Illinois Health Insurance Practice Exam

Which provision is designed to reduce benefits for a more hazardous job or premiums for a less hazardous job according to the Illinois Health Insurance Practice Exam?

1. Change of Occupation

2. Misstatement of Age

3. Relation of earnings

4. Intoxicants and narcotics

The correct answer is: Change of Occupation

The provision that addresses adjustments in benefits or premiums based on the occupational hazards is the Change of Occupation provision. This is particularly significant because it reflects the risk associated with the insured's job. If an individual moves to a more dangerous profession, the insurer may lower benefits to account for the increased risk, reflecting a higher likelihood of claims. Conversely, if the insured shifts to a safer job, they may see a reduction in premiums because the lower risk typically means a decreased chance of claims being filed. This allows insurance policies to remain fair and aligned with the actual risk presented by the insured's occupational activities. The other options do not pertain to adjusting benefits or premiums based on occupational risk. Misstatement of Age relates to discrepancies in the age of the insured, which could affect the policy premium or benefits, but not directly linked to job hazards. Relation of Earnings concerns how benefits are determined by income levels, and Intoxicants and Narcotics deals with exclusions in coverage for claims related to substance use. Thus, they do not address the relationship between job hazards and insurance benefits or premiums.