Insurance for senior citizens and special needs individuals
What is Medicare Part A called?
Hospital Insurance (HI)
How many days does an insurer have to reinstate lapsed policy?
An insurer has 45 days to decide about reinstating a policy
Which type of insurer is owned by its policyholders?
A mutual company
What policy combines variable life with flexible premiums?
Variable Universal Life
If no beneficiary is listed, policy benefits will be paid to the insured’s ___________.
estate
True or False: Medicare Part A primarily pays for inpatient hospital expenses, while Part B offsets doctors’ expenses.
True
An _________ beneficiary may not be changed without beneficiary permission
irrevocable
The insurer seeking reinsurance is the __________ insurer, while the insurer assuming the risk is the ____________.
ceding, reinsurer
What is another name for a Second or Last to Die policy?
Survivorship Life
What provision requires an adjustment in benefits if the insured’s age has been improperly recorded?
The Misstatement of Age provision
To qualify for LTC benefits, an insured must be unable to perform ____ ADL benefits for no less than _____ days.
2, 90
Claim forms must be provided to an insured within ____ days following the form request
15
The insurer assumes the risk in an insurance policy since it receives a __________.
premium
Cash value increases with every ____________ payment after the ________ year.
Premium, third
Identify the acronym: APL
Automatic Premium Loan
Selling a ___________ Medicare Supplement plan is prohibited and the plan sold must be _________.
duplicate, suitable
If an insured has multiple policies covering the same medical loss, what is the maximum benefit payable by all policies?
Regardless of the number of policies, no more than 100% of the claim (loss) will be paid
Define the term reinsurance
when an insurer seeks insurance from another insurer
Which life policy has cash value gains that mirror or are tied to a stock market index, such as the S&P 500?
An Indexed Life Insurance policy
When must the optional APL provision be selected?
At the time of application
True or False: An LTC policy’s benefits for skilled nursing are greater than benefits provided for other levels of care.
False. All levels of LTC benefits must be provided equally
What is an owner’s right?
The right to change premium mode or beneficiary, assign benefits, receive dividends, or borrow from cash value
For how long may an agent be imprisoned for making statements that jeopardize the solvency of an insurer?
15 years (per Federal Regulation 18, USC 1033/1034)
Predetermined, level
The transfer of all policy rights to another party is referred to as ______________.
absolute assignment