CH12 VA State Health and Life insurance exam, Questions with accurate answers. 2023/2024

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CH12 VA State Health and Life insurance exam, Questions with accurate answers. 2023/2024 Who owns an employer group health policy? A) The employer only B) The agent C) The employees D) Both... the employer and the employees - ✔✔A) The employer only It is common for an employer to obtain group health insurance for the benefit of their employees. The employer is the owner of the policy and determines what classes of employees will covered. Which of the following type of insurance protects a lending institution from losing money as the result of a borrower's death or disability? A) Lenders life and health B) Credit life and health C) Loaners life and health D) Bankers life and health - ✔✔B) Credit life and health Credit group, also called "credit life and health insurance" is a specialized use of group life and health insurance. It protects the lending institution from losing money as the result of a borrowers death or disability. Generally the borrower is the premium payor but the lending institution is the beneficiary of the policy If an insured's eligibility for group health insurance terminates and the person is not eligible to receive replacement group benefits or Medicare, coverage can be extended for 12 months if the person was covered under the plan for at least A) 2 months B) 3 months C) 6 months D) 12 months - ✔✔B) 3 months The present group coverage may continue for 12 months immediately following the date of the insured's eligibility termination if the individual has been insured under the group plan for at least 3 months. Which of the following is true regarding conversion from a group health plan to an individual policy? A) Evidence of insurability is required B) The individual must pay the premium C) Pre-existing conditions may apply in a new policy D) Coverage will cease after 90 days. - ✔✔B) The individual must pay the premium According to group insurance conversion provision, individual coverage may be obtained without evidence of insurability, and without the application of waiting periods or pre-existing conditions, as long as the individual insured pays the premium within a specified time. Coverage may be extended up to 12 months. In order to convert from group coverage to an individual plan, an eligible individual must pay the premium within how many days after the written notice of termination? A) 15 days B) 31 days C) 60 days D) 90 days - ✔✔B) 31 days The insurer will issue an individual accident and sickness policy, without causing overinsurance or duplication of benefits, if the application for the policy is made and the first premium is paid within 31 days of the written notice of termination and in no event later than 60 days after the date of the person's eligibility for group coverage. In the state of Virginia, an association may be the policyholder of a group policy that covers its members, providing that it has been in active existence for at least how many years? A) 2 B) 5 C) 10 D) 12 - ✔✔B) 5 An association may be the policyholder of a group policy that covers its members, providing that is has a minimum of 100 members, has been organized and maintained in good faith for purposes other than obtaining insurance, and has been in active existence for at least 5 years. Kiera is recommending that her client replace her current health policy with another policy that Kiera's company markets. What duty does Kiera have regarding the replacement of an existing policy? A) She must notify the existing insurer of the planned replacement and await the insurer's response prior to taking an application B) She must read the replacement form aloud to her client and then have the client sign a form that such reading was conducted. C) Kiera must give the client a copy of the approve replacement form and have a client sign a copy for the insurer's files. D) Kiera must submit a copy of the existing policy for review as part of the application process. - ✔✔C) Kiera must give the client a copy of the approve replacement form and have a client sign a copy for the insurer's files. An agent must give the client a copy of the approved replacement form and have the client sign a copy for the insurer's files. The replacement accident and sickness policy form, unlike the life policy replacement form, only requires the client's signature. An association may be the policyholder of a group policy that covers its members, providing that it has a minimum of how many members? A) 10 B) 15 C) 50 D) 100 - ✔✔D) 100 During replacement of an individual health insurance policy, who must sign a replacement form? A) The replacing insurer B) The insured and the agent C) The insurer D) The agent and the existing insurer - ✔✔B) The insured and the agent The replacement form must be signed by both the client and the agent, with a copy staying with the client and the other filed with the insurer. Which of the following policyholder of a labor union's group health policy? A) Labor union B) Members of the union C) The official of the labor union D) All of the above - ✔✔A) Labor union Labor unions are employee organization. When a policy is issued with the labor union as the policyholder, the policy must be for the benefit of persons other than the union or any of its official, representatives, or agents and must be available to cover all members of the union. Who is the beneficiary of a credit life and health policy? A) The borrower B) The lending institution C) The federal government D) The state government - ✔✔B) The lending institution Credit group, also called "credit life and health insurance" is a specialized use of group life and health insurance. It protects the lending institution from losing money as the result of a borrowers death or disability. Generally the borrower is the premium payor but the lending institution is the beneficiary of the policy Which of the following documents provides a disclosure of a Medicare supplement policy? A) Policy summary B) Outline of coverage C) Buyer's guide D) Statement of renewal provisions - ✔✔B) Outline of coverage In order to provide a complete disclosure, insurers are required to provide an outline of coverage upon policy application. The outline must include a description of the benefits and coverage, a statement of renewal provisions, and a statement identifying the outline of coverage as a summary of the policy issued. Which of the following is true about the renewability of Medicare supplement policies? A) They must be guaranteed renewable B) The renewability is left to the discretion of the insurer C) Medicare supplement policies are nonrenewable D) Certain Medicare supplement policies are guaranteed nonrenewable, whiles others are not. - ✔✔A) They must be guaranteed renewable A Medicare Supplement policy may not exclude or limit benefits for losses incurred more than how many months from the effective date of coverage because it involved a pre-existing condition? A) 0 B) 6 C) 12 D) 24 - ✔✔B) 6 Which of the following is NOT required to be stated in the outline of coverage provided with a long-term care policy? A) The policy number B) The right to return the policy for a refund C) Basic information about the insurance [Show More]

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