Insurance Exam - Questions & Detailed Solutions

What does the grace period protect the policyholder from? {Ans: an unintentional lapse of the policy}The primary purpose of Health Reimbursement Accounts (HRAs) is to assist {Ans: covered employees with the payment of medical expenses on a high deductible plan funded through pre-tax contributions.}What procedure is used by an insurer to protect itself in the event a dispute arises, and the applicant and the producer do not recall the changes that were made in a completed application? {Ans: The applicant and possibly the producer initial any changes made.}An annuitant paid $500,000 for an annuity on September 1 and expects to receive lifetime benefit payments beginning October 1. What type of annuity was purchased? {Ans: Single Premium Immediate}Which of the following is true for most comprehensive dental policies? {Ans: Routine care is provided without coinsurance or deductibles.}Which principle holds that the insurer relies on the truthfulness of the applicant and in return promises and has the ability to pay claims? {Ans: good faith}Which of the following is a primary use of an annuity? {Ans: to provide retirement income}Short term disability insurance generally only covers injuries due to which of the following? {Ans: non-occupational