Life and Health Insurance Bundle

UNIT 1: The term used to describe the individual who is covered by the insurance is A. insurer B. insured C. policyowner D. risk ans B Which of the following is a risk? A. A car may need to have new brakes installed after several years of regular driving. B. An individual may need med...

Only one party makes a legally enforceable promise ans What is meant by referring to an insurance policy as a unilateral contract? At all times ans When must insurance records of insurance agents and brokers be made available to the Insurance Commissioner? a loss exposure ans ...

What is insurance? ans Insurance is the legal contract where two parties agree that if something will happen, a value will be exchanged. What's the difference between pure risk and speculative risk? ans Pure risk is when you'll lose it all or there will be no change. Speculative ris...

Employer-provided group term life insurance is exempt from income taxation up to ans $50,000 Medicare Part B has an initial enrollment period. How many months after an individual's 65th birthday month does this enrollment period end? ans 3 months Which statement is true regarding ...

What type of reinsurance contract involves two companies automatically sharing their risk exposure? ans Treaty The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called ans reserves When third...

When are group disability benefits considered to be tax-free to the insured? ans When the recipient pays the premiums An insurable interest in each other's lives may exist in absence of an economic interest when the individuals are ans Marriage partners What is the elimination per...

Which of the following would be considered a speculative risk? ans The possibility the painting you bought might be a long-lost masterpiece A speculative risk is one in which there is a chance for either loss or gain. Example: Gambling, Casino's, Lottery, etc. All of the other choices desc...

All of the following are included as part of a contract in the entire contract provision EXCEPT the riders application changes made by the producer policy ans changes made by the producer Health insurance involves two perils, accident and ____. ans sickness All of the followi...

Under the misstatement of age or gender provision, what happens if it is determined at death that the insured's age or gender was misstated on a life insurance policy application? ans Benefits are adjusted to an amount that the premium would have purchased at the correct age or gender. Whi...

Insured ans The person covered by the insurance policy. Rider ans A written modification attached to a policy that increases or decreases coverage and/or premiums. What is a unilateral contract? ans A contract in which only one of the parties is legally bound to fulfill its o...

All of the following are producer responsibilities to the applicant, except: ans Offering and selling only the lowest premium policy ___________ manufacture and sell insurance coverage in the form of policies or contracts of insurance. ans Insurers When both parties must perform ce...

In a Life insurance contract, an insurance company's promise to pay stated benefits is called the: a) insuring clause b) consideration clause c) entire contract d) owner's rights ans insuring clause under which circumstance MUST a health insurer have an expedited grievance review pro...

Individual disability income policies typical include an elimination period (t/f) ans True A producer's license may be denied, suspended, or revoked if the licensee: ans is found guilty of misrepresentation in obtaining the license Which of the following actions is NOT possible wi...

Insurance transaction includes: ans By mail or other means: - Solicitation - Negotiation - Sale - Advising an individual about coverage Elements of a legal contract ans -Agreement (offer and acceptance) - Consideration - Competent parties - Legal purpose - Negotiation does...