Life & Health Insurance Exam Life and Health Insurance Assessment 2

Question 1

Under the Health Insurance Portability and Accountability Act (HIPAA), a pre-existing condition exclusion period for group health insurance is limited to a maximum of:

Accepted Answer

12 months

Answer

HIPAA limits pre-existing condition exclusion periods to 12 months (18 months for late enrollees) in group health plans.

Question 2

A whole life insurance policy's cash value grows on a:

Accepted Answer

Fixed tax-deferred basis

Answer

Whole life cash value accumulates on a tax-deferred basis at a guaranteed fixed rate set by the insurer.

Question 3

Which provision in a life insurance policy allows the policyowner to recover the full premium paid if the insured dies within a specified period?

Accepted Answer

Return of premium rider

Answer

A return of premium rider pays back all premiums paid if the insured dies within the rider's specified term period.

Question 4

A Medicare Supplement (Medigap) policy is designed to:

Accepted Answer

Cover costs not paid by Original Medicare

Answer

Medigap policies fill in the gaps of Original Medicare, covering cost-sharing items like deductibles, copayments, and coinsurance.

Question 5

Under a disability income policy, the elimination period functions similarly to:

Accepted Answer

A deductible in time

Answer

The elimination (waiting) period is the time after disability onset before benefits begin, analogous to a time-based deductible.

Life & Health Insurance Exam Practice Test

Life & Health Insurance Exam Practice Test

Life & Health Insurance Exam Life and Health Insurance Assessment 2