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HEALTH INSURANCE EXA M-
ILLINOIS QUESTIONS WITH
CORRECT ANSWER S ( A+ GRADED
100% VERIFIED).
Question : Risk type expenses
CORRECT ANSWER : cannot be planned and is
unintended
Question : Purpose of health insurance is
CORRECT ANSWER : to protect a insured against the
risk of financial loss he/she cannot individually afford caused by illness, injury, or diability
Question : Indeminity
CORRECT ANSWER : Reimbursement
Question : Coordination of Benefits provision
CORRECT ANSWER : is in some health insurance
policies; allows insurance companies to reduce benefits so that the insured will be paid no more that his/her actual
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loss. prevents the insured from collecting under multiple policies more than his/her actual loss
Question : Coordination policy
CORRECT ANSWER : is a policy that includes a
coordination of benefits provision
Question : Non-coordinating policy
CORRECT ANSWER : is a policy that does not include
a coordination of benefits provision
Question : Accepted questions on application to base
premiums
CORRECT ANSWER : age, family composition,
geographic region of residency, tobacco use
Question : unacceptable question on application to base
premiums
CORRECT ANSWER : past medical history, gender,
occupation, ethnicity
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Question : Attending Physician Statement
CORRECT ANSWER : the underwriter contacts
physician who has treated the applicant in the past for an evaluation; it's purpose is to confirm information on the medical report
Question : Errors and Changes on the Application
CORRECT ANSWER : if error on application,
underwriter may require it be corrected and changes must be approved and initialed by the applicant
Question : Medical information bureau (MIB) report
CORRECT ANSWER : it is a clearing house for medical
information for insurance companies that belong to it
Question : Credit Report
CORRECT ANSWER : Determines if total benefits are
reasonable compared to applicant's income so as to avoid disincentive
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Question : Inspection report
CORRECT ANSWER : to verify that the producer
completed the application accurately and completely is the first purpose of an inspection report
Question : Incontestability Clause
CORRECT ANSWER : after the policy has been in
effect two years the insurance company cannot contest a policy doe to any misstatement or concealment unless it can prove fraud
Question : (tax) premiums on ind. hospital/medical
expense policies
CORRECT ANSWER : can sometimes be tax deducted;
depends on whether an ind is self-employed and if ind.itemizes on tax returm
Question : (tax) premiums paid by an ind. on ind. diability
income policies