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health insurance part 7 - Health insurance underwriting

Terms in this set (9)

Pre-hospitalization authorization is considered an example of
managed care

Pre-hospitalization authorization is the insurer's approval of an insured entering a hospital. Many health policies require this as part of an effort to manage costs.
Information obtained from a phone conversation to the proposed insured can be found in which of these reports?
Inspection report. (An inspection report may include information obtained by a telephone call to the proposed insured.)
which of the following correctly explains the actions an agent should take if a customer wants to apply to a policy
Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company.
A prepaid application for individual Disability Income insurance was recently submitted to an insurer. When the insurer received the Medical Information Bureau (MIB) report, the report showed that the applicant had suffered a stroke 18 months ago, something that was not disclosed on the application. Which of the following actions would the insurance company NOT take?

Send the initial premium back to the applicant

Send a notice to the applicant that the coverage was declined

Send a notice to the MIB that the applicant was declined

Send a notice to the agent that the applicant was declined
Send a notice to the MIB that the applicant was declined
Which mode of payment is NOT used by health insurance policies?

Monthly premium

Annual premium

Single premium

Semi-annual premium
Single premium
which of the following statements about the classification of applicants is incorrect?
Substandard applicants are never declined by underwriters

A substandard risk is below the insurer's average risk guidelines. An individual can be rated substandard for a number of reasons and can even be rejected outright.
Which type of plan normally includes hospice benefits?
Managed care plans
Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a Disability Income policy?
The correct answer is "Issue the policy with an altered Time of Payment of Claims provision".

The insurance company may take all of these actions EXCEPT issue the policy with an altered Time of Payment of Claims provision.
P is self-employed and owns an Individual Disability Income policy. He becomes totally disabled on June 1 and receives $2,000 a month for the next 10 months. How much of this income is subject to federal income tax?
$0


Disability income benefits that derive from an individual policy which was paid entirely by the policy owner is not subject to federal income tax.
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