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Life, Accident and Health Pearson Final Exams - exam 5
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Life, Accident and Health Pearson Final Exams - exam 5
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Name: Score:48 Multiple choice questions
Term 1 of 48
A salary continuation plan is also referred to as a:
AQualified plan
BNon-qualified deferred compensation plan
CAn entity plan
DA cross-purchase plan
A issue a policy
The issuance of an insurance policy is the responsibility of the home office underwriters,
not a producer (i.e., field underwriter). (1951)
b at time of policy application
Anytime a policy is to be replaced by a new policy, a Notice Regarding Replacement
form must be provided to the applicant before or during the initial application process.
(1128)
d the policy may be cancelled by the insurer at any time
A cancelable policy may be cancelled by the issuing insurer for any reason. This type of
policy is the least expensive since the policy may cancel at its discretion. (1424)
b non qualified deferred compensation plan
A salary continuation plan is an example of a non-qualified deferred compensation plan.
(2131)
,Term 2 of 48
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)
b reduce the premium
The common dividend options available to owners of participating policies include
reduce the premium, cash, accumulate at interest, paid-up additions and one year term.
(1696)
AIncontestable clause
The incontestable provision allows the insurer to "contest" statements made by an
applicant for life insurance for the initial two years after the contract is issued. If the
insurer determines that the applicant engaged in any material misrepresentation, it may
void the policy. (1726)
d 45 days
An insurer has forty-five days to inform an insured whether or not reinstatement has
been approved once the reinstatement application and any owed premium is paid.
(1385)
,Term 3 of 48
Except in cases of fraud, what life insurance policy provisions limits an insurer to contest
application information for the initial two years of the contract?
AIncontestable clause
BTime limit on certain defense provision
CGrace period provision
DOwner's rights clause
c a rider added to a disability income plan
Long-term care coverage is available to a person by: (1) buying an individual plan from a
licensed insurance carrier; (2) receiving coverage through a group plan; or (3) attaching
a rider to a life insurance policy. The latter method generally requires the payment of an
additional premium as well. (1111)
d 15 days
One of the twelve required uniform policy provisions is the claim form provision. Also
known as the "proof of loss form" provision, it requires that an insurer send a claim form
to the insured within 15 days after it has been notified of the covered illness or accident.
(1394)
d only guaranteed elements of the contract must be listed
Policy illustrations must list both guaranteed and non-guaranteed elements of the
contract. They are designed to provide full disclosure to the client, thus protecting them
against unfair and exaggerated hypothetical illustrations. (1457)
AIncontestable clause
The incontestable provision allows the insurer to "contest" statements made by an
applicant for life insurance for the initial two years after the contract is issued. If the
insurer determines that the applicant engaged in any material misrepresentation, it may
void the policy. (1726)
, Term 4 of 48
Which of the following health insurance policy provisions allows an insurer to deny a claim that
does not occur during the policy period?
AReinstatement provision
BInsuring clause
COwnership provision
DConsideration clause
A a statement of good health
The statement of good health is provided by the insured at contract deliver only if the
original policy submission did not include the initial premium requirement. (1434)
CWaiver of premium
The waiver of premium may be added to a life insurance policy for an additional
premium. It provides a benefit in the event the insured becomes totally disabled. If
disability results for more than six consecutive months, the insurer will waive future
premiums, starting in the seventh month of disability, until the insured is no longer
disabled. In addition, the premium paid during the initial six months of disability is
returned retroactively. (1715)
B insuring clause
The insuring clause specifies the time frame of the policy period which is generally one
year. Therefore, accidents or illnesses occurring prior to the policy's inception date are
not covered. (1416)
b any pre-existing condition limitation in the new long-term care plan is waived
Whenever a long-term insurance policy is replaced, any pre-existing condition limitation
in the new policy being purchased is automatically waived (1116)
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