Insurance for senior citizens and special needs individuals
Qualification for Medicaid benefits is based on _______ or ______.
income, need
What is another name for claim forms?
Proof of Loss forms
True or False: Insurable interest must exist at the time of death
False. Insurable interest must exist at the time of policy issue, not death
When is the Trial Application used?
When an application is submitted to the insurer without an initial premium
A jumping juvenile policy has a death benefit that increases to ___ times its stated value with no premium increases
5
What are the four major benefit categories of an LTC policy?
Skilled nursing care, intermediate care, custodial care, and home health care
What are the different premium payment modes?
Annual, semiannual, quarterly, or monthly
True or False: Physical hazards include faulty wiring and slippery floors
true
Who pays the cost of an applicant’s medical exams and lab fees?
The insurer underwriting the application
What are loan options and cash surrender?
Under Medicare, the “spell of illness” benefit period ends ____ days following hospital discharge.
60
What renewability provision allows for class-based premium increases, but does not allow insurers to cancel contracts?
Guaranteed renewability
Name four independent insurance rating services
A.M. Best Review, Moody’s Investment, Standard and Poor’s, and Weiss Research
What tables predict the probability of death?
Mortality tables
For how long will the premium on a 20-year level term policy remain level?
For 20 years
Medicare Supplement Plan A is called the _____ Plan.
Core
When does the 10-day free-look period begin?
On the day the policy is delivered to the policyowner
An exclusive agency employs ___________ agents who agree to market products of _____ insurer.
independent, one
What is the principal tool used in determining an individual’s eligibility for insurance coverage?
The application
What is predetermined in a whole life contract?
The death benefit, cash values, premiums, nonforfeiture and surrender values
What is the donut hole?
The gap in Medicare Part D benefits
The ___________ beneficiary is second in line to receive policy benefits, the _________ is third.
contingent, tertiary
The uncertainty or chance of financial loss is known as _________.
risk
True or False: The producer issues the insurance policy.
False. Producers solicit appointments, complete applications, collect premiums, and submit applications for approval
True or False: A 20-year family income policy will pay for 7 years if insured dies 13 years after policy issue.
True. The policy will pay the 7 years of remaining benefit as it uses decreasing term insurance.