An insurance contract that identifies individuals by relationship to a particular organization is called:

A. Contributory insurance

B. Group insurance

C. Health insurance

D. COBRA coverage

Which of these is true of a conditionally renewable individual health contract?

A. A covered individual’s health status may be a condition for renewal

B. Premiums are guaranteed as long as renewal conditions are met

C. The insurer may refuse renewal if they move outside of the stated geographical location

D. The insurer may change the conditions of renewability at any time

What is a situation or condition that increases the likelihood of an insured loss occurring?

A. Hazard

B. Peril

C. Exposure

D. Risk

Including a guaranteed insurability rider on a life insurance policy means that:

A. The original policy was sold on a non-medical basis.

B. The company will require evidence of insurability for any future purchase of life insurance.

C. Any extra premium charged for a health impairment will be discontinued if standard insurability is proved later.

D. The policyowner may purchase additional life insurance periodically without proving insurability.

The voluntary act of terminating an insurance contract is called:

A. Elimination

B. Rejection

C. Finalization

D. Cancellation

Since HMOs negotiate provider networks in advance of care, HMO members:

A. Pay the entire cost for all use of non-HMO providers, regardless of circumstances

B. Have a limited choice of care providers

C. Waive the right to re-enroll in an insurance company indemnity plan

D. Are encouraged to carry individual health insurance coverage

What type of insurance pays a lump sum benefit if an insured loses sight in both eyes?

A. Hospital expense

B. Accidental death and dismemberment

C. Major medical

D. Medical expense

An individual health insurance policy must include:

A. Coverage for pre-existing conditions

B. A 10-day free look provision

C. Only the optional uniform provisions

D. A 60-day grace period

The period of time during which a new employee is ineligible for group health insurance coverage is called a:

A. Participation period

B. Grace period

C. Probationary period

D. Contributory period

The interest that an insurance company earns on life insurance premiums paid helps to:

A. Increase the life insurance premium rate

B. Increase the mortality rate

C. Decrease the life insurance premium rate

D. Decrease the mortality rate

One characteristic of flexible premium life insurance is that payment of the premium can be altered at the option of:

A. The policyowner

B. The contingent beneficiary

C. The insurer, if the Consumer Price Index has risen at least 10% over the past year

D. The insurer, if the prime interest rate falls below 6%

What is the effect on a life insurance policy if the insured fails to repay the full value of loans taken against the policy?

A. The premium is increased.

B. Dividends are suspended.

C. The death benefit is reduced.

D. The policy lapses immediately.