Claims and Benefits Flashcards
6 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 6 Claims and Benefits flashcards as text
Under a life insurance policy, who has the right to file a death claim?
Answer: The beneficiary
The named beneficiary is entitled to file a death claim and receive the policy proceeds upon the insured's death.
What is the 'incontestability clause' in a life insurance policy?
Answer: A clause preventing the insurer from voiding the policy after a specified period
After the incontestability period (typically 2 years), the insurer cannot contest the policy based on misstatements in the application.
Which of the following is NOT a standard settlement option for life insurance death proceeds?
Answer: Automatic policy loan
Automatic policy loan is a nonforfeiture option, not a settlement option for death proceeds.
What does 'Accidental Death Benefit' (ADB) rider provide?
Answer: An additional death benefit if the insured dies by accident
The ADB rider pays an additional amount—often equal to the face value—on top of the base death benefit if death results from an accident.
A claimant submits a health insurance claim 30 days after the allowed filing period. The insurer will most likely:
Answer: Deny the claim due to late filing
Health insurers may deny claims submitted after the timely filing deadline specified in the policy.
Which provision requires health insurers to pay claims within a specific number of days after receiving proof of loss?
Answer: Time of payment of claims provision
The time of payment of claims provision mandates that the insurer pay benefits promptly—typically within 45 days—after receiving satisfactory proof of loss.