A Life And Health Trivia Quiz!

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  • 1/70 Questions

    All of the following are used in underwriting for health insurance, except:

    • Income
    • Sex
    • Age
    • Intelligence
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About This Quiz

Here we go with another Life and Health trivia quiz. Life on earth goes hand in hand with a healthy lifestyle, and there are different ways of achieving this. All living things depend on each other for survival, and this forms a basis for the life and health class. This is the sixth practice exam in preparation for the main exam. Take it up and keep an eye out for the seventh one.

A Life And Health Trivia Quiz! - Quiz

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  • 2. 

    During the disability elimination period:

    • Occupational claims are payable

    • Small claims are payable

    • No benefits are payable

    • Residual benefits are payable

    Correct Answer
    A. No benefits are payable
    Explanation
    During the disability elimination period, no benefits are payable. This period is a waiting period before the insurance policy starts providing benefits. It is typically the initial period of disability where the insured individual must wait before receiving any benefits. This waiting period allows the insurance company to verify the disability and ensure that it meets the policy's criteria for benefits. Therefore, during this period, no benefits are payable to the insured individual.

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  • 3. 

    An agent acting as an insurance agent, broker, solicitor, life agent, or bail agent acts in which capacity when handling premiums or return premiums for an insured?

    • Legal representative

    • Fiduciary

    • Managing general agent

    • Natural person

    Correct Answer
    A. Fiduciary
    Explanation
    An agent acting as an insurance agent, broker, solicitor, life agent, or bail agent acts in the capacity of a fiduciary when handling premiums or return premiums for an insured. A fiduciary is a person who is entrusted with the responsibility to act in the best interest of another party. In this case, the agent is entrusted with handling the funds of the insured, and therefore, has a legal and ethical duty to act in the insured's best interest. This includes ensuring that the premiums are handled properly and returned if necessary.

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  • 4. 

    What is it called when an insurer uses higher rates based solely on religion, race, or ethnic group?

    • Categorizing

    • Unfair discrimination

    • Social injustice

    • Redlining

    Correct Answer
    A. Unfair discrimination
    Explanation
    Unfair discrimination is the correct answer because it refers to the practice of an insurer using higher rates based solely on religion, race, or ethnic group. This practice is considered unfair as it violates the principles of equality and fairness, and it is illegal in many jurisdictions. It is important for insurers to assess risk based on relevant factors such as individual characteristics and behavior, rather than discriminatory factors like religion, race, or ethnicity.

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  • 5. 

    To authorize the release of an attending physician's report, the applicant must:

    • Sign a consent form

    • Send a letter to the physician

    • Furnish the name of the physician

    • Submit to a physical examination

    Correct Answer
    A. Sign a consent form
    Explanation
    To authorize the release of an attending physician's report, the applicant is required to sign a consent form. This form serves as a legal document granting permission for the release of the report to the relevant parties. By signing the consent form, the applicant acknowledges their understanding and agreement to allow the physician to disclose their medical information. This ensures that the release of the report is done in compliance with privacy laws and regulations.

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  • 6. 

    If no other method of payment is selected, which of the following is the automatic mode of settlement for life insurance proceeds?

    • Extended term insurance

    • Lump-sum settlement in cash

    • Life income

    • Paid-up policy

    Correct Answer
    A. Lump-sum settlement in cash
    Explanation
    The automatic mode of settlement for life insurance proceeds, if no other method of payment is selected, is a lump-sum settlement in cash. This means that the beneficiary will receive the entire amount of the life insurance proceeds in a single payment, rather than receiving it in installments or through other methods such as extended term insurance, life income, or a paid-up policy.

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  • 7. 

    A supplemental insurance policy that pays a set amount for each day that an individual is hospitalized is known as:

    • Long term care supplement

    • Temporary major medical

    • Hospital confinement indemnity

    • Hospital surgical expense

    Correct Answer
    A. Hospital confinement indemnity
    Explanation
    A supplemental insurance policy that pays a set amount for each day that an individual is hospitalized is known as a hospital confinement indemnity. This type of policy provides additional coverage specifically for hospital stays, offering financial assistance to cover the costs associated with being hospitalized. It is designed to provide a fixed daily benefit to the policyholder during their hospital confinement, regardless of other medical expenses or treatments.

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  • 8. 

    Yearly probabilities of death are shown in:

    • Mortality tables

    • Morbidity tables

    • Policy illustrations

    • Policy summaries

    Correct Answer
    A. Mortality tables
    Explanation
    Mortality tables provide yearly probabilities of death for different age groups. These tables are used by insurance companies to calculate premiums and assess the risk of insuring individuals. They provide valuable information on the likelihood of death at different ages, which is essential for determining life insurance rates and payouts. Morbidity tables, on the other hand, focus on the probability of illness or disability rather than death. Policy illustrations and summaries are documents that provide an overview of the terms and conditions of an insurance policy, but they do not contain specific mortality data.

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  • 9. 

    A commonly used cost containment measure for emergency hospital care under a major medical expense plan is:

    • Premium tax

    • Deductible

    • In-patient fee

    • Pre-admission test

    Correct Answer
    A. Deductible
    Explanation
    A deductible is a commonly used cost containment measure for emergency hospital care under a major medical expense plan. It refers to the amount of money that the insured individual must pay out of pocket before the insurance coverage kicks in. By having a deductible, it helps to reduce the overall cost of healthcare by shifting a portion of the financial responsibility onto the insured individual. This encourages individuals to be more mindful of their healthcare expenses and helps to control unnecessary utilization of emergency hospital care.

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  • 10. 

    A measure for rating an individuals need for long term care benefits is called:

    • A gatekeeper mechanism

    • Activities of daily living

    • Case management

    • Co-insurance

    Correct Answer
    A. Activities of daily living
    Explanation
    Activities of daily living (ADLs) refer to the basic self-care tasks that individuals need to perform on a daily basis, such as bathing, dressing, eating, toileting, transferring, and continence. The ability to perform these activities is often used as a measure to determine an individual's need for long-term care benefits. If someone is unable to perform one or more ADLs independently, they may require assistance or support, which could indicate a need for long-term care services. Therefore, ADLs serve as a measure for rating an individual's need for long-term care benefits.

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  • 11. 

    Which type of insurance policy provides a death benefit that matches the projected outstanding debt on an individual's home?

    • Family protection

    • Level term

    • Mortgage protection

    • Joint life

    Correct Answer
    A. Mortgage protection
    Explanation
    Mortgage protection insurance is a type of insurance policy that provides a death benefit that matches the projected outstanding debt on an individual's home. This means that if the insured person passes away, the insurance policy will pay off the remaining mortgage balance, ensuring that the individual's family does not have to worry about the financial burden of the mortgage. This type of insurance is specifically designed to protect the family's home in the event of the insured person's death.

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  • 12. 

    After a life insurance policy has been in effect for two years, what prevents it from being rescinded by the insurer?

    • The incontestability clause

    • The reinstatement clause

    • The grace period provision

    • The right to return provision

    Correct Answer
    A. The incontestability clause
    Explanation
    The incontestability clause prevents a life insurance policy from being rescinded by the insurer after it has been in effect for two years. This clause states that the insurer cannot dispute the validity of the policy or void it based on any misrepresentations made by the insured during the application process. Essentially, it provides a safeguard for the policyholder, ensuring that the insurance company cannot revoke the policy after the initial two-year period has passed.

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  • 13. 

    Which risk classification carries the lowest premium?

    • Endowed

    • Substandard

    • Standard

    • Preferred

    Correct Answer
    A. Preferred
    Explanation
    Preferred carries the lowest premium because it represents the lowest level of risk for the insurance company. Preferred individuals are considered to be in good health and have a low likelihood of making a claim. Therefore, the insurance company charges them a lower premium compared to other risk classifications such as Standard, Substandard, or Endowed, which indicate higher levels of risk and potential for claims.

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  • 14. 

    According to state law, what size print must be used for the licensee's license number on all price quotes, business cards, and printed material?

    • There are no requirements for the license no. to be printed on any printed material

    • Larger print than any other printed information on the material

    • The same size print as the licensee's phone number, fax number or address

    • Small print a the bottom of the material

    Correct Answer
    A. The same size print as the licensee's phone number, fax number or address
    Explanation
    According to state law, the licensee's license number must be printed in the same size as their phone number, fax number, or address. This means that the license number should not be larger or smaller than any other contact information on the material.

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  • 15. 

    The CA Insurance Code states that policies or certificates may be called comprehensive long term care insurance if they provide benefits for:

    • Institutional (nursing facilities) and home care

    • Institutional care (nursing facilities) only

    • Disability income

    • Home care only

    Correct Answer
    A. Institutional (nursing facilities) and home care
    Explanation
    The correct answer is Institutional (nursing facilities) and home care. According to the CA Insurance Code, policies or certificates can be called comprehensive long term care insurance if they provide benefits for both institutional care (nursing facilities) and home care. This means that the insurance coverage includes both types of care settings, allowing individuals to receive care either in a nursing facility or in their own homes.

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  • 16. 

    Traditional comprehensive major medical plans include all of the following, except:

    • Deductibles

    • Co-insurance

    • Out-of-pocket maximums

    • First-dollar coverage

    Correct Answer
    A. First-dollar coverage
    Explanation
    Traditional comprehensive major medical plans include deductibles, co-insurance, and out-of-pocket maximums. These features require the policyholder to pay a certain amount of expenses before the insurance coverage kicks in, share a percentage of costs with the insurance company, and limit the maximum amount the policyholder has to pay out of pocket, respectively. However, first-dollar coverage is not included in these plans. First-dollar coverage means that the insurance starts paying for medical expenses from the first dollar spent, without any deductibles or co-insurance requirements. Therefore, it is not a part of traditional comprehensive major medical plans.

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  • 17. 

    A provision stating that health insureds and their insurers will share covered losses in an agreed proportion is called:

    • Comprehensive insurance

    • Stop-loss provision

    • Co-insurance

    • Percentage sharing

    Correct Answer
    A. Co-insurance
    Explanation
    Co-insurance is a provision in health insurance where the insured individual and the insurance company share the covered losses in an agreed proportion. This means that the insured person is responsible for paying a certain percentage of the covered expenses, while the insurance company covers the remaining portion. Co-insurance helps to distribute the financial risk between the insured individual and the insurer, ensuring that both parties contribute to the cost of healthcare services.

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  • 18. 

    The process whereby a mutual insurer becomes a stock company is called:

    • Reorganization

    • Stock split

    • Stock buyout

    • Demutualization

    Correct Answer
    A. Demutualization
    Explanation
    Demutualization is the process by which a mutual insurer converts itself into a stock company. This involves the transformation of the company's ownership structure from being owned by policyholders to being owned by shareholders. Through demutualization, the company's policyholders receive shares in the newly formed stock company, allowing them to become shareholders and potentially benefit from any future profits. This process is often undertaken to increase the company's access to capital markets and improve its ability to compete in the industry.

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  • 19. 

    Which life insurance classification carries the highest premium?

    • Substandard

    • Standard

    • Endowed

    • Preferred

    Correct Answer
    A. Substandard
    Explanation
    Substandard life insurance classification carries the highest premium because it is offered to individuals who pose a higher risk to the insurance company due to their health conditions, lifestyle choices, or occupation. These individuals may have pre-existing medical conditions, engage in risky activities, or have a history of health issues. As a result, the insurance company charges higher premiums to compensate for the increased likelihood of having to pay out a claim.

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  • 20. 

    A group insurance plan is contributory when the:

    • 3rd party administrator collects part of the premium

    • Employer pays all of the premium

    • Employee pays part of the premium

    • Service provider collects part of the premium

    Correct Answer
    A. Employee pays part of the premium
    Explanation
    In a contributory group insurance plan, the employee is required to pay a portion of the premium. This means that the cost of the insurance coverage is shared between the employer and the employee. The employer may still contribute to the premium, but the employee is responsible for paying a portion as well. This arrangement helps to distribute the financial burden of the insurance coverage and encourages employees to have a stake in their own coverage.

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  • 21. 

    The group medical plan provision that applies when a claimant has coverage under more than one plan is knows as?

    • Integration

    • Co-insurance

    • Coordination of benefits

    • Maximum benefits

    Correct Answer
    A. Coordination of benefits
    Explanation
    Coordination of benefits is the group medical plan provision that applies when a claimant has coverage under more than one plan. This provision ensures that the total benefits received by the claimant do not exceed the actual cost of the medical expenses. It helps in determining the primary and secondary payer for the claim, avoiding duplicate payments, and ensuring fair distribution of benefits among multiple insurance plans.

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  • 22. 

    After the deductible is paid, what percentage of the balance of approved charges does Medicare Part B pay?

    • 20%

    • 50%

    • 80%

    • 100%

    Correct Answer
    A. 80%
    Explanation
    Medicare Part B pays 80% of the balance of approved charges after the deductible is paid. This means that once the deductible is met, Medicare will cover 80% of the remaining approved charges, while the individual is responsible for the remaining 20%.

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  • 23. 

    Whose benefits are affected by the blackout period?

    • The surviving children

    • The surviving spouse

    • The disabled worker

    • The fully insured worker

    Correct Answer
    A. The surviving spouse
    Explanation
    The blackout period refers to the period of time after the death of a fully insured worker when the surviving spouse is not yet eligible to receive Social Security benefits. During this period, the surviving spouse's benefits are affected as they are not able to receive any financial support from Social Security. Therefore, the correct answer is the surviving spouse.

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  • 24. 

    What do we call the process whereby insurer's decide which customers to insure, and what coverage to offer?

    • Underwriting

    • Rate making

    • Marketing

    • Adverse selection

    Correct Answer
    A. Underwriting
    Explanation
    Underwriting is the process where insurers assess and evaluate the risks associated with potential customers. It involves determining whether to provide insurance coverage to a customer and what specific coverage to offer. This process helps insurers make informed decisions about which customers to insure based on their risk profiles and helps them set appropriate premiums and terms for the coverage provided.

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  • 25. 

    To meet the chronically ill trigger of a long term care policy, an individual must be unable to perform a minimum of:

    • 1 activity of daily living

    • 2 activities of daily living

    • 3 activities of daily living

    • 4 activities of daily living

    Correct Answer
    A. 2 activities of daily living
    Explanation
    To meet the chronically ill trigger of a long term care policy, an individual must be unable to perform a minimum of two activities of daily living. This means that the person must have significant difficulty or require assistance with at least two basic tasks such as bathing, dressing, eating, transferring, toileting, or continence. This requirement ensures that the individual has a substantial need for long term care services and assistance.

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  • 26. 

    A life insurance application is important for all of the following reasons, except:

    • Statements made in the application are required to be true to the best of the applicant's knowledge

    • The beneficiary must sign the application before the insurer will issue the policy

    • The application contains essential information about the applicant

    • The application becomes a part of the policy if a copy is attached

    Correct Answer
    A. The beneficiary must sign the application before the insurer will issue the policy
    Explanation
    The correct answer is that the beneficiary must sign the application before the insurer will issue the policy. This is because the beneficiary's signature is not a requirement for the issuance of a life insurance policy. The application is important for all the other reasons mentioned, such as requiring truthful statements, containing essential information about the applicant, and becoming a part of the policy if a copy is attached.

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  • 27. 

    When must insurance records for insurance agents and insurance brokers be made available to the insurance commissioner?

    • One month after policy issuance

    • At all times

    • Within 30 days of a written request by the commissioner

    • Annually and submitted with the proper paperwork

    Correct Answer
    A. At all times
    Explanation
    Insurance records for insurance agents and insurance brokers must be made available to the insurance commissioner at all times. This means that the records should be accessible and ready for inspection whenever the commissioner requires them, without any specific time limit or condition. This ensures transparency and accountability in the insurance industry, allowing the commissioner to monitor and regulate the activities of agents and brokers effectively.

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  • 28. 

    Which statement best describes a life insurance policy dividend?

    • It is somewhat larger in a non-participating whole life policy than in a comparable participating policy

    • It is the interest paid to the policy owner on the cash value of a permanent insurance policy

    • It is distribution of excess of funds accumulated by the insurer on participating policies

    • It is a stockholders return on his investment in the company

    Correct Answer
    A. It is distribution of excess of funds accumulated by the insurer on participating policies
    Explanation
    A life insurance policy dividend is the distribution of excess funds accumulated by the insurer on participating policies. This means that when the insurance company collects more premiums than necessary to cover claims and expenses, they distribute the excess funds back to the policyholders who have a participating policy. This is different from a non-participating policy, where the policyholder does not receive a dividend. Therefore, the statement that best describes a life insurance policy dividend is that it is the distribution of excess funds accumulated by the insurer on participating policies.

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  • 29. 

    After the deductible, what portion does a patient pay for covered expenses under Medicare Part B?

    • 20%

    • 50%

    • 80%

    • 100%

    Correct Answer
    A. 20%
    Explanation
    After the deductible, a patient is responsible for paying 20% of the covered expenses under Medicare Part B. This means that Medicare will cover 80% of the costs, while the patient will be responsible for the remaining 20%. This system helps to ensure that patients have some financial responsibility for their healthcare expenses while still providing them with a significant amount of coverage.

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  • 30. 

    The initial requirements for a licensed agent to sell long term care insurance includes training in all of the following area, except:

    • Financial planning

    • Available long term care services and facilities

    • California regulations

    • Alternatives to the purchase of long term care insurance

    Correct Answer
    A. Financial planning
    Explanation
    The initial requirements for a licensed agent to sell long term care insurance include training in all of the following areas except financial planning. This means that financial planning is not a mandatory area of training for agents selling long term care insurance. The other areas mentioned, such as available long term care services and facilities, California regulations, and alternatives to the purchase of long term care insurance, are all important aspects that agents must be knowledgeable about in order to sell long term care insurance effectively.

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  • 31. 

    All of the following statements about social security disability benefits are true, except:

    • Benefits are based upon the level of the worker's earnings up to the time of disability

    • Benefits will continue only as long as the recipient cannot work at all

    • Benefits are designed to replace the entire amount of the worker's earnings

    • Worker's must be totally and permanently disabled for at least 5 months to be eligible for benefits

    Correct Answer
    A. Benefits are designed to replace the entire amount of the worker's earnings
    Explanation
    Social security disability benefits are not designed to replace the entire amount of the worker's earnings. Instead, they are calculated based on the worker's earnings up to the time of disability. The amount of benefits received may be less than the worker's previous earnings.

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  • 32. 

    The request for an attending physician's report must be accompanied by a copy of the:

    • Policy illustration

    • Signed application

    • Underwriting criteria

    • Signed authorization

    Correct Answer
    A. Signed authorization
    Explanation
    When requesting an attending physician's report, it is necessary to include a signed authorization. This authorization allows the insurance company to access the individual's medical records and obtain the necessary information from the attending physician. Without a signed authorization, the insurance company would not have the legal permission to request and obtain the required medical information. Therefore, a signed authorization is a crucial document that must accompany the request for an attending physician's report.

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  • 33. 

    Which of the following functions is best defined as an insurance company's identifying and selling to potential customers?

    • Rate making

    • Underwriting

    • Claims handling

    • Marketing

    Correct Answer
    A. Marketing
    Explanation
    Marketing is the best defined function as an insurance company's identifying and selling to potential customers. Marketing involves activities such as market research, advertising, and promotion, which are aimed at identifying potential customers and persuading them to purchase insurance products. It focuses on creating brand awareness, developing marketing strategies, and implementing tactics to attract and retain customers. Marketing plays a crucial role in understanding customer needs, positioning insurance products, and effectively communicating their value to potential customers.

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  • 34. 

    Long term care policies can be replaced for all of the following reasons, except:

    • The new policy has a lower premium

    • The insured's condition has materially improved

    • The new policy has greater benefits

    • The new policy has fewer benefits and a higher premium

    Correct Answer
    A. The new policy has fewer benefits and a higher premium
    Explanation
    Long term care policies can be replaced for various reasons, such as if the new policy has a lower premium or greater benefits. Additionally, if the insured's condition has significantly improved, they may choose to replace their policy. However, the given answer states that the new policy has fewer benefits and a higher premium, which is not a valid reason for replacing a long term care policy.

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  • 35. 

    Health maintenance organizations (HMOs) are required to provide for all of the following services, except:

    • Prescription drugs

    • Emergency services

    • Preventive services

    • Physicians services

    Correct Answer
    A. Prescription drugs
    Explanation
    HMOs are required to provide prescription drugs, emergency services, preventive services, and physician services. Therefore, the correct answer is prescription drugs, as they are not typically covered by HMO plans.

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  • 36. 

    What is required when an applicant reveals conditions that require more information?

    • Physical examination

    • Attending physician's statement

    • Investigative consumer report

    • Agent's report

    Correct Answer
    A. Physical examination
    Explanation
    When an applicant reveals conditions that require more information, a physical examination is required. This is because a physical examination allows a healthcare professional to assess the applicant's overall health and determine if there are any underlying medical conditions that may affect their eligibility or coverage. By conducting a physical examination, the insurer can gather additional information to make an informed decision about the applicant's insurability and potential risk factors.

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  • 37. 

    If a person was in violation of Section 770 of the CA Insurance Code, what action would the insurance Commissioner most likely take if the violation dealt with loans on the security of real or personal property?

    • Require the violator to complete an approved ethics course before soliciting in the statement of California again

    • Issue a cease and desist order for a violation of more than one transaction

    • Charge the violator with a felony with a six month maximum jai sentence per violation

    • Issue a fine or $205,000 per violation

    Correct Answer
    A. Issue a cease and desist order for a violation of more than one transaction
    Explanation
    If a person is in violation of Section 770 of the CA Insurance Code, the insurance Commissioner would most likely issue a cease and desist order for a violation of more than one transaction. This means that the violator would be ordered to stop engaging in the illegal activity of making loans on the security of real or personal property. This action is taken to prevent further violations and protect the interests of consumers.

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  • 38. 

    Which coverage is available at no cost to persons at age 65?

    • Medicare Part A

    • Medicare Part B

    • Social Security retirement benefits

    • Long term care insurance

    Correct Answer
    A. Medicare Part A
    Explanation
    Medicare Part A is available at no cost to persons at age 65. Medicare Part A is the hospital insurance portion of Medicare, which covers inpatient hospital stays, skilled nursing facility care, hospice care, and some home health care services. While Medicare Part B and Social Security retirement benefits are also available to persons at age 65, they may come with costs such as monthly premiums. Long term care insurance is a separate insurance policy that individuals can purchase to cover long-term care services, but it is not available at no cost.

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  • 39. 

    Under a disability income insurance policy with an "own occupation" clause, an employee who can no longer perform the tasks of the job held at the time of injury is considered:

    • Gainfully disabled

    • Totally disabled

    • Presumptively disabled

    • Medically disabled

    Correct Answer
    A. Totally disabled
    Explanation
    Under a disability income insurance policy with an "own occupation" clause, an employee who can no longer perform the tasks of the job held at the time of injury is considered "totally disabled." This means that the individual is unable to engage in any gainful employment due to their injury or disability. The "own occupation" clause specifically refers to the inability to perform the tasks of the specific job the individual held at the time of the injury, rather than any job in general. Therefore, the correct answer is "totally disabled."

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  • 40. 

    Which of the following may be offered by insurers providing Medicare supplement insurance?

    • Broad plans that exclude the core benefits

    • The core benefit plan without any additional benefits

    • Plans that duplicate benefits covered by Medicare

    • Plans without a right to return premium

    Correct Answer
    A. The core benefit plan without any additional benefits
    Explanation
    Insurers providing Medicare supplement insurance may offer the core benefit plan without any additional benefits. This means that they would provide coverage for the basic benefits that are not covered by Medicare, such as deductibles, copayments, and coinsurance. However, they would not offer any additional benefits beyond the core coverage. This option may be suitable for individuals who only require basic coverage and do not need any extra benefits.

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  • 41. 

    A policy owner has the right to change all of the following, except:

    • The beneficiary

    • The payment mode

    • The dividend schedule

    • The dividend option

    Correct Answer
    A. The dividend schedule
    Explanation
    A policy owner has the right to change the beneficiary, the payment mode, and the dividend option. However, the dividend schedule refers to the timing and frequency of dividend payments, which is determined by the insurance company. Therefore, the policy owner does not have the right to change the dividend schedule.

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  • 42. 

    Which optional program is only for individuals age 65 or older?

    • Long term care insurance

    • Medicare Part A

    • Social Security survivor benefits

    • Medicare Part B

    Correct Answer
    A. Medicare Part B
    Explanation
    Medicare Part B is the correct answer because it is a program specifically designed for individuals age 65 or older. Medicare Part B provides medical insurance coverage, including doctor visits, outpatient care, and preventive services. It is an optional program that individuals can choose to enroll in, in addition to Medicare Part A, which covers hospital insurance. Long term care insurance is not age-restricted and can be purchased by individuals of any age. Social Security survivor benefits are available to eligible individuals regardless of age.

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  • 43. 

    Members of the Medical information Bureau are required to report:

    • The names of all patients treated by member physicians

    • The cause of death when death benefits are paid

    • Medical impairments found during the underwriting process

    • Amounts of insurance applied for by all applicants

    Correct Answer
    A. Medical impairments found during the underwriting process
    Explanation
    Members of the Medical Information Bureau are required to report medical impairments found during the underwriting process. This means that if a member physician identifies any medical conditions or impairments while evaluating an applicant's eligibility for insurance coverage, they must report this information to the Medical Information Bureau. This reporting helps insurance companies assess the risk associated with insuring individuals with specific medical conditions and make informed decisions about coverage and premiums.

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  • 44. 

    Jean's healthcare provider is a "service provider." This mans:

    • Her payment for services goes directly to the provider

    • She will get better service than a "fee for service" provider

    • Her payment for services are always paid to the insured

    • All the above above are true statements

    Correct Answer
    A. Her payment for services goes directly to the provider
    Explanation
    The correct answer is "Her payment for services goes directly to the provider." This means that Jean's healthcare provider is a service provider, and when she receives healthcare services, she directly pays the provider for those services. This implies that the payment is not made to a third party or intermediary, but directly to the healthcare provider.

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  • 45. 

    By adopting a self-funded health plan, an employer will have greater flexibility in all areas of the planning, except:

    • Claims severity

    • Group size

    • Benefits provided

    • Cost

    Correct Answer
    A. Claims severity
    Explanation
    By adopting a self-funded health plan, an employer will have greater flexibility in all areas of the planning, except claims severity. This means that while the employer can have more control and flexibility over the group size, benefits provided, and cost of the plan, they may not have the same level of control over the severity of the claims made by employees. Claims severity refers to the extent or seriousness of the medical conditions or treatments required, and this may be influenced by factors beyond the employer's control, such as the health status and needs of the employees.

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  • 46. 

    Which of the following statements defines partial disability?

    • A disabled employee while he is working part-time and receiving lost income under their long-term disability benefit

    • An employee who loses sight in one eye because of an accident on the job

    • An employer contributing half of the disability benefit to an employee out on long-term disability

    • The prorated income an employer pays an injured employee out on short-term disability

    Correct Answer
    A. A disabled employee while he is working part-time and receiving lost income under their long-term disability benefit
  • 47. 

    Social Security disability benefits are paid to persons expected to die or be disabled at least:

    • 3 months

    • 6 months

    • 12 months

    • 24 months

    Correct Answer
    A. 12 months
    Explanation
    Social Security disability benefits are paid to persons who are expected to be disabled for at least 12 months. This means that the individual must have a medical condition that prevents them from working and is expected to last for at least a year or result in death. The 12-month requirement ensures that the benefits are provided to individuals with long-term disabilities, rather than those with short-term or temporary conditions.

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  • 48. 

    The price of insurance for each exposure unit is called the:

    • Premium

    • Rate

    • Adjustment factor

    • Package price

    Correct Answer
    A. Rate
    Explanation
    The price of insurance for each exposure unit is called the rate. This rate is determined based on various factors such as the level of risk associated with the exposure unit and the coverage provided by the insurance policy. It represents the cost of the insurance coverage for a specific unit of exposure, such as a person or property. The rate is typically calculated by insurance companies to ensure that they are charging an appropriate amount to cover potential claims and expenses.

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  • 49. 

    Which of the following is the best definition of premium?

    • The amount the insured pays per unit of coverage

    • Money the insured pays the insurer to obtain the benefits in the policy

    • Money the insurer pays the insured to obtain the benefits in the policy

    • Bonus paid by an agent to convince an insured to buy a policy

    Correct Answer
    A. Money the insured pays the insurer to obtain the benefits in the policy
    Explanation
    Premium is the money that the insured pays the insurer to obtain the benefits mentioned in the policy. This payment is made regularly, usually on a monthly or yearly basis, and is based on the coverage amount and the risk factors associated with the insured. It is essentially the cost of insurance coverage that the policyholder must pay to maintain their policy and receive the promised benefits in case of a covered event or loss.

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Quiz Review Timeline (Updated): Oct 6, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Oct 06, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Jan 29, 2010
    Quiz Created by
    Pchinna

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