Health Insurance Study Guide
Which of the following is an insurer established by a parent company for the purpose of insuring the parent company's loss exposure? Captive insurer
According to the PPACA, the medical enrollment tier that has 80% actuarial value is called: gold
Medical expense policies will typically cover which of the following? Injuries caused by accidents
A person who asserts a right of recovery under an insurance policy is called: claimant
Allen has a disability income policy with a $2,500 monthly benefit and a 30-day elimination period. He is unable to work 90 days following an automobile accident. What will the policy pay? $5,000
Moral hazard is described as the: increased chance of a loss because of an insured's dishonest tendencies
At what age is a surviving spouse without dependents eligible for Social Security survivor benefits? 60
Minimum participation standards exist for group health insurance plans in order to: prevent adverse selection
Coverage for care received from a network provider pays more than care received from a non-network provider in what type of health plan? Preferred Provider Organization (PPO)
The systematic liquidation of a sum of money is provided by a(n): annuity
Which of the following does the California Department of Insurance (CDI) have NO jurisdiction over? Medicare
In California, an insurer organized under the state laws of Oregon is called a(n): foreign insurer
Which of the following actions is NOT allowed by Health Insurance Counseling and Advocacy Program (HiCAP) counselors? Charge a fee
All of the following circumstances must be met for loss retention to be an effective risk management technique, EXCEPT: Probability of loss is unknown
Which of the following does NOT have to be included on life insurance policy illustrations? Statement that all values and benefits are guaranteed
The Medical Information Bureau consists of: life and health insurance companies
The misstatement of age provision in a health policy states that if an insured gives the wrong age at the time of application, what action can the insurance company take? Benefits can be adjusted
A life insurance policy's limit of liability would be: the policy's face amount
Which of the following is NOT typically covered under vision care insurance? Retina surgery
All of these statements concerning Medicare are true, EXCEPT: Long-term care is covered by Medicare Part C
Which of the following plans will cover medical costs that Medicare doesn't cover? Medicare supplement
MRMIP is a: state program that offers health coverage to California residents who are not able to obtain coverage due to pre-existing conditions
Which of the following is a life insurance policy that does NOT require a physical exam? Non-medical
Anyone employed in California to assist an insurance agent in transacting insurance is called an insurance: solicitor
Who is issued a certificate of insurance with a group insurance policy? Participant
An individual who transacts life, disability, or life and accident and health insurance on behalf of an insurer is called a(n): life agent
What is the term used to describe the frequency and severity of certain illnesses and accidents? Morbidity
A terminated employee that has exercised the conversion privilege is able to convert: term group life coverage into permanent insurance
Which of the following is NOT protected under the California Life and Health Guarantee Association? Insurers
Key person insurance is intended to: cover business losses due to the death of a key employee
What type of changes can be made to a guaranteed renewable health insurance policy? The premium rates of the policyowner
ESOPs are typically invested in: employer stock