Download Health Insurance Florida 2-40 Practice Exam Questions and Answers and more Exams Insurance law in PDF only on Docsity! Health Insurance Florida 2-40 Practice Exam Questions 1 & Correct Answers. 1. Which of the following laws requires an insurer to notify an applicant in writing that an investigative consumer report may be made on the applicant? - Correct Answer Fair Credit Reporting Act (Insurance Information and Privacy Protection Act) 2. Group health insurance specifies that what percentage of eligible individuals MUST be offered coverage under a noncontributory plan? - Correct Answer 100 3. Under an Accidental Death and Dismemberment (AD&D) policy, insurable interest must exist at which of the following times? - Correct Answer at the inception of the policy 4. When periodic claim payments are required under a long-term disability income policy, an insurer MUST make payments to an insured at least once every: - Correct Answer month 5. M and N own a small interior design studio that employs six people. The owners are concerned about the financial continuation of the business if either of them should become permanently disabled. In this situation, a producer would MOST likely recommend which of the following types of contracts? - Correct Answer Disability Buy-Out 6. Which of the following health policies requires a beneficiary designation? - Correct Answer Travel Accident 7. Suicide, pre-existing conditions and self-inflicted injuries are dealt with in which of the following policy features? - Correct Answer Exclusions 8. An insured whose Disability Income policy contains a Change of Occupation clause takes a new job in a more hazardous occupation and fails to notify the insurer of the change. One year later, the insured becomes disabled. The insurer will most likely take which of the following actions? - Correct Answer Settle the claim according to what the premiums would have purchased under the more hazardous occupation 9. Which of the following definitions of disability would cover a permanent partial disability? - Correct Answer Residual disability 10.When delivering a policy to a client, a producer should take all of the following actions EXCEPT: - Correct Answer keep the policy in the producer's office for safe-keeping on behalf of the client 11.The Social Security program provides all of the following benefits EXCEPT: - Correct Answer workers compensation 12.Which of the following definitions MOST accurately describes the Probationary Period? - Correct Answer The waiting period a new hire must satisfy prior to becoming eligible for group health coverage 13.Under a group health plan, an employer may offer additional benefits to classes of employees on the basis of all of the following factors EXCEPT: - Correct Answer gender 14.An insured becomes disabled three years after his Disability Income policy is issued. The disability is caused by a condition that existed prior to the policy issue date but was not specifically excluded from coverage. In this situation, the insurer will most likely take which of the following actions? - Correct Answer Pay the full claim 15.On June 1, S purchased a Major Medical policy and paid the initial premium to Producer T. On July 1, Producer T received the policy from the insurance company. The policy contained a Ten-Day Free Look provision. On July 3, Producer T attempted to deliver the policy but found that S was not at home. On July 5, Producer T was able to deliver the policy to S. On July 7, S decided he did not want the policy. S had 10 days from which of the following dates to return the policy to the company and obtain a full premium refund? - Correct Answer July 5 16.Five years ago, at age forty-five, X stated that he was forty years old on a disability income insurance application. X now submits a claim and the insurer discovers X's true age. The insurer will most likely take which of the following actions? - Correct Answer Adjust the benefits downward according to the benefits that X would have been entitled to base on the premiums 17.All of the following elements are required of a contract EXCEPT: - Correct Answer assignment 18.Which of the following types of provisions guarantees renewability to a specified date or age unless certain specified events occur? - Correct Answer Conditionally Renewable 19. In an Accidental Death and Dismemberment (AD&D) policy, the term "capital sum" refers to: - Correct Answer a lump sum payment made for an accidental dismemberment 20.The PRIMARY purpose of Medicaid is to: - Correct Answer provide Medical Expense coverage to persons meeting certain minimum income requirements
