Note 12 - Health Law

Which of the following statements about the classification of applicants is INCORRECT? Substandard applicants are never declined by underwriters Which of the following statements BEST describes dental care indemnity coverage? - Services are reimbursed after insurer receives the invoice Which of the following statements BEST describes how a policy that uses the "accidental bodily injury" definition of an accident differs from one that uses the "accidental means" definition? less restrictive Which of the following statements describes what an Accident and Health policyowner may NOT do? - Adjust the premium payments Which of the following statements is CORRECT about a Health Maintenance Organization (HMO)? - Its providers must be under contract or employment Which of the following statements is CORRECT about a licensed business entity acting as an insurance agent? - They must notify the Bureau of Insurance of any fictitious name used Which of the following statements is CORRECT about non-partnership Long-Term Care insurance? - Inflation protection must be offered to applicants for a Long-Term Care policy Which of the following statements is CORRECT about the conversion provision in a group health insurance policy? - It is mandated by state requirements Which of the following statements is true about most Blue Cross/Blue Shield organizations? They are nonprofit organizations Which of the following types of care is typically not covered in a Long-Term Care policy? Acupuncture Which of these actions should a producer take when submitting an insurance application to an insurer? - Inform insurer of relevant information not included on the application Which of these arrangements allows one to bypass insurable interest laws? - investor-Originated Life Insurance Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale of a business? - Business owner becoming disabled Which of these do NOT constitute policy delivery? - Policy issued with a rating Which of these is considered a statement that is assured to be true in every respect? - warranty Which of these is considered a statement that is assured to be true in every respect? - warranty Which of these is NOT a type of agent authority? - principle Which of these options can an individual use their medical flexible spending account to pay for? - Prescription drugs Which of these terms accurately defines an underwriter's assessment of information on a health insurance application? - Risk classification Which of these types of coverage is best described as a short term medical policy? - interim coverage Which require an offer, acceptance, and consideration? - contract Which statement is TRUE regarding a group accident & health policy issued to an employer? The employer receives the policy and each employee is issued a certificate Which statement is true regarding a minor beneficiary? - Normally, a guardian is required to be appointed in the Beneficiary clause of the contract Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy? reimbursement Which type of provider is known for stressing preventative medical care? - Health Maintenance Organizations (HMO's) Which type of renewability best describes a Disability Income policy that covers an individual until the age of 65, but the insurer has the right to change the premium rate for the overall risk class? - Guaranteed Renewable With Accidental Death and Dismemberment policies, what is the purpose of the Grace Period? Gives the policyowner additional time to pay overdue premiums With Disability Income insurance, an insurance company may limit the monthly benefit amount a prospective policy holder may obtain because of the insured's - gross income at the time of purchase A business entity acting as an insurance agent MUST designate at least 1 licensed producer to be responsible for the entity's compliance with the insurance laws and rules A client would like to purchase an annuity from an agent. The agent does NOT need to make reasonable efforts to obtain information from the client on which of the following? A) Client's financial status B) Client's tax status C) Client's marital status D) Client's investment objectives C) Client's marital status A group life insurance policy can be converted to an individual whole life policy under which circumstance Employment termination A health insurer in Virginia may NOT discontinue coverage in which of the following situations A) Failure to pay premium B)Insured engaged in fraud C) Insured no longer residers in the service area D) Insured's health status has been declined D) Insured's health status has been declined A Health Maintenance Organization (HMO) MUST A) Be licensed to operate in only one state B) Be operated by a fully accredited hospital C) Be federally funded D) require its providers must be under contract or employment D) require its providers must be under contract or employment A hearing must be held before an agent's license can be suspended or revoked. Prior to the hearing, the Commissioner is required to give written notice to the agent A Long Term Care policy issues in Virginia must provide coverage for at LEAST 12 months A long-term care lapse notice must be delivered to both the applicant and secondary addressee A Medicare Supplement policy can be cancelled by the insurer for nonpayment A Medicare Supplement policy can impose a pre-existing condition exclusion for up to According to the ACA, a dependent child's eligibility status is determined by 6 months age According to the Rules Governing Advertisement of Life Insurance and Annuities, an agent may NOT take which of the following actions during a sales presentation A) Asking for referrals B) Comparing another insurance company's policy C) Mentioning guaranteed policy dividends D) Comparing the costs of two similar policies C) Mentioning guaranteed policy dividends According to Virginia law, a Group Life insurance policy requires a minimum of how many insureds 2 After passing the State exam, an applicant is required to obtain the appropriate license within ___ calendar days 183 All of the following are examples of insurance advertisement EXCEPT A) A direct mail brochure announcing specific Accident and Health insurance plans B) A newspaper notice announcing free insurance advice C) A television spot announcing an insurance company's new product D) An employer newsletter announcing the availability of coverage for employees newsletter announcing the availability of coverage for employees D) An employee