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30 Cards in this Set
- Front
- Back
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1
An underwriter must review an applicant with an extensive medical history. Which document would give the underwriter a better understanding of how the insured was treated for various illnesses? |
A Attending Physician’s Statement B Physician’s Review C Individual Medical Summary D Comprehensive Medical History |
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2
Jacob’s insurance policy only pays for medical costs related to accidents. Which of the following types of policies does he have? |
A Restrictive B Accidental Death C Limited Benefit D Accident-Only |
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3
When the policy premium wasn't submitted with the application, what should the agent obtain from the insured upon policy delivery? |
A A conditional contract B A unilateral contract C A statement of good health D A medical report |
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4
Which of the following information regarding an insured is NOT included in an Investigative Consumer Report, which is requested by an underwriter? |
A Medical History B Applicant's character C Personal habits D General reputation |
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5
Which of the following components of dental insurance does NOT require the payment of a deductible? |
A Routine and preventive maintenance B Routine and major restorative care C Orthodontic care D A & B |
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6
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association that would be considered |
A A misrepresentation. B An accurate statement. C A legal representation of the Association. D An unfair trade practice. |
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7
All of the following are utilized by an underwriter in order to underwrite an applicant EXCEPT |
A Agent's report. B Attending physician report. C Investigative consumer report. D Birth certificate. |
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8
Which of the following do the Standard and Preferred risk categories share? . |
A More medical evaluations are required. B Possible modifications to include expanded coverage C Permanent coverage D Premiums are not elevated |
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9
Each insurer must maintain a complete file containing every printed, published or prepared advertisement of its policies for a period of at least |
A 1 year. B 3 years. C 5 years. D 10 years. |
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10
A producer is acting in what capacity when he or she is trying to obtain creditable information about an applicant for health insurance? |
A General agent B Consumer report investigator C Field underwriter D Office underwriter |
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11
Hospital indemnity/hospital confinement indemnity policy will provide payment based on |
A The number of days confined in a hospital.B The type of illness.C The premiums paid into the policy.D The medical expense incurred.
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12
The First Street Church plans to sponsor a summer camp for the youth of their congregation. They would like to purchase insurance that would pay benefits should one of the youth get injured while participating in the camp activities. The type of policy they would likely need is a/an |
A Blanket. B Limited Sickness. C Accidental Death and Dismemberment. D Limited Accident. |
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13
Which of the following expenses is NOT covered by a health insurance policy? |
A Dental B Funeral C Hospital D Disability |
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14
All of these people's signatures are required on a health insurance application EXCEPT |
A The agent. B The spouse of the policy owner. C The proposed insured. D The policy owner. |
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15
Sarah is upset that her new health insurance policy was delivered to her by certified mail and not through her agent. Which of the following is true? |
A Sarah should ask for a new policy to be delivered B The policy will not be legal until it is delivered by an agent. C There is nothing wrong with the above situation. D Sarah should complain to the insurer |
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1An underwriter must review an applicant with an extensive medical history. Which document would give the underwriter a better understanding of how the insured was treated for various illnesses?
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A Attending Physician’s Statement Incorrect! An Attending Physician’s Statement (APS) is the best way for an underwriter to evaluate an insured’s medical history. The report includes past diagnoses, treatments, length of recovery time, and prognoses. |
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2Jacob’s insurance policy only pays for medical costs related to accidents. Which of the following types of policies does he have?
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D Accident-Only
Correct! Incorrect! Accident-Only policies cover medical benefits related to an accident. Medical conditions related to sickness are not covered. |
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3 When the policy premium wasn't submitted with the application, what should the agent obtain from the insured upon policy delivery?
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C A statement of good health Incorrect! In many cases, the initial premium is not paid until the policy is delivered. Most insurance companies require that when the agent collects the premium, he or she must also obtain a statement signed by the insured testifying to the continued good health. |
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4 Which of the following information regarding an insured is NOT included in an Investigative Consumer Report, which is requested by an underwriter?
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A Medical History Incorrect! An Investigative Consumer Report is considered to be a part of an insurance application. This report is used in the underwriting process in order to assess non-medical risk factors related to moral standing and avocations. Friends and colleagues are interviewed in order to evaluate the applicant’s character, reputation, and habits. The applicant must be informed in writing if the insurer decides to conduct the investigation. |
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5 Which of the following components of dental insurance does NOT require the payment of a deductible?
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A Routine and preventive maintenance Correct! Incorrect! Routine and preventive maintenance does not require the payment of an annual premium or coinsurance, unlike the other two types, which both require deductible payment. Insurers typically do not charge an annual premium or coinsurance in order to provide an incentive for preventative care. |
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6 If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association that would be considered
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D An unfair trade practice.
Correct! Incorrect! It is an unfair trade practice to make any statement that an insurer’s policies are guaranteed by the existence of the Insurance Guaranty Association. |
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7All of the following are utilized by an underwriter in order to underwrite an applicant EXCEPT
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D Birth certificate.
Correct! Incorrect! There are a number of reports utilized by the underwriter in determining the underwriting outcome of any particular application. Each of the following reports are of great significance to the process. Other reports used are MIB report and a medical exam. |
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8 Which of the following do the Standard and Preferred risk categories share?
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D Premiums are not elevated.
Correct! Incorrect! The “standard” rating indicates that an individual represents a similar level of health and lifestyle quality as other members of the same age cohort. These individuals do not need special policy restrictions or are required to pay higher premiums. Those in the “preferred” category often have to pay smaller premiums than those who are in the “standard” category. |
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9 Each insurer must maintain a complete file containing every printed, published or prepared advertisement of its policies for a period of at least
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B 3 years. Incorrect! Insurers must maintain files containing all advertising for 3 years after its use. |
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10 A producer is acting in what capacity when he or she is trying to obtain creditable information about an applicant for health insurance?
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C Field underwriter Incorrect! A producer's function as the field underwriter is to gather creditable information from an applicant that would assist the producer in screening marginal or unacceptable risks before taking an application for an insurance policy. |
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11
Hospital indemnity/hospital confinement indemnity policy will provide payment based on |
A The number of days confined in a hospital. Incorrect! Hospital indemnity/hospital confinement indemnity policy provides payment based only on the number of days confined in a hospital. |
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12 The First Street Church plans to sponsor a summer camp for the youth of their congregation. They would like to purchase insurance that would pay benefits should one of the youth get injured while participating in the camp activities. The type of policy they would likely need is a/an
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A Blanket. Incorrect! A policy that covers all of the participants without naming them individually is a blanket policy. |
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13 Which of the following expenses is NOT covered by a health insurance policy?
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B Funeral Incorrect! Health insurance policies cover losses caused by accidents and/or sickness. Death is not covered. |
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14 All of these people's signatures are required on a health insurance application EXCEPT
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B The spouse of the policy owner. Correct! Incorrect! Every health insurance application requires the signature of the proposed insured, the policyowner (if different than the insured), and the agent who solicits the insurance. |
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15 Sarah is upset that her new health insurance policy was delivered to her by certified mail and not through her agent. Which of the following is true?
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C There is nothing wrong with the above situation. Correct! Incorrect! Although it is advisable for an agent to personally deliver a policy, in order to answer any questions and insure delivery, it is legal for a policy to be effectively delivered without the presence of an agent. It is legal to deliver a policy through some types of mail. |
