Individual and group medical expense policies
True or False: Employer-paid group medical premiums are deductible to the employer
True
If an LTC policy pays on a reimbursement basis, benefits go directly to the _______________.
provider of service
What needs to be provided to an insurer in order to reinstate a lapsed policy?
Reinstatement requires all back premiums interest, and evidence of insurability
Mortality is the ___________ of death at a particular age for an individual.
probability
Who is a representative of an insurer?
An agent
What is adverse selection?
A bad risk or selection
Medicare Part B has a __________ premium, which is typically deducted from the ___________________ check.
monthly, Social Security
The __________ is the first beneficiary entitled to receive policy benefits
primary
Premiums paid for insurance coverage that is not provided are referred to as __________ premiums.
unearned
Define the term concealment.
Failing to disclose a terminal illness when applying for a life insurance policy
What dental plans have deductibles, co-payments, and pay benefits based upon a UCR value?
Nonscheduled plans
What is the name of the prescription drug program under Medicare?
Medicare Part D
An insured must notify her company that she has suffered a loss within _____ days after the loss occurs.
20
If a person needs to obtain coverage for a substandard or unusual risk, he would use a _________________ broker.
surplus lines
A policyholder who has filed a false claim is guilty of _______.
fraud
Medical expenses that exceed ____% of adjusted gross income may be tax-deductible
7.5
Which LTC benefit requires the highes level of care and treatment?
Skilled nursing
Only the __________ may change the name of the beneficiary
policyowner
True or False: Driving under the influence is an example of a moral hazard.
False. DUI is an example of a morale hazard
Define the term invitation
When an applicant submits an application without paying an initial premium
What are three primary components of a basic medical plan?
Daily room and board, surgical benefits, and miscellaneous benefits
Which plan would be considered primary — Medicare or a group plan?
Group plans are almost always primary, while Medicare is secondary
What renewability provision does not allow for premium increases, policy cancellation, or modifications?
The noncancelable provision
What is it called when someone owns a life insurance policy on his spouse?
Third-party ownership