2024 FLORIDA 2-15 INSURANCE LICENSE EXAM LATEST 2024 ACTUAL EXAM QUESTIONS AND CORRECT DET, Exams of Nursing

Download 2024 FLORIDA 2-15 INSURANCE LICENSE EXAM LATEST 2024 ACTUAL EXAM QUESTIONS AND CORRECT DET and more Exams Nursing in PDF only on Docsity! 2024 FLORIDA 2-15 INSURANCE LICENSE EXAM LATEST 2024 ACTUAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS (100% VERIFIED ANSWERS) LATEST UPDATES 2024 |GUARANTEED PASS A+ NEW!! (REVISED EXAM) ____ health plans are designed to help the insured pay off a loan in the event he or she is disabled due to an accident or sickness. - ANSWER>>Credit accident All statements made on an application are considered ____ because there can be no guarantee that they are true. - ANSWER>>Representations Group health Plans that are issued by mutual companies usually: - ANSWER>>Provide for dividens With a Roth IRA, the contributory funds are taxed as income ____ the contributions are made. - ANSWER>>Before Which of the following does NOT describe one of the ways in which insurable interest can be established? - ANSWER>>Sympathy for a neighbor Medicare was approved in: - ANSWER>>The 1960's Protection against the unintentional lapse of a life insurance policy is afforded through what means? - ANSWER>>Automatic Loan Provision Annuity payment amounts are based upon which of the following factors? - ANSWER>>Starting principal, interest, and income period The Statue of Limitations states that if a lawsuit is to be filed, it must be brought within 5 years after Proof of Loss is furnished to the insurance company. - ANSWER>>Five "Capitation" as used by HMOs means: - ANSWER>>The mount an HMO pays to a physician or provider in exchange for a rendered medical services. Accumulation units are converted into annuity units: - ANSWER>>At the time of annuity payout Florida's Replacement Rule sets forth the requirements and procedures to be followed by the insurance companies and insurance producers when a proposal is being made to a client who plans to replace an existing life insurance contract with: - ANSWER>>A proposed new life insurance policy The ____ annuity option provides a guaranteed income to the annuitant for life and if the insured dies prematurely, the balance of the principal is paid out in a lump sum to the annuitant's beneficiary. - ANSWER>>Cash refund Group AD&D plans normally do not contain conversion privilege's. - ANSWER>>TRUE An objective of the NAIC is to: - ANSWER>>Encourage uniformity in state insurance laws and regulations. level, decreasing, and increasing insurance are all basic forms of ____ insurance. - ANSWER>>Term In a disability insurance policy, the definition of total disability: - ANSWER>>Varies depending upon the insurer In a disability income policy, the waiver of premium rider will allow the insured to cease paying policy premiums once the insured has been totally disabled for a typical period of: - ANSWER>>3-6 Months Carl purchased a tax deferred annuity when he was 40 years old. At what age must distributions begin? - ANSWER>>No distribution age limit applies to annuities The general powers and duties of the office of Insurance regulation include all of the following EXCEPT: - ANSWER>>The enactment of statues to govern the insurance industry. All of the following characteristics of group health insurance plans EXCEPT: - ANSWER>>The parties to a group health contract are the employer and the employees. Health insurance policies and HMO contracts are required to provide coverage for which of the following services used to treat diabetes when the patient's physician certifies that they are medically necessary - ANSWER>>Equipment, supplies, and self-management training and education services Qualified plans under ERISA cannot sell health insurance to: - ANSWER>>The general public Mutual Insurers are owned by stockholders and stock insurers are owned by policyholders. - ANSWER>>FALSE What alternative does the insurer have if it has discovered that the insured misstated his age on the application? - ANSWER>>Pay the benefit amount that the paid premiums would have purchased at the correct age. The NAIC Model Provision Law contains ____ mandatory provisions - ANSWER>>12 The Social Security Administration defines disability as: - ANSWER>>The inability to engage in any substantial gainful work If a mutual insurer's participating policy pays dividends, these dividends can be calculated and guaranteed to be a certain amount. - ANSWER>>FALSE To remain in compliance and maintain their licensure, all agents are required to fulfill continuing education requirements of ____ every two years in basic or higher-level courses approved by the Department. - ANSWER>>24 hours Mrs. Smith became eligible for Medicare on April 1st. She went to her doctor on May 1st anbd was hospitalized May 5th. On May 8th she had surgery. On what date did her Medicare Part A claim begin? - ANSWER>>May 5th Risk Retention Groups (RRGs) are a form of ____ insurer. - ANSWER>>Mutual "Corporations" can be publicly-held or closely-held. - ANSWER>>TRUE In addition to mortality, interest and expenses, mathematicians use ____ other principal factors in calculating premium rates. - ANSWER>>Five (age, sex, health condition, occupation or avocation, and habits) Medicare Part ____ provides hospital coverage. - ANSWER>>A Once insurable interest has beem established, and the process of evaluating all og the information and applying it against the insurer's standards and guidelines has been accomplished, ____ can be established. - ANSWER>>Premium rates The operating objective of mutual insurance company is to: - ANSWER>>Provide insurance to its owners (the policyholders) at the lowest possible net cost. Aiding and abetting an unauthorized insurer can result in a ____ conviction for the first violation. - ANSWER>>Third-degree felony Even with the incontestable clause in a life insurance policy, if an insurer finds that the purchased policy was fraudulent, the insurer can void the contract. - ANSWER>>The policy cannot be voided after the two year (or policy-defined) period. Mutualization occurs when a stock company turns to a ___ company. - ANSWER>>Mutual What type of insurance is most frequently used in group life plans? - ANSWER>>Annual renewable Term When a stock insurer issues both participation and nonparticipating policies, it is referred to as a company doing business on a ____ plan. - ANSWER>>Mixed the ____ determines the life insurance policy's beneficiary. - ANSWER>>Policyowner To provide a safeguard for insureds, most major medical policies contain a ____ feature that limits the insured's out-of-pocket expenses. - ANSWER>>Stop-loss A medical expense policy states that it will pay a flat $200 a day for each day of hospitalization. The policy pays benefits on what basis. - ANSWER>>Indemnity Medicare Part ____ provides medical coverage. - ANSWER>>Part B Diverting insurance funds for personal use is an example of: - ANSWER>>Misuse of premiums The Civil Rights Act of 1979 made it mandatory that group insurance provide maternity benefits if an insured group consists of ____ or more participants. - ANSWER>>15 A ____ group involves combining several parties into a group for the purpose of obtaining insurance. - ANSWER>>Fictitious NAIC policy provision states that health policy participants have ____ in which to file proof of loss, if reasonable possible. - ANSWER>>90 days The term "physician" or "medical doctor" when used in a health insurance policy includes dentists. - ANSWER>>TRUE Defamation of character includes both libel(written) and slander(spoken) of a person. - ANSWER>>TRUE All of the following are similarities shared by variable annuities, EXCEPT: - ANSWER>>The annuitant bears investment risks Terms and coverages available under group health policies are generally ____ than individual health policies. - ANSWER>>More liberal The actual number of annuity units in variable annuity contract is determined by the current value of one unit relative to the amount of: - ANSWER>>Premiums paid Medicare patients have a lifetime reserve of ____ days of hospital coverage - ANSWER>>60 As inflation increases, the life insurance cost of living rider (COLA) provides that the value of the policy: - ANSWER>>Increases Replacing existing life insurance with a new life insurance policy based upon incomplete or incorrect representation is referred to as: - ANSWER>>Twisting Roger is an insured surgeon who lost his hand in an auto accident and is unable to perform surgery. In order for disability insurance to provide coverage, the policy would have to define the status of Roger's disability as: - ANSWER>>Own Occupation (occ) ____ is one of the most effective ways of transferring risk. - ANSWER>>Purchasing insurance According to the NAIC Uniform Policy Provision Law, the "Time Limit on certain Defenses" clause is akin to which of the following in life insurance policies? - ANSWER>>The Incontestability Clause There are no cash values in ____ insurance. - ANSWER>>Term Which of the following types of insurance contracts are NOT considered values contracts? - ANSWER>>Medical expense plans Group health plans that are issued on an experience-rated basis can make both premium reductions and premium increases retroactive for 12 months. - ANSWER>>FALSE Every HMO subscriber must receive a benefits package that includes a copy of the HMO contract and certificate, and: - ANSWER>>A member's handbook Prior to retirement, the purchaser of variable annuity pays an agreed-upon periodic premium amount. When these periodic premiums are paid, the purchaser is credited with: - ANSWER>>A number of accumulation units Which of the following reimburses its insured for covered medical expenses? - ANSWER>>Commercial Insurers Medicare is funded through a portion of: - ANSWER>>FICA payroll taxes Which of the following statements regarding morbidity tables is CORRECT? - ANSWER>>They indicate the average number of individuals from a given group who will become disabled. Knowingly making, issuing, or circulating any estimate, illustration, circular statement, sales presentation, omission, or comparison which incorrectly represents any facet of an insurance policy is called: - ANSWER>>Misrepresentation Uber Florida's Mini-COBRA regulations, employers are required to provide their employees a continuation of their group health coverage at: - ANSWER>>A cost not to exceed 115% of the regular group rate. Equity indexed annuities are a form of: - ANSWER>>Fixed rate annuity ____ insurance is issued to cover a group who may be exposed to the same risks, but the composition of the group is constantly changing. - ANSWER>>Blanket The ____ bears the investment risk in a fixed annuity. - ANSWER>>Insurer Which of the following health insurance policy provisions defines a specific period in which an insured remains covered by the policy even though the insured has not paid the premium due yet? - ANSWER>>Grace Period Florida law requires minimum grace periods of ____ days for health policies with premiums payable monthy. - ANSWER>>10 In what way is an equity-indexed annuity different from other fixed annuities? - ANSWER>>Because of the way it credits interest to the annuity's value. Which organization regulates the separate account in variable insurance products? - ANSWER>>The SEC On medical reimbursement plan, the policyowner is the: - ANSWER>>Beneficiary The Office of Insurance Regulation conducts examinations of insurance company financial and operational situations at least: - ANSWER>>Once every 3 years An insurance agent is required to have ____ for recommending an annuity transaction to a senior consumer. - ANSWER>>An objectively reasonable basis Solicitation or inducement to purchase insurance begins the process of: - ANSWER>>The insurance Contract Who is responsible for notifying the original insurer that a replacement policy may be issued? - ANSWER>>The replacing agent The basic risk insured against by purchasing a life insurance contract is ____ whereas the basic risk insured against by an annuity contract is ____. - ANSWER>>The risk of dying too soon; the risk of living too long Boob and Ted both have disability income policies. Bob's policy provides a 15 day elimination period and a 10 year benefit period. Ted's policy provides a 30 day elimination period and a 7 year benefit period. Who pays higher permiums? - ANSWER>>Bob Which of the following is an example of "churning?" - ANSWER>>Replacing a policy within the same company in a deceptive or misleading manner Which organization regulates the separate account in variable annuities? - ANSWER>>The SEC What type of life insurance refers to temporary coverage for a specific hazard for a specific group? - ANSWER>>Blanket insurance Policies The exclusion ratio is always considered 100% in ____ annuities. - ANSWER>>Variable A personal attack on a person's good name, character, or reputation is known as: - ANSWER>>Defamation Florida Law does not limit the number or percentage of employees required to participate in order to qualify for group health insurance. - ANSWER>>TRUE Who regulates retirement plans in Florida? - ANSWER>>ERISA The purpose of Florida's Health Maintenance Organization Act is to: - ANSWER>>Increase efficiency and economy in the delivery of healthcare. ____ is when a mutual company turns to a stock company. - ANSWER>>Demutualization Ray's Medical coverage calls for a $500 deductible, followed by an 80/20 coinsurance on the next $5,000 in covered expenses. Ray's hospital and surgical bills amounted to $20,000. What is Ray's maximum out-of-pocket expenditure? - ANSWER>>$1,500 When it comes to hospital expenses, a medical indemnity plan pays: - ANSWER>>Aa fixed amount per day of hospitalization Which of the following is NOT one of the basic forms of health insurance coverage? - ANSWER>>Surgical expense insurance An HMO is an insurance policy. - ANSWER>>FALSE An agent engaged in churning as a result of fraudulent conduct is subject to a fine of ____ for each willful violation. (2012) - ANSWER>>$50,000 Where do the figures showing the amount of a life insurance company's legal reserves appear on its balance sheet? - ANSWER>>As a liability COBRA provides health benefit extensions for ____ after employment is terminated. - ANSWER>>18 months Joan's insurance agent, Tim, has offered her a $100 dinner gift certificate if Joan purchases a life insurance policy from Tim. Tim has violated ethical sales practices by: - ANSWER>>Rebating ____ policies are commonly used as a hedge against inflation to ward off decreased purchasing power. - ANSWER>>Increasing term The purpose of social security is to provide a meaningful standard of living as a person ages. - ANSWER>>FALSE Morbidity tables indicate the average number of individuals from a given group who will become disabled. - ANSWER>>TRUE When might a Statement of Continued Good Health be required regarding a life insurance policy? - ANSWER>>When there is no premium accompanying the application Life insurance is concerned with creating an estate, whereas annuities are concerned with: - ANSWER>>Liquidating an estate Which of the following best describes the true value of insurance? "The true value of insurance lies in its ability to protect ____." - ANSWER>>Human life values What is the Free Look Period for annuity contacts? - ANSWER>>14 days Which of the following life policies do NOT allow partial surrenders? - ANSWER>>Both Whole Life and Variable Life In order for the Social Security 40-quarter rule to apply, an individual must have been employed and paid FICA taxes for at least ____ years - ANSWER>>Ten COBRA coverage is considered continuous: - ANSWER>>Group health coverage Which of the following characteristics are associated with a disability buy-out plan? - ANSWER>>A lengthy elimination period Should a policyowner get into a situation in which he/she cannot continue to make the required premium payments, ____ options can be utilized. - ANSWER>>Nonforfeiture Each Social Security credit equals ____ annual FICA taxed earnings in 2012. - ANSWER>>$1,130 What type of annuity settlement would best be used to distribute funds from the settlement of large sums of money (such as with lawsuits and lotteries) - ANSWER>>A structured settlement annuity The disability income insurance cost of living rider (COLA) is relatively: - ANSWER>>Expensive Mary received a large amount of funds and wants to invest most of the funds to ensure future retirement income. Which of the following annuities would be her best purchase? - ANSWER>>A Deferred annuity If a disabled worker covered under Social Security disability benefits recovers and then is disabled again within five years, a new waiting period is required before benefits begin again. - ANSWER>>FALSE Endowment insurance provides security and creates an asset called: - ANSWER>>Cash value The MIB's main purpose is to: - ANSWER>>Be a reliable source of medical information Mass marketing involves exposures to large groups of people through such methods as advertisement, commercials, mass mailouts, etc. ____ is/are not involved in this process of selling. - ANSWER>>Licensed agents Retirement plans that meet federal government approval and receive tax benefits are known as ____ plans. - ANSWER>>Qualified A serious condition that, with proper medical treatment, the patient should receive full recovery is known as ____ illness. - ANSWER>>Acute The roots of life insurance lie in economics and the concept: - ANSWER>>Human life value Pure risk involves only the chance of loss. - ANSWER>>TRUE Discounting a person's future net earnings at a reasonable rate of interest is known as the ____ approach. - ANSWER>>Human life value Tom's life policy cash value is $15,000 and he has paid $7,000 ion premiums. He now wants to surrender the policy for its cash value. How much is considered nontaxable? - ANSWER>>$7,000 Agents should check with ____ to determine if the insurer they are representing is a properly authorized insurer. - ANSWER>>The Department of Financial Services changing one's lifestyle to minimize a known risk is an example of what type of risk? - ANSWER>>Risk reduction Which of the following is NOT considered a "valued contact?" - ANSWER>>Medical expense insurance contract According to agent ethics, it is recommended that agents meet with their clients ____ and complete a review. - ANSWER>>Annually An employer who is a member of an MET is issued a ____ detailing the relationship between the trust and the employer and the coverages the employer has chosen to offer its employees. - ANSWER>>Joinder agreement SIMPLE plans can be structured as an IRA or a 401 (k) - ANSWER>>TRUE Rob died in a car accident and his wife, jean survived. Their annuity was purchased to provide income for two people. Jeans annuity income will now provide her with two-thirds of the original payments. Which annuity payout method did they choose? - ANSWER>>Joint and Two- thirds Survivor Name the three basic categories of coverage upon which the life insurance world revolves. - ANSWER>>Ordinary, Industrial, and Group Not only do ____ Life policies build cash value, they also mature at age 100 at which time benefits are mandated to be paid. - ANSWER>>Whole When it comes to hospital expenses in a Medical Reimbursement plan, the policyowner is the beneficiary and expenses are: - ANSWER>>Reimbursed for actual loss incurred Drug addiction is an example of a ____ hazard. - ANSWER>>Moral At the time of annuity presentation, the client must be given a ____ which provides full and fair disclosure on the nature and purpose of the plan and the risks involved. - ANSWER>>Prospectus A person's attitude or state of mind can create what type of hazard? - ANSWER>>Morale The Insurance Code sets forth ____ penalties for individuals who knowingly make a fraudulent application for a license. - ANSWER>>Misdemeanor Which type of life insurance is sold by home services insurers? - ANSWER>>Industrial life insurance Endowment policies are payable at the death of the insured or on a specific maturity date, whichever comes first. - ANSWER>>TRUE Stock and mutual companies can write ____ insurance. - ANSWER>>All- Life, health, and property and casualty A person cannot consider disability income expenses tax deductible unless the amount exceeds: - ANSWER>>7.5% "ACC" refers to the type pf disability that prevents someone from performing the job he was performing prior to the disability. - ANSWER>>FALSE The ____ are laws passed by state legislatures to regulate the behavior of insurance companies with respect to the payment of claims. - ANSWER>>Unfair Claims Settlement Practice Act When a policyowner surrenders his whole life policy for its cash value, he can receive an amount equal to the premiums paid into the policy tax-free - ANSWER>>TRUE Reserve funds that represent the insurer's liability for losses that have occurred, but for which settlement is not yet completed are called ____ reserve funds. - ANSWER>>Loss which annuity payout option provides guaranteed payments for a certain period of time and if the annuitant dies before the period has expired, the policy pays the beneficiary through the remainder of the period? - ANSWER>>Period CertainOption Which type of insurer insures groups of individuals who are of the same class? - ANSWER>>Risk Retention Groups Which of the following are considered eligible association groups for life and health insurance? - ANSWER>>Fraternal benefit societies, the Salvation Army, or local churches Which of the following is NOT considered one of the three basic parts of a life insurance contract? - ANSWER>>Security report Social security provides welfare benefits to all citizens. - ANSWER>>FALSE The ____ may take cash surrender on an annuity. - ANSWER>>Contract Owner The NAIC Model Provision Law contains ____ optional provisions. - ANSWER>>11 In risk classification, a "higher than average risk" is given a _____________ rate. - ANSWER>>Substandard Participation, coverage, vesting, funding and contributions are basic requirement categories retirement plans must fulfill in order to be approved by the ____ for favorable tax treatment. - ANSWER>>Internal Revenue Service The normal amount of income that can be replaced by a long-term disability policy is: - ANSWER>>60% once an organization has filed an application to conduct insurance business, the Office of Insurance regulations will begin it's review for issuing a(n): - ANSWER>>Certificate of Authority Most individual insurance policies are written on a ____ basis. - ANSWER>>Nonparticipating The ____ is the dollar amount an insured is required to pay before the health insurance benefits kick in. - ANSWER>>Deductible Both supplementary and comprehensive major medical plans contain deductibles and coinsurance. - ANSWER>>TRUE Agents must secure company approval prior to the use of any advertisement not furnished by the insurer. - ANSWER>>TRUE Policy reserves are the intangible amounts set aside by the ____ out of the insurer's assets at the beginning of the policy period - ANSWER>>Insurer When a permanent life insurance policy is borrowed against under the policy loan provision, Florida law restricts the insurance company from charging a fixed rate higher than ____ annually. - ANSWER>>10% Florida law prohibits individual health policies (other then disability income) from excluding coverage for a preexisting condition for longer than 24 months for a condition that had manifested 24 months prior to coverage. - ANSWER>>24 Medical expense policies must provide payment to an optometrist or podiatrist for those procedures that are specified in the policy. - ANSWER>>TRUE The ____ insurer is licensed and practicing in the same state in which they are incorporated. - ANSWER>>Domestic Major medical insurance can work either as a supplement to a basic plan or as a comprehensive stand-alone plan providing ____ coverage. - ANSWER>>More extensive Which of the following statements accurately defines Unfair Discrimination? - ANSWER>>Showing any type of partiality to individuals in regard to their premiums and benefits ____ requires the policyowner to benefit from the insured's continued existence or the insured's enjoyment of good health; or to suffer a loss when the insured dies or is disabled. - ANSWER>>Insurable interest A Waiver of Premium rider is usually included with guaranteed renewable and noncancelable individual disability income policies. - ANSWER>>TRUE The ____ designation means that the beneficiary cannot be changed without the named beneficiary's permission. - ANSWER>>Irrevocable Under what circumstances can an insurer deny coverage to a firearm owner? - ANSWER>>Never Cliff vesting means that an employee must have ____ of service before becoming 100% vested. - ANSWER>>Five years Under the Joint and One-Half Survivor option, annuity payments to the survivor are reduced to one-half of the original joint income. - ANSWER>>TRUE John died at age 65 leaving his wife, Joan age 59 the proceeds of a $100,000 life insurance policy. If Joan decides to take a lump sum settlement in cash, what taxes are due? - ANSWER>>Zero Evan decides to surrender his whole life policy for a reduced paid-up policy. The cash value of his new policy will: - ANSWER>>Continue to increase Group health plans that are issued by stock companies frequently: - ANSWER>>Issue experience-rated plans A term life insurance policy's cash value builds during a specifically limited period of time. - ANSWER>>FALSE ____ is when a stock company turns to a mutual company - ANSWER>>Mutualization Which of the followin is NOT true regarding Medicare supplement (Medigap) policies? - ANSWER>>Medigap policies can be sold to anyone. The minimum number of persons to be insured under a group health insurance plan is established by: - ANSWER>>Sate law In health insurance policy underwriting, the three most important factors are: - ANSWER>>Moral hazards, occupation, and physical condition Speculative risk involves the chance of loss and gain. - ANSWER>>TRUE Which of the following is NOT involved in a product presentation? - ANSWER>>Credit report When does a tertiary beneficiary collect? - ANSWER>>When the primary and secondary beneficiaries predecease the insured. Most new life insurance policies are purchased by ____ from life insurance agents. - ANSWER>>Individuals According to medical cost management principles, mandatory second opinions are not necessary before an insured undergoes any nonlife-threatening surgery. - ANSWER>>FALSE In a reciprocal insurer structure, each policyholder insures the risk of: - ANSWER>>The other policyholders Road rage is an example of what type of hazard? - ANSWER>>Morale By most insurer's definitions, "partial disability" is the: - ANSWER>>Inability of the insured to perform certain important duties of his/her job. Under the surgical schedule method of basic medical expense plan, every procedure: - ANSWER>>Is assigned a dollar amount by the insurer. Reciprocal insurers are owned by: - ANSWER>>Policyholders Serious problems of misrepresentation are most likely to occur during which phase of the selling process? - ANSWER>>The presentation of recommendations ____ is defined as "limiting sales to a specific group in which you have a vested interest." - ANSWER>>Controlled business the key factor behind ERISA's development was to encourage employers to establish employee health plans allowing them to self-insure. - ANSWER>>TRUE As pertains to group health insurance, COBRA stipulates that: - ANSWER>>Group coverage must be extended for terminated employees up to a certain period of time at the employee's expense. The determination of disability for Social Security purposed is usually made by: - ANSWER>>A government agency Toni decides to take a special vacation on her 40th birthday and withdraws $4,000 from her IRA. What penalty will she be subject to on the amount withdrawn? - ANSWER>>$400 Generally, the more liberal the process is for renewing a health insurance policy, the _____ the premiums are going to be. - ANSWER>>Higher In order for a 1035 Exchange to take place, the exchange must be with the same company that issued the original policy. - ANSWER>>FALSE Which of the following is a Nonforfeiture Option that provides continuing cash value buildup? - ANSWER>>Reduced Paid-up Most adjustable life policies are more expensive than conventional term policies or whole life policies. - ANSWER>>TRUE FAIFA is the acronym for: - ANSWER>>Florida Association of Insurance and Financial Advisors. __________ is when policy values of an insurance policy are used to purchase another policy with the same insurer for the sole purpose of earning additional premiums or commissions. - ANSWER>>Churning When the policyowner can change the policy's beneficiary at will, the beneficiary designation is: - ANSWER>>Revocable Hospice care is provided under Medicare Part: - ANSWER>>A Who governs Workers' Compensation laws? - ANSWER>>Individual state governments According to Florida law, all group life policies must contain a conversion provision which allows the covered individual _______ to convert the group coverage to an individual plan without evidence of insurability if their employment is terminated. - ANSWER>>31 days What type of buy-sell plan enables each partner to purchase policies on the other partners? - ANSWER>>Cross-Purchase plan In Florida, a child must be at least ____ years of age to sign a life insurance application. - ANSWER>>15 If a policy is transferred under an absolute assignment, the assignee cannot change the irrevocable beneficiary without: - ANSWER>>The beneficiary's permission In a guaranteed renewable health policy, the company may increase premiums: - ANSWER>>Only for an entire class of insureds How is a policy loan repaid if the policy pays a death claim? - ANSWER>>The loan plus any interest due is deducted from the death benefit. The Medicare "benefit period" begins the _________ day of hospitalization. - ANSWER>>First The surrender values are __________ for a participating life insurance policy and a nonparticipating life insurance policy. - ANSWER>>Generally the same Mac decides to install a burglar alarm in his residence. What type of risk classification would this be? - ANSWER>>Risk reduction On the whole, federal employees hired before 1984 who are covered by Civil Service Retirement or another similar pension plan are not eligible for Social Security benefits. - ANSWER>>TRUE Family Income and Family Maintenance contracts both utilize a ____________ as the base, with a __________ rider. - ANSWER>>Whole life policy, term insurance In Florida, which of the following groups are eligible for group life insurance? - ANSWER>>Typically, any type of legitimate group is eligible to purchase a group life insurance policy. All of the following are characteristics of group health insurance plans EXCEPT: - ANSWER>>The parties to a group health contract are the employer and the employees. Section 1035 Exchanges are a way to move annuity funds: - ANSWER>>Income tax free When health care is provided first and then charges are submitted to the insurer, it is referred to as: - ANSWER>>The reimbursement approach In 2012, for family coverage, an HSA qualified high-deductible health plan is one with a minimum deductible of ________ . - ANSWER>>$2,400 With the Joint and Full Survivor annuity option, if one dies: - ANSWER>>The same income payments continue to the survivor for life Which of the following is NOT a responsibility of the Department of Financial Services? - ANSWER>>Direct rate regulation applicable to life insurance If health savings account (HSA) funds are used for any other purpose than medically authorized, they become taxable and subject to a ______ penalty fee - ANSWER>>10% Which answer below best describes the true effective date of a policy? - ANSWER>>The date the insurer accepts an offer by the applicant as written Mutual Insurers are owned by stockholders and stock insurers are owned by policyholders. - ANSWER>>FALSE Medical expense insurance is a contract of: - ANSWER>>Reimbursement Violation of the Unfair Trade Practices Act can result in license suspension, probation, revocation, fines up to __________ or even imprisonment. - ANSWER>>$200,000