Life and Health Insurance Guide Exam 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 Guide Exam flashcards as text
An annuity owner dies during the accumulation phase before annuitization. The beneficiary will typically receive:
Answer: The greater of the account value or total premiums paid
Most deferred annuities provide a death benefit equal to the greater of the current account value or the total premiums paid, protecting against market loss.
Which of the following best describes a 'stop-loss' provision in a major medical health policy?
Answer: A maximum out-of-pocket amount after which the insurer pays 100% of covered expenses
A stop-loss (or out-of-pocket maximum) provision caps the insured's total annual cost-sharing; once reached, the insurer covers 100% of covered expenses.
A producer who misrepresents policy provisions to induce a policyholder to replace existing coverage with a new policy is committing:
Answer: Twisting
Twisting is the illegal practice of using misrepresentation or incomplete comparisons to persuade a policyholder to replace one policy with another.
Under HIPAA, a pre-existing condition exclusion for group health plans can apply for a maximum of how many months?
Answer: 12 months
HIPAA limits pre-existing condition exclusions in group health plans to a maximum of 12 months (18 months for late enrollees).
A universal life insurance policy's death benefit option that keeps the face amount level while the cash value fluctuates is called:
Answer: Option A (Level Death Benefit)
Universal life Option A (or Option 1) maintains a level death benefit, with the net amount at risk decreasing as cash value grows.
What does 'subrogation' mean in the context of health insurance?
Answer: The insurer's right to recover benefits paid from a liable third party
Subrogation gives the insurer the legal right to pursue a third party responsible for an insured's loss to recover claims paid.
A Medigap policy can ONLY be sold to someone enrolled in:
Answer: Original Medicare (Parts A and B)
Medigap (Medicare Supplement) policies are designed to fill gaps in Original Medicare (Parts A and B) and cannot be used with Medicare Advantage plans.