A provision in a disability income insurance policy that requires a person to be disabled for 60 days before receiving benefits is an example of a(n) A) calendar year deductible. B) grace period. C) elimination period. D) probationary period. ANSWER Answer: C
Date: September 19th, 2020
Kate is covered under her employer’s group health plan. She is also covered as a dependent under her husband’s group health plan. Under the usual coordination-of-benefits provision, how will each company respond to a claim filed by Kate? A) Kate’s plan is primary, and her husband’s plan is excess. B) Her husband’s plan is primary, […]
Date: September 19th, 2020
Which of the following statements about a calendar-year deductible is (are) true? I. It requires the insured to pay a specified amount of each claim regardless of when the claim occurs during the year and regardless of any previous claims during the year. II. It is used only in policies which cover direct property losses. […]
Date: September 19th, 2020
Under the terms of Jenny’s auto insurance policy, she must pay the first $500 of any physical damage loss to her vehicle before her insurer will pay anything. What type of deductible is included in Jenny’s auto insurance policy? A) calendar-year deductible B) waiting period C) straight deductible D) aggregate deductible ANSWER Answer: […]
Date: September 19th, 2020
The deductible used for automobile collision losses is an example of a(n) A) calendar year deductible. B) elimination period. C) straight deductible. D) aggregate deductible. ANSWER Answer: C
Date: September 19th, 2020
Mark reviewed his homeowners policy. He learned that his personal property was insured on an actual cash value basis. He would like replacement cost coverage on his personal property. He contacted his agent who said, “I’ll simply add an amendment to your contract that changes the basis of recovery to replacement cost.” The written provision […]
Date: September 19th, 2020
Deductibles are not used in which of the following type of insurance? A) life insurance B) health insurance C) property insurance D) disability income insurance ANSWER Answer: A
Date: September 19th, 2020
Shauna hurt her back and was unable to work. She filed a claim under her disability income insurance policy. Under terms of the policy, a period of time must pass between when the injury occurred and when the insurer begins to replace lost earnings. This time period is called a(n) A) grace period. B) enrollment […]
Date: September 19th, 2020
David owns a commercial building with a replacement cost of $4 million. The building is insured on a replacement cost basis for $2.4 million under a fire insurance policy that has an 80 percent coinsurance clause. How much will David collect if the building sustains a covered fire loss with a replacement cost of $80,000? […]
Date: September 19th, 2020
At what point in time must an insured meet the coinsurance requirement in a property insurance policy in order to avoid having to pay a portion of the loss? A) only at the time of loss B) only at the time when the policy is issued C) only at the time of policy application D) […]
Date: September 19th, 2020
