Life and health insurance guaranty associations were
created to protect state residents who are policyholders and beneficiaries of policies issued by a life or health insurance company that has gone out of business
.
What is the purpose of the Life Insurance Guaranty Association quizlet?
What is the purpose of insurance guaranty associations?
To protect policyowners, insureds, and beneficiaries from financial losses caused by insolvent insurers
.
What is the purpose of a life insurance guarantee association?
What is an insurance guaranty association? Insurance guaranty associations
provide protection to insurance policyholders and beneficiaries of policies issued by an insurance company that has become insolvent
and is no longer able to meet its obligations.
What is the purpose of the Ohio life and health insurance Guaranty Association?
The association
protects life insurance and health insurance policies as well as annuity contracts
. Members fund the Guaranty Association. OLHIGA assesses member companies whenever money is needed. It receives no tax money and has no other funding.
What are the powers of the guaranty association?
An insurance guaranty association
protects policyholders and claimants in the event of an insurance company’s impairment or insolvency
. Insurance guaranty associations are given their powers by the state insurance commissioner.
Which is an example of an unfair claims settlement practice?
Typical Example of Unfair Claims Practice
The insurance company delays payment
, rendering the business owner unable to repair any of the damage. The insurance company continues using delay tactics to avoiding making a payment. For example, the claims representative keeps “forgetting” to send the claim forms.
What is the best way to define life insurance replacement?
Definition: Replacement is any transaction where, in connection with the purchase of New Insurance or a New Annuity, you lapse, surrender, convert to Paid-up Insurance, Place on Extended Term, or borrow all or part of the policy loan values on an existing insurance policy or an annuity.
Which of the following is a standard provision of the conversion?
Which of the following is a standard provision of the conversion privileges in a Group Life policy? (Correct.)
Conversion at regular rates on an attained-age basis without a
medical exam is a standard provision for conversion privileges in Group Life policies.
How long must an insurer keep a policy summary?
The insurer must retain copies until
3 years after client terminates policy
.
What is the maximum amount that the Ohio Life and health Guaranty Association will pay to a person in life insurance death benefits?
LIMITS ON AMOUNTS OF COVERAGE
Also, for any one insured life, the Guaranty Association will pay a maximum of
$300,000 in life and annuity benefits
and $500,000 in health insurance benefits– no matter how many policies and contracts there were with the same company, even if they provided different types of coverages.
Who is the insurance guarantor?
Guarantor:
The person who ultimately accepts financial responsibility to pay the patient’s bill
. In most cases it is the adult patient receiving the service. If the patient is a child, the responsible party may be the child’s parent or legal guardian.
Which insurer is eligible for state guaranty fund?
State guaranty funds guarantee payment for insurance policyholders should
the insurance company default
. The fund only covers beneficiaries of insurance companies where the insurer is licensed to sell products in that state.
What does churning mean in insurance?
Churning is another sales practice in which an existing in-force life insurance policy is replaced for the purpose of earning additional first-year commissions. Also known as “
twisting
,” this practice is illegal in most states and is also against most insurance company policies.
What is an unfair claim settlement?
Unfair claims settlement is
the improper handling of policyholder claims on the part of insurers that violates state laws on unfair claims settlement
. Such laws are typically a variation of the National Association of Insurance Commissioners’ (NAIC) Unfair Claims Settlement Practices Act (UCSPA).
What are examples of unfair trade practices?
Unfair practices
may be categorized as under: – False representation; – False offer of bargain price; – Non-compliance of prescribed standards; – Free gifts offer and prize schemes; and – Hoarding, destruction, etc.
What is the difference between an unfair claim practice and an unfair trade practice?
These unfair trade practices also serve to define
those practices that may be harmful or deceptive to consumers
. Unfair claims settlement practices acts, as legislated by the states, protect consumers from some of the more egregious claims settlement and delay practices.
