Free Life and Health Federal and State Regulations Questions and Answers

Question 1

A foreign insurance company is one that is incorporated

Accepted Answer

under the laws of another state

Answer

under Texas law

Answer

is a territory of the United States

Answer

outside the United States

Question 2

The Consideration clause in a life insurance policy indicates that a policyowner's consideration consists of a completed application and

Accepted Answer

the initial premium

Answer

agreeing to a physical examination

Answer

delivery of policy

Answer

disclosure of any medical conditions

Question 3

P is an employee who quits her job and wants to convert her group health coverage to an individual policy. After the expiration of COBRA laws, which of the following statements is TRUE?

Accepted Answer

She does NOT need to provide evidence of insurability

Answer

She DOES need to provide evidence of insurability

Answer

She will have up to 6 months to convert to an individual policy

Answer

She will be paying exactly the same premium for the individual plan as she did the group plan

Question 4

An enrollee of a Health Maintenance Organization (HMO) may be cancelled or nonrenewed for which of the following reasons?

Accepted Answer

Failure to pay for coverage

Answer

Marriage to a person with a pre-existing condition

Answer

Excessive use of health care benefits

Answer

Refusing HMO advice to quit smoking

Question 5

What type of life policy covers two people and pays upon the death of the last insured?

Accepted Answer

Survivorship

Answer

Shared

Answer

Adjustable

Answer

Joint