FLORIDA LIFE AND HEALTH INSURANCE PRACTICE QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST EX, Exams of Nursing

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QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

Within how many days must a licensee notify the Department of Financial Services of a change in address? - CORRECT ANSWERS 30 All of the following entries are classified under the four principal areas of Florida insurance law EXCEPT... - CORRECT ANSWERS 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? - CORRECT ANSWERS 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 - CORRECT ANSWERS 5 Agents that have been licensed for less than six years must complete __ hours of continuing education every two years - CORRECT ANSWERS 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? - CORRECT ANSWERS 48 What is the maximum percentage of controlled business an agent may produce? - CORRECT ANSWERS 50% A group plan was recently terminated. In Florida how many days are covered individuals guaranteed coverage after a group plan's termination? - CORRECT ANSWERS 31 days The Financial Services Commision may hold hearings... - CORRECT ANSWERS For any reason deemed necessary In Florida, an insurer domiciled and incorporated in this state is called... - CORRECT ANSWERS Domestic company

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

According to Florida law, which of the following statements accurately describes an admitted mail order insurance company? - CORRECT ANSWERS 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... - CORRECT ANSWERS 64 years or older Which action could result in a hearing being ordered by the Department of Financial Services? - CORRECT ANSWERS Performing insurance transactions without a license Which of the following professional organizations has its code of ethics incorporated into Florida law? - CORRECT ANSWERS National Association of Insurance and Financial Advisors (NAIFA) Which entity approves the insurance policy forms used in Florida? - CORRECT ANSWERS Office of Insurance Regulation (OIR) In Florida, agents are allowed to engage in rebating if... - CORRECT ANSWERS 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... - CORRECT ANSWERS Florida Replacement Rule In Florida, an element of an insurance transaction would be... - CORRECT ANSWERS Issuing an insurance contract The Bureau of Unclaimed Property is overseen by... - CORRECT ANSWERS The chief financial officer One of the stated purposes of the Life and Health Insurance Guaranty Association is... - CORRECT ANSWERS To assist in the prevention of insurer insolvencies

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

The Life and health Insurance Guaranty Association is funded by... - CORRECT ANSWERS Assessments on member companies The purpose of the Guaranty Fund is to... - CORRECT ANSWERS Ensure that claims filed against involvement insurance companies will be paid The rules and regulations of the Life and health Insurance Guaranty Association apply to... - CORRECT ANSWERS Life and health policies issues by companies authorized in that particular state The fund that assures policyholder payment of benefits on Life and Health Policies, if the company is involved at the time of the claim, is called the... - CORRECT ANSWERS The Life and Health Insurance Guaranty Association A stock life insurance company that issues both participating and nonparticipating policies is doing business on... - CORRECT ANSWERS Mixed plan A stock insurance company is owned by - CORRECT ANSWERS Its stockholders Who is a mutual insurance company owned by? - CORRECT ANSWERS Its policyholders Which type of insurance company allows their policyowners to elect a governing body? - CORRECT ANSWERS Mutual What percentage of eligible persons must a policy cover in a noncontributory group? - CORRECT ANSWERS 100% Which of the following employer tasks does a Professional Employer Organization normally handle? - CORRECT ANSWERS Administration tasks The Coordination of Benefits (COB) provision exists in order to... - CORRECT ANSWERS Avoid duplication of benefit payments

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

M completes an application for health 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 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 According to Florida law, which of the following info does NOT need to be obtained by an agent recommending an annuity purchase? - CORRECT ANSWERS Marital status K is an agent who made improper sales of an annuity to a client. Which of the following corrective actions would the Department of Financial Services likely order K to take? - CORRECT ANSWERS Pay a monetary restitution to the client Under Florida law, a variable annuity policyowner must be notified of the accumulated value of the contract... - CORRECT ANSWERS Once each year Which two entities regulate variable annuities? - CORRECT ANSWERS Department of Financial Services and Securities Exchange Commission If an agent would like to sell Variable annuities, which state examination must the agent pass? - CORRECT ANSWERS Life and Variable contracts According to Florida's rules on disclosure, a life insurance applicant is expected to be provided with... - CORRECT ANSWERS Buyer's Guide and Policy Summary In Florida, most life insurance policies have a contestability period of... - CORRECT ANSWERS 2 years Nonprofit life insurance providers that are covered by a special section in the Florida insurance code are called - CORRECT ANSWERS Fraternal life insurance organizations

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

The 14-day free look period for life insurance policies begins at the... - CORRECT ANSWERS Day of delivery According to Florida law, group life insurance conversion privileges must NOT - CORRECT ANSWERS Require evidence of insurability Which of the following situations are NOT subject to Florida life insurance laws? - CORRECT ANSWERS Insurance companies' day-to-day operations What are adjustable rates for life policy loans in Florida based on? - CORRECT ANSWERS Moody's corporate bond index A life policy loan in Florida cannot charge a fixed rate of interest higher than... - CORRECT ANSWERS 10% The minimum age at which a person can sign a life insurance application is... - CORRECT ANSWERS 15 years 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 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.... - CORRECT ANSWERS the policyowner A variable life insurance agent must be licensed and appointed as a life and variable contract agent, as well as... - CORRECT ANSWERS a broker dealer Which of these is NOT a legal entity for selling life insurance in Florida? - CORRECT ANSWERS risk management advisors The Replacement of Life Insurance and Annuities regulation is designed to protect the interest of... - CORRECT ANSWERS the policyowner

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

When an existing life insurance policy is being reissued with a reduction in cash value, the agent must sign the... - CORRECT ANSWERS Notice regarding the replacement of life insurance or annuity The life insurance and annuity replacement regulation defines replacement as - CORRECT ANSWERS Exchanging an existing policy for a new policy Replacement regulation applies to which of the following types of contracts? - CORRECT ANSWERS ordinary life Replacement is involved in all of the following situations EXCEPT when... - CORRECT ANSWERS A Term policy is converted to a permanent plan with the same insurance company Which policy is EXEMPT from replacement regulations? - CORRECT ANSWERS Group life policy Which of the following statements is CORRECT about the replacement of one insurance policy with another? - CORRECT ANSWERS 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? - CORRECT ANSWERS 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? - CORRECT ANSWERS The transaction is considered a replacement When replacing or exchanging an annuity, the agent must disclose to the annuitant... - CORRECT ANSWERS The possible tax ramifications as a result of the transaction

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

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 written agreement to provide a Life Insurance Policy holder immediate cash in exchange for the sale and transfer of a Life Insurance Policy is... - CORRECT ANSWERS Viatical settlement Group life policies MUST include all of the following provisions EXCEPT... - CORRECT ANSWERS Right to loan proceeds Which of the following employees may NOT be excluded from a group life plan? - CORRECT ANSWERS Full-time employees after a probationary period All of the following provisions are required in a group life policy EXCEPT... - CORRECT ANSWERS An accidental death and dismemberment provision Which of the following is a standard provision of the conversion privileges in a Group Life Policy? - CORRECT ANSWERS 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... - CORRECT ANSWERS A certificate holder The conversion period for a terminated employee to convert group life coverage to an individual plan is... - CORRECT ANSWERS 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... - CORRECT ANSWERS 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? - CORRECT ANSWERS All of the employees must be notified of the cancellation either by the insurance company or through J

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

Individual life insurance proceed are exempt from creditor's claims when they are payable to any of the following entities EXCEPT the insured's - CORRECT ANSWERS estate All of the following provisions must be included in life insurance policies EXCEPT... - CORRECT ANSWERS Extended term If, at the time of an insured's death, the insurance company discovers that the insured's age was misstated on the application for life insurance, the company will most likely... - CORRECT ANSWERS Pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age An insurance company can contest a life insurance contract due to application fraud within...

• CORRECT ANSWERS 2 years Which of the following BEST describes Credit Life Insurance? - CORRECT ANSWERS Insurance issued on a debtor to cover outstanding balances on installment loans Which of the following areas of state regulation is NOT protected by the savings clause in ERISA? - CORRECT ANSWERS Commerce According to Florida law, in which of the following situations would a dependent handicapped child NOT be covered under a Family Health policy? - CORRECT ANSWERS The premiums for the handicapped child are not paid The Florida Employee health Care Access Act was established to make... - CORRECT ANSWERS Group health insurance available to employers with up to 50 employees What do families pay that are covered by the Florida Healthy kids Corporation? - CORRECT ANSWERS A portion of the premium What is required in the Florida Employee Health Cares Access Act? - CORRECT ANSWERS Small group benefit plans are to be issued on a "guaranteed-issue" basis

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

In Florida, the underwriting and issuance of a master group health policy requires that all employees... - CORRECT ANSWERS Are eligible to participate, regardless of their individual health history Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy? - CORRECT ANSWERS Limitations on preexisting condition for up to 12 months Employers with less than __ employees are affected by Florida's health Insurance Coverage Continuation Act (Mini COBRA) - CORRECT ANSWERS 20 In Florida, which of the following practitioners normally do NOT receive payment from health insurance policies? - CORRECT ANSWERS Naturopaths Florida requires that coverage for newborns begins "from the moment of birth" and continues for... - CORRECT ANSWERS 18 months A long-term care lapse notice must be delivered to both the applicant and... - CORRECT ANSWERS Secondary addressee An agent MUST give a prospective insured in Outline of Coverage when taking an application for... - CORRECT ANSWERS Medicare Supplement Policy Individual Medicare Supplement policies must allow an insured a MINIMUM of how many days after policy delivery to return the policy and receive a refund of premium? - CORRECT ANSWERS 30 days 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 Under a Long-Term Care policy, which of the following is considered an activity of daily living? - CORRECT ANSWERS Dressing

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

A Long-Term Care policy must offer a MINIMUM benefit period of how many months? - CORRECT ANSWERS 12 The Free-Look provision of any health policy begins the date... - CORRECT ANSWERS The policy is delivered to the insured Disclosure standards require that which of the following be delivered with a Medicare Supplement policy? - CORRECT ANSWERS The outline of coverage The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond... - CORRECT ANSWERS 6 months An Outline of Coverage for Medicare Supplement policy MUST be given to the applicant at which of the following times? - CORRECT ANSWERS The time of application When is a Group Health policy required to provide coverage for a newborn child? - CORRECT ANSWERS At the moment of birth A Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits? - CORRECT ANSWERS Insurance All of the following statements about health coverage for newborns are correct EXCEPT... - CORRECT ANSWERS 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... - CORRECT ANSWERS 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... - CORRECT ANSWERS Have been covered under the insured's policy at the time the handicap was incurred

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

Association Plans that are designed to provide health benefits to their members are regulated by the state because... - CORRECT ANSWERS They are insured by an authorized insurer An agent selling Medicare Supplement policies must provide every applicant with... - CORRECT ANSWERS A suitability form All of the following are Nonforfeiture Options EXCEPT - CORRECT ANSWERS Automatic premium loan option Which entity approves the insurance policy forms used in Florida? - CORRECT ANSWERS Office of insurance regulation Deductibles are used in health policies to lower - CORRECT ANSWERS 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 - CORRECT ANSWERS A representation Advertising gifts not to exceed___ area allowed to be given by an agents to a prospective client - CORRECT ANSWERS $ What is considered a valid reason for small businesses to insures the lives of its major shareholders - CORRECT ANSWERS Fund a buy-sell agreement Group Life policies in Florida are required to contain a conversion privilege that allows for conversion - CORRECT ANSWERS To an individual policy for a stated period of time Which of these statements describe a Modified Endowment Contract (MEC)? - CORRECT ANSWERS Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

Which two entities regulate variable annuities? - CORRECT ANSWERS Department of financial services & Securities exchange commission Which of the following is NOT an unfair claim settlement practice? - CORRECT ANSWERS 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? - CORRECT ANSWERS 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 - CORRECT ANSWERS 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? - CORRECT ANSWERS renewable Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan? - CORRECT ANSWERS 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? - CORRECT ANSWERS Beneficiary will be paid the death benefit The Accelerated Death Benefit provision in a life insurance policy is also known as a - CORRECT ANSWERS 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? - CORRECT ANSWERS 31 days

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

In Florida, monthly-premium health insurance policies must provide a grace period of at least - CORRECT ANSWERS 10 days How would a contingent beneficiary receive the policy proceeds in a AD&D policy? - CORRECT ANSWERS If the primary beneficiary dies before the insured Which statement regarding the Misstatement of Age provision is considered to be true? - CORRECT ANSWERS 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? - CORRECT ANSWERS Business expenses An insurance company may NOT reject a prospective insured's life application on the basis of

• CORRECT ANSWERS gender With a Medical Expense policy, what does hospitalization expense cover? - CORRECT ANSWERS Hospital room and board A long-term care ride in a life insurance policy pays a daily benefit in the event of which of the following? - CORRECT ANSWERS Inability of the insured to perform more than 2 activity of daily living Which requirement must be met for an associate to be eligible for a group life plan? - CORRECT ANSWERS Group was formed for a purpose other an acquiring insurance Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund? - CORRECT ANSWERS 30 All of these are characteristic of an Adjustable Life policy except - CORRECT ANSWERS Face amount can be adjusted using policy dividends

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

J is 35-years old and looking to purchase a whole life insurance policy. Which of the following types of policies will provide the most rapid growth of cash value? - CORRECT ANSWERS 20- pay life An accident policy will most likely pay a benefit for a - CORRECT ANSWERS Off the job accident Which of these are NOT an example of a Nonforfeiture option? - CORRECT ANSWERS life income A policy loan is made possible by which of these life insurance policy features? - CORRECT ANSWERS Cash value provision The situation in which a group of physicians are salaried employees and conduct business in an HMO facility is called a - CORRECT ANSWERS Closed panel Which of the following is NOT included in the policy face? - CORRECT ANSWERS excisions A young, married teacher has 2 children and owns a whole life policy. If the teacher wants an increasing death benefit to protect against inflation, the teacher should select which ofthe following Dividend Options? - CORRECT ANSWERS Paid-up additional insurance In Florida, a health policy that is paid on a quarterly basis requires a grace period of - CORRECT ANSWERS 31 days A person insured under a health policy is required to give the insurance company a Notice of Claim within how many days after a covered loss? - CORRECT ANSWERS 20 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 Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first 6 months. Q suddenly dies and the beneficiary is paid $500,000. This exchange of unequal

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

values reflects which of the following insurance contract features? - CORRECT ANSWERS Aleatory An agent takes an individual Disability Income application, collects the appropriate premium, and issues the prospective insured a conditional receipt. The next step the insurance company will take is to - CORRECT ANSWERS Determine if the applicant is an acceptable risk by competing standard underwriting procedures What is being delivered during a policy delivery? - CORRECT ANSWERS Insurance contract to the proposed insured If a retiree on Medicare required for hospital stays in one year, which policy would provide the best insurance for excess hospital expenses? - CORRECT ANSWERS Medicare supplement According to Florida law, a Group Life insurance policy requires a minimum of how many insureds? - CORRECT ANSWERS no minimum The Notice of Claims provision requires a policy owner to - CORRECT ANSWERS 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)? - CORRECT ANSWERS dread disease insurance How are policyowner dividends treated in regards to income tax? - CORRECT ANSWERS Interest on accumulations is taxed 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 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 - CORRECT ANSWERS Modified premium life

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

T has a Disability Income policy that pays a monthly benefit of $5,000. If T becomes partially disabled, what can he likely expect? - CORRECT ANSWERS 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 - CORRECT ANSWERS Entire contract provision An example of unfair discrimination would be - CORRECT ANSWERS Offering different terms of coverage for different policyowners having the same risk classification Which accident and health policy provision addresses preexisting conditions? - CORRECT ANSWERS Time limit on certain defenses How does a typical variable life policy investment account grow? - CORRECT ANSWERS 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? - CORRECT ANSWERS Conversion provision In a qualified retirement plan, the yearly contributions to an employee's account - CORRECT ANSWERS 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? - CORRECT ANSWERS 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? - CORRECT ANSWERS 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

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

the following actions may her insurance company take? - CORRECT ANSWERS 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, in covered medical expenses? - CORRECT ANSWERS 3000 → 11,000 x .20 + 1, 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? - CORRECT ANSWERS Guaranteed renewable Which mode of payment is NOT used by health insurance policies? - CORRECT ANSWERS single premium An insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses? - CORRECT ANSWERS Loss of eyesight due to an accidental injury Which of these is NOT a type of agent authority? - CORRECT ANSWERS Principal Which of the following provisions is NOT required in HMO contracts/certificates? - CORRECT ANSWERS Seven day grace period The clause identifying which losses resulting from an accident or sickness are insured by the policy is called the - CORRECT ANSWERS insuring clause If an annuity is terminated prior to the beginning of the income payment period, the contract owner received - CORRECT ANSWERS 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? - CORRECT ANSWERS At the time of application

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

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? - CORRECT ANSWERS 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? - CORRECT ANSWERS Return of premium rider Which of the following statements about a Guaranteed Renewable Health Insurance policy is CORRECT? - CORRECT ANSWERS Premiums normally increase at time of renewal All of these are considered to be a benefit under social security, except for - CORRECT ANSWERS unemployment All of the following statements about traditional individual retirement account are false EXCEPT - CORRECT ANSWERS 10% penalty is applied to withdrawals before age 59. Florida requires that an insurance agent must complete __ hours of continuing education on the subject of law and ethics every 2 years - CORRECT ANSWERS 5 A long-term care lapse notice must be delivered to both the applicant and - CORRECT ANSWERS Secondary addressee Under Florida law, a variable annuity policyowner must be notified of the accumulated value of the contract - CORRECT ANSWERS Once each year A policy owner would like to change the beneficiary on an Accidental Death and Dismemberment insurance policy and make the change permanent. Which type of designation would fulfill this need? - CORRECT ANSWERS Irrevocable On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

producer then take? - CORRECT ANSWERS Collect initial premium along with a signed health statement Which contract permits the remaining partners to buy-out the interest of a disabled business partner? - CORRECT ANSWERS Disability buy-sell How do life insurance companies handle cases where the insured commits suicide within the contract's stated contestable period? - CORRECT ANSWERS Claims are denied under the suicide clause of the policy Which of the following documents must an agent submit to the replacing insurance company during the replacement of an existing life insurance policy? - CORRECT ANSWERS Notice of existing and replacing insurers of intention to replace A life policy with a death benefit that can fluctuate according to the performance of its underlying investment portfolio is referred to as - CORRECT ANSWERS Adjustable life K pays on a $20,000 20 year endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary? - CORRECT ANSWERS 20,000 death benefit The consideration clause in a life insurance policy indicate that a policyowner's consideration consists of a completed application and - CORRECT ANSWERS The initial premium When determining the monthly benefit amount for a disability income policy the factor that limits the amount a prospective insured may purchase is - CORRECT ANSWERS medical condition Which of the following statements describes what an accident and health policyowner may NOT do? - CORRECT ANSWERS Adjust the premium payments A family income policy is a combination of whole life and - CORRECT ANSWERS Decreasing term insurance

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

What is the primary factor that determines the benefits paid under a disability income policy? - CORRECT ANSWERS Wages An insured must notify an insurer of a medical claim within how many days after an accident? - CORRECT ANSWERS 30 According to Florida's rule on disclosure, a life insurance applicant is expected to be provided with - CORRECT ANSWERS A buyer's guide and policy summary In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and - CORRECT ANSWERS the initial premium The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person up an insured's death is called a - CORRECT ANSWERS insuring agreement Which of the following actions require a policyowner to provide proof of insurability in an adjustable life policy? - CORRECT ANSWERS Increase face amount A 42-year old executive wants to purchase life insurance that will allow for increases or decreases to coverage as his/her needs change. Which of the following policies will best meet this need? - CORRECT ANSWERS Universal life → characterized by flexible premiums and adjustable death benefit Which of the following statements BEST describes what the Legal Actions provision of an ancient and health policy requires? - CORRECT ANSWERS 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? - CORRECT ANSWERS Lump-sum payment According to the time limit of certain defenses provision in an individual health insurance policy, non fraudulent misstatements first become incontestable - CORRECT ANSWERS Two years from the date of the policy was issued

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

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? - CORRECT ANSWERS 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? - CORRECT ANSWERS $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 - CORRECT ANSWERS March 1 Which of these is NOT considered to be a right give to a policyowner? - CORRECT ANSWERS Modify a provision in the insurance contract? Whose life is covered on a life insurance policy that contains a payor benefit clause? - CORRECT ANSWERS 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? - CORRECT ANSWERS 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? - CORRECT ANSWERS Carryover provision When does a probationary period provision become effective in a health insurance contract?

• CORRECT ANSWERS At the policy's inception Which of the following statements about accumulated interest earned on dividends from an insurance policy is true? - CORRECT ANSWERS It is taxed as ordinary income

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

Which of the following actions is NOT possible with a universal life policy? - CORRECT ANSWERS 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 - CORRECT ANSWERS 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? - CORRECT ANSWERS 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? - CORRECT ANSWERS 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? - CORRECT ANSWERS Fixed deferred An insurance company can contest a life insurance contract due to application fraud within - CORRECT ANSWERS 2 years A noncontributory group term life plan is characterized by - CORRECT ANSWERS 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? - CORRECT ANSWERS Commercial insurer Which of these types of policies may not have the automatic premium loan provision attached to it? - CORRECT ANSWERS 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? - CORRECT ANSWERS full face amount minus any past due premiums

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

which type of insurance company allows their policy owners to elect a governing body? - CORRECT ANSWERS mutual policyholders what kind of special needs would a policy owner require with an adjustable life insurance policy? - CORRECT ANSWERS 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? - CORRECT ANSWERS 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? - CORRECT ANSWERS 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? - CORRECT ANSWERS 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? - CORRECT ANSWERS waiver of premium rider Group/voluntary long-term care policy premiums are typically deducted from the employee's income and - CORRECT ANSWERS are less costly as compared to individual long-term care coverage All of these statements about the Waiver of Premium provision are correct EXCEPT - CORRECT ANSWERS insured must be eligible for social security disability for claim to be accepted which of these types of coverage is best described as a short term medical policy? - CORRECT ANSWERS interim coverage

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

What does a Guaranteed Insurability rider provide a Disability Income policyowner? - CORRECT ANSWERS the ability to periodically increase the amount of coverage only WITHOUT evidence of insurability A disability income policy owner recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the application was taken 5 years prior. The neck injury was never disclosed to the insurer at the time of the application. How will the insurer handle this claim? - CORRECT ANSWERS claim will be paid and coverage will remain in force what is considered to be a characteristic of a conditionally renewable health insurance policy? - CORRECT ANSWERS premiums may increase at time of renewal L, aged 50, and L's spouse 48, have one natural child and one adopted child. They purchase a family policy that covers L's spouse at age 65. A death benefit will NOT be paid in which of the following circumstances? - CORRECT ANSWERS L's spouse dies at age 66 All of the following statements regarding group health insurance is true, except: - CORRECT ANSWERS an individual policy is given to each member How many days does an insurance company have to reject a reinstatement application before it is automatically reinstated? - CORRECT ANSWERS 45 M becomes disabled and is unable to work for 6 months. M dies soon after from complications arising from this disability. M has a disability income policy that pays $2,000 a month. Which of the following statements BEST describes what is owed to her estate? - CORRECT ANSWERS $2,000 The Legal Actions provision of an insurance contract is designated to do all off the following, EXCEPT: - CORRECT ANSWERS protect the producer K applies for a life insurance policy on herself and submits the initial premium with the application. She is given a receipt by the agent stating that coverage begins immediately if the application is approved. What kind of receipt was used? - CORRECT ANSWERS conditional

QUESTIONS AND CORRECT ANSWERS 2024/2025 BEST

EXAM SOLUTION RATED A+

An insurer must provide an insured with claim forms within __ days after receiving notice of a loss. - CORRECT ANSWERS 20 HIPAA gives privacy protection for - CORRECT ANSWERS health information Characteristic of PPO would be - CORRECT ANSWERS Discounted fees for the patient what is the initial requirement for an insured to become eligible for benefits under the waiver of premium provision? - CORRECT ANSWERS insured must be under a physician's care in major medical expense policies, what is the intent of a stop loss provision? - CORRECT ANSWERS limits an insured's out-of-pocket medical expenses 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 A policy of adhesion can only be modified by whom? - CORRECT ANSWERS insurance company On delivery of a policy, a signed statement of good health is typically requested if - CORRECT ANSWERS The application was submitted without the initial premium Long term care policies will usually pay for eligibility benefits using which of the following methods? - CORRECT ANSWERS Expense incurred MEWA provides what type of benefits - CORRECT ANSWERS insurance Medicare part a and b do not pay for - CORRECT ANSWERS dental work