GA Life/Health Ins Exam Questions

A claiment wants to bring a recovery action against an insurance company for a loss claimed under a policy. The action must be brought a) Within 2 years. b) Within 3 years. c) Immediately. d) Only within 60 days.

All the following are Nonforfeiture options EXCEPT a) Reduced paid-up b) Interest only c) Cash surrender d) Extended term

Brandon is rendered totally disabled for half a year. Which type of insurance would help him pay for expenses of the company during the time of his disability? a) Business Expense Policy b) Employer's Disability Provision c) Business Disability Policy d) Business Overhead Expense Policy

In disability income coverage the policy covers the insured if he is unable to perform any job for which he is qualified. Total disability is defined as a) Own occupation - more restrictive b) Own occupation - less restrictive c) Any occupation - more restrictive d) Any occupation - less restrictive

Which nonforfeiture option has the highest amount of insurance protection? a) Conversion b) Decreasing Term c) Reduced Paid-up d) Extended Term

An insurance contract must contain all of the following to be considered legally binding EXCEPT a) Consideration b) Competent parties. c) Beneficiary's consent d) Offer and Acceptance

Which is NOT true about uniform mandatory provisions for claims? a) Insured must give notice within 20 days. b) Insured is 2 years late in filing proof of loss, claim can be denied. c) Insured must notify insurer of claim on forms from insurer.

All of the following are true of Key Employee life insurance EXCEPT a) The death benefit is free from income taxes. b) The key employee has premiums deducted from his salary. c) The business is the owner and beneficiary of the policy. d) The key employee is the insured.

What is a material misrepresentation? a) Any misstatement made by an applicant for insurance b) Any misstatement by the producer c) Concealment d) A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company

Which is INCORRECT concerning an MSA? a) If there is a balance at year end, employee can let it earn interest or withdraw the amount (as taxable income). b) The employee can use funds from the MSA to cover health ins deductibles during the year. c) MSAs are only available to group of 250+ employees.

A Medicare Supplement policy must provide coverage for pre-existing conditions after the policy has been in force for a) 1 year b) 2 years c) 90 days d) 6 months

Which life policy is designed to provide the policyowner a hedge against the effects of inflation? a) Modified life b) Variable life c) Ordinary life d) Graded premium whole life

Who does the sub-agent represents? a) The company b) The insured c) The agent d) The counselor

Which of the following would NOT be an exclusion in a long-term care policy? a) Treatment payable by Medicare b) Alcoholism c) A pre-existing condition d) Alzheimer's disease

Ron joins PPO provided by his employer. If Ron goes to a physician who is not a PPO provider, what will happen? a) PPO won't pay.. b) Ron will pay a higher deductible. c) The PPO will pay the same benefits as if Ron had seen a PPO physician. d) The PPO will pay reduced benefits.

Which type of beneficiary is changeable at any point? a) Both Irrevocable and Revocable b) Tertiary c) Irrevocable d) Revocable

Julie pays for her life ins annually. She has collected a nontaxable dividend check. Julie decided she would use the dividends to pay next premium. What option allows her to do this? a) Reduction of Premium option b) Dividend-to-Premium option c) Accumulation at interest d) Cash option

The cash value under a MEC accumulates a) On an income-taxable basis. b) On a post-tax basis. c) On a tax-deferred basis. d) On a LIFO basis.

An insured needs extraordinary medical care and sells his policy to a viatical settlement company. This is an example of a) A collateral assignment b) An assigned premium c) An insurable interest d) An absolute assignment

Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within a) 30 days of a loss. b) 60 days of a loss. c) 90 days of a loss. d) 20 days of a loss.

A medical expense policy establishes amount of benefit paid based on charges which fall within standard range of fees for a specific procedure by a doctor in that geographic area is known as a) Gatekeepers. b) Usual, customary and reasonable. c) Relative-value schedule. d) Benefit schedule.

Describe the deductible in a comprehensive major medical policy? a) There is no deductible, the insurer pays coinsurance only. b) Comprehensive major medical have deductibles on all benefits. c) Comprehensive major medical do not have deductibles. d) Policies have a corridor deductible.

Carol is insured under her employer's group life insurance plan at her place of employment. All of the following statements about her coverage are true EXCEPT a) Carol would not need to prove insurability for a conversion policy. b) If Carol quits, she may, within 31 days, request that her coverage be converted to an individual policy. c) Should Carol convert her coverage, the premium will be based upon her attained age. d) Carol could choose what type of insurance her conversion policy provided (Term or Permanent).

After a person's employment is terminated, it is possible to obtain individual health insurance after losing the group health coverage provided by the employer. Which of the following is NOT true? a) The employee can convert from group to individual insurance within 31 days of termination. b) The premium of the individual health insurance policy can be higher than the original policy. c) By law, the new, individual policy must provide the same benefits as the group insurance policy. d) Continuation of group coverage need not include dental, vision, or prescription drug benefits.

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the a) Insuring clause. b) Misstatement of Age clause. c) Incontestability clause. d) Reinstatement clause.

Because an insurance policy is a contract between the insurer and the insured, it must conform to the state laws governing contracts which require all of the following elements EXCEPT a) Legal purpose. b) Offer and acceptance. c) Conditions. d) Competent parties.

Which of the following is NOT a feature of a noncancelable policy? a) The insurer may terminate the contract only at renewal for certain conditions. b) The premiums cannot be increased beyond the amount stated in the policy. c) The guarantee to renew coverage usually applies until the insured reaches certain age. d) The insured has the right to renew the policy for the life of the contract.

When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy? a) It is reduced to the amount of what the cash value would buy as a single premium. b) It is increased when extra premiums are paid. c) It decreases over the term of the policy. d) It remains the same as the original policy, regardless of any discrepancies in value.

Which of the following is true regarding a term health policy? a) It is conditionally renewable. b) It is guaranteed renewable. c) It is noncancelable. d) It is nonrenewable.

Which of the following statements regarding Business Overhead Expense policies is NOT true? a) Benefits are usually limited to six months. b) Premiums paid for BOE are tax-deductible. c) Any benefits received are taxable to the business. d) Leased equipment expenses are covered by the plan.

Which of the following LTC Coverages would NOT encourage an insured to receive care at home? a) Respite Care b) Home Health Care c) Adult Day Care d) Residential Care

An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? a) Consumer Privacy Act b) Conditional Receipt c) Disclosure Rule d) Fair Credit Reporting Act

Teresa pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy? a) 60 days b) 7 days c) 10 days d) 31 days

A claimant wants to bring a recovery action against an insurance company for a loss claimed under a policy. The action must be brought a) Only within 60 days. b) Within 2 years. c) Within 3 years. d) Immediately.

An insured receives an annual life insurance dividend check. What term best describes this arrangement? a) Reduction of Premium b) Annual Dividend Provision c) Accumulation at Interest d) Cash option

Lucy has a major medical policy with a $500 deductible and 80/20 coinsurance. Lucy is hospitalized and sustains a $2,500 bill. What is the maximum amount that Lucy will have to pay? a) $900 (deductible + 20% of the bill after the deductible [20% of $2,000]). b) $500 (amount of deductible). c) $1,000 (deductible + 20% of the entire bill). d) $2,500 (the entire bill).