NJ Life and Health Insurance Exam Questions with Answers
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NJ Life and Health Insurance
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NJ Life And Health Insurance
NJ Life and Health Insurance Exam Questions with Answers
Guaranteed renewable policies give the insured the right to renew the policy to the age that is specified in the policy. The company may not raise or change the premium unless it makes the change for an entire policy class. - Answer-Employer...
NJ Life and Health Insurance Exam
Questions with Answers
Guaranteed renewable policies give the insured the right to renew the policy to the age
that is specified in the policy. The company may not raise or change the premium
unless it makes the change for an entire policy class. - Answer-Employer coverage of
part-timers is optional under the ACA.
This promise of covering losses is in exchange for the premium that is paid by the
insured and the compliance with the policy terms. - Answer-Military service and injuries
that result from war are not typically covered by regular health insurance policies. The
government covers the cost of such medical care.
The Affordable Care Act has created state exchanges through which individuals may
purchase health insurance coverage. This act prohibits pre-existing condition exclusions
on individual health insurance policies. The Health Insurance Portability and
Accountability Act (HIPAA) guarantees that under certain conditions, individuals who
must replace their existing coverage will not be subject to pre-existing condition
limitations. The existing insurance, however, must have been in effect for a minimum
amount of time. - Answer-Because smokers tend to have shorter life expectancies than
non-smokers, they are considered to pose a higher amount of risk to a life insurer.
When using experience ratings, people are classed into sub-groups and the premium is
then determined by the "experience" of the sub-group. Such sub-groups can be
determined by age, sex, habits, medical history, and other important criteria. - Answer-
Such procedures are not considered to be typical medical treatments are often not
necessary.
The owner has the rights that are stipulated in the life insurance policy. Examples of
such rights can include the right to name a policy beneficiary, the right to surrender the
policy for its cash value (if applicable), and even the right to transfer ownership of the
policy. - Answer-Electronic signatures offer valid authorization, and can also serve as
notification when the policy holder or insurance agent receives a documents.
The amount of a life insurance policy's death benefit is also referred to as the policy's
face amount. - Answer-A stock insurance company is owned by its stockholders, and
only the stockholders have the power to effect changes within the organization. A
mutual insurance company is actually owned by its policy holders whose life insurance
policies have cash value.
Whenever an insured has a major life event such as marriage, the birth of a child, or the
purchase of a new home, they should re-evaluate their life insurance needs. In this
, particular case, John would need additional life insurance coverage as his newborn
son's care will likely depend a great deal on financial support provided by John. -
Answer-Medicare Part A coverage helps to pay for inpatient care in a hospital and / or a
skilled nursing home. It also covers some types of home health care, as well as some
hospice care.
Insurance fraud actually makes payment of legitimate claims slower due to the
increased amount of investigation that is now necessary to ensure that claims are not
fraudulent. - Answer-Continuing to pay the premium will keep the policy in force and will
allow the insured's beneficiary to receive the remainder of the death benefit proceeds.
The policy must have been owned for a minimum of two years. This helps to prevent the
immediate potential for "profit" by viatical settlement investors. - Answer-If a policy
holder incurs a loss or expense that is covered by an insurance plan, they must make a
claim in order to receive compensation.
Indemnity plans will pay the insured a fixed amount rather than a reimbursement of the
actual expenses that were incurred. Therefore, if the insured has a policy that is
designed to pay $100 per day, but the care received costs $80 per day, the policy
holder will still receive $100 per day from the insurer. - Answer-If a contract contains
unclear wording, then a court will interpret the language used against the writer of the
contract - unless the wording that is used is required by law to be stated in a specific
way.
When life insurance policy loans are not repaid, the outstanding amount is considered a
gain in the account and will therefore be taxed to the recipient as ordinary income. -
Answer-Life insurance can help to transfer business interests to partners or other
interested parties, without disrupting the company's day to day operations. It can also
help to keep the business afloat until the business is sold or a replacement is found.
The primary reason that people purchase life insurance is for income replacement. -
Answer-Although defamation involves damaging the character and / or reputation of a
competitor or their products, if an agent is giving true advice that can help a client obtain
better coverage for their specific needs, then it is not considered to be unethical.
The SHOP Marketplace is open to employers with 50 or fewer full-time equivalent
employees. There are several advantages to using SHOP, including more control by the
business regarding the coverage they offer and how much the business pays towards
employee premiums. - Answer-Mortality, or life expectancy tables, will help an
insurance company to determine how long an applicant for coverage may live. These
tables show, based on an individual's current age, how many more years - on average -
individuals will likely live.
Management of risk can encompass many strategies, including minimizing it, avoiding
it, keeping it under control, transferring it, and assessing it - Answer-While there are
many different options and riders on life insurance, all policies possess a death benefit.
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