Which of the following statements is CORRECT about a Waiver of Premium provision in a Disability 

Income policy?

A. It allows the insurer to deduct premiums due from the disabled insured's benefit payments.

B. It allows the insurer to increase the amount of premium during the insured's time of disability.

C. It allows the insured to extend the length of the Grace Period while disabled.

D. It allows the insured to maintain a policy in force while disabled and unable to pay premiums.

d

Suicide, pre-existing conditions and self-inflicted injuries are dealt with in which of the following policy 

features?

A. Extensions of coverage

B. Benefits clause

C. Riders

D. Exclusions

d

An insured becomes disabled three years after his Disability Income policy is issued. The disability is 

caused by a condition that existed prior to the policy issue date but was not specifically excluded from 

coverage. In this situation, the insurer will most likely take which of the following actions?

A. Pay the full claim

B. Pay the claim for a maximum of six months only

C. Deny the claim on the basis of misrepresentation

D. Deny the claim because it involves a pre-existing condition

a

A health care plan that reimburses a flat fee for medical care it provides at a clinic it owns and operates 

is referred to as:

A. Health Maintenance Organization

B. Medicaid

C. Medicare

D. Multiple Employer Trust (MET)

a

Which of the following laws requires an insurer to notify an applicant in writing that an investigative 

consumer report may be made on the applicant?

A. Uniform Provisions Law

B. Freedom of Information Act

C. Medical Information Bureau Disclosure Act

D. Fair Credit Reporting Act (Insurance Information and Privacy Protection Act)

d

Under a Guaranteed Renewable Accident & Health policy, an insurer retains the right to:

A.increase the premium rate for one insured without increasing the rate for others in the same class

A. increase the premium rate for one insured without increasing the rate for others in the same class

B. increase the premium rate for an entire class of insureds

C. increase the benefits for an individual insured

D. decrease benefits for one insured without decreasing benefits for others in the same class

d