally include benefits for:
injuries suffered while using an unsafe ladder
injuries suffered in an auto accident
rehabilitation for alcoholism
a U.S. resident living abroad - Answer a U.S. resident living abroad
All of the following are common exclusions in a long-term insurance policy except:
organic mental conditions
acts of war
drug and alcohol dependency
non-organic mental conditions - Answer organic mental conditions
What is considered a Moral hazard?
Age
Which of the following is not considered a primary risk factor in health insurance?
Physical Condition
Moral Hazards
Morbidity statistics
Occupation - Answer Morbidity statistics
A health insurance policy becomes effective when the first premium has been paid and
the:
application has been approved by the insurance company
application has been received by the insurance company's home office
medical examination has been completed
agent has issued a conditional receipt to the proposed insured - Answer application has
been approved by the insurance company
All of the following unreimbursed medical expenses may be considered and lumped
together to determine their deductibility except:
I. Prescription drugs
II. Contributions to group disability
III. Contributions to group AD&D
IV. Contributions to a group medical plan
1&3
3&4
1&4
2 & 3 - Answer 2 & 3
Incurred medical expenses that are not reimbursed may be deducted only to the extent
that they exceed:
25% of adjusted gross income
7.5% of A.G.I..
25% of ordinary income
7.5% of ordinary income - Answer 7.5% of A.G.I..
Optional Provisions 1 and 2, addressing changes of occupation and misstatement of
age, permit the insurer to do which of the following?
cancel the policy
request a revised application to correct the previous misstatements or alter information
that has changed since the application was originally submitted
charge a back-end premium to adjust for the premium that should have been charged
for the true situation
pay indemnities equal to the benefits that correspond to the premiums that have been
paid - Answer pay indemnities equal to the benefits that correspond to the premiums
that have been paid
When receiving disability income payments for longer than two years, the insured must
submit proof of loss how often?
every month
, Health 3 (Chapters 21, 22, & 23)
every three months
every six months
every year - Answer every six months
Which of the following is NOT an objective of the State Partnership program for long
term care?
stimulating the sale of long term care insurance
removing the fear of impoverishment
improving the understanding of the financing of long term care
eliminating the need for Medicaid - Answer eliminating the need for Medicaid
If an insurance company is allowed to cancel the policy if two conditions are met, except
health conditions, it is said to be:
Noncancellable
Guaranteed Renewable
Conditionally Renewable
Optionally Renewable - Answer Conditionally Renewable
After filing Proof of Loss an insured must wait how many days before filing suit for
payment against an insurance company?
20
30
60
45 - Answer 60
Which of the following policy provisions defines a specific period in which an insured
who has not paid the premium due remains covered by the policy?
Ownership Rights
Grace Period
Consideration
Waiver of Premium - Answer Grace Period
Personal Health Insurance policies do not normally include benefits for:
injuries suffered while using an unsafe ladder
injuries suffered in an auto accident
rehabilitation for alcoholism
a U.S. resident living abroad - Answer a U.S. resident living abroad
All of the following are common exclusions in a long-term insurance policy except:
organic mental conditions
acts of war
drug and alcohol dependency
non-organic mental conditions - Answer organic mental conditions
What is considered a Moral hazard?
Age
