EXAMFX Life and Health Insurance (Combined) 2

Question 1

A policy owner who is also the insured names their spouse as beneficiary. The insured dies in an accident. Before the insurer pays the claim, the spouse also dies. To whom does the death benefit go?

Accepted Answer

The contingent beneficiary

Answer

If the primary beneficiary predeceases (or dies simultaneously with) the insured, the death benefit passes to the contingent beneficiary named in the policy.

Question 2

Under HIPAA, how long must an employer-sponsored group health plan allow a terminated employee to maintain creditable coverage through COBRA?

Accepted Answer

18 months

Answer

COBRA generally provides up to 18 months of continuation coverage for employees who lose group health benefits due to termination or reduction in hours.

Question 3

Which life insurance dividend option uses the dividend to reduce the policy owner's next premium payment?

Accepted Answer

Reduction of premium

Answer

The reduction of premium dividend option applies the dividend directly toward the next scheduled premium, lowering the out-of-pocket cost for the policy owner.

Question 4

A health insurance policy's 'coordination of benefits' (COB) provision is designed to:

Accepted Answer

Prevent the insured from receiving more than 100% of covered expenses when covered by two plans

Answer

COB prevents over-insurance by ensuring total reimbursement from all plans combined does not exceed 100% of actual covered expenses.

Question 5

A universal life insurance policy's 'corridor' requirement ensures that:

Accepted Answer

The death benefit always exceeds the cash value by a required minimum amount

Answer

The corridor (or 'required corridor') keeps the death benefit above the cash value by a percentage mandated by federal tax law to qualify as life insurance.

(EXAMFX) Exam FX Insurance Practice Test

(EXAMFX) Exam FX Insurance Practice Test

EXAMFX Life and Health Insurance (Combined) 2