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ALABAMA HEALTH INSURANCE SPOT FINAL EXAM Questions and Answers Latest Versions 2024 TOP
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ALABAMA HEALTH INSURANCE SPOT FINALEXAM Questions and Answers Latest Versions
2024 TOP RATED A+
Insurance is defined as the transfer of ______________ risk to the insurance company in consideration
for a premium. - correct answer ✔✔Pure
The chance of loss without any chance of gain is called ___________ - correct answer ✔✔Pure Risk
has the possibility for gain or loss and is not insurable. - correct answer ✔✔Speculative Risk
is defined as the chance of loss. - correct answer ✔✔Risk
A condition that could result in a loss is known as - correct answer ✔✔Exposure
is something that increases the chance of loss. - correct answer ✔✔Hazard
The presence of a _____________ increases the chance of a loss occurring. - correct answer ✔✔Physical
Hazard
defined as a cause of loss, such as fire. - correct answer ✔✔Peril
To be insurable, losses must be ___________. - correct answer ✔✔Calculable
allows insurers to predict claims more accurately. - correct answer ✔✔Law of Large Numbers
,The law of large numbers applies to ___________. - correct answer ✔✔Groups of people, not
individuals
The law of large numbers applies to groups of people, not to individuals. The more people in the group
______________. - correct answer ✔✔the more accurate the predictions are
Most insurers buy_____________ to protect themselves in the event of a_______________. - correct
answer ✔✔reinsurance , catastrophic loss
are not required to be uniform from one state to another. - correct answer ✔✔Insurance laws
dividends to its shareholders (stockholders), but they may not be guaranteed. - correct answer ✔✔Stock
insurer may pay
Stock insurers pay the dividends to its shareholders (stockholders), are they guaranteed. - correct
answer ✔✔No
A reciprocal insurance company is managed by an - correct answer ✔✔attorney-in-fact
An unincorporated association of individuals who insure each other is known as a - correct answer
✔✔Reciprocal Insurers
The government offers insurance primarily based upon - correct answer ✔✔social needs, such as flood
insurance and workers compensation
The government offers insurance primarily based upon social needs and not - correct answer
✔✔preventing fraud
company has their home office in another state - correct answer ✔✔Foreign
company has their home office in another country - correct answer ✔✔Alien
,Key Person disability income policy, premium payments - correct answer ✔✔Are made by the business
and are not tax-deductible
Claims other than death benefits are to be paid to the_____________, unless otherwise assigned by the
insured. - correct answer ✔✔insured or the insured's estate
An insurance contract is___________ in that only one of the parties to the contract is legally bound to
do anything. - correct answer ✔✔unilateral
insurer - correct answer ✔✔If forms are not furnished, written proof of the occurrence, nature of the
loss, and extent of loss must be submitted to the
If a distribution is made for a reason other than to pay for qualified medical expenses, the amount
withdrawn will be subject to an income tax and an additional - correct answer ✔✔20% tax
Medicare supplement policies (Medigap) do not cover the cost of - correct answer ✔✔extended nursing
home care
to fill the gap in coverage attributable to Medicare's deductibles, copayment requirements, and benefit
periods. These plans are issued by private insurance companies. - correct answer ✔✔Medigap plans are
designed
to either continue group coverage and defer Medicare until retirement, or switch to Medicare. - correct
answer ✔✔If a person is still employed at the age of 65, he or she may choose
non-controlled business - correct answer ✔✔The purpose of a license is to primarily write
When producer was reviewing a potential customers coverage written by another company the
producer made several remarks that were maliciously critical of that other insurer. The producer count
be found guilty of (oral or written remarks) - correct answer ✔✔Defamation
, What policy characteristics of a Major Medical Expense don't EXCEPT - correct answer ✔✔Low
maximum limits
Characteristics of a Major Medical Expense - correct answer ✔✔High Maximum Limits
Characteristics of a Major Medical Expense - correct answer ✔✔Blanket Coverage
Characteristics of a Major Medical Expense - correct answer ✔✔Coinsurance
Characteristics of a Major Medical Expense - correct answer ✔✔Deductible
In franchise insurance, premiums are usually - correct answer ✔✔Lower than individual policies, but
higher than group policies
Mandatory provision in individual health insurance policies stating that the insurer, at its own expense,
has the right and opportunity and is - correct answer ✔✔Physical examination and autopsy
state programs that benefits are payable when workers suffer work-related injury regardless of fault or
negligence - correct answer ✔✔Workers Compensation
When does Medicare cover nursing home care? - correct answer ✔✔Only if its part of treatment for
covered illness or injury
Who is the beneficiary in a credit health policy? - correct answer ✔✔The lending institution
Each insurer should pay a proportionate share of the claim - correct answer ✔✔An insured has medical
insurance coverage through 2 different provider both covering same expense . Neither company know
in advance that the insured has coverage through any other Insurers. How claim is handled?
Offers Full Benefits. Total or permanent disability due to loss of sight, hearing, speech or 2 + limbs;
benefits paid even while continuing to work. - correct answer ✔✔Presumptive Disability
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