Podcast
Questions and Answers
According to the entire contract provisions, the entire contract includes all of the following Except
According to the entire contract provisions, the entire contract includes all of the following Except
In most states, the policy becomes incontestable after
In most states, the policy becomes incontestable after
All insurance policies may be canceled at any time by
All insurance policies may be canceled at any time by
Normally, written proofs of loss must be furnished within how many days after the loss?
Normally, written proofs of loss must be furnished within how many days after the loss?
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If there is no beneficiary listed on a policy, benefits will be paid to
If there is no beneficiary listed on a policy, benefits will be paid to
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The insurer may generally require an autopsy at its own expense unless
The insurer may generally require an autopsy at its own expense unless
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When Betty purchased her insurance policy, her age was recorded as 32 when she was actually 34. Assuming her policy includes the misstatement of age provisions and the insurance company discovers this 4 years later, Betty's policy
When Betty purchased her insurance policy, her age was recorded as 32 when she was actually 34. Assuming her policy includes the misstatement of age provisions and the insurance company discovers this 4 years later, Betty's policy
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The optional provisions that deal with multiple insurance policies of the same type on a single insured deal with the problem of
The optional provisions that deal with multiple insurance policies of the same type on a single insured deal with the problem of
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If a policyholder has two or more policies from different companies that cover the same expenses and the insurers were not notified that the other coverage existed, each insurer will
If a policyholder has two or more policies from different companies that cover the same expenses and the insurers were not notified that the other coverage existed, each insurer will
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If a policy includes the provisions on conformity with state statutes, and the state changes the law to be in conflict with another provision of the policy
If a policy includes the provisions on conformity with state statutes, and the state changes the law to be in conflict with another provision of the policy
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A pro rata return is one in which the insurer returns
A pro rata return is one in which the insurer returns
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The grace period varies according to
The grace period varies according to
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Mike allows his policy to lapse, then applies for reinstatement using the company's required application. The company does not inform Mike either that the policy has been accepted or that the policy is being rejected. At what point can Mike consider the policy reinstated?
Mike allows his policy to lapse, then applies for reinstatement using the company's required application. The company does not inform Mike either that the policy has been accepted or that the policy is being rejected. At what point can Mike consider the policy reinstated?
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A reinstated policy will cover
A reinstated policy will cover
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If an insured is disabled for at least 2 years, the insurer may require proof of continuance of disability every
If an insured is disabled for at least 2 years, the insurer may require proof of continuance of disability every
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Because the insurer needs time to respond to a claim, the law provides the insurer with a window during which the insured cannot sue to recover under the claim. This window lasts for
Because the insurer needs time to respond to a claim, the law provides the insurer with a window during which the insured cannot sue to recover under the claim. This window lasts for
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The maximum time during which suit can be filed is how many years after written proof of loss is finished?
The maximum time during which suit can be filed is how many years after written proof of loss is finished?
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A revocable beneficiary
A revocable beneficiary
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Which of the following is NOT a required provision under the Uniform Provisions Model Act?
Which of the following is NOT a required provision under the Uniform Provisions Model Act?
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Which of the following is an optional provision under the Uniform Provisions Model Act?
Which of the following is an optional provision under the Uniform Provisions Model Act?
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Julia worked as a race car driver until recently, when she took a job in the promotions office handling media inquiries. If she has the same health insurance, her premiums are more likely to
Julia worked as a race car driver until recently, when she took a job in the promotions office handling media inquiries. If she has the same health insurance, her premiums are more likely to
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Joe took a disability policy working as a very successful stockbroker. A few years later, he decides to take a less stressful job at a not-for-profit organization, writing about financial issues. He loves his new job and doesn't mind the fact that he makes a lot less money. When he becomes disabled 3 years later, his disability benefit is more than he has made in salary in 3 years. If the policy contains an average earnings clause, Joe's benefit will be
Joe took a disability policy working as a very successful stockbroker. A few years later, he decides to take a less stressful job at a not-for-profit organization, writing about financial issues. He loves his new job and doesn't mind the fact that he makes a lot less money. When he becomes disabled 3 years later, his disability benefit is more than he has made in salary in 3 years. If the policy contains an average earnings clause, Joe's benefit will be
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Cindy has a claim for $2,000 and a past due premium of $200. The insurer will
Cindy has a claim for $2,000 and a past due premium of $200. The insurer will
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If Lois cancels her health insurance policy, the insurer will issue
If Lois cancels her health insurance policy, the insurer will issue
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Joel is hit by a car while crossing the street against a light. If Joel's policy contains the illegal occupation provision, the insurer
Joel is hit by a car while crossing the street against a light. If Joel's policy contains the illegal occupation provision, the insurer
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Carmen gets her health insurance policy on May 1, and on May 3 she decides she doesn't want it and returns it to the company. On May 6, she is hit by a car. The company will
Carmen gets her health insurance policy on May 1, and on May 3 she decides she doesn't want it and returns it to the company. On May 6, she is hit by a car. The company will
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The insuring clause does all of the following EXCEPT
The insuring clause does all of the following EXCEPT
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Consideration for a health policy includes
Consideration for a health policy includes
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Jennifer takes out an optionally renewable health policy with an annual premium due on June 14. The insurer decides it no longer wants to insure people with first names longer than 5 letters. The insurer may
Jennifer takes out an optionally renewable health policy with an annual premium due on June 14. The insurer decides it no longer wants to insure people with first names longer than 5 letters. The insurer may
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CeeCee's policy is guaranteed renewable. Which of the following may the insurer NOT do?
CeeCee's policy is guaranteed renewable. Which of the following may the insurer NOT do?
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George has a noncancelable policy. Which of the following may the insurer do?
George has a noncancelable policy. Which of the following may the insurer do?
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Which of the following statements is TRUE?
Which of the following statements is TRUE?
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Study Notes
Policy Provisions Overview
- The entire contract includes the insurance policy, endorsements, and attachments; premium payment is excluded.
- Policies become incontestable after 2 years in most states.
- Only the insured can cancel an insurance policy at any time.
Claims and Proof of Loss
- Written proof of loss must be submitted within 90 days of the loss occurrence.
- In the absence of a designated beneficiary, benefits are paid to the insured's estate.
- Insurers may require an autopsy at their expense unless prohibited by state law.
Age Misstatement Impact
- If an insured misstated their age, benefits may be lowered, not canceled, even after the incontestable period.
Insurance Overlap and State Compliance
- Optional provisions address the problem of overinsurance when multiple policies exist.
- If a law changes that conflicts with a policy, the policy provisions will change to meet the new minimum requirements.
Financial Adjustments and Refunds
- Pro rata returns involve returning all unearned premiums upon cancellation.
- Grace periods vary based on the frequency of premium payments.
- A reinstated policy covers accidents immediately and sickness after 10 days.
Disability and Claim Timelines
- Proof of disability may be required every 6 months if the insured is disabled for over two years.
- Legal action cannot commence until 60 days after a claim is filed.
- The maximum time to file a suit after written proof of loss is 3 years.
Beneficiary Designations
- A revocable beneficiary can be changed without the beneficiary’s consent.
- Under the Uniform Provisions Model Act, "Change of occupation" is not a required provision but "Grace Period," "Time of payment of claims," and "Proof of loss" are required provisions.
Claim Payments and Premium Refunds
- Insurers will pay claims minus any past due premiums.
- Refunds issued for canceled health insurance policies are typically short-rate for unearned premiums.
Insuring Clause Details
- The insuring clause outlines the general scope of coverage, provides necessary definitions, and specifies conditions for benefit payments.
Consideration Elements
- Consideration for a health policy involves both the statements made in the application and the premiums paid.
Cancellation Policies
- Insurers can cancel optionally renewable policies on specified dates; they cannot increase premiums solely based on recipient names.
- Noncancelable policies can be canceled for non-payment of premiums but not otherwise.
Exclusions and Reductions
- An exclusion eliminates coverage for specified conditions, while a reduction decreases benefits due to specified conditions.
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Description
This quiz covers key provisions of insurance policies, including claims processes, the impact of age misstatements, and compliance with state laws. Test your understanding of how these elements affect coverage, benefits, and cancellations. Ideal for anyone studying insurance or finance topics.
