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Alabama Life and Health Insurance Final Exam 2023 - 2024 (Verified) 1.Under a health maintenance organization HMO service providers are paid a fixed monthly fee for each member. This concept is called ANS Capitation 2.When can a lapsed life insurance policy usually be reinstated ANS Within three to five years of the policy lapsing 3.All of these statements concerning the coordination of benefits are true ex- cept ANS The secondary insurance does not pay benefits. Which means the secondary insurer does pay benefits 4.The period of time during which a surviving spouse does not qualify for Social Security survivor or retirement benefits is called ANS The blackout period 5.Peggy surrenders a permanent life policy with a cash value of $15,000 and then outstanding policy loan of $5,000. If she chooses the reduced paid-up option what will be the result? ANS A paid up permanent policy purchased with 1 / 3 Download at gaviki.comDownload at gaviki.com
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$10,000
6.Total disability can be defined as the insureds inability to perform the occupation for which he or she is reasonably qualified by education training or experience for disability income insurance purposes this definition is what ANS Own occupation 7.Why are insurance contracts said to be contracts of adhesion ANS The contract has been prepared by one party the insurer and the other party which is the insured must accept the contract as written 8.Catherine is a retiring and was recently hospitalized for 10 days. Which type of insurance policy would best cover her for excess Hospital expenses- ANS Medicare supplement. A Medicare supplement policy will provide a subscriber the best coverage for excess charges 9.What do major medical policies typically cover ANS Usual, customary, and nec- essary expenses 10.At what point does a whole life policy pay the face amount? ANS Upon the insureds death or reaching the age of 100 11.Which type of Term policy allows the policyowner to switch to 2 / 3 Download at gaviki.comDownload at gaviki.com
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permanent insurance ANS Convertible term 12.Trent has a permanent partial disability where he is paid 50% of his previous income. Trent is covered by a ANS Residual disability benefit 13.Which of these actions could result in a lapsed policy ANS Premium was not paid during the grace period
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