Florida Life and Health Insurance practice questions with Complete Answers, Exams of Nursing

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Florida Life and Health Insurance

practice questions with Complete

Answers

Within how many days must a licensee notify the Department of Financial Services of a change in address? - ANS: 30 All of the following entries are classified under the four principal areas of Florida insurance law EXCEPT...

• ANS: 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? - ANS: 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 - ANS: 5 Agents that have been licensed for less than six years must complete __ hours of continuing education every two years - ANS: 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? - ANS: 48 What is the maximum percentage of controlled business an agent may produce? - ANS: 50% A group plan was recently terminated. In Florida how many days are covered individuals guaranteed coverage after a group plan's termination? - ANS: 31 days The Financial Services Commision may hold hearings... - ANS: For any reason deemed necessary In Florida, an insurer domiciled and incorporated in this state is called... - ANS: Domestic company

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

The purpose of the Guaranty Fund is to... - ANS: 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... - ANS: 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... - ANS: The Life and Health Insurance Guaranty Association A stock life insurance company that issues both participating and nonparticipating policies is doing business on... - ANS: Mixed plan A stock insurance company is owned by - ANS: Its stockholders Who is a mutual insurance company owned by? - ANS: Its policyholders Which type of insurance company allows their policyowners to elect a governing body? - ANS: Mutual What percentage of eligible persons must a policy cover in a noncontributory group? - ANS: 100% Which of the following employer tasks does a Professional Employer Organization normally handle? - ANS: Administration tasks The Coordination of Benefits (COB) provision exists in order to... - ANS: Avoid duplication of benefit payments 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? - ANS: 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? - ANS: 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? - ANS: 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? - ANS: Pay a monetary restitution to the client Under Florida law, a variable annuity policyowner must be notified of the accumulated value of the contract... - ANS: Once each year Which two entities regulate variable annuities? - ANS: Department of Financial Services and Securities Exchange Commission If an agent would like to sell Variable annuities, which state examination must the agent pass? - ANS: Life and Variable contracts According to Florida's rules on disclosure, a life insurance applicant is expected to be provided with... - ANS: Buyer's Guide and Policy Summary In Florida, most life insurance policies have a contestability period of... - ANS: 2 years Nonprofit life insurance providers that are covered by a special section in the Florida insurance code are called - ANS: Fraternal life insurance organizations The 14-day free look period for life insurance policies begins at the... - ANS: Day of delivery According to Florida law, group life insurance conversion privileges must NOT - ANS: Require evidence of insurability

Which of the following situations are NOT subject to Florida life insurance laws? - ANS: Insurance companies' day-to-day operations What are adjustable rates for life policy loans in Florida based on? - ANS: Moody's corporate bond index A life policy loan in Florida cannot charge a fixed rate of interest higher than... - ANS: 10% The minimum age at which a person can sign a life insurance application is... - ANS: 15 years Which of the following situations does NOT apply to the Florida Replacement Rule? - ANS: 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.... - ANS: the policyowner A variable life insurance agent must be licensed and appointed as a life and variable contract agent, as well as... - ANS: a broker dealer Which of these is NOT a legal entity for selling life insurance in Florida? - ANS: risk management advisors The Replacement of Life Insurance and Annuities regulation is designed to protect the interest of... - ANS: the policyowner When an existing life insurance policy is being reissued with a reduction in cash value, the agent must sign the... - ANS: Notice regarding the replacement of life insurance or annuity The life insurance and annuity replacement regulation defines replacement as - ANS: Exchanging an existing policy for a new policy Replacement regulation applies to which of the following types of contracts? - ANS: ordinary life

Replacement is involved in all of the following situations EXCEPT when... - ANS: A Term policy is converted to a permanent plan with the same insurance company Which policy is EXEMPT from replacement regulations? - ANS: Group life policy Which of the following statements is CORRECT about the replacement of one insurance policy with another? - ANS: 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? - ANS: 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? - ANS: The transaction is considered a replacement When replacing or exchanging an annuity, the agent must disclose to the annuitant... - ANS: 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 - ANS: 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... - ANS: Viatical settlement Group life policies MUST include all of the following provisions EXCEPT... - ANS: Right to loan proceeds Which of the following employees may NOT be excluded from a group life plan? - ANS: Full-time employees after a probationary period All of the following provisions are required in a group life policy EXCEPT... - ANS: An accidental death and dismemberment provision

Which of the following is a standard provision of the conversion privileges in a Group Life Policy? - ANS: 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... - ANS: A certificate holder The conversion period for a terminated employee to convert group life coverage to an individual plan is... - ANS: 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... - ANS: 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? - ANS: 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 - ANS: estate All of the following provisions must be included in life insurance policies EXCEPT... - ANS: 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... - ANS: 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... - ANS: 2 years Which of the following BEST describes Credit Life Insurance? - ANS: 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? - ANS: Commerce According to Florida law, in which of the following situations would a dependent handicapped child NOT be covered under a Family Health policy? - ANS: The premiums for the handicapped child are not paid The Florida Employee health Care Access Act was established to make... - ANS: Group health insurance available to employers with up to 50 employees What do families pay that are covered by the Florida Healthy kids Corporation? - ANS: A portion of the premium What is required in the Florida Employee Health Cares Access Act? - ANS: Small group benefit plans are to be issued on a "guaranteed-issue" basis In Florida, the underwriting and issuance of a master group health policy requires that all employees... - ANS: 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? - ANS: 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) - ANS: 20 In Florida, which of the following practitioners normally do NOT receive payment from health insurance policies? - ANS: Naturopaths Florida requires that coverage for newborns begins "from the moment of birth" and continues for... - ANS: 18 months A long-term care lapse notice must be delivered to both the applicant and... - ANS: Secondary addressee

An agent MUST give a prospective insured in Outline of Coverage when taking an application for... - ANS: 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? - ANS: 30 days Which of the following is NOT required in the Outline of Coverage for a health insurance policy? - ANS: Projection of the policy's future costs Under a Long-Term Care policy, which of the following is considered an activity of daily living? - ANS: Dressing A Long-Term Care policy must offer a MINIMUM benefit period of how many months? - ANS: 12 The Free-Look provision of any health policy begins the date... - ANS: The policy is delivered to the insured Disclosure standards require that which of the following be delivered with a Medicare Supplement policy? - ANS: The outline of coverage The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond... - ANS: 6 months An Outline of Coverage for Medicare Supplement policy MUST be given to the applicant at which of the following times? - ANS: The time of application When is a Group Health policy required to provide coverage for a newborn child? - ANS: At the moment of birth A Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits? - ANS: Insurance

All of the following statements about health coverage for newborns are correct EXCEPT... - ANS: 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... - ANS: 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... - ANS: 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... - ANS: They are insured by an authorized insurer An agent selling Medicare Supplement policies must provide every applicant with... - ANS: A suitability form All of the following are Nonforfeiture Options EXCEPT - ANS: Automatic premium loan option Which entity approves the insurance policy forms used in Florida? - ANS: Office of insurance regulation Deductibles are used in health policies to lower - ANS: 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 - ANS: A representation Advertising gifts not to exceed___ area allowed to be given by an agents to a prospective client - ANS: $ What is considered a valid reason for small businesses to insures the lives of its major shareholders - ANS: Fund a buy-sell agreement

Group Life policies in Florida are required to contain a conversion privilege that allows for conversion - ANS: To an individual policy for a stated period of time Which of these statements describe a Modified Endowment Contract (MEC)? - ANS: 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? - ANS: Department of financial services & Securities exchange commission Which of the following is NOT an unfair claim settlement practice? - ANS: 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? - ANS: 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 - ANS: 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? - ANS: renewable Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan? - ANS: 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? - ANS: Beneficiary will be paid the death benefit The Accelerated Death Benefit provision in a life insurance policy is also known as a - ANS: 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? - ANS: 31 days In Florida, monthly-premium health insurance policies must provide a grace period of at least - ANS: 10 days How would a contingent beneficiary receive the policy proceeds in a AD&D policy? - ANS: If the primary beneficiary dies before the insured Which statement regarding the Misstatement of Age provision is considered to be true? - ANS: 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? - ANS: Business expenses An insurance company may NOT reject a prospective insured's life application on the basis of - ANS: gender With a Medical Expense policy, what does hospitalization expense cover? - ANS: 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? - ANS: 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? - ANS: 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? - ANS: 30 All of these are characteristic of an Adjustable Life policy except - ANS: Face amount can be adjusted using policy dividends

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? - ANS: 20-pay life An accident policy will most likely pay a benefit for a - ANS: Off the job accident Which of these are NOT an example of a Nonforfeiture option? - ANS: life income A policy loan is made possible by which of these life insurance policy features? - ANS: Cash value provision The situation in which a group of physicians are salaried employees and conduct business in an HMO facility is called a - ANS: Closed panel Which of the following is NOT included in the policy face? - ANS: 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? - ANS: Paid-up additional insurance In Florida, a health policy that is paid on a quarterly basis requires a grace period of - ANS: 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? - ANS: 20 Which factors are taken into consideration when an insurance company determines the premium rate for a whole life policy on an applicant? - ANS: 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 values reflects which of the following insurance contract features? - ANS: 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 - ANS: Determine if the applicant is an acceptable risk by competing standard underwriting procedures What is being delivered during a policy delivery? - ANS: 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? - ANS: Medicare supplement According to Florida law, a Group Life insurance policy requires a minimum of how many insureds? - ANS: no minimum The Notice of Claims provision requires a policy owner to - ANS: 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)? - ANS: dread disease insurance How are policyowner dividends treated in regards to income tax? - ANS: Interest on accumulations is taxed What would be an accurate definition of "controlled business" - ANS: 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 - ANS: 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? - ANS: 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 - ANS: Entire contract provision An example of unfair discrimination would be - ANS: Offering different terms of coverage for different policyowners having the same risk classification Which accident and health policy provision addresses preexisting conditions? - ANS: Time limit on certain defenses How does a typical variable life policy investment account grow? - ANS: 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? - ANS: Conversion provision In a qualified retirement plan, the yearly contributions to an employee's account - ANS: 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? - ANS: 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? - ANS: 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? - ANS: 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? - ANS: 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? - ANS: Guaranteed renewable Which mode of payment is NOT used by health insurance policies? - ANS: single premium An insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses? - ANS: Loss of eyesight due to an accidental injury Which of these is NOT a type of agent authority? - ANS: Principal Which of the following provisions is NOT required in HMO contracts/certificates? - ANS: Seven day grace period The clause identifying which losses resulting from an accident or sickness are insured by the policy is called the - ANS: insuring clause If an annuity is terminated prior to the beginning of the income payment period, the contract owner received - ANS: 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? - ANS: 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? - ANS: 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? - ANS: Return of premium rider Which of the following statements about a Guaranteed Renewable Health Insurance policy is CORRECT?

• ANS: Premiums normally increase at time of renewal

All of these are considered to be a benefit under social security, except for - ANS: unemployment All of the following statements about traditional individual retirement account are false EXCEPT - ANS: 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 - ANS: 5 A long-term care lapse notice must be delivered to both the applicant and - ANS: Secondary addressee Under Florida law, a variable annuity policyowner must be notified of the accumulated value of the contract - ANS: 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? - ANS: 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 producer then take? - ANS: 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? - ANS: Disability buy-sell How do life insurance companies handle cases where the insured commits suicide within the contract's stated contestable period? - ANS: 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? - ANS: 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 - ANS: 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? - ANS: 20,000 death benefit The consideration clause in a life insurance policy indicate that a policyowner's consideration consists of a completed application and - ANS: 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 - ANS: medical condition Which of the following statements describes what an accident and health policyowner may NOT do? - ANS: Adjust the premium payments A family income policy is a combination of whole life and - ANS: Decreasing term insurance What is the primary factor that determines the benefits paid under a disability income policy? - ANS: Wages An insured must notify an insurer of a medical claim within how many days after an accident? - ANS: 30 According to Florida's rule on disclosure, a life insurance applicant is expected to be provided with - ANS: 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 - ANS: 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 - ANS: insuring agreement

Which of the following actions require a policyowner to provide proof of insurability in an adjustable life policy? - ANS: 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? - ANS: 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? - ANS: 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? - ANS: Lump-sum payment According to the time limit of certain defenses provision in an individual health insurance policy, non fraudulent misstatements first become incontestable - ANS: 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? - ANS: 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? - ANS: $50, 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 - ANS: March 1 Which of these is NOT considered to be a right give to a policyowner? - ANS: Modify a provision in the insurance contract? Whose life is covered on a life insurance policy that contains a payor benefit clause? - ANS: 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? - ANS: 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? - ANS: Carryover provision When does a probationary period provision become effective in a health insurance contract? - ANS: At the policy's inception Which of the following statements about accumulated interest earned on dividends from an insurance policy is true? - ANS: It is taxed as ordinary income Which of the following actions is NOT possible with a universal life policy? - ANS: 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 - ANS: 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? - ANS: 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? - ANS: 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? - ANS: Fixed deferred An insurance company can contest a life insurance contract due to application fraud within - ANS: 2 years

A noncontributory group term life plan is characterized by - ANS: 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? - ANS: Commercial insurer Which of these types of policies may not have the automatic premium loan provision attached to it? - ANS: 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? - ANS: full face amount minus any past due premiums which type of insurance company allows their policy owners to elect a governing body? - ANS: mutual policyholders what kind of special needs would a policy owner require with an adjustable life insurance policy? - ANS: 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? - ANS: 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? - ANS: 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? - ANS: 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? - ANS: waiver of premium rider

Group/voluntary long-term care policy premiums are typically deducted from the employee's income and - ANS: are less costly as compared to individual long-term care coverage All of these statements about the Waiver of Premium provision are correct EXCEPT - ANS: 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? - ANS: interim coverage What does a Guaranteed Insurability rider provide a Disability Income policyowner? - ANS: 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? - ANS: claim will be paid and coverage will remain in force what is considered to be a characteristic of a conditionally renewable health insurance policy? - ANS: 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? - ANS: L's spouse dies at age 66 All of the following statements regarding group health insurance is true, except: - ANS: 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? - ANS: 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? - ANS: $2,000

The Legal Actions provision of an insurance contract is designated to do all off the following, EXCEPT: - ANS: 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? - ANS: conditional An insurer must provide an insured with claim forms within __ days after receiving notice of a loss. - ANS: 20 HIPAA gives privacy protection for - ANS: health information Characteristic of PPO would be - ANS: Discounted fees for the patient what is the initial requirement for an insured to become eligible for benefits under the waiver of premium provision? - ANS: insured must be under a physician's care in major medical expense policies, what is the intent of a stop loss provision? - ANS: 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? - ANS: pay face amount minus the past due premium A policy of adhesion can only be modified by whom? - ANS: insurance company On delivery of a policy, a signed statement of good health is typically requested if - ANS: The application was submitted without the initial premium Long term care policies will usually pay for eligibility benefits using which of the following methods? - ANS: Expense incurred

MEWA provides what type of benefits - ANS: insurance Medicare part a and b do not pay for - ANS: dental work An incomplete life insurance application submitted to an insurer will result in which of these actions? - ANS: Application will be returned to the writing agent S is covered by a whole life policy. Which insurance product can cover his children? - ANS: Child term rider What is the max social security disability benefit amount an insured can receive? - ANS: 1oo% of the insured' primary insurance amount An applicant who pays the initial premium at the time of application is typically given a - ANS: Conditional receipt The provision that define to whom the insurer will pay benefits to is called - ANS: Payment of claims Which of the following consists of an offer, acceptance, and consideration? - ANS: contract The life and health insurance guaranty associate is - ANS: 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? - ANS: 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? - ANS: 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 - ANS: twisting

The waiting period for a pre-existing condition under a medicare supplement policy may not go beyond - ANS: 6 months What is being delivered during a policy delivery? - ANS: Insurance contract to the proposed insured Which of these statements concerning an individual disability income policy is true? - ANS: Normally includes an elimination period Which of the following professional organizations has its code of ethics incorporated into Florida law? - ANS: National association of insurance and financial advisors (naifa) Which of the following situations does not apply to the florida replacement rule? - ANS: An existing policyholder purchases an addition policy from the same insurer One becomes eligible for social security disability benefits after having been disabled for - ANS: 5 months Post tax dollar contributions are found in - ANS: Roth IRA investments An insurance company can contest to a life insurance contract due to application fraud within - ANS: 2 years Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? - ANS: 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? - ANS: 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? - ANS: income taxes plus a 10% penalty tax on $30,000