NMLAHIP New Mexico Life Accident and Health Insurance Producer - Set 4 - Part 3
Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.
Question 41: A business purchases a disability income policy on its most valuable sales executive, with the business itself named as premium payor and as beneficiary, intending to use any benefit paid to offset lost revenue and the cost of a replacement while that executive is disabled. What is this coverage called?
Question 42: A worker who becomes disabled and qualifies for Social Security disability benefits must wait through a mandatory span after the onset of disability before the first monthly government benefit is payable, similar in concept to a private policy's waiting provision. What is this Social Security waiting span commonly compared to?
Question 43: After a health policy has remained continuously in force for a stated period, the insurer may no longer use statements made in the application to contest a claim or void the policy, except in a case of fraud where the law permits it. Which provision creates this rule?
Question 44: A section of a health policy lists specific causes of loss and circumstances for which the insurer will pay no benefit at all or will pay only a reduced benefit, narrowing the broad promise made at the front of the contract. Which policy feature does this section represent?
Question 45: An insurer determines how much of a submitted medical bill counts as a covered expense by comparing the billed amount against what providers of similar training typically charge for the same service within the same geographic area, rather than paying whatever figure the provider billed. Which standard is being applied?
Question 46: A rider attached to a health policy allows the insured to purchase additional amounts of coverage at specified future option dates or life events without submitting new evidence of good health, even if the insured's health has meaningfully declined since the policy was first issued. Which rider does this describe?
Question 47: A claims examiner discovers that an insured's birth date on file is incorrect, and rather than voiding the health policy outright, the insurer simply recalculates the benefit payable to what the premium already collected would have purchased at the insured's true age. Which optional provision authorizes this adjustment?
Question 48: After an insured has been totally disabled and receiving benefits for a specified period, the disability income policy excuses the insured from paying further premiums for as long as the disability continues, while keeping the policy fully in force. Which provision produces this result?
Question 49: A disability income policy includes a rider letting the policyowner increase the monthly benefit amount at stated future option dates without submitting new medical evidence, with the available increase tied to documented growth in the insured's income since the policy was issued. Which rider describes this inflation safeguard?
Question 50: A disability income policy carries a rider that pays a lump sum if the insured dies from a covered accident, or pays a scheduled amount if the insured suffers an accidental loss of a hand, foot, or eyesight, apart from the monthly disability income benefit. Which rider does this describe?
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