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FLORIDA LIFE AND HEALTH INSURANCE EXAM 2024/2025, Exams of Nursing

FLORIDA LIFE AND HEALTH INSURANCE EXAM 2024/2025

Typology: Exams

2024/2025

Available from 09/10/2024

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Download FLORIDA LIFE AND HEALTH INSURANCE EXAM 2024/2025 and more Exams Nursing in PDF only on Docsity! FLORIDA LIFE AND HEALTH INSURANCE EXAM 2024/2025 Within how many days must a licensee notify the Department of Financial Services of a change in address? - Precise Answer ✔✔30 All of the following entries are classified under the four principal areas of Florida insurance law EXCEPT... - Precise Answer ✔✔An agent's commission Which of the following factors is NOT considered when the Department of Financial Services determines if an agent's home is an insurance agency? - Precise Answer ✔✔The amount of premium collected at this location Florida requires that an insurance agent must complete __ hours of continuing education on the subject of law and ethics every two years - Precise Answer ✔✔5 Agents that have been licensed for less than six years must complete __ hours of continuing education every two years - Precise Answer ✔✔24 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? - Precise Answer ✔✔48 What is the maximum percentage of controlled business an agent may produce? - Precise Answer ✔✔50% A group plan was recently terminated. In Florida how many days are covered individuals guaranteed coverage after a group plan's termination? - Precise Answer ✔✔31 days The Financial Services Commision may hold hearings... - Precise Answer ✔✔For any reason deemed necessary In Florida, an insurer domiciled and incorporated in this state is called... - Precise Answer ✔✔Domestic company According to Florida law, which of the following statements accurately describes an admitted mail order insurance company? - Precise Answer ✔✔It may solicit insurance business by mail only without the assistance of a licensed Florida agent According to Florida law, an additional lapse notice must be issued after the standard grace period has expired for policyowners age... - Precise Answer ✔✔64 years or older Which action could result in a hearing being ordered by the Department of Financial Services? - Precise Answer ✔✔Performing insurance transactions without a license Which of the following professional organizations has its code of ethics incorporated into Florida law? - Precise Answer ✔✔National Association of Insurance and Financial Advisors (NAIFA) Which entity approves the insurance policy forms used in Florida? - Precise Answer ✔✔Office of Insurance Regulation (OIR) In Florida, agents are allowed to engage in rebating if... - Precise Answer ✔✔Offered to all insured in the same actuarial class In Florida, when agents recommend changes be made for existing coverage, the agent must follow established procedures. The name of this rule is called the... - Precise Answer ✔✔Florida Replacement Rule In Florida, an element of an insurance transaction would be... - Precise Answer ✔✔Issuing an insurance contract The Bureau of Unclaimed Property is overseen by... - Precise Answer ✔✔The chief financial officer One of the stated purposes of the Life and Health Insurance Guaranty Association is... - Precise Answer ✔✔To assist in the prevention of insurer insolvencies The 14-day free look period for life insurance policies begins at the... - Precise Answer ✔✔Day of delivery According to Florida law, group life insurance conversion privileges must NOT - Precise Answer ✔✔Require evidence of insurability Which of the following situations are NOT subject to Florida life insurance laws? - Precise Answer ✔✔Insurance companies' day-to-day operations What are adjustable rates for life policy loans in Florida based on? - Precise Answer ✔✔Moody's corporate bond index A life policy loan in Florida cannot charge a fixed rate of interest higher than... - Precise Answer ✔✔10% The minimum age at which a person can sign a life insurance application is... - Precise Answer ✔✔15 years Which of the following situations does NOT apply to the Florida Replacement Rule? - Precise Answer ✔✔An existing policyholder purchases an additional policy from the same insurer According to Florida's life insurance replacement laws, a policyowner must be provided with a written Comparison and Summary Statement when it's requested by.... - Precise Answer ✔✔the policyowner A variable life insurance agent must be licensed and appointed as a life and variable contract agent, as well as... - Precise Answer ✔✔a broker dealer Which of these is NOT a legal entity for selling life insurance in Florida? - Precise Answer ✔✔risk management advisors The Replacement of Life Insurance and Annuities regulation is designed to protect the interest of... - Precise Answer ✔✔the policyowner When an existing life insurance policy is being reissued with a reduction in cash value, the agent must sign the... - Precise Answer ✔✔Notice regarding the replacement of life insurance or annuity The life insurance and annuity replacement regulation defines replacement as - Precise Answer ✔✔Exchanging an existing policy for a new policy Replacement regulation applies to which of the following types of contracts? - Precise Answer ✔✔ordinary life Replacement is involved in all of the following situations EXCEPT when... - Precise Answer ✔✔A Term policy is converted to a permanent plan with the same insurance company Which policy is EXEMPT from replacement regulations? - Precise Answer ✔✔Group life policy Which of the following statements is CORRECT about the replacement of one insurance policy with another? - Precise Answer ✔✔It is strictly regulated and requires full disclosure by both the agent and the replacing insurance company Which of the following parties must provide an insured with proper disclosure concerning the replacement of an insurance company? - Precise Answer ✔✔The agent who sells the new insurance policy Which of the following statements is CORRECT if an insured converts his Life policy to Paid-Up Insurance and buys new insurance? - Precise Answer ✔✔The transaction is considered a replacement When replacing or exchanging an annuity, the agent must disclose to the annuitant... - Precise Answer ✔✔The possible tax ramifications as a result of the transaction A life insurance policyowner may sell their policy to a(n) ___ in order to receive a percentage of the policy's face value - Precise Answer ✔✔Viatical settlement provider A written agreement to provide a Life Insurance Policy holder immediate cash in exchange for the sale and transfer of a Life Insurance Policy is... - Precise Answer ✔✔Viatical settlement Group life policies MUST include all of the following provisions EXCEPT... - Precise Answer ✔✔Right to loan proceeds Which of the following employees may NOT be excluded from a group life plan? - Precise Answer ✔✔Full-time employees after a probationary period All of the following provisions are required in a group life policy EXCEPT... - Precise Answer ✔✔An accidental death and dismemberment provision Which of the following is a standard provision of the conversion privileges in a Group Life Policy? - Precise Answer ✔✔Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis An individual covered under a Group Life insurance policy is considered to be... - Precise Answer ✔✔A certificate holder The conversion period for a terminated employee to convert group life coverage to an individual plan is... - Precise Answer ✔✔31 days 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... - Precise Answer ✔✔To an individual policy upon employment termination 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? - Precise Answer ✔✔All of the employees must be notified of the cancellation either by the insurance company or through J Individual life insurance proceed are exempt from creditor's claims when they are payable to any of the following entities EXCEPT the insured's - Precise Answer ✔✔estate Disclosure standards require that which of the following be delivered with a Medicare Supplement policy? - Precise Answer ✔✔The outline of coverage The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond... - Precise Answer ✔✔6 months An Outline of Coverage for Medicare Supplement policy MUST be given to the applicant at which of the following times? - Precise Answer ✔✔The time of application When is a Group Health policy required to provide coverage for a newborn child? - Precise Answer ✔✔At the moment of birth A Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits? - Precise Answer ✔✔Insurance All of the following statements about health coverage for newborns are correct EXCEPT... - Precise Answer ✔✔Coverage during the first year is limited to congenital defects Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent... - Precise Answer ✔✔Only if the child is incapable of employment and chiefly dependent on the policyowner All of the following statements about health coverage for physically handicapped dependents of insureds are correct EXCEPT that the dependent must... - Precise Answer ✔✔Have been covered under the insured's policy at the time the handicap was incurred Association Plans that are designed to provide health benefits to their members are regulated by the state because... - Precise Answer ✔✔They are insured by an authorized insurer An agent selling Medicare Supplement policies must provide every applicant with... - Precise Answer ✔✔A suitability form All of the following are Nonforfeiture Options EXCEPT - Precise Answer ✔✔Automatic premium loan option Which entity approves the insurance policy forms used in Florida? - Precise Answer ✔✔Office of insurance regulation Deductibles are used in health policies to lower - Precise Answer ✔✔Overuse of medical services A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as - Precise Answer ✔✔A representation Advertising gifts not to exceed___ area allowed to be given by an agents to a prospective client - Precise Answer ✔✔$25 What is considered a valid reason for small businesses to insures the lives of its major shareholders - Precise Answer ✔✔Fund a buy-sell agreement Group Life policies in Florida are required to contain a conversion privilege that allows for conversion - Precise Answer ✔✔To an individual policy for a stated period of time Which of these statements describe a Modified Endowment Contract (MEC)? - Precise Answer ✔✔Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract Which two entities regulate variable annuities? - Precise Answer ✔✔Department of financial services & Securities exchange commission Which of the following is NOT an unfair claim settlement practice? - Precise Answer ✔✔Needing written documentation for claim details S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation? - Precise Answer ✔✔single premium When a person returns to work after a period of total disability but cannot earn as much as he or she did before the disability, this situation is called - Precise Answer ✔✔Residual disability T has a term policy that allows him to continue the coverage after expiration of the initial policy period. What type of term coverage is this? - Precise Answer ✔✔renewable Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan? - Precise Answer ✔✔collateral assignment P died 5 years after purchasing a life policy. While investigating the claim, the insurer discovered material misrepresentations made by P during the application process. Which of these actions will the insurer take? - Precise Answer ✔✔Beneficiary will be paid the death benefit The Accelerated Death Benefit provision in a life insurance policy is also known as a - Precise Answer ✔✔living benefit According to the Mandatory Uniform Policy Provisions, what is the maximum amount of time after the premium due date during which the policy reminds in force even though the premium has not been paid? - Precise Answer ✔✔31 days In Florida, monthly-premium health insurance policies must provide a grace period of at least - Precise Answer ✔✔10 days How would a contingent beneficiary receive the policy proceeds in a AD&D policy? - Precise Answer ✔✔If the primary beneficiary dies before the insured Which statement regarding the Misstatement of Age provision is considered to be true? - Precise Answer ✔✔Coverage will be adjusted to reflect the insured's true age if a misstatement of age is discovered Which of these is NOT considered to be a cost connected with an individual's death? - Precise Answer ✔✔Business expenses The Notice of Claims provision requires a policy owner to - Precise Answer ✔✔Notify an insurer of a claim within specified time What type of policy would only provide courage for specific types of illnesses (cancer, stroke, etc)? - Precise Answer ✔✔dread disease insurance How are policyowner dividends treated in regards to income tax? - Precise Answer ✔✔Interest on accumulations is taxed What would be an accurate definition of "controlled business" - Precise Answer ✔✔Insurance business that is written on the agent's own life, property, or interests M purchases a 470,000 Life Insurance policy with premium payment of $550 a year for the first 5 years. At the beginning of the 6th year, the premium will increase to $800 per year but will remain level thereafter. The face amount will remain $70,000 throughout the life of the policy. The type of policy that M has purchased is - Precise Answer ✔✔Modified premium life T has a Disability Income policy that pays a monthly benefit of $5,000. If T becomes partially disabled, what can he likely expect? - Precise Answer ✔✔Less than $5,000 per month benefit regardless of the disability When an insurance company sends a policy to the insured with an attached application, the lament that makes the application part of the contract between the insured and the insurance is called the - Precise Answer ✔✔Entire contract provision An example of unfair discrimination would be - Precise Answer ✔✔Offering different terms of coverage for different policyowners having the same risk classification Which accident and health policy provision addresses preexisting conditions? - Precise Answer ✔✔Time limit on certain defenses How does a typical variable life policy investment account grow? - Precise Answer ✔✔Through mutual funds, stocks, bonds When a policy owner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply? - Precise Answer ✔✔Conversion provision In a qualified retirement plan, the yearly contributions to an employee's account - Precise Answer ✔✔Are restricted to maximum levels set by the IRS Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy? - Precise Answer ✔✔Miliation on preexisting conditions for up to 12 months A group plan was recently terminated. In Florida, how many days are covered individuals guaranteed coverage after a group plan's termination? - Precise Answer ✔✔31 days T owns a Accident and Health policy and notified her insurance company that she has chosen a less hazardous occupation. Under the Change of Occupation provision, which of the following actions may her insurance company take? - Precise Answer ✔✔increase her policy's coverage amount An insured covered by a group Major Medical plan is hospitalized after sustaining injuries that resulted from an automobile accident. Assuming the plan had a $1,000 deductible and an 80/20 Coinsurance clause, how much will the insured be responsible to pay with $11,000 in covered medical expenses? - Precise Answer ✔✔3000 → 11,000 x .20 + 1,000 K has a health policy that must be renewed by the insurer and the premiums can only be increased if applied to the entire class of insured. This type of policy is considered? - Precise Answer ✔✔Guaranteed renewable Which mode of payment is NOT used by health insurance policies? - Precise Answer ✔✔single premium An insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses? - Precise Answer ✔✔Loss of eyesight due to an accidental injury Which of these is NOT a type of agent authority? - Precise Answer ✔✔Principal Which of the following provisions is NOT required in HMO contracts/certificates? - Precise Answer ✔✔Seven day grace period The clause identifying which losses resulting from an accident or sickness are insured by the policy is called the - Precise Answer ✔✔insuring clause If an annuity is terminated prior to the beginning of the income payment period, the contract owner received - Precise Answer ✔✔The contract current value at that time According to Florida law, when must an agent deliver the Outline of Coverage to a Medicare Supplement applicant? - Precise Answer ✔✔At the time of application J is a subscriber to a plan which contracts with doctors and hospitals to provide medical benefits at a predetermined price. What type of plan does J belong to? - Precise Answer ✔✔Health maintenance organization (hmo) S buys a $10,000 whole life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy? - Precise Answer ✔✔Return of premium rider Which of the following statements about a Guaranteed Renewable Health Insurance policy is CORRECT? - Precise Answer ✔✔Premiums normally increase at time of renewal All of these are considered to be a benefit under social security, except for - Precise Answer ✔✔unemployment All of the following statements about traditional individual retirement account are false EXCEPT - Precise Answer ✔✔10% penalty is applied to withdrawals before age 59.5 Florida requires that an insurance agent must complete __ hours of continuing education on the subject of law and ethics every 2 years - Precise Answer ✔✔5 Which of the following statements BEST describes what the Legal Actions provision of an ancient and health policy requires? - Precise Answer ✔✔An insured must wait at least 60 days after proof of loss has been submitted before a lawsuit can be filed Which of these is an element of a single premium annuity? - Precise Answer ✔✔Lump-sum payment According to the time limit of certain defenses provision in an individual health insurance policy, non fraudulent misstatements first become incontestable - Precise Answer ✔✔Two years from the date of the policy was issued Which type of plan allows an employer to give money to an employee for buying a life insurance policy and also permits the employee to select the beneficiary? - Precise Answer ✔✔Split dollar plan T took out a $50,000 life insurance policy with an accidental death and dismemberment rider. Five years later, T commits suicie. How much will the insurer pay? - Precise Answer ✔✔$50,000 Z owns a Disability income policy with a 30-day elimination period. Z contracted pneumonia that left him unable to work from Jan 1 until Jan 15. Z then becomes disabled from an accident on February 1 and the disability lasts until July 1 the same year. Z will become eligible to receive benefits starting on - Precise Answer ✔✔March 1 Which of these is NOT considered to be a right give to a policyowner? - Precise Answer ✔✔Modify a provision in the insurance contract? Whose life is covered on a life insurance policy that contains a payor benefit clause? - Precise Answer ✔✔Child Which type of renewability best describes a disability income policy that covers an individual until the age of 65, but the insurer has the rights to change the premium rate for the overall risk class? - Precise Answer ✔✔Guaranteed renewable Which of the following policy features allows an insured to defer current health changes to the following year's deductive instead of the current year's deductive? - Precise Answer ✔✔Carryover provision When does a probationary period provision become effective in a health insurance contract? - Precise Answer ✔✔At the policy's inception Which of the following statements about accumulated interest earned on dividends from an insurance policy is true? - Precise Answer ✔✔It is taxed as ordinary income Which of the following actions is NOT possible with a universal life policy? - Precise Answer ✔✔Premiums may be applied as a credit against income tax 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 the these features would allow D to continue receiving benefits - Precise Answer ✔✔Residual benefit clause → based on a proportion of income actually lost to the partial disability Which organization was established to provide funds to protect an insured in the event of an insurer's insolvency? - Precise Answer ✔✔Florida Life and Health insurance guaranty association D needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policy is needed? - Precise Answer ✔✔level term N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase? - Precise Answer ✔✔Fixed deferred An insurance company can contest a life insurance contract due to application fraud within - Precise Answer ✔✔2 years A noncontributory group term life plan is characterized by - Precise Answer ✔✔The entire cost of the plan is paid for by the employer Which of the following organizations would make reimbursement payment directly to the insured individual for covered medical expenditures? - Precise Answer ✔✔Commercial insurer Which of these types of policies may not have the automatic premium loan provision attached to it? - Precise Answer ✔✔decreasing term An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period? - Precise Answer ✔✔full face amount minus any past due premiums which type of insurance company allows their policy owners to elect a governing body? - Precise Answer ✔✔mutual policyholders what kind of special needs would a policy owner require with an adjustable life insurance policy? - Precise Answer ✔✔flexible premiums S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level or risk. Which product would S be advised to purchase? - Precise Answer ✔✔equity index insurance when an individual is planning to protect his family with life insurance, one method of doing so is called needs analysis. What exactly does needs analysis involve? - Precise Answer ✔✔takes into account the present value of future income earned by the breadwinner What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years? - Precise Answer ✔✔family maintenance policy What type of rider would be added to an Accident and Health policy if the policyowner wants to ensure the policy will continue if he/she ever becomes totally disabled? - Precise Answer ✔✔waiver of premium rider Group/voluntary long-term care policy premiums are typically deducted from the employee's income and - Precise Answer ✔✔are less costly as compared to individual long-term care coverage All of these statements about the Waiver of Premium provision are correct EXCEPT - Precise Answer ✔✔insured must be eligible for social security disability for claim to be accepted S is covered by a whole life policy. Which insurance product can cover his children? - Precise Answer ✔✔Child term rider What is the max social security disability benefit amount an insured can receive? - Precise Answer ✔✔1oo% of the insured' primary insurance amount An applicant who pays the initial premium at the time of application is typically given a - Precise Answer ✔✔Conditional receipt The provision that define to whom the insurer will pay benefits to is called - Precise Answer ✔✔Payment of claims Which of the following consists of an offer, acceptance, and consideration? - Precise Answer ✔✔contract The life and health insurance guaranty associate is - Precise Answer ✔✔Funded by admitted insurance companies through assessments N is covered by a term life policy and does not make the required premium payment which was due august 1. N died september 15. What action will the insurer take? - Precise Answer ✔✔claim will be denied N purchases an annuity by making payments in an amount no less than $100 quarterly. This describes which of the following annuities? - Precise Answer ✔✔flexible installment deferred An agent who makes misleading statement that lead to the termination of an existing insurance policy so that a new policy with another insurer can be taken out has committed - Precise Answer ✔✔twisting The waiting period for a pre-existing condition under a medicare supplement policy may not go beyond - Precise Answer ✔✔6 months What is being delivered during a policy delivery? - Precise Answer ✔✔Insurance contract to the proposed insured Which of these statements concerning an individual disability income policy is true? - Precise Answer ✔✔Normally includes an elimination period Which of the following professional organizations has its code of ethics incorporated into Florida law? - Precise Answer ✔✔National association of insurance and financial advisors (naifa) Which of the following situations does not apply to the florida replacement rule? - Precise Answer ✔✔An existing policyholder purchases an addition policy from the same insurer One becomes eligible for social security disability benefits after having been disabled for - Precise Answer ✔✔5 months Post tax dollar contributions are found in - Precise Answer ✔✔Roth IRA investments An insurance company can contest to a life insurance contract due to application fraud within - Precise Answer ✔✔2 years Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? - Precise Answer ✔✔Life income S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits? - Precise Answer ✔✔Full benefits are payable under the master contract A 55 year old recently received a $33,000 distribution from a previous employer's 401K plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over? - Precise Answer ✔✔income taxes plus a 10% penalty tax on $30,000 when a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take? - Precise Answer ✔✔void the policy only if it is discovered during the contestable period and proven to be material a medical care provider which typically delivers health services at its own local medical facility is known as a - Precise Answer ✔✔health maintenance organziation a CEO's personal assistant suffered injuries at home and as a result, was unable to work for four months. which type of policy will pay a monthly benefit to the personal assistant? - Precise Answer ✔✔major medical which of the following is a characterstic of a variable annuity? - Precise Answer ✔✔underlying equity investment all of these statements concerning settlement options are true, except - Precise Answer ✔✔only the beneficiary may select M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the - Precise Answer ✔✔policy proceeds Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party? - Precise Answer ✔✔subrogation The benefits under a disability buy-out policy are - Precise Answer ✔✔Payable to the company or another shareholder Which of these statement accurately describes the waiver of premium provision in an accident and health policy - Precise Answer ✔✔Premiums are waived after the insured has been totally disabled for a specified time period Which of these statements is NOT the reason for purchasing life insurance on the life of a minor? - Precise Answer ✔✔If both parents were to die, it would provide death benefits to the child What is the required minimum percentage of employee participation for a noncontributory group health insurance plan according to Florida law? - Precise Answer ✔✔0% An example of sliding would be - Precise Answer ✔✔Charging for an additional product without the applicant's consent An individual working part-time has an annual income of $25,000. If this individual has an IRA, what is the maximum deductible IRA contribution allowable? - Precise Answer ✔✔$2,500 Which statement regarding third-party ownership of a life insurance policy is true? - Precise Answer ✔✔It is used extensively in estate-planning as well as business circumstances Which of the following statements is CORRECT about accelerated death benefits? - Precise Answer ✔✔Must have terminal illness to qualify Which of the following types of health coverage frequently uses a deductible? - Precise Answer ✔✔Major medical policy Periodic health claim payment must be maid at least - Precise Answer ✔✔Monthly M's insurance company denied a reinstatement application for her lapsed health insurance policy. The company did not notify M of this denial. How many days from the reinstatement application date does the insurance company have to notify M of the denial before the policy will be automatically placed back in force? - Precise Answer ✔✔45 days When an employee is terminated, which statement about a group term life conversion is true? - Precise Answer ✔✔Policy proceeds will be paid if the employee dies during the conversion period What determines the full amount of social security retirement benefits a qualified individual is entitled to receive? - Precise Answer ✔✔Number of dependents Variable annuities may invest premiums in each of the following except - Precise Answer ✔✔Insurer's corporate business account Within how many days after policy delivery can a medicare supplement policy be returned for a 100% premium refund? - Precise Answer ✔✔30 M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the - Precise Answer ✔✔Policy proceeds Which type of provider is known for stressing preventative medical care? - Precise Answer ✔✔HMO's An assignment of benefits of a Health Policy - Precise Answer ✔✔Transfers payment to someone other than the policy owner Which of the following statement about a Guaranteed Renewable health insurance policy is correct - Precise Answer ✔✔Premiums normally increase at time of renewal J has an AD&D policy with a principal sum of $50,000. While trimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will receive from his policy? - Precise Answer ✔✔$25,000 Insurance policies are offered on a "take it or leave it" basis, which makes them - Precise Answer ✔✔contracts of adhesion Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested". How can this be interpreted? - Precise Answer ✔✔if Tom's employment is terminated, 20%of the funds would be forfeited S takes out a health insurance policy which contains a provision that states that the agent does not have the authority to change the policy or waive any of its provisions. Which health policy provision is this? - Precise Answer ✔✔entie contract A 15-year mortgage is best protected by what kind of life policy? - Precise Answer ✔✔15-year decreasing term A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy. What rider would the physician add if he wants the ability to increase his policy benefit as his practice and income grow? - Precise Answer ✔✔guaranteed insurability option rider If an annuity is terminated prior to beginning of the income payment period, the contract owner receives - Precise Answer ✔✔the contract surrender value at that time Medicaid was designed to provide health care - Precise Answer ✔✔in poor health the incontestable clause allows an insurer to - Precise Answer ✔✔contest a claim during the contestable period an example of an unfair trade practice is - Precise Answer ✔✔is an agent making a material misrepresentation to the insured an example of rebating would be - Precise Answer ✔✔offering a client something of value not stated in the contract in exchange for their business Any changes made on an insurance application requires the initials of whom? - Precise Answer ✔✔applicant what percent of personal life insurance premiums is usually deductible for federal income tax purposes? - Precise Answer ✔✔0% All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPT - Precise Answer ✔✔interest only a life insurance policy that provides a policy owner with cash value along with a level face amount is called - Precise Answer ✔✔whole life which of these is not considered to be a right given to a policyowner - Precise Answer ✔✔modify a provision in the insurance contract which of the following actions is not possible with a universal life policy? - Precise Answer ✔✔premiums may be applied as a credit against income tax what action can a policyowner take if an application for a bank loan requires collateral? - Precise Answer ✔✔assign policy ownership to the bank When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n) - Precise Answer ✔✔anti-money laundering violation what type of group insurance plan involves employees sharing the cost? - Precise Answer ✔✔contributory plan N purchases an annuity by making payments in an amount no less than $100 quarterly. This describes which of the following annuities? - Precise Answer ✔✔flexible installment deferred which of the following statements best describes dental care indemnity coverage? - Precise Answer ✔✔services are reimbursed after insurer received the invoice J has a Disability Income policy that does NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this? - Precise Answer ✔✔nonoccupational coverage S filed a written Proof of Loss for a Disability Income claim on September 1. The insurance company did not respond to the claim. S can take legal action against the insurer beginning - Precise Answer ✔✔November 1 A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as the - Precise Answer ✔✔a representation what types of life policy covers 2 lives and pays the face amount after the first one dies? - Precise Answer ✔✔joint life policy which of these factors does not influence an applicant's need for life insurance? - Precise Answer ✔✔self-maintenance expenses D was actively serving in the Marines when he was killed in an automobile accident while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How much will D's beneficiary's receive? - Precise Answer ✔✔the full face amount all of these statements about equity indexed life insure are correct except - Precise Answer ✔✔the premiums can be lowered or raised, based on investment performance P purchases a $50,000 term life insurance policy in 2005. One of the questions on the application ask 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? - Precise Answer ✔✔$50,000 minus any outstanding policy loans P is a new employee and will be obtaining non-contributory group Major Medical insurance from her employer. Which of the following actions must she take during the open enrollment period? - Precise Answer ✔✔sign an enrollment card An insurance company receives E's application for an individual health policy. E did not complete all of the medical history questions because she could not remember the exact dates. E signed the policy and submitted it to the insurance company anyway. A few weeks later, E suffers a heart attack and is hospitalized without completing the medical history questions and paying the initial premium. E is not insured. Which of the following clauses details the conditions that E did not meet? - Precise Answer ✔✔consideration clause which of the following statements does not accurately describe the tax treatment of premiums and benefits of individual AD&D insurance? - Precise Answer ✔✔disability income policy premiums are tax- deductible T was treated for an ailment 2 months prior to applying for a health insurance policy. This condition was noted on the application and the policy was issued shortly afterwards.How will the insurer likely consider this condition? - Precise Answer ✔✔insurer will likely treat as a pre-existing condition which may not be covered for one year according to the time limit of certain defenses provision in an individual health insurance policy, nonfraudluent misstatements first become incontestable - Precise Answer ✔✔two years from the date of the policy was issued T was insured under an individual Disability Income policy and was severely burned in a fire. As a result, T became totally disabled. The insurer began making monthly benefit payments, but later discovered that the fire was set by T in what was described as arson. What actions will the insurer take? - Precise Answer ✔✔the insurer will rescind the policy, deny the claim, and recover all payments made a prepaid application for individual disability income insurance was recently submitted to an insurer. when the insurer received the medical information bureau report, the report showed that the applicant had suffered a stroke 18 months ago, something that was not disclosed on the application. which of the following actions would the insurance company not take? - Precise Answer ✔✔send a notice to the MIB that the applicant was declined