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
The insuring clause in a life insurance policy is significant because it:
Answer: States the insurer's promise to pay the death benefit
The insuring clause is the core contractual promise where the insurer agrees to pay the face amount upon the insured's death.
Under Medicaid, eligibility is primarily based on:
Answer: Financial need and income level
Medicaid is a needs-based program jointly funded by federal and state governments, with eligibility determined primarily by income and financial resources.
A 'spendthrift clause' in a life insurance policy is intended to:
Answer: Protect policy proceeds from the beneficiary's creditors
A spendthrift clause prevents beneficiaries from assigning or pledging their interest and protects proceeds from their creditors until distributed.
In a health insurance policy, a 'stop-loss' provision benefits the insured by:
Answer: Capping the insured's out-of-pocket expenses for the year
A stop-loss (out-of-pocket maximum) provision caps the total amount the insured must pay in cost-sharing each year, after which the insurer covers 100%.
Which of the following is a characteristic of a participating life insurance policy?
Answer: The policyowner may receive dividends from the insurer
Participating policies are typically issued by mutual insurers and may pay dividends to policyowners when the insurer experiences favorable experience.
An agent who accepts an application and initial premium but does not issue a binding receipt is providing coverage:
Answer: Only after the insurer underwrites and approves the policy
Without a binding receipt, coverage does not begin until the insurer accepts the application and issues the policy.
Under Social Security, the number of work credits needed to be 'fully insured' for retirement benefits is:
Answer: 40 credits
Workers need 40 credits (approximately 10 years of work) to be fully insured for Social Security retirement benefits.