Life and Health Insurance Assessment Flashcards
7 cards from real Life & Health Insurance Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Life and Health Insurance Assessment flashcards as text
Under the Health Insurance Portability and Accountability Act (HIPAA), a pre-existing condition exclusion period for group health insurance is limited to a maximum of:
Answer: 12 months
HIPAA limits pre-existing condition exclusion periods to 12 months (18 months for late enrollees) in group health plans.
A whole life insurance policy's cash value grows on a:
Answer: Fixed tax-deferred basis
Whole life cash value accumulates on a tax-deferred basis at a guaranteed fixed rate set by the insurer.
Which provision in a life insurance policy allows the policyowner to recover the full premium paid if the insured dies within a specified period?
Answer: Return of premium rider
A return of premium rider pays back all premiums paid if the insured dies within the rider's specified term period.
A Medicare Supplement (Medigap) policy is designed to:
Answer: Cover costs not paid by Original Medicare
Medigap policies fill in the gaps of Original Medicare, covering cost-sharing items like deductibles, copayments, and coinsurance.
Under a disability income policy, the elimination period functions similarly to:
Answer: A deductible in time
The elimination (waiting) period is the time after disability onset before benefits begin, analogous to a time-based deductible.
Which type of annuity provides income payments that cannot outlive the annuitant?
Answer: Life annuity (straight life)
A straight life (life-only) annuity pays income for the annuitant's entire lifetime, ceasing at death, ensuring payments never outlast the person.
An insurance producer who misrepresents a policy's terms to induce a prospect to lapse an existing policy is guilty of:
Answer: Twisting
Twisting involves misrepresenting a policy's provisions to persuade someone to replace an existing policy, which is illegal in all states.