What is the effect of an impairment rider attached to a health insurance policy? An impairment
rider waives the insurance company's liability for all future claims on a pre-existing condition.
Which disability income rider is an optional benefit which waives the elimination period if the insured requires inpatient hospitalization?
The hospital confinement rider
is an optional benefit that waives the elimination period if the insured requires inpatient hospitalization. The rider will pay the insured the total disability benefit while hospitalized during the policy's elimination period, and ceases once the insured is released from the hospital.
What is the purpose of the impairment rider in health insurance?
An impairment rider is also known as a medical exclusion rider or exclusionary rider. This is
an amendment to a health insurance policy that waives the insurer's responsibility to pay all future claims that are related to a pre-existing medical condition
.
Which of the following are primary risk factors in underwriting individual health insurance policies?
Three of the most important factors in classifying risks for health insurance are
physical condition, moral hazards, and occupation
.
Which rider provides for an automatic increase in benefits to offset the effects of inflation?
A cost-of-living rider
protects the purchasing power of your disability benefits against the effects of inflation. After you have received benefits for a year, this rider automatically increases the amount of your benefits to offset cost-of-living increases.
What is the stop loss feature on a major medical policy?
The stop-loss feature in major medical contracts serves to help reduce these costs. The stop-loss feature
places a limit on the maximum out-of-pocket expenses an insured must incur for health care
, above which the policy pays 100% of the remaining eligible expenses.
Which of the following is the most important factor when deciding how much disability income?
Applicant's monthly income. (In determining how much Disability Income insurance a prospective insured should purchase, the most important factor to be considered is
the insured's monthly income
.)
What is the purpose of a guaranteed insurability rider in a disability income policy?
A guaranteed insurability rider
lets you increase the coverage on your life insurance policy without taking another medical exam
. It is also known as a guaranteed purchase option rider. You will usually pay higher premiums for a policy with this type of rider.
Which of the following definition would make it easier to qualify for total disability benefits?
Total disability is defined differently under some disability income policies.
The more liberal “own occupation”
definition of disability makes it easier to qualify for benefits.
What is the elimination period of an individual disability policy?
Your individual disability policy's elimination period — also known as the waiting period — is
the span of time between when the disability occurs and when benefits start paying out
. For example, a policy with a 60-day waiting period would not pay benefits for the first 60 days after the insured becomes disabled.
What do underwriters look for in medical records?
They will typically
check your height, weight and blood pressure, and take blood and urine samples
(which can detect nicotine and drug use, among other things). Some insurers require an EKG and/or cognitive assessment depending on your age or health.
What is the difference between underwriting and rating in healthcare?
These factors analyze your characteristics and determine the risk that you present. The first factor is underwriting. … Based on the results of the underwriting process, the rating
assigns a price based on what the insurer believes it will cost to assume the financial responsibility for
the applicant's potential claim.
Why is it called underwriting?
What Is Underwriting? … The term underwriter
originated from the practice of having each risk-taker write their name under the total amount of risk they were willing to accept for a specified premium
. Although the mechanics have changed over time, underwriting continues today as a key function in the financial world.
How does insurance help to reduce inflation?
Insurance inflation protection is a feature of some insurance policies whereby future or ongoing benefits to be paid are adjusted upward with inflation. The goal is to
ensure that the relative buying power of the dollars granted as benefits do not erode over time due to inflation
.
Whose life is covered on a payor benefit clause?
Whose life is covered on a life insurance policy that contains a payor benefit clause? A payor benefit clause is generally added to a life policy that
insures the life of a juvenile
.
What is the advantage of reinstating a policy?
The benefit of reinstating an existing policy rather than applying for a new policy is
that you'll likely pay less
. If your health hasn't changed, your insurer will honor the original pricing on your policy, Ardleigh says. If your health has changed, that could affect your rate (or your insurability).
