Life and Health Insurance Assessment Flashcards
7 cards from real Life & Health Insurance Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Life and Health Insurance Assessment flashcards as text
The 'free look' provision in a life insurance policy gives the policyowner the right to:
Answer: Review and return the policy for a full premium refund within a specified period
The free look period (typically 10–30 days) allows a new policyowner to review the policy and return it for a full refund if unsatisfied.
A 'guaranteed renewable' health insurance policy means the insurer:
Answer: Must renew the policy but may increase premiums for an entire class of insureds
Guaranteed renewable means the insurer must continue coverage at the insured's option, but can raise premiums on a class-wide basis.
Which of the following annuity payout options provides the highest monthly income to the annuitant?
Answer: Life only (straight life)
A straight life annuity pays the highest monthly benefit because there is no guarantee period or survivor benefit, so payments stop at death.
Under an HMO health plan, a primary care physician (PCP) typically serves as a:
Answer: Gatekeeper who authorizes specialist referrals
In an HMO, the PCP acts as a gatekeeper, coordinating care and providing referrals required before the insured can see specialists.
A life insurance policy loan that is not repaid by the insured's death will:
Answer: Be deducted from the death benefit paid to the beneficiary
Any outstanding policy loan balance plus accumulated interest is subtracted from the death benefit before the beneficiary receives payment.
In group life insurance, the 'master policy' is held by the:
Answer: Employer or group sponsor
In group life insurance, the master policy is issued to the employer (or association), while employees receive individual certificates of coverage.
A 'cost of living adjustment' (COLA) rider on a disability income policy is designed to:
Answer: Increase benefit payments to keep pace with inflation during a disability
A COLA rider adjusts disability income benefits upward (often tied to CPI) to help the insured maintain purchasing power during a long-term disability.