Florida Health and Life Insurance State Exam Practice Part 1 Questions, Exams of Nursing

Download Florida Health and Life Insurance State Exam Practice Part 1 Questions and more Exams Nursing in PDF only on Docsity! Florida Health and Life Insurance State Exam Practice Part 1 Questions Which Accident and Health policy provision addresses preexisting conditions? - Correct Answers ✅Time Limit on Certain Defenses Which of the following individual health insurance policies will provide the broadest protection? - Correct Answers ✅Major Medical Which of the following situations does NOT apply to the Florida Replacement Rule? - Correct Answers ✅An existing policyholder purchases an additional policy from the same insurer 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? - Correct Answers ✅Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company Under which of the following circumstances will the benefits under COBRA continuation coverage end? - Correct Answers ✅All group health plans are terminated by the employer Which type of renewability best describes a Disability Income policy that covers an individual until the age of 65, but the insurer has the Florida Health and Life Insurance State Exam Practice Part 1 Questions right to change the premium rate for the overall risk class? - Correct Answers ✅Garunteed Renewable An incomplete life insurance application submitted to an insurer will result in which of these actions? - Correct Answers ✅Application will be returned to the writting agent The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond - Correct Answers ✅6 Months Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance? - Correct Answers ✅Entire cash surrender value is taxable Which of these is considered a mandatory provision? - Correct Answers ✅Payment of Claims 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? - Correct Answers ✅Issue the policy with an altered Time of Payment of Claims provision Florida Health and Life Insurance State Exam Practice Part 1 Questions A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the: - Correct Answers ✅Policy Loan Provision Medicare Part A and Part B do no pay for: - Correct Answers ✅Dental Work When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take? - Correct Answers ✅Void the policy only if it is discovered during the Contestable period and proven to be material The insuring Clause - Correct Answers ✅States the scope and limits of the coverage An applicant's medical information recieved from the Medical Information Bureau (MIB) may be furnished to the: - Correct Answers ✅Applicant's physician 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? - Correct Answers ✅Daughter Florida Health and Life Insurance State Exam Practice Part 1 Questions K has a life 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? - Correct Answers ✅Primary Beneficiary. Which of the following is NOT considered rebating - Correct Answers ✅Sharing commissions with an agent licensed in the same line of buisness Which of the following employer tasks does a Professional Employer Organization normally handle? - Correct Answers ✅Administration tasks What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time? - Correct Answers ✅Decreasing Term Which action could result in a hearing being ordered by the Department of Financial Services? - Correct Answers ✅Performing insurance transactions without a license Florida Health and Life Insurance State Exam Practice Part 1 Questions What kind of special need would a policyowner require with an Adjustable Life insurance policy? - Correct Answers ✅Flexible Premiums The premiums paid by an employer for his employee's group life insurance are usually considered to be: - Correct Answers ✅Tax deductible to the employer Which of the following consists of an offer, acceptance, and consideration? - Correct Answers ✅Contract Which of the following statements is true about most Blue Cross/Blue Shield organizations? - Correct Answers ✅They are non-profit organizations Upon delivery of a rated life insurance policy, the Producer must obtain each of the following, EXCEPT: - Correct Answers ✅Signed HIPAA disclosure Which of the following characteristics is associated with a large group disability income policy? - Correct Answers ✅No medical underwritting Florida Health and Life Insurance State Exam Practice Part 1 Questions If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have? - Correct Answers ✅contributory What do families pay that are covered by the Florida Healthy Kids Corporation? - Correct Answers ✅A Portion of the premium 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: - Correct Answers ✅experimental and investigative servives 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: - Correct Answers ✅$300,000 G is involved in an automobile accident as a result of driving while intoxicated and suffers numerous injuries. According to the Intoxicants and Narcotics exclusion in G's policy, who is responsible for paying the medical bills? - Correct Answers ✅The insured The minimum age at which a person can sign a life insurance application is - Correct Answers ✅15 Years Florida Health and Life Insurance State Exam Practice Part 1 Questions Which of these would be considered a Limited-Pay Life policy? - Correct Answers ✅Life Paid-Up at age 70 J owns a business and has a Group Life policy covering her employees. J decides to cancel the policy by letting it lapse on the renewal date. What action must be taken? - Correct Answers ✅All of the employees must be notified of the cancellation either by the insurance company or through J Which of the following provisions is NOT required in HMO contracts/certificates? - Correct Answers ✅Seven-day Grace Period J is an agent who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of? - Correct Answers ✅Twisting The unfair trade practice of replacing an insurance policy from one insurer to another based on misrepresentation Which of the following statements about a Guaranteed Renewable Health Insurance policy is CORRECT? - Correct Answers ✅Premiums normally increase at the time of renewal Florida Health and Life Insurance State Exam Practice Part 1 Questions 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? - Correct Answers ✅Pay face amount minus the past due premium Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company? - Correct Answers ✅annuity Which of the following factors affects the amount of monthly disability benefits payable under Social Security? - Correct Answers ✅The amount of benefits availible from other sources Which of the following statements regarding a Tax Sheltered Annuity (TSA) is INCORRECT? - Correct Answers ✅the income from the TSA is recieved tax-free 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: - Correct Answers ✅Free-look period has expired W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the company discovered W's true age at issue had been 59. What would the normal procedure be under the Florida Health and Life Insurance State Exam Practice Part 1 Questions The elimination period of the time between the onset of a disability, and the time you are eligibe for benefits. It is best thought of as a deductible period for your policy. After a 30-Day Elimination period, Z will become eligible for recieving benefits on March 1. When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? - Correct Answers ✅at future dates specifies in the contrac with no evidence of insurability required Which is true concerning a Variable Life Universal Life Policy? - Correct Answers ✅Policyowner controls where the investment will go and selects the amount of the premium payment A whole life insurance policy endows when the: - Correct Answers ✅Cash Value equals the death benefit Health insurance benefits NOT covered due to an act of war are: - Correct Answers ✅excluded by the insurer in the contract provisions When applied to Whole Life insurance, the word "straight" denotes: - Correct Answers ✅the duration of premium payments Florida Health and Life Insurance State Exam Practice Part 1 Questions Which statement is TRUE in regards to a policy loan? - Correct Answers ✅Past-due interest on a policy loan is added to the total debt WHat is the purpose of the U.S.A. Patriot Act? - Correct Answers ✅detect and deter terrorism The insurer must provide a prospective buyer with a(n) - Correct Answers ✅Buyer's Guide and Policy Summary 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): - Correct Answers ✅Insuring Agreement 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? - Correct Answers ✅Automatic Policy Loan As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of? - Correct Answers ✅Coercion Florida Health and Life Insurance State Exam Practice Part 1 Questions Which requirement must be met for an association to be eligible for a group life plan? - Correct Answers ✅Group was formed for a purpose other than acquiring insurance A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of the policy's face value. - Correct Answers ✅viatical settlement provider A life policy loan in Florida cannot charge a fixed rate of interest higher than - Correct Answers ✅10% Which of the following combination plans is designed to protect an insured from an unpaid mortgage balance upon premature death? - Correct Answers ✅Joint Life When is the face amount of a Whole Life policy paid? - Correct Answers ✅When the insured dies or at the policy's maturity date, whichever happens first According to Florida's rules on disclosure, a life insurance applicant is expected to be provided with - Correct Answers ✅A Buyer's Guide and Policy Summary Florida Health and Life Insurance State Exam Practice Part 1 Questions All of the following will result in the suspension of an agent's license EXCEPT - Correct Answers ✅acting with a fiduciary responsibility According to the Time Limit of Certain Defenses provision in an Individual Health Insurance Policy, nonfraudulent misstatements first become incontestable: - Correct Answers ✅two years from the date of the policy was issued What does the ownership clause in a life insurance policy state? - Correct Answers ✅Who the policyowner is and what rights the policyowner is entitled to In Florida, monthly-premium health insurance policies must provide a grace period of at least - Correct Answers ✅10 days Florida's 14-day free-look period for life insurance policies begins at the - Correct Answers ✅date of delivery P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability? - Correct Answers ✅P will still recieve declared dividends What is the main reason for regulating the insurance industry? - Correct Answers ✅maintain solvency of insurance companies Florida Health and Life Insurance State Exam Practice Part 1 Questions A trustee-to-trustee transfer of rollover funds in a qualified plan allows a participant to avoid: - Correct Answers ✅mandatory income tax withholding on the transfer amount Which of the following is NOT an unfair claim settlement practice? - Correct Answers ✅Needing written documentation of claim details Which Unfair Trade Practice involves making a false statement on an insurance application in order to receive money from an insurer? - Correct Answers ✅misrepresentation 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? - Correct Answers ✅$50,000 minus any outstanding policy loans In Florida, a health policy that is paid on a quarterly basis requires a grace period of - Correct Answers ✅31 days 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 Florida Health and Life Insurance State Exam Practice Part 1 Questions action will the insurer take? - Correct Answers ✅Claim will be denied 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? - Correct Answers ✅An immediate annuity What are adjustable rates for life policy loans in Florida based on? - Correct Answers ✅Moody's corporate bond index D is an architect receiving Disability Income benefits who is not able to return to work full time, but can work on a part-time basis. Which of these features would allow D to continue receiving benefits? - Correct Answers ✅Residual Benefit Clause 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? - Correct Answers ✅Claim will be denied What is considered to be a characteristic of a Conditionally Renewable Health Insurance policy? - Correct Answers ✅Premiums may increase at the time of renewal Florida Health and Life Insurance State Exam Practice Part 1 Questions What is Florida's definition of Life insurance replacement? - Correct Answers ✅A transaction in which a new policy is bought and an old policy is terminated What percentage of eligible persons must a policy cover in a noncontributory group? - Correct Answers ✅%100 Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant? - Correct Answers ✅Risk Classification Which of the following can an agent provide to help a prospective client understand and purchase the most appropriate product? - Correct Answers ✅Buyer's Guide At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid? - Correct Answers ✅at the time of the appliation What would be an accurate definition of "controlled business"? - Correct Answers ✅Insurance business that is written on the agent's own life, property, or interests Florida Health and Life Insurance State Exam Practice Part 1 Questions 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? - Correct Answers ✅Policy was returned within the free-look period, premium will be fully refunded An insurance company incorporated under the laws of the state in which its home office is located is called a(n) ____ company. - Correct Answers ✅domestic Which of the following is NOT required in the Outline of Coverage for a health insurance policy? - Correct Answers ✅projection of the policy's future costs Who makes the legally enforceable promises in a unilateral insurance policy? - Correct Answers ✅Insurance Company Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent - Correct Answers ✅only if the child is incapable of employment and chiefly dependent on the policyowner Which of the following types of policies pays a benefit if the insured goes blind? - Correct Answers ✅AD&D Florida Health and Life Insurance State Exam Practice Part 1 Questions 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? - Correct Answers ✅48 Months Company Z has a Cross Purchase Buy-Sell Agreement in place among its three founding partners. If the agreement is funded with individual life insurance, what would it require? - Correct Answers ✅Each Partner must own a policy on the other partners