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 is NOT a characteristic of group life insurance as compared to individual life insurance?
Answer: Each insured receives their own separate policy
In group life insurance, a master policy is issued to the group sponsor and individual members receive certificates of coverage, not separate policies.
The 'coordination of benefits' (COB) provision in health insurance is designed to:
Answer: Prevent a claimant from collecting more than 100% of covered expenses when insured under multiple plans
COB provisions ensure that when a person is covered by more than one health plan, total benefit payments do not exceed the actual cost of the claim.
Under a long-term care (LTC) insurance policy, which trigger most commonly qualifies an insured to receive benefits?
Answer: Inability to perform 2 or more Activities of Daily Living (ADLs)
Most LTC policies pay benefits when the insured cannot perform 2 or more of the 6 standard ADLs (bathing, dressing, eating, toileting, transferring, continence).
An insured dies 20 days after the premium due date without having paid the premium. The life insurance policy has a 31-day grace period. What happens?
Answer: The insurer pays the full death benefit minus the overdue premium
Since the insured died within the grace period, the policy was still in force; the insurer pays the full death benefit but deducts the outstanding premium from the proceeds.
Which of the following describes a 'participating' life insurance policy?
Answer: A policy that may pay dividends to policyholders from company surplus
Participating policies, typically issued by mutual insurers, may return a portion of surplus earnings to policyholders in the form of dividends.
A Medicare Advantage plan enrollee who receives an unexpected large medical bill should first:
Answer: File a grievance or appeal with the Medicare Advantage plan
Medicare Advantage enrollees have the right to file a formal appeal or grievance with their plan if they believe a claim was incorrectly denied or a bill is incorrect.
Which settlement option provides a life insurance beneficiary with equal installment payments over a fixed number of years, regardless of when the beneficiary dies?
Answer: Fixed period option
The fixed period settlement option pays equal installments over a specified number of years; if the beneficiary dies before the period ends, payments continue to a secondary beneficiary or the estate.