will have benefits if she reinstates a lapsed health policy. Her agent would be correct if he told her:
10 days for accidents and 30 days for sickness
Immediately for accidents and 10 days for sickness
Michael purchased an individual disability policy when he was an executive at BXT, Inc. Due to downsizing at BXT, Inc., Michael was laid off and so he accepted a new position at a new employer with a substantial reduction in pay. Due to an accident, Michael was disabled according to the terms of his contract. The benefit paid was more than Michael’s current salary. What is the company that issued the policy obligated to do under a relation of earnings to insurance optional provisions?
Pay the benefits that Michael bought at the time the policy was issued
Pay a reduced benefit based on Michael’s current earnings
Co-insurance is designed to control which of the following situations?
Make deductibles higher
Allow the insurance company to charge higher premiums
Raise premiums more frequently
Make the insured responsible for some of the charges to hold down claims payments
Which of the following is one of the ownership rights of an insurance contract?
Pay a claim
Change a beneficiary
Fred has purchased a cancellable policy. He should understand that:
He can keep the policy as long as he makes required premiums.
The policy may be cancelled by the insured only on the anniversary date.
The insurance company may cancel the policy at any time with proper notice and

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