Life, Accident and Health Pearson Final Exams - exam 5 With Solutions 100% Solved
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Life, Accident and Health Pearson Final
Exams - exam 5 With Solutions 100% Solved
Which of the following statements is true with regard to limited health policies?
ALimited policies protect against gaps in coverage that exist in other plans
BLimited policies provide benefits for cancer only
C...
Life, Accident and Health Pearson Final
Exams - exam 5 With Solutions 100% Solved
Which of the following statements is true with regard to limited health policies?
ALimited policies protect against gaps in coverage that exist in other plans
BLimited policies provide benefits for cancer only
CLimited policies must state clearly what coverage they provide
DLimited policies cover scheduled surgical expenses if not covered by major medical plans
c limited policies must state clearly what coverage they provide
Limited policies pay benefits for an individual illness or an accident. These policies must state
prominently that they are limited in nature. Cancer only or dread disease plans are two common
types of limited health insurance policies. (1175)
AD&D coverage provides all of the following benefits, EXCEPT:
ADeath as a result of an accident
BCapital sum benefits
CBenefits for loss of sight due to an illness
, Life, Accident and Health Pearson Final
Exams - exam 5 With Solutions 100% Solved
DLoss of use of limbs caused by an accident c benefits for loss of sight due to an illness
Accidental death and dismemberment coverage, whether provided as a rider or an individual
policy, does not provide benefits for an insured as a result of an illness. (1318)
To be eligible for coverage under Part C of Medicare, an individual does not have to prove that
he or she is insurable if enrollment occurs during what period of time following the attainment of
age 65?
AOne month
BThree months
CSix months
DTwelve months c six months
No evidence of insurability is required if enrollment occurs during a six-month period following
the individual's 65th birthday. After this six month period the individual must prove that he or
she is insurable. (4132)
In most States, domestic insurers must be examined or audited:
, Life, Accident and Health Pearson Final
Exams - exam 5 With Solutions 100% Solved
AAt least once every year
BAt least once every three years
CAt least once every five years
DAt least once every ten years c at least once every five years
Most states require that licensed insurers be audited at least every fifth year to ensure solvency. A
few State Departments of Insurance require it every year (e.g., New Jersey). Please consult your
State law chapter in your textbook. (2127)
The main purpose of the underwriting department is?
ATo support the field underwriting
BTo compute the necessary profit
CTo issue contracts
DTo review applications d to review applications
The function and purpose of underwriting is to review applications for insurance coverage to
determine if the proposed insured is insurable. (1461)
, Life, Accident and Health Pearson Final
Exams - exam 5 With Solutions 100% Solved
If a life insurance policy becomes a modified endowment contact, it may revert back to an
ordinary life policy within:
AOne year
BThree years
CSeven years
DIt is not allowed to revert back to an ordinary life contract D it is not allowed to revert
back to an ordinary life contract
Once a whole life policy is determined to be a Modified Endowment Contract (MEC) it may not
revert back. This means that the tax benefits included in a whole life policy will be suspended
when there are any distributions of cash from the contract. Interest credited to the cash value is
general tax deferred. Once labeled as a MEC, a policy loan may be subject to taxation when it
otherwise would not be. The policy become a MEC when the owner violates the 7 pay test.
(4184)
If an individual makes a payment to fund an annuity contract today and the benefit commences
thirty days later, which of the following contracts has been purchased?
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