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Health Insurance Florida Exam 2025– 2026
Accurate Real Exam 250 Questions and Verified
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What health policy provision allows the insured a period of time to examine the policy anddetermine whether to keep it? - answer>>>Free-look period
What section of a health insurance policy lists the services for which the insurer will not providecoverage? - answer>>>Exclusions
Who decides which optional provisions would be included in a health policy? - answer>>>Theinsurance company
Which health insurance provision describes the insured's right to cancel coverage? -answer>>>Renewal provision
An individual participant personally received eligible rollover funds from a profit-sharing plan.What is the income tax withholding requirements for this transaction? - answer>>>20% is withheld for income taxes Which product would best serve a retired individual looking to invest a lump-sum of moneythrough an insurance company? - answer>>>Annuity
An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning atwhat age? - answer>>>59 1/
Traditional individual retirement annuity (IRA) distributions must start by -answer>>>Distributions from a traditional IRA must be made by April 1 following the year the participant turns age 70 1/2 or an excise tax will be assessed. When funds are shifted straight from one IRA to another IRA, what percentage of the tax iswithheld? - answer>>>None
A qualified profit-sharing plan is designed to - answer>>>allow employees to participate in theprofits of the company
An employee requested that the balance of her 401(k) account be sent directly to her in one lumpsum. Upon receipt of the distribution, she immediately has the funds rolled over into an IRA. What is the tax consequence of the distribution sent to this employee? - answer>>>Distribution issubject to federal income tax withholding
How long does an individual have to "rollover" funds from an IRA or qualified plan? -answer>>>60 days
All of the following statements about traditional individual retirement accounts are false EXCEPT -answer>>>10% penalty is applied to withdrawals before age 59 1/
Which of these retirement plans can be started by an employee, even if another plan is inexistence? - answer>>>Individual Retirement Account (IRA)
What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not takethe required minimum distributions from their qualified retirement plan? - answer>>>50%
Who is normally considered to be the owner of a 403(b) tax-sheltered annuity? - answer>>>Theemployee
Tom has a qualified retirement plan with his employer that is currently considered to be 80%"vested". How can this be interpreted? - answer>>>If Tom's employment is terminated, 20% of the funds would be forfeited A retirement plan that sets aside part of the company's net income for distributions to qualifiedemployees is called a - answer>>>profit-sharing plan
Rick recently died and left behind an individual IRA account in his name. His widow was forwardedthe balance of the IRA. The widow qualifies for the - answer>>>marital deduction
When an employee is required to pay a portion of the premium for an employer/employee grouphealth plan, the employee is covered under which of the following plans? - answer>>>Contributory Under which of the following circumstances will the benefits under COBRA continuation coverageend? - answer>>>All group health plans are terminated by the employer
The benefits under a Disability Buy-Out policy are: - answer>>>Payable to the company oranother shareholder
Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale ofa business? - answer>>>Business owner becoming disabled
Which of the following characteristics is associated with a large group disability income policy? -answer>>>No medical underwriting
Group/voluntary long-term care policy premiums are typically deducted from the employee'sincome and: - answer>>>Are less costly as compared to individual long term care coverage
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismembermentpolicy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much ofthe death benefit will the mother receive? - answer>>>The contingent beneficiary will receive $ dollars Which of these types of coverage is best described as a short term medical policy? -answer>>>Interim coverage
S is employed by a large corporation that provides group health coverage for its employees andtheir dependents. If S dies, the company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months under COBRAregulations? - answer>>>36 months
K is the insured and P is the sole beneficiary on an Accidental Death and Dismemberment (AD&D)insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true? - answer>>>Proceeds will be paid to P'sestate
What is issued to each employee of an employer health plan? - answer>>>Certificate On an Accidental Death and Dismemberment (AD&D) insurance policy, who is qualified to changethe beneficiary designation? - answer>>>Policyowner
A Business Overhead Expense policy would cover which of the following is a business ownerbecomes disabled? - answer>>>Utilities and office rent
Which of the following would be a likely candidate for disability income insurance on a keyemployee? - answer>>>Company executive
A Business Disability Buyout plan policy is designed: - answer>>>To pay benefits to theCorporation or other shareholders
The difference between group insurance and blanket health policies is: - answer>>>Blanket healthpolicies do not issue certificates
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers (and their families)whose employment has been terminated the right to: - answer>>>Continue group health benefits
Which of the following BEST describes how a policy that uses the "accidental bodily injury"definition of an accident differs from one that uses the "accidental means" definition? - answer>>>Less restrictive Which of the following is the reimbursement of benefits for the treatment of a beneficiary'sinjuries caused by a third party? - answer>>>Subrogation
Accidental Death coverage is provided to commercial airline passengers in which of the followingtypes of policies? - answer>>>Blanket Accident policy
An insurance company would MOST likely pay benefits under an Accidental Death andDismemberment policy for which of the following losses? - answer>>>Loss of eyesight due to an accident injury All of the following statements regarding group health insurance is true, EXCEPT: - answer>>>Anindividual policy is given to each member
P is a new employee and will be obtaining non-contributory group Major Medical insurance fromher employer. Which of the following actions must she take during the open enrollment period? - answer>>>Sign an enrollment card Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy? -answer>>>Reimbursement
What policy component must decrease in decreasing term insurance? - answer>>>Face amount If the annuitant dies during the accumulation period, who will receive the annuity benefits? -answer>>>Beneficiary
A whole life policy that requires that the policyowner only pays premiums for a specified numberof years is known as what kind of policy? - answer>>>limited-pay whole life
In what type of life insurance policies can the policyowner skip premium payments without thepolicy lapsing? - answer>>>Universal Life
Whole life insurance policies mature when the insured reaches the age of 100. if the owner of awhole life policy (the insured) dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary? - answer>>>The full deathbenefit
What type of whole life insurance policy generates immediate cash value? - answer>>>Singlepremium whole life
What type of annuity credits its interest based upon an index such as S&P 500? - answer>>>Equityindexed annuity
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary,the premiums must be paid - answer>>>For 20 years or until death, whichever occurs first
What happens to the premium in annually renewable term life policy? - answer>>>The premiumincreases with each renewal
Why are policy loans not available on term insurance? - answer>>>There is no cash value toborrow against
An individual has just borrowed $10,000 on a 5-year note from his bank. The note is due ininstallments. What type of life insurance policy would be best suited to this situation? - answer>>>Decreasing Term What is the difference between a single premium and a flexible premium payment options in adeferred annuity? - answer>>>The number of payments that purchase the annuity
What type of premium is charged on a straight life policy? - answer>>>A level premium for the lifeof the insured
How is the premium determined in a joint life insurance policy? - answer>>>The premium is basedon the average age of the insureds
In a joint life policy, when is the death benefit paid? - answer>>>Upon the first death Who bears the investment risk in a fixed annuity? - answer>>>The insurer
How long will a life annuity with a 15-year period certain pay? - answer>>>For the life of theannuitant unless he/she dies within the first 15 years of the annuitization; then the payments will last for 15 years Regarding annuity payments, what is the difference between the annuitant and the beneficiary ofan annuity? - answer>>>The annuitant receives payments from the annuity during the annuitization period; the beneficiary receives benefits after the annuitant's death During partial withdrawal from a universal life policy, what portion, if any, will be taxed? -answer>>>Interest earned on the withdrawn cash value
What type of life insurance offers an applicant a cash value element? - answer>>>Permanentinsurance (usually, whole life)
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary,the premiums must be paid for what time period? - answer>>>For 20 years or until the insured's death, whichever occurs first What is the main reason for purchasing an annuity? - answer>>>To provide income that theannuitant cannot outlive
What happens to the cash value when a whole life insurance policy matures? - answer>>>Cashvalue is paid to the policyowner
In an annuity, the accumulated money is converted into a stream of income during which phase? -answer>>>Annuitization period
When would a 20-pay whole life policy endow? - answer>>>When the insured reaches age 100 What are the death benefit options in the universal life policies? - answer>>>option A- level deathbenefit option B- increasing death benefit
In annually renewable term policies, what is the annual premium based upon? - answer>>>Theinsured's attained age
What type of life insurance policy provides permanent protection? - answer>>>Whole Life What elements of an adjustable life policy can be changed by the policyowners? - answer>>>1.the amount and payment period of the premium
- the face amount
- the period for protection How soon can income payments begin in an immediate annuity? - answer>>>No later than 1 yearfrom the time of annuity purchased
What type of whole life insurance policies only requires a payment of premium at its inception,and in addition to providing insurance protection for the life of the insured, endows at the insured's age 100? - answer>>>Single premium whole life Who receives income payments from an annuity? - answer>>>Annuitant If there is no named beneficiary for the annuity benefits, to which entity will the benefits be paid?- answer>>>Annuitant's estate
What is the purpose of establishing the target premium for a universal life policy? - answer>>>Toprevent the policy from lapsing
The death protection component of a universal life policy is expressed as what type of coverage? -answer>>>Annually renewable term
What type of license(s) is/are required to sell variable annuities? - answer>>>A life insurancelicense and a securities license
K is insured under a Group Life insurance policy. K is considered to be a(n) - answer>>>certificateholder
Typically a life insurance death benefit is paid by a lump-sum payment. A(n) ________ option is amethod of distributing a Life Insurance policy's death benefit OTHER than by a lump sum payment. - answer>>>settlement N is a student pilot with a large life insurance policy. Which of these features would limit theinsurer's obligation in the event N was killed while flying as a student pilot? - answer>>>Exclusion
The Coordination of Benefits provision: - answer>>>prevents an insured covered by two healthplans from making a profit on a covered loss
All of the following statements regarding a Tax Sheltered Annuity (TSA) are true EXCEPT -answer>>>Income derived from the TSA is received income tax-free
A prospective insured completes and signs an application for health insurance but intentionallyconceals information about a pre-existing heart condition. The company issues the policy. Two months later, the insured suffers a heart attack and submits a claim. While processing the claim,the company discovers the pre-existing condition. In this situation, the company will: - answer>>>Continue coverage, but exclude the heart condition According to Florida's rules on disclosure, a life insurance applicant is expected to be providedwith - answer>>>a Buyer's Guide and a Policy Summary
When a person returns to work after a period of total disability but cannot earn as much as he orshe did before the disability, this situation is called which of the following? - answer>>>Residual disability According to Florida law, group life insurance conversion privileges must NOT - answer>>>requireevidence of insurability
A long-term care lapse notice must be delivered to both the applicant and - answer>>>secondaryaddressee
Medicare Part B does NOT cover: - answer>>>inpatient hospital services C was injured while deep sea diving and requires a hospital stay. C has a Major Medical policywith a 80/20 coinsurance clause and a $400 deductible. What is the MAXIMUM C will pay if the covered medical expenses are $2000? - answer>>>$720 ($400 deductible + 20% of the remainingbill which would be $1600)
Credit life insurance is typically issued with which of the following types of coverage? -answer>>>Decreasing Term
An agent may provide a prospective client with an advertising gift as long as the value of that giftdoes not exceed ______. - answer>>>$
S has a Whole Life policy with a premium payment due soon. Which provision would keep thepolicy in force if S does not make the required payment and the policy has adequate cash value from which the premium payment can be made? - answer>>>Automatic Policy Loan What would be an accurate definition of "controlled business"? - answer>>>Insurance businessthat is written on the agent's own life, property, or interests
J has a Disability Income policy that does NOT provide benefits for losses occurring as the result ofhis employment. What kind of coverage is this? - answer>>>Nonoccupational coverage
The Bureau of Unclaimed Property is overseen by the - answer>>>Chief Financial Officer Which of the following phrases refers to the fees charged by a healthcare professional? -answer>>>Usual, customary, and reasonable expenses
T has a Disability Income policy that pays a monthly benefit of $5000. If T becomes partiallydisabled, what can he likely expect? - answer>>>Less than $5,000 per month benefit regardless of the cause
September 10, how will the insurer handle this claim? - answer>>>Pay the claim in full minus thepremium due
The cash value in a(n) __________ life policy may fluctuate to reflect changing assumptionsregarding mortality cost, interest, and expense factors - answer>>>Universal
What is the required minimum percentage of employee participation for a noncontributory grouphealth insurance plan according to Florida Law? - answer>>>0%
How are surrender charges deducted in a life policy with a rear-end loaded provision? -answer>>>Deducted when the policy is discontinued
When is it acceptable to share commissions with another agent? - answer>>>as long as bothagents are licensed for the same lines of insurance
Taking receipt of premiums and holding them for the insurance company is an example of -answer>>>Fiduciary responsibility
The type of annuity that must be purchased with one monetary deposit is called a(n): -answer>>>Immediate annuity
Which type of policy would pay an employee's salary if the employer was injured in a bicycleaccident and out of work for six weeks? - answer>>>Business Overhead Expense
Which type of renewability best describes a Disability Income policy that covers an individual untilthe age of 65, but the insurer has the right to change the premium rate for the overall risk class? - answer>>>Guaranteed Renewable Which of these is NOT a legal entity for selling life insurance in Florida? - answer>>>Riskmanagement advisers
A policy of adhesion can only be modified by whom? - answer>>>The insurance company
An example of rebating would be - answer>>>offering a client something of value not stated inthe contract in exchange for their business
What does Medicare Parts A and B cover? - answer>>>Part A covers hospitalization; Part B coversdoctor's services
An underwriter determines that a life insurance applicant's risk should be reclassified due to ahealth issue. This policy may be issued with a(n): - answer>>>extra premium
In a Disability Income policy, which of these clauses act as a deductible? - answer>>>EliminationPeriod
R had received full disability income benefits for 6 months. When he returns to work, he is onlyable to resume half his normal daily workload. Which provision pays reduced benefits to R while he is not working at full capacity? - answer>>>Residual Disability Which of the following statements is CORRECT about accelerated death benefits? -answer>>>Must have a terminal illness to qualify
P is a Major Medical policyowner who is hospitalized as a result of injuries sustained fromparticipating in a carjacking. How will the insurer most likely handle this claim? - answer>>>Claim will be denied If an agent would like to sell Variable annuities, which state examination must the agent pass? -answer>>>Life and Variable contracts
Which settlement option pays a stated amount to an annuitant, but no residual value to abeneficiary? - answer>>>Life Income
J has an Accidental Death and Dismemberment policy with a principal sum of $50,000. Whiletrimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will receive from his policy? - answer>>>$25,
The provision in a Group Health policy that allows the insurer to postpone coverage for a coveredillness 30 days after the policy's effective date is referred to as the: - answer>>>Waiting Period
How many hours of continuing education should a newly licensed agent complete every twoyears? - answer>>>
Generally, how long is a benefit period for a Major Medical Expense Plan? - answer>>>One year Which of the following provisions is NOT required in HMO contracts/certificates? -answer>>>Seven-day grace period
How are policyowner dividends treated in regards to income tax? - answer>>>Interest onaccumulations is taxed
Which of the following best describes how a Preferred Provider Organization (PPO) is lessrestrictive than a Health Maintenance Organization (HMO)? - answer>>>More physicians to choose from Insurance policies are offered on a "take it or leave it" basis, which make them: -answer>>>Contracts of Adhesion
A(n) _____ rider may be used to include coverage for children under their parents' life insurancepolicy. - answer>>>Term
Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits? -answer>>>Insurance
S, while in the process of converting her group life insurance to an individual policy, dies. Whathappens to the claim her beneficiary submits? - answer>>>Full benefits are payable under the Master contract
Which of the following statements BEST describes what the Legal Actions provision of an Accidentand Health policy requires? - answer>>>An insured must wait at least 60 days after Proof of Loss has been submitted before a lawsuit can be filed K applies for a life insurance policy on herself and submits the initial premium with theapplication. She is given a receipt by the agent stating that coverage begins immediately if the application is approved. What kind of receipt was used? - answer>>>Conditional In order to establish a Health Reimbursement Arrangement (HMA), it MUST: - answer>>>beestablished by the employer
T purchased a $100,000 single premium, Straight Life annuity 5 years ago. He has receivedmonthly payments since the inception of the annuity. If T dies, the insurance company - answer>>>does NOT have to make any further payments An insurance company can contest a life insurance contract due to application fraud within -answer>>>2 years
Pre-hospitalization authorization is considered an example of - answer>>>managed care Life insurance companies are required to establish and maintain an anti-money launderingcompliance program according to which federal regulation? - answer>>>USA Patriot Act
S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider. Sdies 1 year later of natural causes. How much will the insurer pay the beneficiary? - answer>>>$50, Which of the following areas of state regulation is NOT protected by the savings clause in ERISA? -answer>>>Commerce
All of the following statements about Major Medical benefits are true, EXCEPT: -answer>>>Benefits have no maximum limit
