At what point must a life insurance applicant be informed of their right that fall under the
Fair Credit Reporting Act? - CORRECT ANSWER-upon completion
... [Show More] of the application
Who elects the governing body of a mutual insurance company? - CORRECT
ANSWER-policyholders
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the - CORRECT ANSWER-Fair Credit Reporting
Act
What type of reinsurance contract involves two companies automatically sharing their
risk exposure? - CORRECT ANSWER-Treaty
The stated amount or percent of liquid assets that an insurer must have on hand that
will satisfy future obligations to its policyholders is called - CORRECT ANSWERReserves
Which statement is TRUE regarding a group accident and health policy issued to an
employer? *Neither the employer or employee are policy owners *The employer is
issued a certificate of coverage and each employee receives a policy * The employer
receives the policy and each employee is issued a certificate
*Both the employer and employee are policy owners. - CORRECT ANSWER-The
employer receives the policy and each employee is issued a certificate.
G is an accountant who has ten employees and is concerned about how the business
would survive financially if G became disabled. The type of policy which BEST
addresses this concern is *Business Overhead Expense * Disability Income *Key
Employee Life * Contributory - CORRECT ANSWER-Business Overhead Expense-- this
policy's purpose is to cover certain overhead expenses that continue when the business
own is disabled.
How does group insurance differ from individual insurance? - CORRECT ANSWERGroup insurance differs from individual insurance in that it provided coverage at a lower
cost.
The difference between group insurance and blanket health policies is - CORRECT
ANSWER-Blanket health policies do not issue certificates.
Which of the following statements BEST describes how a policy that uses the
"accidental bodily injury" definition of an accident differs from one that used the
"accidental means" definition? *double indemnity
*benefits are taxable * more restrictive *less restrictive - CORRECT ANSWER-Less
restrictive. A policy that uses "accidental bodily injury" definition of an accident is less
restrictive than the one that uses the "accidental means" definition.
Which of the following characteristics is associated with a large group disability income
policy? *no waiting periods *no medical underwriting *no elimination periods * no limit of
benefits - CORRECT ANSWER-No medical underwriting. A large group disability
income policy can be distinguished by no medical underwriting.
Which contract permits the remaining partners to buy-out the interest of a disabled
business partner? - CORRECT ANSWER-A disability buy-sell plan allows the remaining
partners to buy out the interest of the disabled business partner.
An insurance company would MOST likely pay benefits under Accidental Death and
Dismemberment policy who which of the following losses? *loss of life due to a heart
attack *loss of eyesight due to an accidental injury *loss of the spleen due to an
accidental injury
* partial paralysis due to a stroke - CORRECT ANSWER-Loss of eyesight due to an
accidental injury.
XYZ Company pays the entire premium for its group health plan. The MINIMUM
percentage of eligible employees that must be covered is *25% *50% *75%
or *100% - CORRECT ANSWER-Most noncontributory health plans require 100%
participation by eligible employees.
P is a new employee and will be obtaining non-contributory group Major Medical
insurance from her employer. Which of the following actions must she take during th [Show Less]