SCLAHIP South Carolina Life Accident and Health Insurance Producer Exam - 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: When choosing an individual disability income contract, an applicant compares options paying benefits for one year, two years, five years, or until age sixty-five once a covered total disability begins. Which term identifies the length of time payments continue?

The elimination period

The recurrent disability period

The benefit period

The residual disability period

Question 42: An insured leaves an office job to work as a roofer and does not tell the insurer. He is later injured on a roof. Under the change of occupation provision of his individual accident and health policy, how does the insurer settle the claim?

Benefits drop to what the premium bought

The claim is denied for concealment

Benefits are paid in full as written

The policy is rescinded from inception

Question 43: A policy pays benefits in installments over a long period of continuing loss rather than in one settlement. Under the time of payment of claims provision of an individual accident and health policy, how often must the insurer make those installment payments to the insured?

At least once every policy year

At least once a month

At least once each calendar quarter

Whenever the insurer chooses to pay

Question 44: An optional uniform provision lets an insurer cut back a periodic benefit when the total amount payable each month runs above the insured's own earnings, and refund the premium charged for that excess coverage. Which provision operates in this way?

Change of occupation

Misstatement of age

Other insurance in this insurer

Relation of earnings to insurance

Question 45: A health policy provides that the company may decline to renew the coverage when the insured reaches age sixty-five or leaves the trade named in the contract, but never because the insured's health has declined. Which classification is this?

Optionally renewable

Conditionally renewable

Cancelable

Guaranteed renewable

Question 46: Two policies with the optional cancellation provision end early. One insurer cancels its policyholder; in the other case the insured mails in the cancellation. Which statement best describes how the unearned premium refund is calculated in each of those two cases?

Insured pro rata, insurer short rate

Both refunds are figured pro rata

Neither cancellation produces any refund

Insurer pro rata, insured short rate

Question 47: An employee elects to have part of her salary set aside before taxes into a cafeteria plan account used to reimburse approved medical costs, and any balance left when the plan year ends is forfeited. Which account is this?

A health savings account

A flexible spending arrangement

A health reimbursement account

A medical savings account

Question 48: An applicant already owns a disability income policy paying two thousand dollars a month and now applies with a second insurer for additional coverage. In setting the new benefit amount, how does the second insurer normally treat the coverage already in force?

It ignores coverage written by others

It doubles the applicant's benefit limit

It subtracts that amount from its offer

It shortens the elimination period instead

Question 49: A producer compares an employer's group disability plan with an individual policy for the same employee. One states the benefit as a share of the worker's pay, while the other names a set dollar figure. Which statement is accurate?

Both plans use a fixed dollar benefit

The individual policy uses a percentage

Neither approach is used in practice

The group plan uses a percentage

Question 50: A producer describes a policy that pays the insured a stated monthly sum when an accident or sickness leaves that person unable to work for an extended stretch, replacing wages rather than paying doctor bills. Which coverage is being described?

Hospital income insurance

Disability income insurance

Medical expense insurance

Credit disability insurance

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