INSURANCE AND RISK MANAGEMENT B
78) When more than one person claims proceeds from a life insurance policy, the insurance company uses this procedure to take the matter to court.
A) Irrevocable Beneficiary
C) Dependent Test
D) Conflict of Interest
70) Which clause indicates that the insurance company may continue to sell insurance for stated risks?
A) Future transactions approved
B) Authorized sale
C) Approved for reinsurance
D) Federally approved
77) Hospital confinement plans
A) pay for hospital stays after the patient pays the first 5 days.
B) includes rehabilitation in nursing homes.
C) is part of Medicaid.
D) pay a fixed amount each day you are in the hospital.
98) The insurance company profile includes all of the following except
A) license status.
B) complaint history.
C) financial data.
D) annual income.
56) The amount paid by an insurance policy when a person passes away is the
A) beneficiary funds.
B) liability benefit.
C) death benefit.
D) inheritance of family members.
79) Major medical policies cover
A) only hospital expenses.
B) doctor and hospital expenses.
C) only doctor expenses.
D) only prescription drug expenses.
80) Processing a claim to fulfill the insurance company's legal obligation to the client is referred to as the
52) A period of up to two years during which a life insurance company may deny payment of a claim because of suicide or a material misrepresentation on an application is called the
A) contestable period.
B) conversion period.
C) allotted period.
D) coverage period.
68) The group of doctors and pharmacists covered by your health insurance is referred to as a
D) medical team.
90) Increased global trade makes it more important to purchase
A) health insurance.
B) import/export insurance.
C) property damage insurance.
D) life insurance.
82) What insurance will cover employee injuries suffered at the workplace?
B) Disability Insurance
C) Workers' Compensation
D) Uninsured Liability
57) A professional football player may purchase insurance to cover loss of employment through injuries from
A) Lloyds of London.
B) any regular insurance company.
C) an investment firm.
D) a bank.
53) The amount of money the life insurance policy owner will receive as a refund if the policy owner cancels the coverage is the
A) book value.
B) net value.
C) cash value.
D) replacement value.
61) An insured's request for insurance to pay medical bills is a
85) Which type of insurance agent is obligated to one insurance company?
B) captive agent
D) multiple company
51) If the primary beneficiary is not alive, proceeds from the life insurance policy will be distributed to
A) the IRS.
B) the federal government.
C) the contingent beneficiary.
D) the state government.
99) What career would allow a person to investigate claims to determine credibility and liability?
B) accident reconstructionist
74) You can trade a term policy for a more expensive whole life policy through the
A) consumer's rights.
B) conditional exchange.
C) conversion privilege.
D) copayment option.
62) With the indemnity health insurance plan
A) the insured must pay the physician first and then be reimbursed by the insurance company.
B) the individual is not responsible to pay any of their medical expenses.
C) the individual is not covered by insurance for medical expenses more than a set amount.
D) the insurance company pays for your medical expenses immediately.
What is your name?
91) Non-recourse mortgage means
A) the home loan can never be greater than the value of the home.
B) the home loan cannot be greater than 2 times the value of the home.
C) the home loan cannot go into foreclosure.
D) the home loan cannot be greater than 80% of the home value.
55) The process an insurance company uses to decide whether to accept or reject the application for a policy is called
75) The free examination period for life insurance allows the consumer to change their mind in
A) 60 days.
B) 30 days.
C) 10 days.
D) 5 days.
54) Money placed in the hands of a third party until specified conditions are met is
A) mutual fund.
60) What plan allows you to contribute pre-tax money to be used for qualified medical expense?
A) Health Savings Account
87) Insurance companies underwrite life insurance by
A) following government guidelines.
B) looking at the latest U.S. Census.
C) raising the premium each year the insured becomes one year older.
D) looking at the latest actuary tables to determine how long people are living.
69) What is the part of the contract that says when a loan may be declared due and payable?
A) Annuitization option
B) Call option
C) Acceleration clause
D) Maturity date
97) Insurance companies owned by policy holders are
A) mutual insurance companies.
B) national insurance agencies.
C) publicly traded insurance companies.
D) credit unions.
93) Individuals are encouraged to save money for health expense by contributing before tax funds to
A) health savings accounts.
B) federal insurance programs.
84) The insurance policy is purchased from
A) an agent.
B) an underwriter.
C) the claims adjuster.
D) an adjuster.
83) If you have more than one health insurance policy, you cannot collect more than 100% of damages due to the
A) coordination of benefits.
B) beneficiary clause.
C) insurance fraud statute.
D) federal insurance regulation law.
76) To purchase a life insurance policy for another person, you must demonstrate
A) evidence of co-ownership of property with the person you are insuring.
B) evidence of insurability.
C) evidence of financial need.
D) evidence of dependency.
58) The spouse or family member covered by the primary insured's policy is the
65) What do individuals and businesses prepare to predict revenue and expenses for a given time frame?
A) financial plan
B) income statement
D) balance sheet
67) Which doctor or dentist is not part of your group health insurance plan?
B) group provider
C) network provider
D) out-of-network provider
73) Qualified high-deductible health plan requires a minimum deductible of
66) Any individual, either spouse or child, who is covered by the primary insured member's plan is a
81) Insurance companies are regulated by the
A) Federal Budget Office.
B) Internal Revenue Service.
C) National Association of Insurance Commissioners.
D) Department of Commerce.
89) People who have poor driving records may be able to purchase
A) nonstandard insurance.
B) regular automobile insurance.
C) standard insurance.
D) adjusted automobile insurance.
96) The area covered by travel insurance is called
C) coverage area.
63) What is the process by which you convert part or all of the money in a qualified retirement plan or nonqualified annuity contract into a stream of regular income payments for your lifetime?
C) Incremental payments
D) Standardized payment plan
72) What type of insurance policy will pay off the loan of the insured's home in case of the insured's death or disability?
59) Health insurance provided by the government to cover low-income individuals is
B) social security.
D) group health insurance.
94) Insurance agents who practice fraudulent insurance activities will experience all of the following except
A) may have their license taken away.
B) may go to jail.
C) a warning.
D) may be fined.
92) Comparing insurance data from previous years to predict future financial trends is referred to as
95) The amount you have to pay before insurance pays for hurricane damage is the
A) rider clause.
B) exempted amount
D) wind deductible.
86) Future Purchase Option guarantees
A) increased insurance rates as people grow older.
B) fewer options to purchase insurance.
C) the insurance company future business.
D) insured persons the opportunity to purchase additional life insurance.
88) Which type of life insurance covers the insured for a specific amount of time and is more reasonably priced than whole life insurance?
64) The amount that the insured pays after the deductible has been paid is
71) Items not covered by an insurance policy are
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