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
Which of the following best describes an 'elimination period' in a disability income policy?
Answer: A waiting period before disability benefits begin
The elimination period is a deductible measured in time — the insured must be disabled for this specified number of days before benefits commence.
A life insurance policy lapses due to non-payment of premiums. Under which nonforfeiture option does the insurer use the cash value to purchase paid-up whole life insurance for a reduced face amount?
Answer: Reduced paid-up insurance
The reduced paid-up nonforfeiture option uses accumulated cash value to purchase a paid-up whole life policy with a smaller face amount and no further premiums required.
Under the ACA's essential health benefits, which of the following services must all non-grandfathered individual and small group plans cover?
Answer: Emergency services and mental health/substance use disorder services
Emergency services and mental health/substance use disorder services are two of the ten categories of essential health benefits that qualifying plans must cover under the ACA.
A life insurance applicant states on the application that he has never had heart disease, but omits a minor valve condition he has forgotten about. This is an example of:
Answer: Innocent misrepresentation
An innocent misrepresentation occurs when an applicant unknowingly provides incorrect information without intent to deceive.
Which type of Medicare Supplement (Medigap) plan covers 100% of the Medicare Part A coinsurance and hospital costs but does NOT cover the Part B deductible under post-2020 standardization?
Answer: Plan G
Plan G is the most comprehensive Medigap plan available to new enrollees after January 1, 2020; it covers nearly everything except the Medicare Part B deductible.
What does the 'creditable coverage' concept mean in the context of health insurance?
Answer: Prior health coverage that can reduce or eliminate pre-existing condition waiting periods
Creditable coverage refers to prior qualifying health coverage that can reduce waiting periods for pre-existing conditions under group health plans subject to HIPAA.
Under a universal life insurance policy, what happens when the cash value is insufficient to cover the monthly mortality and expense charges?
Answer: The policy will lapse unless the policyowner makes an additional premium payment
If a universal life policy's cash value cannot cover the ongoing cost of insurance and expense charges, the policy will lapse unless the owner deposits additional premiums.