Life and Health Insurance Random 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 Random flashcards as text
Under COBRA, how long must a qualified beneficiary who loses coverage due to divorce be offered continuation coverage?
Answer: 36 months
Divorce or legal separation is a qualifying event that entitles the spouse to 36 months of COBRA continuation coverage.
Which provision in a life insurance policy prevents the insurer from denying a claim based on misrepresentation after a specified period?
Answer: Incontestability clause
The incontestability clause (typically 2 years) bars the insurer from voiding a policy due to misrepresentation after that period has elapsed.
A Health Maintenance Organization (HMO) plan differs from a Preferred Provider Organization (PPO) primarily because HMOs:
Answer: Require a referral from a PCP to see a specialist
HMOs typically require members to select a primary care physician who must provide referrals to specialists within the network.
What is the primary purpose of a 'spendthrift' clause in a life insurance policy?
Answer: To protect policy proceeds from being claimed by the beneficiary's creditors
A spendthrift clause protects beneficiaries by preventing their creditors from attaching or garnishing insurance proceeds before they are received.
Which type of annuity allows the contract owner to allocate premium payments among various sub-accounts tied to market investments?
Answer: Variable annuity
A variable annuity lets the owner invest in sub-accounts (similar to mutual funds), so the accumulation value and income payments can vary with market performance.
Under the Affordable Care Act, what is the maximum out-of-pocket limit designed to protect consumers from catastrophic healthcare costs?
Answer: It limits total annual cost-sharing for covered in-network services
The ACA establishes an annual out-of-pocket maximum that caps the total amount a consumer pays for covered in-network services, including deductibles, copays, and coinsurance.
When a term life insurance policy contains a 'return of premium' rider, what happens if the insured outlives the policy term?
Answer: All premiums paid are returned to the policyholder tax-free
A return of premium rider refunds all premiums paid if the insured survives the full term, making it a more expensive but potentially attractive option.