Questions and Answers
Every 12 months after the initial enrollment period, an HMO must hold an open enrollment period of ______
31 days
What does the consideration clause of an insurance contract include?
the schedule and amount of premium payments
What kind of premium does a whole life policy have?
level
What kind of insurance policy supplies an income stream over a set period of time that starts with the insured dies?
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Which of these is considered a mandatory provision?
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Which of the following individual health insurance policies will provide the broadest protection?
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Which of the following policies come by his investment choices with a form of term coverage?
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Which of the following health policy provisions states that the producer does not have the authority to change the policy or waive any of its provisions?
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An example of an unfair claim settlement practice is?
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In a Key Employee life insurance policy, where would the death proceeds be directed if the insured leaves the company?
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In a Key Employee life insurance policy, the third-party owner can be all of the following EXCEPT?
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How long does an insurance company appointment remain in force?
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An immediate annuity consists of?
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Which option enables a whole life insurance policy owner to sell the policy for more than its cash value?
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The type of policy which BEST addresses financial survival concerns for a business if an owner becomes disabled is?
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After an insured gives notice of loss, what must he/she do if the insurance company does not furnish forms?
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A whole life insurance policy endows when the:
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According to the Mandatory Uniform Policy Provisions, what is the maximum amount of time after the premium due date during which the policy remains in force?
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Which of the following does social security NOT provide benefits for?
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Which of these Nonforfeiture Options continue a build-up of cash value?
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A Loss-Purchase Buy and Sell agreement among three partners, funded with individual life insurance, would require how many policies?
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A policy of adhesion can only be modified by whom?
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What is the name of the provision in a group health policy that allows the insurer to postpone coverage for a covered illness for 30 days after the policy's effective date?
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In health insurance policies, when does the waiver of premium provision keep the coverage in force without premium payments?
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Which mode of payment is NOT used by health insurance policies?
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Study Notes
Open Enrollment Period
- HMO must hold an open enrollment period every 12 months after the initial enrollment.
Insurance Contract Considerations
- The consideration clause details the schedule and amount of premium payments.
Whole Life Policy Premiums
- Whole life policies feature a level premium structure.
Family Maintenance Policy
- Provides an income stream starting upon the insured's death for a set period.
Mandatory Provision in Insurance
- Payment of Claims is considered a mandatory provision.
Health Insurance Coverage
- Major medical policies offer the broadest protection for individual health insurance.
Variable Universal Life
- Combines investment choices with a form of term life coverage.
Entire Contract Provision
- Asserts that the producer cannot change the policy or waive any provisions.
Unfair Claim Settlement Practices
- An example is denying a claim without providing the rationale behind the denial.
Key Employee Policy Death Proceeds
- If a key employee leaves for another company but the policy is unchanged, the death proceeds still go to the original company.
Key Employee Policy Ownership
- The third-party owner can be anyone but cannot be the insured individual.
Insurance Company Appointments
- Remain in force until they are terminated.
Immediate Annuity
- Comprises a single premium payment.
Life Settlement Contracts
- Allow policy owners to sell their whole life insurance policies for more than cash value if they stop making payments.
Business Overhead Expense Policy
- Best addresses the financial concerns of a business owner in case of their disability.
Proof of Loss Requirement
- Must file written proof of loss if the insurer does not furnish forms after a notice of loss.
Endowment of Whole Life Insurance
- Endows when cash value equals the death benefit.
Mandatory Uniform Policy Provisions
- Policy remains in force for a maximum of 31 days after the premium due date without payment.
Social Security Benefits
- Social Security does not provide benefits for dismemberment.
Nonforfeiture Options
- Reduced Paid-Up option continues to build up cash value without new premiums.
Buy-Sell Agreement Policies
- A buy-sell agreement among three partners funded with life insurance requires a total of six policies.
Policy of Adhesion Modification
- Can only be modified by the insurance company.
Group Health Policy Waiting Period
- A provision that allows insurers to postpone coverage for a covered illness for 30 days after the policy's effective date.
Waiver of Premium Provision
- Keeps coverage in force without premium payments after total disability of the insured.
Health Insurance Payment Modes
- Single Premium is not a mode of payment commonly used in health insurance policies.
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Description
This quiz covers essential concepts in insurance, including open enrollment periods, premium structures, and types of policies such as whole life and variable universal life. Test your knowledge on mandatory provisions and unfair claim practices in the insurance industry.
