Which of the following laws requires an insurer to notify an applicant in writing
that an investigative consumer report may be made on the applicant?
-Uniform Provisions Law.
-Freedom of Information Act.
-Medical Information Bureau Disclosure Act
-Fair Credit Reporting Act (Insurance Information and Privacy Protection Act)
CORRECT ANSWERS Fair Credit Reporting Act (Insurance Information and
Privacy Protection Act)
Group health insurance specifies that what percentage of eligible individuals
MUST be offered coverage under a noncontributory plan?
-25
-50
-75
-100 CORRECT ANSWERS 100
Under an Accidental Death and Dismemberment (AD&D) policy, insurable
interest must exist at which of the following times?
-When a change of beneficiary is requested
-At the inception of the policy
-When a beneficiary other than a relative is named
-At the time a claim is submitted CORRECT ANSWERS At the inception of the
policy
When periodic claim payments are required under a long-term disability income
policy, an insurer MUST make payments to an insured at least once every:
-month
-three months
-six months
-year CORRECT ANSWERS month
M and N own a small interior design studio that employs six people. The owners
are concerned about the financial continuation of the business if either of them
should become permanently disabled. In this situation, a producer would MOST
likely recommend which of the following types of contracts?
-Basic Hospital
-Disability Buy-Out
-Comprehensive Major Medical
-Short-Term Disability Income CORRECT ANSWERS Disability Buy-Out
Which of the following health policies requires a beneficiary designation?
-Travel Accident
-Medicare Supplement
-Blanket
-Long Term Care CORRECT ANSWERS Travel Accident
Suicide, pre-existing conditions and self-inflicted injuries are dealt with in which
of the following policy features?
-Extensions of coverage
-Benefits clause
-Riders
-Exclusions CORRECT ANSWERS Exclusions
An insured whose Disability Income policy contains a Change of Occupation
clause takes a new job in a more hazardous occupation and fails to notify the
insurer of the change. One year later, the insured becomes disabled. The insurer
will most likely take which of the following actions?
-Cancel the policy and refund one year’s premiums
-Settle the claim according to what the premiums would have purchased under the
more hazardous occupation
-Pay the claim in full and then cancel the policy
-Pay the claim after deducting an extra one-year premium payment CORRECT
ANSWERS Settle the claim according to what the premiums would have
purchased under the more hazardous occupation<\/p>\n\n\n\n