PEARSON VUE - OTHER INSURANCE CONCEPTS REVIEW

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PEARSON VUE - OTHER INSURANCE CONCEPTS REVIEW

EXAM Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -62 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Qualified Long-Term Care policies may take into consideration an applicant's pre-existing conditions for a maximum of not more than __ month(s) prior to the effective date of coverage.

Answer:

6

Question 2: What is the elimination period of an individual disability policy?

Answer:

Time period a disabled person must wait before benefits are paid Question 3: Disability policies do NOT normally pay for disabilities arising from which of the following?

Answer:

War Question 4: Which of the following will a Long Term Care plan typically provide benefits for?

Answer:

home health care

Question 5: How long is the typical free look period for Long Term care insurance policies?

Answer:

30 days Question 6: A "reimbursement policy" pays what amount of covered Long-Term Care expenses?

Answer:

Actual covered expenses up to the daily maximum

Question 7: When a policy pays dividends to its policyholders, it is said to be

Answer:

participating Question 8: The provision in a health insurance policy that suspends premiums being paid to

the insurer while the insured is disabled is called the:

Answer:

Waiver of Premium Question 9: An insurance applicant MUST be informed of an investigation regarding his/her

reputation and character according to the:

Answer:

Fair Credit Reporting Act Question 10: Z owns a Disability Income policy with a 30-day Elimination period. Z contracts pneumonia that leaves him unable to work from January 1 until January 15. Z then becomes disabled from an accident on February 1 and the disability lasts until July 1 the same year. Z will

become eligible to receive benefits starting on:

Answer:

1-Mar Question 11: D is an architect receiving Disability Income benefits who is not able to return to work full time, but can work on a part-time basis. Which of these features would allow D to continue receiving benefits?

Answer:

Residual Benefit clause

Question 12: At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act?

Answer:

Upon completion of the application Question 13: B is a teacher who was injured in a car accident and cannot work. She is now receiving monthly benefits as a result of this accident. Which type of policy does B have?

Answer:

Disability Income Question 14: The individual most likely to buy a Medicare Supplement policy would be a(n):

Answer:

68-year old male covered by Medicare Question 15: Long Term Care policies will usually pay for eligible benefits using which of the following methods?

Answer:

Expense incurred Question 16: Medicare Part C is:

Answer:

available to those who are enrolled in Medicare Part A and Part B Question 17: An individual Disability Income insurance applicant may be required to submit all

of the following information, EXCEPT:

Answer:

spouse's occupation Question 18: If a retiree on Medicare required five hospital stays in one year, which policy would provide the best insurance for excess hospital expenses?

Answer:

Medicare Supplement

Question 19: A CEO's personal assistant suffered injuries at home and as a result, was unable to work for four months. Which type of policy will pay a monthly benefit to the personal assistant?

Answer:

Disability Income Question 20: T was insured under an individual Disability Income policy and was severely burned in a fire. As a result, T became totally disabled. The insurer began making monthly benefit payments, but later discovered that the fire was set by T in what was described as arson.What actions will the insurer take?

Answer:

The insurer will rescind the policy, deny the claim, and recover all payments made Question 21: Which of the following requires insurers to disclose when an applicant's consumer

or credit history is being investigated:

Answer:

1970 - Fair Credit Reporting Act Question 22: Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this?

Answer:

Guaranteed insurability rider Question 23: T has Disability Income policy that pays a monthly benefit of $5000. If T becomes partially disabled, what can he likely expect?

Answer:

Less than $5,000 per month benefit regardless of the cause Question 24: X owns a Disability Income policy. X recently suffered a disability which was due to the same cause as a previous disability. These disabilities both occurred over a four-month span. Which of the following provisions allows X's second disability to be covered without a new elimination period?

Answer:

Recurrent Disability