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
A variable life insurance policy's death benefit and cash value fluctuate based on:
Answer: The performance of separate account investment subaccounts
Variable life insurance ties cash value and potentially the death benefit to investment subaccounts within a separate account, shifting investment risk to the policyowner.
Under the coordination of benefits (COB) rules, which plan pays claims first when an individual is covered by two group health plans?
Answer: The plan under which the individual is the primary insured (not a dependent)
COB rules establish that the plan covering the individual as an employee (primary insured) pays first, while the plan covering them as a dependent pays second.
Which provision in a health insurance policy requires the insurer to continue coverage despite the policyholder's failure to pay premiums, using dividends or cash value to pay them?
Answer: Automatic premium loan
The automatic premium loan provision automatically borrows from available cash value to pay an overdue premium, preventing unintended lapse.
A long-term care insurance policy that adjusts benefits for inflation at a fixed rate each year has what type of rider?
Answer: Simple inflation protection rider
A simple inflation protection rider increases benefits by a fixed percentage of the original benefit amount each year, while compound inflation grows on the previously increased amount.
A Medicare Advantage plan must provide benefits that are at least equivalent to:
Answer: Original Medicare Parts A and B benefits
Medicare Advantage plans are required by law to cover all services included under Original Medicare Parts A and B, though they may structure cost-sharing differently.
An insurer cancels an individual health insurance policy mid-term without cause. Under what circumstance is this allowed?
Answer: Only if the insured commits fraud or material misrepresentation
After a policy is issued, insurers generally cannot cancel individual health coverage mid-term except for non-payment of premiums or fraud/material misrepresentation by the insured.
A life insurance policy where the policyowner can increase or decrease premium payments and adjust the face amount is a:
Answer: Universal life policy
Universal life insurance provides flexible premiums and adjustable death benefits within certain limits, distinguishing it from the fixed structure of whole or term life.