Florida Health and Life Insurance State Exam Practice Part 1 2024-25. Quizs & Ans.Grade A+, Exams of Insurance law

Download Florida Health and Life Insurance State Exam Practice Part 1 2024-25. Quizs & Ans.Grade A+ and more Exams Insurance law in PDF only on Docsity! Florida Health and Life Insurance State Exam Practice Part 1 2024-2025. Questions and Correct, Verified Answers. Graded A+ A comprehensive major medical health insurance policy contains an Eligible Expenses provision which identifies the types of health care services that are covered. All of the following health care services are typically covered, EXCEPT for: - ANS$300,000 A comprehensive major medical health insurance policy contains an Eligible Expenses provision which identifies the types of health care services that are covered. All of the following health care services are typically covered, EXCEPT for: - ANSexperimental and investigative servives A licensed agent must be appointed by an insurance company to solicit insurance in Florida. The agent's license will terminate if a certain period of time elapses without being appointed. How long is this period of time? - ANS48 Months A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of the policy's face value. - ANSviatical settlement provider A life policy loan in Florida cannot charge a fixed rate of interest higher than - ANS10% A medical care provider which typically delivers health services at its own local medical facility is known as a: - ANSHMO A policy loan is made possible by which of these life insurance policy features? - ANSCash Value Provision A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the: - ANSPolicy Loan Provision A Stock insurance Company - ANSis owned exclusively by it's shareholders A stock insurance company is best defined as an incorperated company that has its capital divided into shares and is owned exclusively by its shareholders. A trustee-to- trustee transfer of rollover funds in a qualified plan allows a participant to avoid: - ANSmandatory income tax withholding on the transfer amount A whole life insurance policy endows when the: - ANSCash Value equals the death benefit According to Florida law, a Group Life insurance policy requires a minimum of how many insureds? - ANSNo Minimum According to Florida Law, in which of the following situations would a dependent handicapped child NOT be covered under a Family Health policy? - ANSThe premiums for the handicapped child are not paid According to Florida law, which of the following information does NOT need to be obtained by an agent recommending an annuity purchase? - ANSMarital Status According to Florida's rules on disclosure, a life insurance applicant is expected to be provided with - ANSA Buyer's Guide and Policy Summary According to the Time Limit of Certain Defenses provision in an Individual Health Insurance Policy, nonfraudulent misstatements first become incontestable: - ANStwo years from the date of the policy was issued Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take? - ANSReturn to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company All of the following entries are classified under the four principal areas of Florida insurance law EXCEPT - ANSan agents comission All of the following will result in the suspension of an agent's license EXCEPT - ANSacting with a fiduciary responsibility All of these are considered sources of underwriting information about an applicant, EXCEPT: - ANSRating Services An applicant's medical information recieved from the Medical Information Bureau (MIB) may be furnished to the: - ANSApplicant's physician An incomplete life insurance daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? - ANSPrimary Beneficiary. K has an Accidental Death and Dismemberment (AD&D) insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? - ANSDaughter M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect, EXCEPT: - ANSFree-look period has expired M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take? - ANSPay face amount minus the past due premium Medicare Part A and Part B do no pay for: - ANSDental Work N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15. What action will the insurer take? - ANSClaim will be denied N is covered under an individual Disability policy with a 30-day Elimination period and a monthly benefit of $500. N is totally disabled for 3 1/2 months. N's total benefit received on this claim is: - ANS$1,250 No benefits are available during the elimination period. P is a forty year old woman and would like to purchase an annuity that will provide a lifetime income stream beginning at age sixty. Which of the following did she NOT buy? - ANSAn immediate annuity P is a Major Medical policyowner who is hospitalized as a result of injuries sustained from participating in a carjacking. How will the insurer most likely handle this claim? - ANSClaim will be denied P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability? - ANSP will still recieve declared dividends P purchases a $50,000 whole life insurance policy in 2005. One of the questions on the application asks if P engages in scuba diving, to which P answers "No". The policy is then issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related accident in 2011. What will the insurer pay to P's beneficiary? - ANS$50,000 minus any outstanding policy loans Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation? - ANSPolicy was returned within the free-look period, premium will be fully refunded S has a Whole Life policy with a premium payment due soon. Which provision would keep the policy in force if S does not make the required payment and the policy has adequate cash value from which the premium payment can be made? - ANSAutomatic Policy Loan T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage as of the date of the application or medical examination, whichever is later. Assuming that T is an acceptable risk, what item is given to T? - ANSConditional Recipt A conditional recipt binds the insurer to coverage as the date of the application or medical exam, provided the proposed insured is determined to be an aceptable risk T files a claim on his Accident and Health policy after being treated for an illness. The insurance company believes that T misrepresented his actual health on the initial insurance application and is, therefore, disputing the claim's validity. The provision that limits the time period during which the company may dispute a claim's validity is called: - ANSTime lImit of certain Defenses T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert - ANSto an individual policy upon employment termination Taking receipt of premiums and holding them for the insurance company is an example of: - ANSFiduciary Responsibillity The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called a(n): - ANSInsuring Agreement The federal income tax treatment of employer- provided group Medical Expense insurance can be accurately described as: - ANSEmployee's premiums paid by the employer is tax-deductible to the employer as a business expenditure Premiums paid by an employer for an employee's coverage are deductible by the employer as a buisness expense The Florida Employee Health Care Access Act was established to make - ANSgroup health insurance available to employers with up to 50 employees The guarantee of insurability option provides a long-term care policyowner the ability to: - ANSbuy additional coverage at a later date The insurer must provide a prospective buyer with a(n) - ANSBuyer's Guide and Policy Summary The insuring Clause - ANSStates the scope and limits of the coverage The investment gains from a Universal Life Policy usually go toward: - ANSthe cash value The minimum age at which a person can sign a life insurance application is - ANS15 Years The premiums paid by an employer for his employee's group life insurance are usually considered to be: - ANSTax deductible to the employer The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond - ANS6 Months Under which of the following circumstances will the benefits under COBRA continuation coverage end? - ANSAll group health plans are terminated by the employer Upon delivery of a rated life insurance policy, the Producer must obtain each of the following, EXCEPT: - ANSSigned HIPAA disclosure Upon reaching the limiting age, a handicapped child can extend their health delives policy and collects initial premium When is a Group Health policy required to provide coverage for a newborn child? - ANSat the moment of birth When is the face amount of a Whole Life policy paid? - ANSWhen the insured dies or at the policy's maturity date, whichever happens first Which Accident and Health policy provision addresses preexisting conditions? - ANSTime Limit on Certain Defenses Which action could result in a hearing being ordered by the Department of Financial Services? - ANSPerforming insurance transactions without a license Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant? - ANSRisk Classification Which health policy clause stipulates that an insurance company must attach a copy of the application to the policy to ensure that it is part of the contract? - ANSEntire Contract Which is true concerning a Variable Life Universal Life Policy? - ANSPolicyowner controls where the investment will go and selects the amount of the premium payment Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a Disability Income policy? - ANSIssue the policy with an altered Time of Payment of Claims provision Which of the following BEST describes a short-term medical expense policy? - ANSnonrenewable Which of the following can an agent provide to help a prospective client understand and purchase the most appropriate product? - ANSBuyer's Guide Which of the following characteristics is associated with a large group disability income policy? - ANSNo medical underwritting Which of the following claims are typically excluded from Medical expense policies? - ANSIntentionally Self-Inflicted injuries Which of the following combination plans is designed to protect an insured from an unpaid mortgage balance upon premature death? - ANSJoint Life Which of the following consists of an offer, acceptance, and consideration? - ANSContract Which of the following costs would a Basic Hospital/Surgical policy likely cover? - ANSSugically removing a facial birthmark Which of the following employer tasks does a Professional Employer Organization normally handle? - ANSAdministration tasks Which of the following factors affects the amount of monthly disability benefits payable under Social Security? - ANSThe amount of benefits availible from other sources Which of the following health insurance policy provisions specifies the health care services a policy will provide? - ANSInsuring Clause Which of the following individual health insurance policies will provide the broadest protection? - ANSMajor Medical Which of the following is a standard provision of the conversion privileges in a Group Life policy? - ANSGroup Life coverage can be converted to an individual policy at regular rates on an attained-age basis Which of the following is NOT an unfair claim settlement practice? - ANSNeeding written documentation of claim details Which of the following is NOT considered rebating - ANSSharing commissions with an agent licensed in the same line of buisness Which of the following is NOT included in an annuity contract? - ANSAD&D rider Which of the following is NOT required in the Outline of Coverage for a health insurance policy? - ANSprojection of the policy's future costs Which of the following phrases refers to the fees charged by a healthcare professional? - ANSUsual, customary, and reasonable expenses Which of the following provisions is NOT required in HMO contracts/certificates? - ANSSeven-day Grace Period Which of the following situations does NOT apply to the Florida Replacement Rule? - ANSAn existing policyholder purchases an additional policy from the same insurer Which of the following statements about a Guaranteed Renewable Health Insurance policy is CORRECT? - ANSPremiums normally increase at the time of renewal Which of the following statements BEST describes dental care indemnity coverage? - ANSServices are reimbursed after insurer receives the invoice Which of the following statements is CORRECT about the period in which a Term Policy can be converted? - ANSIt varies according to contracts Which of the following statements is true about most Blue Cross/Blue Shield organizations? - ANSThey are non-profit organizations Which of the following statements regarding a Tax Sheltered Annuity (TSA) is INCORRECT? - ANSthe income from the TSA is recieved tax-free Which of the following types of policies pays a benefit if the insured goes blind? - ANSAD&D Which of these is considered a mandatory provision? - ANSPayment of Claims Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance? - ANSEntire cash surrender value is taxable Which of these would be considered a Limited-Pay Life policy? - ANSLife Paid-Up at age 70 Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company? - ANSannuity Which requirement must be met for an association to be eligible for a group life plan? - ANSGroup was formed for a purpose other than acquiring insurance Which statement is TRUE in regards to a policy loan? - ANSPast-due interest on a policy loan is added to the total debt Which type of policy would pay an employee's salary if the employer was injured in a bicycle accident and out of work for six weeks? - ANSBuisness Overhead Expense Which type of renewability best describes a Disability Income policy that covers an individual until the age of 65, but the insurer has the right to change the premium rate for the overall risk class? - ANSGarunteed Renewable Which Unfair Trade Practice involves making a false statement on an insurance application in order to