life and health insurance for utah | 117 questions and answers

EACH OF THE FOLLOWING IS A FUNCTION OF ACCIDENT INSURANCE EXCEPT

TO PROVIDE BENEFITS FOR THE LOSS OF TIME AWAY FROM THE JOB AS RESULT OF SICKNESS

LOSS OF ONE LEG BELOW THE KNEE

WHICH OFTHEFOLLOWINGACCIDENTAL INJURIES WOULD BE ELGIBLE FOR DISMEMBERMENT BEEFITS UNDER AN A AND H POLCIY

CAPITAL SUM

THE AMOUNT PAID AN INSURED FOR ACCIDENTAL DISMEMBERMENT UNDER AN A AND H POLICY IS TECHNICALLY CALL THE

PRINCIPLE SUM

THE AMOUNT PAID AN INSURED FOR ACCIDENTAL DEATH UNDER A AND H POLICY IS TECHNICALLY CALLED THE

SPECIFIC LOSSES

WHEN REFERRING TO A NAD H POLCIES ALL ACCIDENT LOSSES FOR WHICH SPECIFIC SUMS ARE CALLED

AN INSURANCE POLICY WHICH PROVIDES PAYMENT FOR ACCIDENTAL DEATH DISMEMBERMENT OR LOSS OF TIME

WJOCJ STATE,EMTBEST DEFINES AN ACCIDNET POLICY

PRESCRIPTION DRUGS

ALL OF THE FOLLWING ARE BENEFITS USUALLY PROVIDED BY A HOSPTAL POLICY EXCEPT

MARY IS THE PRIMARY BENEFIICIARY AND JOHN IS THE CONTINGENT

MARY SMITH IS NAMED BY THE INSURED JOHN SMITH AS THE FIRST IN LINE TO RECEIVE THE DEATH BENEFIT OF JOHN'S ACCIDENT POLCIY. THIER SON BILLY IS NAMES AS SECOND IN LINE TO RECEIVE THE BENEFITS.

THIS PHRASE IS LESS RESTRICTIVE THAN THE PHRASE ACCIDENTAL MEANS

AN INSURED HAS AN A AND H POLCY WITH THE PHRASE ACCIDENTAL BODILY INJURY USED TO DEFINE WHAT CONSTITUTES ACCIDENTAL INJURY OR DEATH.

90 DAYS AFTHER THE ACCIDENT

TO QUALIFY FOR ACCIDENTAL DEATH BENEFITS,DEATH MUSTOCCUR WITHIN

PARTIALLY DISABLED

MR X AN ENGINEER WAS PREVIOUSLY EARNING $30000 A YEAR BEFORE HIS DISABILITY. HE NOW EARNS $5000 A YEAR. IF MR.X WAS, AND STILL IS, INSURED BY AN A AND H POLCIY, HE WOULD PROBABLY BE CLASSIFIED AS WHICH ONE OF THE FOLLOWING?

RIDER

AN INSURED HAS AN AGREEMENT ATTACHED TO THE POLICY WHICH ALTERS THE COVERAGE PROVIDED. THIS AGREEMENT IS A

TOTAL DISABILITY

FOLLOWING AN ACCIDENT THE INSURED IS UNABLE TO PERFORM ANY OF THE DUTIES OF HIS OCCUPATION. THIS CONDITION IS CALLED

PARTIAL DISABILITY

FOLLOWING AN ACCIDENT THE INSURED IS UNABLE TO PERFORM SOME OF THEDUTIES OF HIS OCCUPATION. THIS CONDITION IS CALLED

PAYMENT R OFTEN MADE AS THE RESULT OF ACCIDENT DISABILITY,BENEFIT IS 50% OFTHETOTAL DISABILITY BENEFIT

WHAT IS PARTIAL DISABILITY

THE INSURED MAY BE TOTALLY DISABLE FOR A PERIOD OF TIME,THEN PARTIALLY DISABLED OR THE REMAINDER OF THE TIME

TO RECEIVE BOTH TOTAL AND PARTIAL DISABILITY BENEFITS FOR THE SAME ACCIDENTAL INJURY

THE INSURED CAN COLLECT TOTAL DISABILITY ONCE, AS THERE HAS BEEN ONLY ONE LOSS OF TIME, OR INCOME

AN INSURED IS TOTALLY DISABLED AS A RESULT OF AN ACCIDENT,THEN IS TOTALLY DISALBED BY AN ILLNESS AT THE SAME TIME.

20,30,60,90 DAYS DEPENDING UPON THE CONTRACT.

MOST INSURANCE COMPANIES STATE IN THEIR POLCIES THAT IF TOTAL DISABILITY RESULTS WITHIN A SPECIFIED PERIOD AFTER AN ACCIDENT THE INSURED IS ELIGIBLE FOR TOTAL DISABILITY BENEFITS. THIS PERIOD MUST USUALLY BE WITHIN

TOTAL CONFINING DISABILITY

BILL JONES IS SEVERELY INJURED AND MUST REMAIN IN A HOSPITAL BED. BILL HAS SUFFERED A

DISABILITY DUE TO THE SAME OR RELATED CAUSE OF PRIOR DISABILITY

A RECURRENT DISABILITY IS

SOME POLICIES PAY A SMALL % OFTEN 10% OF THE TOTAL DISABILITY PAYMENT IF THE INSURED LOSES TIME AWAY FROM WORK TO OBTAIN MEDICAL OR SURGICAL TREAMENT

BENEFITS PAID FOR NON DISABLING INJURIES

ACCUMULATIONS

AMOUNT ADDED TO THE PRINCIPAL SUM OF SOME POLICIES AS AN INCREASES IN BENEFITS FOR SUCCESSIVE RENEWALS OF THE POLCIY ARE CALLED

WAR OR ANY ACT OF WAR, PREINJUIRES RECEIVED WHILE COMMITTING OR ATTEMPTING TO COMMIT AFELONY , PRE EXISTING CONDITION

COMMON EXCLUSION OF A NAD H POLICIES

NAME OF THE INSURED

EACH OF THE FOLLOWING WOULD BE CONTAINED IN THE INSURING CLAUSE EXCEPT

AN ADMITTED COMPANY

A COMPANY LICENSED TO SELL INSURANCE IN A STATE IS CALLED

PARTICIPANTS ARE CALLED INSUREDS

EACH OF THE FOLLOWING IS A CHARACTERISTIC OF BCBS PLANS EXCEPT

TRUE

A COMPANY WITHITS HOME OFFICE IN INDIANA IS REFERRED TO AS A DOMESTIC COMPANY IN INDIANA AND A FOREIGN COMPANY IN ALL OTHER STATES T/F

OPTIONAL RENEWABLE POLICY

AN INSURED HAS AN A AND H POLICY WHICH THE INSURANCE COMPANY DECLINES TO RENEW AT THE POLICY ANNIVERSARY DATE THIS POLCY IS

A POLICY WHICH THE COMPANY MAY CANCEL AT ANY TIME BE RETURNING THE UNEARNED PREMIUM

WHAT IS A CANCELLABLE POLICY

MAIL NOTICE OF CANCELLATION AND THEN UNEARNED PREMIUM TO THE LAST KNOWN ADDRESS OF THE INSURED. CANCELLATION IS EFFECTIVE NOT LESS THAN 5 DAYS FROM THE DATE OF THE NOTICE

IF AN INSURANCE COMPANY WANTS TO CANCEL A CANCELLABLE POLICY IT MUST

GUARANTEED RENEWABLE POLICY

AN INSURED HAS AN A AND H POLICY WITH A CLAUSE STATING THAT THE COMPANY WILL NOT REFUSE TO RENEW THE POLICY AND FURTHER STATES THAT THE COMPANY CANNOT CANCEL THE POLICY HOWEVER THE COMPANY RESERVES THE RIGHT TO CHANGE THE PREMIUM BY CLASSES OF INSUREDS. T

FALSE

NONCACELLABLE POLICY CAN INCREASE THE PREMIUM RATE AFTER THE POLICY IS IN EFFECT T/F

NON OCCUPATIONAL POLICY

AN A AND H POLICY WHICH EXCLUDES COVERAGE FOR INJURIES ARISING OUT OF THEINSUREDS JOB IS CALLED A

PARTICIPATION POLICY

A POLICY WHICH PROVIDES FOR THE INSURED TO SHARE ANY SURPLUS DECLARED BY THE COMPANY IS CALLED

THERE ARE 23 PROVISIONS 12 ARE REQUIRED AND 11 ARE OPTIONAL

WHAT IS THE UNIFORM POLICY

15 DAYS

ONCE THE INSURANCE COMPANY HAS RECEIVED A NOTICE OF CLAIM THE COMPANY SHOULD FORWARD PROOF OF LOSS FORMS TO THE INSURED WITHIN

90 DAYS OF THE END OF THE PERIOD FOR WHICH THE COMPANY IS LIABLE

WHEN CONTINUING PERIODIC BENEFITS ARE INVOLVED THE INSURED MUST FURNISH PROOF OF LOSS WITHIN

ONLY YEAR FROM THE DATE OTHERWISE REQURED UNLESS THE INSURED SUFFERS LEGAL INCAPACITY

WHEN CONTINUING PERIODIC BENEFITS ARE INVOLVED PROOF OF LOSS MUST NEVER BE RECEIVED LATER THAN

MONTHLY

WHEN PROOF OF LOSS HAS BEEN FURNISHED,PERIODIC BENEFIT PAYMENT MUST BE MADE NOT LESS FREQUENTLY THAN

FACILITY OF PAYMENT CLAUSE

WHENNO BENEFICIARY EXISTS AND THE PRINCIPAL SUM WOULD OTHERWISE GO TO THE INSURES ESTATE THE INSURANCE COMPANY CAN PAY UP TO $1000 TO ANY RELATIVE OF THE INSURED BY FLOOD OR MARRIAGE WHO APPEARS EQUITABLY ENTITILED TO THE MONEY UNDER THE PROVISION OF THE

A HOSPITAL A PHYSICIAN OR A SURGEON

THE INSURED CAN BY WRITTEN REQUEST TO THE INSURANCE COMPANY HAVE BENEFITS UNDER HIS POLICY PAID TO

AT LEAST 60 DAYS AND NO LONGER THAN 3 YEARS FROM THE DATE OF PROOF OF LOSS

AFTER FILING PROOF OF LOSS,THE INSURED IN PREVENTED FROM FILING SUIT AGAINST THE INSURANCE COMPANY FOR

AN IRREVOCALBE BENEFICIARY

AN INSURED LISTS HIS WIFE AS THE BENEFICIARY OF THE ACCIDENTAL DEATH BENEFIT OF HIS A ND H POLICY AND HAS RELINQUISHED HIS RIGHT TO CHANGE THAT DESIGNATION. HIS WIFE IS

TRUE

FACE VALUE AND PREMIUMS WOULD BE CONSIDERED ESSENTIAL TO A VALID INSURANCE CONTRACT T/F

CONSIDERATION

DOLLAR AMOUNT PROMISED FOR PAYMENT UPON DEATH OF INSURED IS CALLED

IN CASH OR ITS EQUIVALENT

WHEN JOHN PURCHASED A LIFE INSURANCE POLICY HE PAYS THE FIRST PREMIUM AND SUBMITS AN APP FOR WHICH THE COMPANY ASSUMING ACCEPTANCE AGREES TO PAY A SPECIFIED AMOUNT OF MONEY

LIVE INSURANCE POLICY

IN THE INSURANCE INDUSTRY THE CONTRACTS MADE BETWEEN THEN INSURED AND AN INSURER ARE KNOWN AS

TRUE

CONSIDERATION AND PREMIUMS WOULD MOST ACCURATELY DESCRIBE THE MONEY PAID BY AN INSURED TO AN INSURER T/F

TRUE

PREMIUMS MUST BE PAID IN ADVANCE EITHER TO THE COMPANY OR TO ITS AUTHORIZED REPRESENTATIVE T/F

INSURED AND INSURER

IN LIFE INSURANCE TRANSACTIONS THE CONTRACTS ARE UNILATERAL AND SO REPRESENTS OBLIGATIONS FOR

16 AT THE NEAREST BIRTHDAY

THE LEGAL AGE FOR A UTAH RESIDENT TO PURCHASE A POLICY ON ONES OWN LIFE IS

MORAL RISK

DAN HAS A LIFESTYLE THAT IS CONSIDERED PRETTY WILD BY THE INSURANCE UNDERWRITER SO WOULD BE CONSIDERED WHICH OF THE FOLLOWING

NEXT BIRTHDAY

WHICH OF THE FOLLOWING REPRESENT THE AGE USED TO DETERMINE THE PREMIUMS TO BE PAID IN INDUSTRIAL INSURANCE

FALSE

AGE WHEN LST PURCHASING INSURANCE IS A METHOD USED TO DETERMINE THE PREMIUM TO BE CHARGED IN LIFE INSURANCE T/F

100

LIFE INSURANCE COMPANIES HAVE BASED PREMIUMS ON THE IDEA THAT PEOPLE ARE STATISTICALLY DEAT AT

0 TO 70

INDUSTRIAL LIFE POLICIES ARE NORMALLY WRITTEN ON THOSE OF WHICH OF THE FOLLWING AGES

CONDITIONAL RECEIPT

THE RECEIPT FOR THE FIRST PREMIUM IS CALLED

REQUESTING THAT A POLICY BE ISSUED

IN THE ACT OF SIGNING THE APPLICATION FOR AN INSURANCE POLICY THE APLICANT IS

TRUE

A MINOR MAY SIGN THE APPLICATION FOR A POLICY AND MAY BE NAMED THE BENEFICIARY ON A POLICY T/F

DEMONSTRATE AN INSURABLE INTEREST IN THE LIFE OF THE INSURED

THE APPLICANT ON A POLICY ASSUMING THEY ARE NOT TO BE THE INSURED WOULD HAVE TO

CONDITIONAL RECEIPT

DAVE APPLIES FOR A POLICY AND RECEIVES FROM THE AGENT A DOCUMENT THAT PROVIDES INTERIM COVERAGE UNTIL A COUNTER OFFER IS MADE OR UNTIL HIS APP IS EITHER APPROVED OR REJECTED THIS DOCUMENT IS CALLED

COULD MAKE THE CHANGE AND THEN MUST INITIAL IT

IF A PERSON DESIRED TO CHANGE SOMETHING THAT THEY HAVE PLACED ON THE INSURANCE APP

IF FOUND BEFORE DEATH COMPANY WILL REDUCE FUTURE PREMIUMS AND GIVE CREDIT FOR OVERPAYMENTS ON FUTURE PAYMENTS TO BE PAID

WHEN PURCHASING A POLICY APPLICANT OVERSTATES THEIR AGE

BEGINNING OF EACH POLICY YEAR

WHEN APPLICANT IS ACCEPTED BY COMPANY THE ASSUMTION IS THAT PREMIUMS WILL BE PAID

DECREASE

IF THE POLICY CALLS FOR LESS FREQUENT THAN NORMAL PREMIUMS THE POLICYHOLDER WOULD EXPECT ANNUAL PAYMEN TO

TRUE

NUMBER OF POLCYHOLDERS ANTICIPATED BY THE UNDERWRITERS IS NOT IMPORTANT WHEN ATTEMPTING TO DETERMINE THE AMOUNT OF PREMIUMS A COMPANY MUST CHARGE T/F

GROSS PREMIUM

THE PREMIUM PAID BY POLICY HOLDER

NET PREMIUM

PREMIUM WHICH BASED ON MORTALITY RATES AND ANTICIPATED INTEREST ONLY

GROSS PREMIUM

PREMIUM WHICH IS MORTALITY COSTS LESS ANTICIPATED INTEREST EARNINGS AS WELL AS THAT POLICYS SHARE OF THE COMPANIES OVERALL OPERATIONAL COSTS (LOADING EXPENSES)

OBSERVANCE OF MILLIONS OF DEATHS PER YEAR

TO CALCULATE THE DEATHS PER THOUSAND RATE AN ACTUARY WOULD USE

INCREASE BY AN APPROPRIATE SHARE OF THE COMPANYS OPERATIONAL COSTS EACH OF THE PREMIUM RATES ON THE POLICIES

THE DESCRIPTION ON LOADING WHEN DISCUSSING INSURANCE PREMIUMS

TRUE

WHEN VIEWING THE AVERAGE NUMBER OF PEOPLE THAT DIE IN A GIVEN YEARACUTARIES VIEW THIS AS A MORTALITY RATE,IS TAKEN INTO ACCT IN FIGURING PREMIUMS,AND IS NOT THE ONLY FACTOR IN DETERMINING RATES T/F

CANNOT BE MADE

THE INSURANCE COMPANIES MAY ARBITRARILY INCREASE PREMIUM RATES OR MAKE SPECIAL ASSESSMENT OR LEVIES UPONA POLICYHOLDER ONLY IF

TRUE

A 1980 COMMISSIONERS STANDARD ORDINARY (CSO) CHART IS MORTALITY TABLE STILL CURRENTLY USED BY MOST OF THE INSURANCE COMPANIES T/F

MUST BE IN WRITING AN THEREFORE ENFORCEABLE BY LAW,MUST BE TWO OR MORE PARTIES EACH GETTING SOMETHING FROM THE AGREEMENT (CONSIDERATION)

THE LAW AS IT RELATES TO CONTRACTS SAYS WHICH OF THE FOLLOWING MUST BE PRESENT IF THE CONTRACT IS TO BE VALID

TRUE

THE MODE OF PREMIUM PAYMENTS MAY ONLY BE CHANGED IF THE POLICYHOLDER MAKES A REQUEST IN WRITING FOR SUCH A CHANGE T/F

TRUE

OPERATION EXPENSES IS THE CORRECT NAME OT DESCRIBE THE COSTS FOR AN INSURANCE COMPANY LIKE COMMISIONS,RENT AND CORPORATE INCOME TAXES T/F

TRUE

IF THE PREMIUM BEING CHARGED INCLUDES AN AMOUNT FOR WAIVER OF PREMIUM AND THE INSURED REACHES THE AGE WHEN THIS PROVISION IS NO LONGER TO BE IN FORCE THE PREMIUM WOULD SIMPLY BE REDUCED ACCORDINGLY T/F

AGE 60

AS DEALT WITH IN THE PREVIOUS QUESTION WHEN DOES THE WAIVER OF PREMIUM PROVISION NORMALLY ENDS

CHARGING A FLAT EXTRA PREMIUM

RATING UP A PERSON IN TERMS OF AGE

CREATING A LIEN AGAINST THE POLICY WHICH WOULD REDUCE THE FACE VALUE IF INSURED DIES WITHIN A CERTAIN TIME

ALL OF THE ABOVE

IN DEVELOPING PREMIUM RATES SUBSTANDARD RISKS COULDBE DEALT WITHIN WHICH OF THE FOLLOWING WAYS

TRUE

WHEN PURCHSING A POLICY APPLICANT SHOULD BE AWARE OF THE MEDICAL INFORMATION BUREAU OR (MIB).IT IS ESSENTIALLY A NONPROFIT ORGNIZATION THAT AIDS MEMBER INSURANCE COMPANIES IN THEIR UNDERWRITING OF POLICIES BY PROVIDING INSURABILITY INFORMATION ABOUT APPLICANTS T/F

TRUE

REFER TO QUESTION 81 APPLICANT MUST GIVE AUTHORIZATION FOR A COMPANY TO GET AND USE INFORMATION AND BY KEEPING DOWN INSTANCE OF FRAUD AND MISREPRESENTATIONS THE MIB ALSO KEEPS DOWN THE COST TO CONSUMER FOR INSURANCE T/F

FALSE

RELIGIOUS AFFILIATION IS USED IN RATING POLICIES INSURANCE COMPANIES ARE ALLOWED TO USE ALL OF THE FOLLOWING IN DETERMINING INSURABILTIY T/F

TRUE

AGENTS ARE PERMITTED IN UTAH TO CHANGE POLICY WORDING SO LONG AS CUSTOMER REQUESTS IT IN WRITING T/F

TRUE

HUMAN AND MORAL VALUES OF LIFE IS SHOWN BY INCREASING POLCYHOLDER DIGNITY REDUCES FAMILY TENSIONS AND SHOW FORESIGHT TO CHILDREN KEEPS A FAMILY TOGETHER T/F

ORDINARY,GROUP,INDUSTRIAL

NAME THREE TYPES OF LIFE INSURANCE

TRUE

INDUSTRIAL LIFE IS SOLD TO THOSE 0 TO 70 USING THE NEXT AS OPPOSED NEAREST BIRTHDAY,CONTAIN FACILITY OF PAYMENT CLAUSE,GRACE PERIOD IS NORMALLY 4 WEEKS (28DAYS) T/F

TRUE

FACILITY OF PAYMENT CLAUS ALLOWS PROCEEDS OF POLICY TO BE PAID TO SOMEONE OTHER THAN THE BENEFICIARY WHO MAY HAVE PAID BURIAL EXPENSES OR MAYBE MEDICAL COST T/F

TRUE

JUSTIFICATION FOR INDUSTRIAL LIFE INSURANCE PRIMARY PURPOSE IS TO ALLOW THOSE UNABLE OTHERWISE TO PURCHASE INSURANCE IN SMALL AMOUNT MADE EASIER TO PAY FOR WEEKLY OR MONTHLY PREMIUMS T/F

5 YEARS

INMOST AREAS PERMANET POLICIES ARE REQURED TO HAVE SOME CASH VALUE WITHIN 3 YEARS. INDUSTRIAL POLICIES MUST START WITHIN -------

THERE IS NO SUICIDE EXCLUSION JUST PULL THE TRIGGER

MOST POLICIES SOLD IN UTAH REQUIRE THAT A PERSON WAIT FOR A MINIMUM 2 YEARS BEFORE COMMITING SUICIDE IF FACE VALUE IS TOBE PAID HOW LONG IS THE PERIOD FOR INDUSTRIAL INS

TRUE

ACCIDENTAL DEATH BENEFITS ON MOST POLICIES WOULD BE INCLUDED ONLY WITH A RIDER CALLED AN ENDORESMENT AND IF INDUSTRIAL POLICY ITS INCLUDED T/F

TRUE

IF THE DEBIT AGENT DOES NOT COME BY TO COLLECT THE PREMIUM DUE ON AN INDUSTRIAL POLICY OWNER NEED TO SEND MONEY TO HOME OR BRANCH OFFICE IF THE POLICY IS TO CONTINUE IN FORCE T/F

ALL

WHICH OF THE FOLLOWING REPRESENT ONE OF THE TYPE OF ORDINARY INSURANCE POLICIES

TERM,WHOLELIFE AND ENDOWMENT,UNIVERSAL OR ALL

WHOLE LIFE

WHICH POLICY CONSIDERED PERMANENT

TERM,WHOLE LIFE ENDOWMENT,VARIABLE UNIVERSAL

TERM

WHICH IS USED FOR CREDIT LIFE

TERM,WHOLE LIFE,ENDOWMENT,UNIVERSAL OR ALL

WHOLE LIFE

WHICH REDUCES OVERALL COSTS FOR THE COMPANY ALLOWING TO COMPANY TO CHARGE A LOWER PREMIUM

UNIVERSAL

WHICH HAS TWO ADJUSTMENTS MADE TO THE CASH VALUE (GUARANTEED INTEREST CHARGED AND PREMIUM CREDITED)

ENDOWMENT

POLICY WHERE INSURED COULD SET PREMIUMS TO BE PAID FOR 20YEARS AND THE POLCY WOULD ENDOW AT AGE 65

ENDOWMENT

WHICH HAS THE HIGHEST PREMIUM