Florida Insurance Practice Questions and Answers 2024, Exams of Nursing

Download Florida Insurance Practice Questions and Answers 2024 and more Exams Nursing in PDF only on Docsity! FL 2-15 Practice Questions & Answers 2024 What type of insurance contract contains unequal contingencies on the potential for profit or loss on both parties in the contract? - Correct Answers ✅Aleatory of contract There is an element of chance for both parties. Dollar given by policy holder (premiums) and the insurer (benefits) may not be equal Every licensee must notify the Department of Financial Services within ____ days after changing his or her name, residence, and/or principal business address - Correct Answers ✅60 days With regard to annuity investments by seniors, "senior consumers" are typically defined as those individuals who are: - Correct Answers ✅65 or older Failure to answer a subpoena or an order of the Chief Financial Officer can result in a - Correct Answers ✅$1,000 fine Level, decreasing, and increasing insurance are all basic forms of ______ - Correct Answers ✅term insurance "Small businesses" usually operate as sole proprietorship's - Correct Answers ✅True FL 2-15 Practice Questions & Answers 2024 Charles wants an annuity that provides income for he and his wife, Emma. If he should predecease Emma, he wants her to receive the same income payments for the rest of her life. Which type of annuity payout option should he select? - Correct Answers ✅Joint and Full Survivor Option *if one dies, the survivor receives the rest of the principal A personal attack on a person's good name, character, or reputation is known as: - Correct Answers ✅Defamation *Can take place in form of written word or spoken word ACC refers to the type of disability that prevents someone from performing the job he was performing prior to the disability - Correct Answers ✅False *that's Occ. *Acc is the inability to perform any type of work The _____ refers to the fact that a written contract cannot be changed by oral evidence. - Correct Answers ✅Parol Evidence rule FL 2-15 Practice Questions & Answers 2024 Under Social Security Benefits, in order for an individual to be classified as "fully insured", the worker must have completed _____ of participating employment - Correct Answers ✅40 quarters (full benefits) *currently insured = 6 credits in last 13 quarters prior to death (limited benefits) Who regulates retirement plans in Florida? - Correct Answers ✅ERISA *Florida law does not regulate retirement plans Which of the following premium payment modes will result in the highest total out-of-pocket costs? - Correct Answers ✅Monthly *shorter the payout period the larger each payment amount - the shorter increments between payments, the higher the out of pocket costs What is the operating objective of a stock insurance company? - Correct Answers ✅To make a profit for its owners, the stockholders *stock insurance companies are private organizations with the same structure as any corporation, organized and incorporated under state laws FL 2-15 Practice Questions & Answers 2024 Which of the following is NOT considered one of the three basic parts of a life insurance contract? - Correct Answers ✅Security Report *Three parts: General, Medical, and Agents Reports A group of individuals who have gathered together strictly for the purpose of obtaining insurance is known as a ____ group - Correct Answers ✅Fictitious Risk Retention Groups are a form of ____ insurer - Correct Answers ✅Mutual *RRGs provide liability coverage to insure groups of individuals who are of the same group (or class) The Civil Rights Act of 1979 made it mandatory that group insurance provide maternity benefits if an insured group consists of ____ or more participants - Correct Answers ✅15 Harriet, age 45, suffered an accident while waterskiing on vacation and became paralyzed from the accident. Which of the following would most likely pay her disability benefits? - Correct Answers ✅Social Security FL 2-15 Practice Questions & Answers 2024 *Harriest is under 65 (excluding Medicare), was not working when accident occurred (excluding workers' comp), and was on vacation (excluding Medicaid for low-income) Social Security provides: - Correct Answers ✅a death benefit, old age benefits, and disability benefits An annuitant selects Life with Period Certain as his annuity option. What will he receive? - Correct Answers ✅Payout for life, or a fixed number of years, whichever is longer. *option akin to installment refund option except that it contains two time-frames for payout, not just at death On a reinstated health policy when no new application is requested, how long after the policy's reinstatement will coverage for accidents become effective? - Correct Answers ✅Immediately *it does not become effective for illness coverage until 10 days from the date of reinstatement. To avoid adverse selection Medical expense policies must provide payment to an optometrist or a podiatrist for those procedures that are specified in the policy - Correct Answers ✅True FL 2-15 Practice Questions & Answers 2024 To "furnish with an income" is to: - Correct Answers ✅endow *endowment insurance is type of life insurance that is payable to the insured if he/she is still living on the policy's maturity date, or to a beneficiary otherwise If an insured person does not stipulate a beneficiary on their life insurance policy, what happens to the policy's benefits if the insured dies? - Correct Answers ✅The deceased estate becomes the beneficiary Which answer below best describes the true effective date of a policy? - Correct Answers ✅The date the insurer accepts an offer by the applicant as written Medicaid provides funds for charitable organizations that provide assistance to the poor. - Correct Answers ✅False *Medicaid is the largest program providing medical and health related services to America's poorest people. Tom's life policy cash value is $15,000 and he has paid $7,000 in premiums. He now wants to surrender the policy for its cash value. How much is considered nontaxable? - Correct Answers ✅7,000 FL 2-15 Practice Questions & Answers 2024 *premium was paid with after-tax dollars Upon the insured's death, HSA ownership may be transferred to a spouse tax-free - Correct Answers ✅True HMO Contracts may not exclude coverage for HIV infection or limit HIV or AIDS coverage - Correct Answers ✅True HMOs are required to hold an open enrollment period of not less than ____ days in every 18-month period - Correct Answers ✅30 days *new dependents also eligible to enroll within 30 days of marriage, birth, or adoption Under Florida's Mini-COBRA regulations, employers are required to provide their employees a continuation of their group health coverage at: - Correct Answers ✅A cost not to exceed 115% of their regular group rate Rachel owns a major medical health policy which requires her to pay the first $300 of covered expenses each year before the policy pays its benefits. The $300 is the policy's: - Correct Answers ✅deductible FL 2-15 Practice Questions & Answers 2024 Which of the following types of insurance contracts are NOT considered valued contracts? - Correct Answers ✅Medical expense plans *valued contracts pay a predetermined amount with no way to assess loss. Life, Disability, and AD&D insurance ARE valued Under the unpaid premiums provision in a health insurance policy, when premiums remain unpaid at the time a claim is submitted, the insurer may: - Correct Answers ✅deduct unpaid premiums from benefits before paying the claim Under the Uniform Provisions Law, which of the following provisions are optional for a health policy? - Correct Answers ✅Change of Occupation. *Mandatory are Proof of Loss, Time Payment of Claims, Change of Beneficiary The _____ means that the life insurance policy along with the application represents the complete contract - Correct Answers ✅Entire contract provision Which of the following statements regarding morbidity tables is CORRECT? - Correct Answers ✅They indicate the average number of individuals from a given group who will become disabled FL 2-15 Practice Questions & Answers 2024 *occurs when an annuity is used to distribute funds from the settlement of lawsuits or the winnings of lotteries and other contests Retirement plans that meet federal government approval receive tax benefits are known as ___ plans - Correct Answers ✅Qualified An insured must wait at least ___ after the submission of proof of loss under a health insurance policy before initiating a lawsuit - Correct Answers ✅60 days *legal action cannot be taken after five years In order for a 1035 exchange to take place, the exchange must be with the same company that issued the original policy - Correct Answers ✅False *exchanges can be accomplished through several methods, but they do not have to be with the same company The MIB's main purpose is to: - Correct Answers ✅be a reliable source of medical information FL 2-15 Practice Questions & Answers 2024 If a policy is transferred under an absolute assignment, the assignee cannot change the irrevocable beneficiary without: - Correct Answers ✅the beneficiary's permission Ron has paid up on his 20-year pay whole life policy for 20 years. Which of the following scenarios apply? - Correct Answers ✅Ron no longer must make premium payments *limited pay whole life policies feature level premiums limited to certain time periods, less than life The actual number of annuity units in a variable annuity contract is determined by the current value of one unit relative to the amount of: - Correct Answers ✅premiums paid *value of one annuity unit is dependent upon the results of investments made, the annuitant may receive varied amounts at times 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? - Correct Answers ✅$2000 As long as the equity remains in the policy and continues to accumulate, the cash value remains tax free. Once it is surrendered, the equity is considered taxable income FL 2-15 Practice Questions & Answers 2024 Under Florida law, hearing screening for any newborn children of an individual who is covered under a health insurance policy is a covered benefit - Correct Answers ✅True The variable annuity has no minimum guarantee of growth - Correct Answers ✅True *the only guarantee is the death benefit. Company will return at least principal amount if policyowner dies within a certain time and before annuitizing the funds Which of the following best describes the basic principal of group insurance? - Correct Answers ✅It provides coverage for a number of people under a single contract Florida Law does not limit the number or percentage of employees required to participate in order to qualify for group health insurance - Correct Answers ✅True All of the following employed persons who have no employer sponsored retirement plan would be eligible to set up and contribute to a traditional IRA except: - Correct Answers ✅Edna, age 72, nurse FL 2-15 Practice Questions & Answers 2024 Group Health Plans that are issued on an experience rated basis can make both premium reductions and premium increases retroactive for 12 months - Correct Answers ✅False *group health plans that are issued by mutual companies usually provide for dividends, while stock companies frequently issue experience rated plans FAIFA is the acronym for: - Correct Answers ✅Florida Association of Insurance and Financial Advisors *FAIFA's mission is to enhance the ability of members to provide financial security for their clients The _____ assigns points to surgical procedures instead of dollar amounts - Correct Answers ✅Relative Value Scale Medigap applies to both the hospital and medical insurance plans administered by the ____ government for the elderly and permanently disabled - Correct Answers ✅federal Agents should check with ____ to determine if the insurer they are representing is a properly authorized insurer - Correct Answers ✅the Department of Financial Services FL 2-15 Practice Questions & Answers 2024 Mabel named her church as the beneficiary of her life insurance policy. When Mabel dies, who is responsible for the taxes on the lump sum payment of proceeds? - Correct Answers ✅There is no tax *when an insured dies, proceeds of a life insurance policy paid as a lump sum death benefit to a beneficiary are exempt from federal income tax A portion of a mutual insurer's premiums are paid out as policy dividends and are considered: - Correct Answers ✅refunds *nontaxable income To provide a safeguard for insureds, most major medical policies contain a ____ feature that limits the insured's out of pocket expenses - Correct Answers ✅Stop-loss *this feature places a limit on the maximum out of pocket expenses an insured must incur for health care, above which policy pays 100% of the remaining eligible expenses ____ 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 - Correct Answers ✅Insurable interest FL 2-15 Practice Questions & Answers 2024 When a stock insurer issues both participating and nonparticipating polices, it is referred to as a company doing business on a ___ plan - Correct Answers ✅mixed The Florida Life and Health Guaranty Association's purpose is to: - Correct Answers ✅pay the claims of insolvent or impaired insurers Rob died in a car accident and his wife, Jean, survived. Their annuity was purchased to provide income for two people. Jean's annuity income will not provide her with two-thirds of the original payments. Which annuity payout method did they choose? - Correct Answers ✅Joint and Two-Thirds survivor Group Universal Life plans offer a greater degree of ___ than is usually found in other group life plans - Correct Answers ✅flexibility *employee pays most of the premium payments, however they are given certain latitude in selecting the amount of insurance and the premium amount to be paid Buy-sell agreements can only be drafted by: - Correct Answers ✅an attorney FL 2-15 Practice Questions & Answers 2024 Audrey is a 34 year old attendant, has a $10,000 IRA with her former employer and wants to roll the funds over into an IRA with her new employer but wants to keep out $5,000 to pay some bills. How much early distribution penalty will she have to pay? - Correct Answers ✅$500 *subject to the 10% excise penalty The Florida Health Insurance Plan makes coverage available to individuals who: - Correct Answers ✅are high risk and have no other option for similar coverage A violation of a Cease and Desist Order carries a fine of up to: - Correct Answers ✅$50,000 PPOs are considered ___ companies - Correct Answers ✅Point of Service (POS) *requires deductibles and coinsurance and provide monetary incentives for members to use the physicians who are on their approved provider list Group health insurers must either provide or offer chiropractic coverage - Correct Answers ✅True FL 2-15 Practice Questions & Answers 2024 *Medical expense policies must provide payment to an optometrist or a podiatrist for those procedures that are specified in the policy Which of the following life policies do NOT allow partial surrenders? - Correct Answers ✅Both Whole Life and Variable Life Changing one's lifestyle to minimize a known risk is an example of: - Correct Answers ✅Risk reduction Drug addiction is an example of ___ hazard - Correct Answers ✅Moral *morale hazards are mental tendencies *moral hazards are habits or lifestyles Insurers are required by law to to provide annuity owners with an annual report which states the units credited to the contract and: - Correct Answers ✅the dollar value of a unit *data must be updated no more than two months prior to the date the report is mailed When a life insurance policy is reinstated after lapse, the incontestable clause is usually regenerated - Correct Answers ✅True FL 2-15 Practice Questions & Answers 2024 Agents must keep records of rebating transaction for at least ___ years - Correct Answers ✅5 Evan decides to surrender his whole life policy for a reduced paid-up policy. The cash value of his new policy will: - Correct Answers ✅continue to increase *face value is still reduced, but cash value increases According to Florida's Standard Valuation Law, the ___ is mandatory - Correct Answers ✅Legal reserve Insurance is a contract of: - Correct Answers ✅utmost good faith What type of buy-sell plan enables each partner to purchase policies on the other partners - Correct Answers ✅Cross-purchase plan Rose wants an annuity to provide guaranteed income for life, but if she dies before the funds are depleted, she wants her daughter, as beneficiary, to receive in a lump sum payment. Which type of payout option should she select? - Correct Answers ✅Cash refund option annuity FL 2-15 Practice Questions & Answers 2024 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 ___ anually - Correct Answers ✅10% When a life insurance policy is reinstated after lapse, a new suicide clause automatically goes into effect - Correct Answers ✅False ____ policies are commonly used as a hedge against inflation to ward off decreased purchasing power - Correct Answers ✅Increasing term *the death benefit actually increases with time. The amount of increase may depend upon factors such as the CPI The ____ provision of the Insurance Code spells out the terms that allow domestic insurers the right to invest a certain percentage of their total assets in loans or certain other investments - Correct Answers ✅Leeway or basket The health policy that always renews without an increase of premium could be identified as: - Correct Answers ✅noncancelable In order for an HMO to conduct business in Florida, it must obtain a valid Health Care Provider Certificate from the: - Correct Answers ✅Agency for Health Care Administration FL 2-15 Practice Questions & Answers 2024 The Social Security payroll tax is known as ___ tax - Correct Answers ✅FICA (Federal Insurance Contributions Act) An annuity must begin with a sum of money that can either be supplied through the single payment method or the periodic payment method. If the periodic payment method is used, the payment amount: - Correct Answers ✅can either be fixed or flexible The ___ insurer is licensed and practicing in the same state in which they are incorporated - Correct Answers ✅Domestic In risk classification, a "higher than average risk" is given a ___ rate - Correct Answers ✅substandard Most group disability policies use the ___ method to calculate the amount of the insured's earnings prior to the accident - Correct Answers ✅percentage Under Florida law, employers must offer coverage for mental and nervous disorders to their employees under their group health plan - Correct Answers ✅False *MUST provide optional coverage FL 2-15 Practice Questions & Answers 2024 Which of the following statements accurately defines Unfair Discrimination? - Correct Answers ✅Showing any type of partiality to individuals in regard to their premiums and benefits *not restricted from setting terms for groups or classes individually Once insurable interest has been established, and the process of evaluating all of the information and applying it against the insurers standards and guidelines has been accomplished, ____ can be established - Correct Answers ✅Premium rates *underwriting is the method used to calculate the level of risk that is involved and to determine under what rates the contract can be issued All of the following are part of the underwriting process EXCEPT: - Correct Answers ✅payment of the first premium What is the name of the period of time following the termination of employment during which the employee can enroll and get coverage without evidence of insurability? - Correct Answers ✅Conversion period An insurance company has which of the following options when an insured wishes to cash in his policy? - Correct Answers ✅It may defer payment for as long as 6 months FL 2-15 Practice Questions & Answers 2024 Higher annual premiums for Medicare Part B are scheduled to be phased in over the next ___ period - Correct Answers ✅five-year A life insurance contract is a ___ because buyers must adhere to the terms of the contract already in existence with no opportunity to negotiate terms, rates, values, etc. - Correct Answers ✅Contract of adhesion All of the following statements regarding assignment of a life insurance policy are correct except: - Correct Answers ✅the policyowner must obtain approval from the insurance company before a policy can be assigned Bob wants to exchange his annuity contract for a life insurance contract on a tax free basis. Can he do so under Section 1035? - Correct Answers ✅NO - this is not an acceptable exchange under Section 1035 Morality figures are normally developed by studying and interpreting statistics - Correct Answers ✅developed from the deaths of millions of persons over long periods of time Principal use of an annuity is to: - Correct Answers ✅arrange systematic income FL 2-15 Practice Questions & Answers 2024 The life insurance settlement option under which the principal never decreases unless the beneficiary withdraws it is the ___ option - Correct Answers ✅interest only When an insurance company administers a self-insured plan and is paid a fee, it is called a: - Correct Answers ✅ASO (Administrative Services Only) An individual who is employed at a firm with no pension plan can establish which of the following as an individual? - Correct Answers ✅Neither a Keogh plan nor a TSA Both stock and mutual companies may: - Correct Answers ✅pay policy dividends Complete the following sentence pertaining to life insurance policies: the shorter the premium-paying period, the ____ the premium - Correct Answers ✅higher The HMO concept that service providers are paid a fixed monthly fee for each member is called: - Correct Answers ✅capitation ____ contracts are designed so that at the death of the family breadwinner, a predetermined income will be payable to surviving family members during a predetermined period when there is a need FL 2-15 Practice Questions & Answers 2024 such as expenses for dependent children - Correct Answers ✅Both Family Income and Family Maintenance Business health insurance can be divided into two separate categories: - Correct Answers ✅Employee benefit plans and business continuation plans An insurer must provide specific notice and disclosure to an applicant for any life insurance policy or annuity contract if the contract values of an existing policy are used to purchase a new policy with the same insurer - Correct Answers ✅True A producer's primary responsibility in the application process is to the: - Correct Answers ✅insurer It is not unusual for a producer to receive up to 80% of the first year premiums as commission on life insurance policies - Correct Answers ✅True Keogh plans are similar to what other type of retirement plan? - Correct Answers ✅Corporate Pension plans If one becomes totally disabled, Social Security disability benefits will begin after: - Correct Answers ✅5 months FL 2-15 Practice Questions & Answers 2024 Which of the following reimburses its insureds for covered medical expenses? - Correct Answers ✅Commercial Insurers A variable annuity separate account will be invested in: - Correct Answers ✅equity investments An annuity is designed to provide which of the following financial features? - Correct Answers ✅The liquidation of principal and interest and a favorable tax treatment for income received Fraternals write the same types of life insurance contracts as are written by ordinary or industrial life insurance companies. - Correct Answers ✅True Under the Holocaust Victims Insurance Act, claimants have until _____ after the effective date of the law (July 1, 1998) to submit their claims - Correct Answers ✅10 years An agent engaged in churning is guilty of a ____ if he or she is proven to have exhibited fraudulent conduct - Correct Answers ✅first degree misdemeanor All of the following statements correctly describe the purpose of Social Security except: - Correct Answers ✅To provide a source of income for a meaningful standard of living FL 2-15 Practice Questions & Answers 2024 The purpose of Medical Cost Management is to: - Correct Answers ✅Control claims expenses and plans Agents must secure ____ prior to the use of any advertisement not furnished by the insurer - Correct Answers ✅Company approval Defamation is a tort to the person. Defamation of character includes both libel and slander of a person. - Correct Answers ✅Libel is written and slander is spoken The phrase "not a family member" with respect to a life agent includes step parents (stepmother, stepfather) - Correct Answers ✅True According to the Insurance Marketplace Standards Association (IMSA) , the two most essential standards of ethical sales are: - Correct Answers ✅Honesty and fairness Guaranteed income for the annuitants lifetime; and if the annuitant dies before the period certain has expired, the policy pays the beneficiary in periodic installments until the end of the designated period. What annuity payout option is described? - Correct Answers ✅Life with Period Certain FL 2-15 Practice Questions & Answers 2024 An applicant for insurance may pay the initial premium and receive a document from the agent indicating that if the policy is issued as requested, coverage will begin on the date of the document. What is this document called? - Correct Answers ✅Conditional receipt Who would sign an application for group insurance? - Correct Answers ✅The employer, who then receives a master policy When writing group life coverage on a medical basis: - Correct Answers ✅the enrollment card will require additional information If a policyowner paid $18,000 in premiums for a policy that is later cashed in for $21,000, how much of the policy's cash surrender value would be subject to federal income tax? - Correct Answers ✅$3,000 Actuaries use the following formula in life insurance premium calculations: the Net Single Premium plus Expenses equal Gross Premiums - Correct Answers ✅True Which of the following are Defined Contribution plans? - Correct Answers ✅Money-purchase plans, profit sharing plans, and stock bonus plans FL 2-15 Practice Questions & Answers 2024 The minimum participation required in Florida by law for an employee group health plan is: - Correct Answers ✅Zero - there is no minimum* The _____ receipt provides that the applicant is covered immediately from the date of application as long as he or she passes the insurer's underwriting requirements - Correct Answers ✅Conditional An agent who solicits to sell insurance products to an individual who has difficulty understanding the agent violates which essential element of the contact? - Correct Answers ✅Competent parties If the beneficiary designation reads "children of the insured" or "spouse, if living, otherwise the surviving children born of this marriage" which of the following phrases best describes this type of beneficiary designation? - Correct Answers ✅Class beneficiaries Churning is defined as the practice by which policy values from an existing life insurance policy are used to purchase another policy from a different company - Correct Answers ✅False A violation of the Insurance Code occurs when an agent knowingly collects any sum as a premium or charge for insurance that is not provided for int he policy. Such charges are called "____ charges" - Correct Answers ✅excess FL 2-15 Practice Questions & Answers 2024 An annual premium at 3% reserve interest assumption will be _____ than at a 3 1/2% reserve interest assumption - Correct Answers ✅greater An individual employed by a life or health insurer as an officer or other salaried representative may solicit and effect contracts of life insurance or annuities or contracts of health insurance without being licensed as an agent: - Correct Answers ✅only when he/she is accompanied by, and solicits for and on the behalf of, a licensed appointed agent Once Medicare Part B participants have satisfied their annual deductibles, Part B will pay ____ of covered expenses. - Correct Answers ✅80% According to Florida law, ____ plans must provide maternity benefits - Correct Answers ✅Group medical expense Keogh plans are similar to what other type of retirement plan? - Correct Answers ✅Corporate Pension pLans An insurance application submitted to the insurance company with the initial premium provides coverage beginning when? - Correct Answers ✅When the insurance company determines that the applicant is insurable and acceptable and the policy is issued. FL 2-15 Practice Questions & Answers 2024 Which of the following CORRECTLY describes the original purpose of Medicaid? - Correct Answers ✅To improve the health of people who might otherwise go without medical care for themselves and their children According to the NAIC Uniform Policy Provision Law, the length of the grace period in health insurance varies according to the: - Correct Answers ✅mode of premium Fraternal benefit associations have all of the following features except: - Correct Answers ✅they always operate as corporation Under Florida Law, coverage for _____ is mandatory on every health policy offered to employees. - Correct Answers ✅None of these benefits are considered mandatory to be offered to employees (mental and nervous disorders, maternity expenses, or alcohol and drug rehabilitation) Experience-rated plans can make premium reductions retroactive for ___ months - Correct Answers ✅12* In which of the following situations would the premium payor of a life insurance policy be able to deduct the premium payments for tax purposes? - Correct Answers ✅Zeb, a local board member of the FL 2-15 Practice Questions & Answers 2024 A health insurance company may refuse coverage or require a higher premium based solely on: - Correct Answers ✅A health insurance company may not refuse coverage or require a higher premium based solely on the applicant's gender, marital status, or sickle-cell trait The _____ Approach evaluates and determines how much money the family will need to continue living in a comfortable lifestyle should the breadwinner of the family die or become disabled - Correct Answers ✅Needs Most employers will establish benefit schedules in regard to group life insurance according to: - Correct Answers ✅the employers preference Can a person be licensed only as a variable annuity agent? - Correct Answers ✅NO Under the Spendthrift Trust clause, when life insurance payments are made to the beneficiary, policy proceeds are held in trust by the insurance company for the beneficiary's future payments - Correct Answers ✅True Two elderly sisters wish to invest their inheritance in a way that will provide them both with lifetime incomes. Which one of the following FL 2-15 Practice Questions & Answers 2024 annuities would provide them with the specific benefit they desire? - Correct Answers ✅Joint and Full survivor Under the Notice of Claim provision in a health insurance policy, the insured must give written notice to the insurance company within a maximum of how many days after incurring a covered loss? - Correct Answers ✅20 days Premiums for a variable universal life policy: - Correct Answers ✅can vary in amount as well as to payment schedule In a disability income policy, the Waiver of Premium rider generally does not extend past the insured's age of: - Correct Answers ✅60 or 65 Which of the following life policies contain two death benefit options? - Correct Answers ✅Variable Universal life and Universal Life policy Term insurance provides the buildup of cash value only during the policy's specified period. - Correct Answers ✅False The cash value of a life insurance policy belongs to the: - Correct Answers ✅policyowner FL 2-15 Practice Questions & Answers 2024 Joan has a major medical expense plan with a $500 deductible and an 80/20 coinsurance provision. If she receives a hospital bill for $7,500 of covered expenses, how much of that bill will she have to pay? - Correct Answers ✅$1,900 Credit union members are permitted to have a group life insurance policy which provides coverage equal to: - Correct Answers ✅the amount of share balance held by the member Which annuity structure provides a single lump sum payment or periodic payments over time? - Correct Answers ✅Funding Method When an insured returns a policy to the insurance company within the Free Look Period, the insurance company must do which of the following? - Correct Answers ✅Refund all premiums paid An insured must wait how many days after proof of loss before filing suit for payment against the insurance company if payment has not been received? - Correct Answers ✅60 days _____ of the FICA tax is distributed to Medicare (2012) - Correct Answers ✅1.45% Florida law requires an HMO to reimburse all claims or any portion of any claim made by a contract provider for services or goods provided FL 2-15 Practice Questions & Answers 2024 _______ long-term disability plans pay a specific amount of income benefits - Correct Answers ✅Individual The annual deductible amount for Medicare Part B is expressed as: - Correct Answers ✅a flat dollar amount An insured must wait how many days after proof of loss before filing suit for payment against the insurance company if payment has not been received? - Correct Answers ✅60 A life policy that is sold in proportioned units to cover an insured, spouse, and their children is called a: - Correct Answers ✅Family plan In which case would the purchase of new life insurance be considered replacement? - Correct Answers ✅When existing life insurance is surrendered or reduced in face amount or when taking out a policy loan or withdrawing dividends. If life insurance policy replacement takes place on the basis of incorrect or incomplete representations, it is known as: - Correct Answers ✅twisting FL 2-15 Practice Questions & Answers 2024 Under Florida law, if Dan (an employee) has a group life insurance policy in the amount of $50,000, his wife would typically be eligible for a _____ policy - Correct Answers ✅$25,000 Dividends that are used to purchase additional life insurance of the same kind in which premium rates may be higher are: - Correct Answers ✅Dividends to Buy Paid-Up Additions Which is TRUE about Medicare Part A? - Correct Answers ✅The insured must pay a deductible. With the exception of instances of legal incapacity, Proof of Loss for surgical expense benefits must be furnished to the insurance company within how many days after receiving the forms from the company? - Correct Answers ✅90 days The "one time only" period in a health policy when the policy first starts is called the ____ Period. - Correct Answers ✅Probationary All fraternal insurance organizations operate as "associations" and function as for-profit businesses. - Correct Answers ✅False A life insurance beneficiary receives an income from the present time until death. This method of payment is called: - Correct Answers ✅Life Income Option FL 2-15 Practice Questions & Answers 2024 The most common group life insurance plans use ____ insurance - Correct Answers ✅annual renewable term The _____ will allow the insured to receive the proceeds of a life insurance policy before death under certain circumstances, such as life- threatening illness - Correct Answers ✅viatical settlement Health insurance ____ Reserve funds represent the insurer's liability for losses that have not occurred but for which premiums have been paid - Correct Answers ✅Premium The index-linked interest is based on the difference between the index value at the end of the term and the index value at the start of the term. Interest is added to the annuity at the end of the term. What is the indexing method used? - Correct Answers ✅Point-to-Point Which is TRUE about Medicare Part A? - Correct Answers ✅The insured must pay a deductible Immediate annuities can only be funded using the ____ method, and the first income payment will typically be made one month from the date of annuity purchase - Correct Answers ✅Single premium payment FL 2-15 Practice Questions & Answers 2024 Guaranteed income for the annuitant's lifetime; or if the annuitant dies before funds are depleted, the policy beneficiary receives a lump sum cash payment. What annuity payout option is described? - Correct Answers ✅Cash Refund Option Joan's home caught fire after it was struck by lightning and the fire destroyed her home and contents. By insurance definition, the was the: - Correct Answers ✅peril An insurance agent: - Correct Answers ✅does not have the authority to tell the proposed insured that a policy will be issued by the company as requested. A _____ is the cause of risk. - Correct Answers ✅Peril Noncancelable policies CANNOT be used for medical expense reimbursement due to: - Correct Answers ✅inflation Medicare Part A is automatically provided when an individual applies for Social Security benefits as long as the individual is ____ year of age or older - Correct Answers ✅65 The question, "Have you made your policies creditor-proof for your beneficiaries?" refers to which of the following? - Correct Answers ✅Spendthrift clause FL 2-15 Practice Questions & Answers 2024 Which of the following constitutes insurable interest? - Correct Answers ✅The policyowner must expect to suffer a loss when the insured dies or becomes disabled. Under Florida law, a handicapped child is one who: - Correct Answers ✅is incapable of employment or self-support and who is mentally or physically handicapped. Which of the following life policies allow partial cash surrenders? - Correct Answers ✅Universal life policy and Variable Universal Life policy Frank has a life insurance policy with two death benefit options available. If the cash value in Frank's policy increased to a point where the corridor was utilized, what type of policy would he have? - Correct Answers ✅Universal Life The cash surrender value of life insurance policies and annuities are not subject to garnishment, attachment or legal process in favor of a creditor unless: - Correct Answers ✅the policy was specifically taken out for the benefit of the creditor Conventional whole life policies typically permit loans up to _____ of the cash value - Correct Answers ✅100% FL 2-15 Practice Questions & Answers 2024 Under Modified Community Rating for health insurance, a _____ plus or minus rate variance from the approved community rating is permissible. - Correct Answers ✅15% Prepaid health clinics are nearly identical to HMOs - Correct Answers ✅False In what phase of the selling process are serious problems of misrepresentation likely to occur? - Correct Answers ✅Presentation of recommendations Under the health insurance Claims Forms provision, it is the company's responsibility to supply claim forms to an insured within how many days after receiving notice of a claim? - Correct Answers ✅15 days Which of the following statements about the taxation of individual plan disability income insurance contracts is CORRECT? - Correct Answers ✅Disability benefits are tax free to the recipient The principal function of an annuity is: - Correct Answers ✅the systematic liquidation of an estate Assume the following individuals are issued health insurance policies with varying renewability provisions. All other factors being equal, who FL 2-15 Practice Questions & Answers 2024 Who would sign an application for group insurance? - Correct Answers ✅The employer, who then receives a master policy Dividend options that are used to pay policy premiums and lessen the policyowners out-of-pocket expenses are: - Correct Answers ✅Dividends Against Premium Payments A company with three partners is considering a buy-sell plan. All of the following statements pertaining to buy-sell plans and this partnership are correct EXCEPT: - Correct Answers ✅no benefits will accrue to the partnership from the buy-sell agreement until one of the partners dies. The probationary period in disability income insurance is a one-time only period that usually lasts: - Correct Answers ✅Between 15 and 30 days Business Overhead Expense insurance is considered a valued policy - Correct Answers ✅True The Family ____ plan uses level term insurance which is added to a basic whole life contract - Correct Answers ✅Maintenance The amount of each annuity payment in a variable annuity, including capital gains appreciation in excess of the tax-free return, is ____ FL 2-15 Practice Questions & Answers 2024 during the period payout - Correct Answers ✅taxed as ordinary income "Economically dead" means: - Correct Answers ✅physically disabled, but not physically deceased