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
A group health plan that self-funds its claims but uses an insurance company for administrative services is known as an:
Answer: ASO (Administrative Services Only) plan
An ASO arrangement means the employer self-funds claims while an insurer provides administrative services such as claims processing.
Under the ACA, the annual open enrollment period for individual marketplace health plans typically ends on:
Answer: December 15
The ACA marketplace open enrollment generally closes on December 15 for coverage starting January 1 of the following year.
A universal life insurance policy differs from whole life primarily because it offers:
Answer: Flexible premiums and adjustable death benefits
Universal life provides flexibility by allowing policyowners to vary premium amounts and adjust the death benefit within policy limits.
The coordination of benefits (COB) provision in group health insurance is designed to:
Answer: Prevent overpayment when a person is covered by more than one plan
COB rules determine which plan pays first (primary) and which pays second (secondary) to avoid total reimbursement exceeding actual expenses.
Which of the following best describes a 'nonforfeiture option' in a whole life policy?
Answer: Options the policyowner may use if premiums are not paid
Nonforfeiture options (cash surrender, reduced paid-up, extended term) protect the policyowner's accumulated cash value if premiums lapse.
Under the ACA's essential health benefits, which of the following must all qualified health plans cover?
Answer: Emergency services and maternity care
ACA-qualified plans must cover 10 essential health benefits including emergency services, maternity care, mental health, and preventive care.
A producer who gives a portion of their commission to an insured as an incentive to purchase a policy is committing:
Answer: Rebating
Rebating is the illegal practice of returning part of the premium or commission to the insured as an inducement to buy a policy.