Nevada Health and Life 2 Exam Questions
With Correct Answers
Mandatory provisions - answer✔✔- Entire Contract
- Grace Period: 7 for weekly premiums, 10 for monthly, 31 for other
- Reinstatement
- Change of Beneficiary
- Claims procedures: insured's duty to notify insurer in the event of a loss (within 20 days),
insurer gives insured claims forms, proof of loss within 90 days, time of payment of claims and
payment of claims (amount, how often, to whom)
- Physical examination and autopsy
- Time limit on certain defenses (incontestable) - usually can't deny a claim if it has been in force
2 years
- Legal actions: insured but wait 60 days but less than 3 years after proof of loss
- Misstatement of age
- change of occupation
- Ilegal occupation
- Relation to earnings of insurance
Insuring clause - answer✔✔A general statement that identifies the basic agreement between the
insurance company and the insured, usually located on the first page of the policy. States what
kind of loss (peril) is covered
Consideration clause - answer✔✔both parties must give some sort of valuable consideration
Probationary period - answer✔✔A period of time must lapse before coverage for specified
conditions goes into effect.
Elimination period - answer✔✔a type of deductible that is commonly found in disability income
policies. It is a period of days which must expire after the onset of an illness or occurrence of an
accident before benefits will be payable. The longer the elimination period, the lower the cost of
coverage.
Pre-existing condition - answer✔✔conditions that existed that insured received diagnosis,
advice, or treatment for before the application for insurance.
recurrent disability - answer✔✔specifies the period of time that must lapse between two illnesses
in order for a new set of benefits to be available for the second illness. elimination period doesnt
need to happen again
coinsurance - answer✔✔the sharing of expenses by the policyholder and the insurance company.
usually 20% insured and 80% insurer. stop-loss limit is the specified dollar amount that an
insurance company will no longer pay past
deductibles - answer✔✔a specified amount of money that the insured must pay before an
insurance company will pay a claim- larger the deductible the lower the premium.
Maximum benefits are expressed as - answer✔✔- Life-time limit
- Annual limit
-Per-cause limit
Impairment (exclusion) rider - answer✔✔Excludes coverage for specific injury/illness either
temporarily or permanently in order to eliminate pre-existing condition. ex) back injuries
Guaranteed Insurability Rider (future increase option/guaranteed purchase option) -
answer✔✔Allows the insured to purchase additional amounts of disability coverage without
evidence of insurability.
Medicare - answer✔✔A federal medical expense program of health insurance for persons 65
years of age and older even if the individual continues to work. Also available to anyone who has
been title to social security for 2 years or has kidney failure.
Medicare divided into 4 parts - answer✔✔Part A (hospital insurance): financed through payroll
tax
Part B (medical insurance): monthly premiums paid by insureds and from general revenues from
the federal government
Part C (medicare advantaged): allows people to receive all their health care services through
available provider organizations
Part D (prescription drugs): coverage for prescription drugs
Original medicare - answer✔✔mostly refers to part A and part B
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