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Florida 2-15 Insurance License Actual Exam Questions and Answers Already Graded A, Exams of Insurance law

Florida 2-15 Insurance License Actual Exam Questions and Answers Already Graded A

Typology: Exams

2024/2025

Available from 09/14/2024

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Download Florida 2-15 Insurance License Actual Exam Questions and Answers Already Graded A and more Exams Insurance law in PDF only on Docsity! 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. ✔✔both the insurer and the insuredcontract thatmust adhere to. Florida 2-15 Insurance License Actual Exam Questions and Answers Already Graded A Accumulation units are converted into annuity units: ✔✔at the time of annuity payout. A group life insurance plan in which the employer pays the entire premium is known as a plan. ✔✔noncontributory ✔✔FALSE Robert had an accident and qualified for Social Security disability. Given the waiting period, when will Robert begin to receive benefits? ✔✔After 5 months The Insuring Clause includes all of the following EXCEPT the ✔✔beneficiary Mutualization occurs when a stock company turns to acompany. ✔✔mutual To provide a safeguard for insureds, most major medical policies contain a feature that limits the insured's out-of-pocket expenses. ✔✔stop-loss Tom is a newly appointed life, health and variable annuity agent with Acme Insurance Agency. He is writing his first insurance policy on his brother-in- law's life. Who does Tom legally represent in this transaction? ✔✔Acme Insurance Agency An insurance clause is a distinct article in a formal document that establishes the rules in the "ACC" refers to the type of disability that prevents someone from performing the job he was performing prior to the disability. ✔✔FALSE Which statement is CORRECT about the Department of Financial Services' right to examine an agent's records? ✔✔An examination can be conducted at any time to discover any unfair trade practices. Bill gives Jim a couple of tickets to a Florida Gators game to thank him for purchasing a policy. This is an example of: ✔✔rebating term insurance provides a level amount of protection for a specified period, after which the policy expires. ✔✔Level Business overhead expense (B.O.E.) insurance does not provide benefits to cover the business owner's salary. ✔✔TRUE Level, decreasing, and increasing insurance are all basic forms of insurance. ✔✔term Hospice services are covered under Medicare Part A. ✔✔TRUE Under Florida law, group health insurers must offer mental and nervous disorder insurance to policyowners. ✔✔TRUE Deductibles under a group major medical plan usually run from $250 to $500; whereas individual health plans usually run from: ✔✔$1,000 plus. Every HMO subscriber must receive a benefits package that includes a copy of the HMO contract and certificate, and: ✔✔a member's handbook. A life insurance policy will not be reinstated if it has been: ✔✔surrendered for its cash value. Which of the following is NOT a type of permanent life insurance? ✔✔Term Life The Act mandated once and for all that insurance would be regulated 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? ✔✔Indemnity Basic Medical Expense insurance limits coverage to specific types of medical care. ✔✔TRUE A group involves combining several parties into a group for the purpose of obtaining insurance. ✔✔fictitious by the states. ✔✔McCarran-Ferguson The type of annuity that provides a guaranteed rate of return is called a variable annuity. ✔✔FALSE Mathew purchased an annuity naming his wife, Cher, beneficiary. Upon Mathew's death, Cher will receive the proceeds: ✔✔taxed as ordinary income above Mathew's cost basis. Policy reserves are the intangible amounts set aside by the out of the insurer's assets at the beginning of the policy period. ✔✔insurer SIMPLE plans can be structured as an IRA or a 401(k). ✔✔TRUE A complete examination of an HMO's affairs is conducted at least: ✔✔once every five years. A portion of a mutual insurer's premiums are paid out as policy dividends and are considered: ✔✔refunds COBRA provides health benefit extensions for after employment is terminated. ✔✔18 months Which of the following expenses would NOT be covered under a Business Overhead Expense policy? ✔✔Owner's salary Complete this sentence: "Typically, the shorter the premium-paying period, the ." ✔✔higher the premium. Florida statutes require licensees to notify the Department in writing within days after a change of name, residence address, principal business street address, or mailing address. ✔✔60 Which of the following best describes the basic principal of group insurance? ✔✔It provides coverage for a number of people under a single contract. Under the surgical schedule method of a basic medical expense plan, every procedure: ✔✔is assigned a dollar amount by the insurer. Which of the following is an example of "churning?" ✔✔Replacing a policy within the same company in a deceptive or misleading manner What is the Free Look Period for annuity contracts? ✔✔14 days Using preprinted material in a sales presentation is recommended because: ✔✔such material generally has been reviewed for compliance. The Social Security payroll tax is known as tax. ✔✔FICA What is the operating objective of a stock insurance company? ✔✔To make a profit for its owners, the stockholders Most adjustable life policies are more expensive than conventional term policies or whole life policies. ✔✔TRUE HMOs reimburse their insureds for covered medical expenses. ✔✔FALSE An agreement that provides that upon a business owner's death, surviving owners will purchase the deceased's interest, often with funds from life insurance policies owned by each principal on the lives of all other principals is the: ✔✔Buy-Sell plan. In Florida, which of the following groups are eligible for group life insurance? ✔✔Typically, any type of legitimate group is eligible to purchase a group life insurance policy. In a guaranteed renewable health policy, the company may increase premiums: ✔✔only for an entire class of insureds. Under the Uniform Provisions Law, which of the following provisions are optional for a health policy? ✔✔Change of Occupation The person who has a health maintenance contract is referred to as the: ✔✔subscriber In order to qualify for Medicaid benefits, applicants must be at least age , blind or disabled, and meet other eligibility requirements. ✔✔65 Under the Unfair Trade Practices Act, claim forms must be sent to the insured within from the date a claim is reported. ✔✔15 DAYS A life insurance policy's cash value belongs to the insured. ✔✔FALSE Agents should check with to determine if the insurer they are representing is a properly authorized insurer. ✔✔the Department of Financial Services Supplemental Medical Insurance, Medicaid, and U.S. Armed Services and Veterans Insurance are all examples of what type of insurer? ✔✔Government Insurers Under the Law of Agency, an agent is the lawful representative of the: ✔✔principal Group health plans that are issued by mutual companies usually provide dividends, which are most likely to be paid if are less than anticipated. ✔✔expenses and claims costs Which of the following reimburses its insureds for covered medical expenses? ✔✔Commercial insurers Which of the following would most likely be considered a key person in a business? ✔✔An officer of the company Annuity payment amounts are based upon which of the following factors? ✔✔Starting principal, interest, and income period In regard to variable annuities, which of the following statements is FALSE? ✔✔The annuitant bears no risk. Prior to retirement, the purchaser of a variable annuity pays an agreed-upon periodic premium amount. When these periodic premiums are paid, the purchaser is credited with: ✔✔a number of accumulation units. An organization outside the members of a self-insurance group which, for a fee, processes claims, completes benefits paperwork and often analyzes claims information is known as the: ✔✔third-party administrator (TPA). Since contributions to a 403(b) tax sheltered annuity are made with before-tax dollars, distributions are ✔✔100% taxable. health insurance is issued to cover a group who may be exposed to the same risks, but the composition of the group is constantly changing. ✔✔Blanket The miscellaneous expense benefit in a basic hospital expense policy normally will cover: ✔✔hospital room and board. Florida law does not regulate retirement plans. ✔✔TRUE With regard to annuity investments by seniors, "senior consumers" are typically defined as those individuals who are age: ✔✔65 or older. If an annuitant owns 300 annuity units and receives $1,500 a month, what is the value of each annuity unit? ✔✔$5 The Free Look Period for long-term care policies is days. ✔✔30 AD&D policies make benefits payable in the form of principal sum and capital sum. ✔✔TRUE If a life insurance applicant is given a conditional receipt, what is the effective date of coverage? ✔✔The time the insurer accepts the application and issues the policy Service providers contract for and sell medical and hospital: ✔✔care services. policies are commonly used as a hedge against inflation to ward off decreased purchasing power. ✔✔Increasing term 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? ✔✔$400 An immediate annuity is designed to provide income: ✔✔Immediately. Henry has a Life with Period Certain annuity (life or ten years) in which is wife, Harriet, is beneficiary. If Henry dies after 5 years, what will Harriet receive? ✔✔Payments for the remaining five years Buy-sell agreements can only be drafted by: ✔✔an attorney. HMOs and PPOs are required under Florida law to provide members direct access to which of the following? ✔✔All - Dermatologists and chiropractors, optometrists and OB gynecologists, and podiatrists Insurance is a contract of: ✔✔utmost good faith. The Deficit Reduction Act gives governors more flexibility to design benefits that efficiently and affordably meet their states' needs. ✔✔Medicaid The health policy that always renews without an increase of premium could be identified as: ✔✔noncancelable are the two most important factors in the health insurance underwriting process. ✔✔Medical history and occupation Which of the following is TRUE about a Limited Pay Whole Life policy? ✔✔Provides level premiums limited to certain time period, less than life In Florida, a child must be at least years of age to sign a life insurance application. ✔✔15 The means that the life insurance policy along with the application represents the complete contract. ✔✔Entire Contract provision A man commits suicide 30 months after purchasing a life insurance policy and his wife is the named beneficiary. What amount will his wife receive? ✔✔The face amount of the policy Lorraine was diagnosed with breast cancer in 2005 but has been cancer free since 2006. However, she still requires follow-up care. Lorraine secured a new job in 2012. Is her In 2004, the Florida legislature addressed the special needs of senior consumers with regard to annuity investments. For instance, an agent is required to maintain records relating to such transactions for years. ✔✔five What does OASDI stand for? ✔✔Old Age, Survivors, Disability & Hospital Insurance Both supplementary and comprehensive major medical plans contain deductibles and coinsurance. ✔✔true With a Roth IRA, the contributory funds are taxed as income the contributions are made. ✔✔before Evan decides to surrender his whole life policy for a reduced paid-up policy. The cash value of his new policy will: ✔✔continue to increase The three basic levels of long-term care are ✔✔institutional care, home- based care, and community care. Which of the following risks is insurable? ✔✔Pure risks Commercial insurers operate on the method. ✔✔reimbursement Medical Expense insurance is based on a contract of reimbursement. ✔✔TRUE FIGA is the acronym for: ✔✔Florida Insurance Guaranty Association. Bob's life insurance policy cash value is $10,000 and he has paid $8,000 in premiums. He now wants to surrender the policy for its cash value. How much is considered taxable? ✔✔$2,000 cancer follow-up care considered a preexisting condition? Why? ✔✔No - Breast cancer follow- up care is prohibited from being considered a preexisting condition, unless breast cancer is found.