Life And Health Insurance Practice 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 Practice flashcards as text
Which of the following statements about the 'misstatement of age' provision in a life insurance policy is correct?
Answer: The death benefit is adjusted to what the premium would have purchased at the correct age
If the insured's age was misstated on the application, the insurer adjusts the death benefit to the amount the premiums paid would have purchased at the correct age, rather than voiding the policy.
A Medicare Advantage plan that requires members to use a network of providers and get referrals from a primary care physician is a:
Answer: Medicare HMO plan
A Medicare Advantage HMO plan requires members to use the plan's network and typically requires referrals to see specialists.
Under the Mental Health Parity and Addiction Equity Act (MHPAEA), group health plans that offer mental health benefits must:
Answer: Apply the same financial requirements and treatment limitations to mental health benefits as to medical/surgical benefits
MHPAEA requires that mental health and substance use disorder benefits not have more restrictive financial requirements or treatment limitations than medical and surgical benefits.
A life insurance rider that allows the policyholder to purchase additional coverage at specified future dates without evidence of insurability is called:
Answer: Guaranteed insurability rider
The guaranteed insurability (or guaranteed purchase option) rider lets the policyowner buy additional life insurance at predetermined intervals without needing to prove good health.
A life insurance policy loan that is not repaid before the insured dies results in:
Answer: The outstanding loan balance plus interest being deducted from the death benefit paid to the beneficiary
Outstanding policy loans and accrued interest are subtracted from the death benefit at the time of the claim, reducing the amount paid to the beneficiary.
Which of the following defines 'stop-loss' coverage in the context of a self-funded employer health plan?
Answer: Insurance purchased by the employer to cap its financial exposure for catastrophic or aggregate claims
Stop-loss insurance protects self-funded employers by reimbursing them when individual claims (specific stop-loss) or total claims (aggregate stop-loss) exceed predetermined thresholds.
The primary purpose of the 'entire contract' provision in a life insurance policy is to:
Answer: Ensure that the policy document and attached application constitute the complete agreement between the insurer and policyowner
The entire contract provision states that the policy, along with the original application attached as an exhibit, forms the complete and binding contract — no outside documents or verbal statements are part of the agreement.