Florida Life and Health Insurance Practice Questions/ 373 Q&A/ 2024-2025., Exams of Insurance Economics

Download Florida Life and Health Insurance Practice Questions/ 373 Q&A/ 2024-2025. and more Exams Insurance Economics in PDF only on Docsity! Florida Life and Health Insurance Practice Questions/ 373 Q&A/ 2024-2025. Which entity approves the insurance policy forms used in Florida? - Answer: Office of Insurance Regulation (OIR) In Florida, agents are allowed to engage in rebating if... - Answer: Offered to all insured in the same actuarial class In Florida, when agents recommend changes be made for existing coverage, the agent must follow established procedures. The name of this rule is called the... - Answer: Florida Replacement Rule In Florida, an element of an insurance transaction would be... - Answer: Issuing an insurance contract Page 1 of 43 The Bureau of Unclaimed Property is overseen by... - Answer: The chief financial officer One of the stated purposes of the Life and Health Insurance Guaranty Association is... - Answer: To assist in the prevention of insurer insolvencies The Life and health Insurance Guaranty Association is funded by... - Answer: Assessments on member companies The purpose of the Guaranty Fund is to... - Answer: 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... - Answer: 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... - Answer: The Life and Health Insurance Guaranty Association A stock life insurance company that issues both participating and nonparticipating policies is doing business on... - Answer: Mixed plan A stock insurance company is owned by - Answer: Its stockholders Who is a mutual insurance company owned by? - Answer: Its policyholders Which type of insurance company allows their policyowners to elect a governing body? - Answer: Mutual Page 2 of 43 Which of the following situations does NOT apply to the Florida Replacement Rule? - Answer: An existing policyholder purchases an additional policy from the same insurer According to Florida's life insurance replacement laws, a policyowner must be provided with a written Comparison and Summary Statement when it's requested by.... - Answer: the policyowner A variable life insurance agent must be licensed and appointed as a life and variable contract agent, as well as... - Answer: a broker dealer Which of these is NOT a legal entity for selling life insurance in Florida? - Answer: risk management advisors The Replacement of Life Insurance and Annuities regulation is designed to protect the interest of... - Answer: the policyowner When an existing life insurance policy is being reissued with a reduction in cash value, the agent must sign the... - Answer: Notice regarding the replacement of life insurance or annuity The life insurance and annuity replacement regulation defines replacement as - Answer: Exchanging an existing policy for a new policy Replacement regulation applies to which of the following types of contracts? - Answer: ordinary life Replacement is involved in all of the following situations EXCEPT when... - Answer: A Term policy is converted to a permanent plan with the same insurance company Which policy is EXEMPT from replacement regulations? - Answer: Group life policy Page 5 of 43 Which of the following statements is CORRECT about the replacement of one insurance policy with another? - Answer: It is strictly regulated and requires full disclosure by both the agent and the replacing insurance company Which of the following parties must provide an insured with proper disclosure concerning the replacement of an insurance company? - Answer: The agent who sells the new insurance policy Which of the following statements is CORRECT if an insured converts his Life policy to Paid-Up Insurance and buys new insurance? - Answer: The transaction is considered a replacement When replacing or exchanging an annuity, the agent must disclose to the annuitant... - Answer: The possible tax ramifications as a result of the transaction A life insurance policyowner may sell their policy to a(n) ___ in order to receive a percentage of the policy's face value - Answer: Viatical settlement provider A written agreement to provide a Life Insurance Policy holder immediate cash in exchange for the sale and transfer of a Life Insurance Policy is... - Answer: Viatical settlement Group life policies MUST include all of the following provisions EXCEPT... - Answer: Right to loan proceeds Which of the following employees may NOT be excluded from a group life plan? - Answer: Full- time employees after a probationary period All of the following provisions are required in a group life policy EXCEPT... - Answer: An accidental death and dismemberment provision Page 6 of 43 Which of the following is a standard provision of the conversion privileges in a Group Life Policy? - Answer: Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis An individual covered under a Group Life insurance policy is considered to be... - Answer: A certificate holder The conversion period for a terminated employee to convert group life coverage to an individual plan is... - Answer: 31 days T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert... - Answer: To an individual policy upon employment termination J owns a business and has a Group Life policy covering her employees. J decides to cancel the policy by letting it lapse on the renewal date. What action must be taken? - Answer: All of the employees must be notified of the cancellation either by the insurance company or through J Individual life insurance proceed are exempt from creditor's claims when they are payable to any of the following entities EXCEPT the insured's - Answer: estate All of the following provisions must be included in life insurance policies EXCEPT... - Answer: 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... - Answer: Pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age Page 7 of 43 Disclosure standards require that which of the following be delivered with a Medicare Supplement policy? - Answer: The outline of coverage The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond... - Answer: 6 months An Outline of Coverage for Medicare Supplement policy MUST be given to the applicant at which of the following times? - Answer: The time of application When is a Group Health policy required to provide coverage for a newborn child? - Answer: At the moment of birth A Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits? - Answer: Insurance All of the following statements about health coverage for newborns are correct EXCEPT... - Answer: Coverage during the first year is limited to congenital defects Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent... - Answer: Only if the child is incapable of employment and chiefly dependent on the policyowner All of the following statements about health coverage for physically handicapped dependents of insureds are correct EXCEPT that the dependent must... - Answer: Have been covered under the insured's policy at the time the handicap was incurred Association Plans that are designed to provide health benefits to their members are regulated by the state because... - Answer: They are insured by an authorized insurer Page 10 of 43 An agent selling Medicare Supplement policies must provide every applicant with... - Answer: A suitability form All of the following are Nonforfeiture Options EXCEPT - Answer: Automatic premium loan option Which entity approves the insurance policy forms used in Florida? - Answer: Office of insurance regulation Deductibles are used in health policies to lower - Answer: Overuse of medical services A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as - Answer: A representation Advertising gifts not to exceed___ area allowed to be given by an agents to a prospective client - Answer: $25 What is considered a valid reason for small businesses to insures the lives of its major shareholders - Answer: Fund a buy-sell agreement Group Life policies in Florida are required to contain a conversion privilege that allows for conversion - Answer: To an individual policy for a stated period of time Which of these statements describe a Modified Endowment Contract (MEC)? - Answer: Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract Which two entities regulate variable annuities? - Answer: Department of financial services & Page 11 of 43 Securities exchange commission Which of the following is NOT an unfair claim settlement practice? - Answer: Needing written documentation for claim details S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation? - Answer: single premium When a person returns to work after a period of total disability but cannot earn as much as he or she did before the disability, this situation is called - Answer: Residual disability T has a term policy that allows him to continue the coverage after expiration of the initial policy period. What type of term coverage is this? - Answer: renewable Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan? - Answer: collateral assignment P died 5 years after purchasing a life policy. While investigating the claim, the insurer discovered material misrepresentations made by P during the application process. Which of these actions will the insurer take? - Answer: Beneficiary will be paid the death benefit The Accelerated Death Benefit provision in a life insurance policy is also known as a - Answer: living benefit According to the Mandatory Uniform Policy Provisions, what is the maximum amount of time after the premium due date during which the policy reminds in force even though the premium has not been paid? - Answer: 31 days Page 12 of 43 Which factors are taken into consideration when an insurance company determines the premium rate for a whole life policy on an applicant? - Answer: 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? - Answer: 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 - Answer: Determine if the applicant is an acceptable risk by competing standard underwriting procedures What is being delivered during a policy delivery? - Answer: 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? - Answer: Medicare supplement According to Florida law, a Group Life insurance policy requires a minimum of how many insureds? - Answer: no minimum The Notice of Claims provision requires a policy owner to - Answer: Notify an insurer of a claim within specified time What type of policy would only provide courage for specific types of illnesses (cancer, stroke, etc)? - Answer: dread disease insurance How are policyowner dividends treated in regards to income tax? - Answer: Interest on accumulations is taxed Page 15 of 43 What would be an accurate definition of "controlled business" - Answer: Insurance business that is written on the agent's own life, property, or interests M purchases a 470,000 Life Insurance policy with premium payment of $550 a year for the first 5 years. At the beginning of the 6th year, the premium will increase to $800 per year but will remain level thereafter. The face amount will remain $70,000 throughout the life of the policy. The type of policy that M has purchased is - Answer: Modified premium life T has a Disability Income policy that pays a monthly benefit of $5,000. If T becomes partially disabled, what can he likely expect? - Answer: Less than $5,000 per month benefit regardless of the disability When an insurance company sends a policy to the insured with an attached application, the lament that makes the application part of the contract between the insured and the insurance is called the - Answer: Entire contract provision An example of unfair discrimination would be - Answer: Offering different terms of coverage for different policyowners having the same risk classification Which accident and health policy provision addresses preexisting conditions? - Answer: Time limit on certain defenses How does a typical variable life policy investment account grow? - Answer: Through mutual funds, stocks, bonds When a policy owner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply? - Answer: Conversion provision Page 16 of 43 In a qualified retirement plan, the yearly contributions to an employee's account - Answer: Are restricted to maximum levels set by the IRS Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy? - Answer: Miliation on preexisting conditions for up to 12 months A group plan was recently terminated. In Florida, how many days are covered individuals guaranteed coverage after a group plan's termination? - Answer: 31 days T owns a Accident and Health policy and notified her insurance company that she has chosen a less hazardous occupation. Under the Change of Occupation provision, which of the following actions may her insurance company take? - Answer: increase her policy's coverage amount An insured covered by a group Major Medical plan is hospitalized after sustaining injuries that resulted from an automobile accident. Assuming the plan had a $1,000 deductible and an 80/20 Coinsurance clause, how much will the insured be responsible to pay with $11,000 in covered medical expenses? - Answer: 3000 → 11,000 x .20 + 1,000 K has a health policy that must be renewed by the insurer and the premiums can only be increased if applied to the entire class of insured. This type of policy is considered? - Answer: Guaranteed renewable Which mode of payment is NOT used by health insurance policies? - Answer: single premium An insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses? - Answer: Loss of eyesight due to an accidental injury Which of these is NOT a type of agent authority? - Answer: Principal Page 17 of 43 Which of the following documents must an agent submit to the replacing insurance company during the replacement of an existing life insurance policy? - Answer: 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 - Answer: 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? - Answer: 20,000 death benefit The consideration clause in a life insurance policy indicate that a policyowner's consideration consists of a completed application and - Answer: 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 - Answer: medical condition Which of the following statements describes what an accident and health policyowner may NOT do? - Answer: Adjust the premium payments A family income policy is a combination of whole life and - Answer: Decreasing term insurance What is the primary factor that determines the benefits paid under a disability income policy? - Answer: Wages An insured must notify an insurer of a medical claim within how many days after an accident? - Answer: 30 Page 20 of 43 According to Florida's rule on disclosure, a life insurance applicant is expected to be provided with - Answer: 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 - Answer: 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 - Answer: insuring agreement Which of the following actions require a policyowner to provide proof of insurability in an adjustable life policy? - Answer: 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? - Answer: 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? - Answer: An insured must wait at least 60 days after proof of loss has been submitted before a lawsuit can be filed Which of these is an element of a single premium annuity? - Answer: Lump-sum payment According to the time limit of certain defenses provision in an individual health insurance policy, non fraudulent misstatements first become incontestable - Answer: Two years from the date of the policy was issued Which type of plan allows an employer to give money to an employee for buying a life insurance policy and also permits the employee to select the beneficiary? - Answer: Split dollar plan Page 21 of 43 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? - Answer: $50,000 Z owns a Disability income policy with a 30-day elimination period. Z contracted pneumonia that left him unable to work from Jan 1 until Jan 15. Z then becomes disabled from an accident on February 1 and the disability lasts until July 1 the same year. Z will become eligible to receive benefits starting on - Answer: March 1 Which of these is NOT considered to be a right give to a policyowner? - Answer: Modify a provision in the insurance contract? Whose life is covered on a life insurance policy that contains a payor benefit clause? - Answer: Child Which type of renewability best describes a disability income policy that covers an individual until the age of 65, but the insurer has the rights to change the premium rate for the overall risk class? - Answer: Guaranteed renewable Which of the following policy features allows an insured to defer current health changes to the following year's deductive instead of the current year's deductive? - Answer: Carryover provision When does a probationary period provision become effective in a health insurance contract? - Answer: At the policy's inception Which of the following statements about accumulated interest earned on dividends from an insurance policy is true? - Answer: It is taxed as ordinary income Page 22 of 43 All of these statements about the Waiver of Premium provision are correct EXCEPT - Answer: 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? - Answer: interim coverage What does a Guaranteed Insurability rider provide a Disability Income policyowner? - Answer: 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? - Answer: claim will be paid and coverage will remain in force what is considered to be a characteristic of a conditionally renewable health insurance policy? - Answer: 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? - Answer: L's spouse dies at age 66 All of the following statements regarding group health insurance is true, except: - Answer: 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? - Answer: 45 Page 25 of 43 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? - Answer: $2,000 The Legal Actions provision of an insurance contract is designated to do all off the following, EXCEPT: - Answer: 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? - Answer: conditional An insurer must provide an insured with claim forms within __ days after receiving notice of a loss. - Answer: 20 HIPAA gives privacy protection for - Answer: health information Characteristic of PPO would be - Answer: Discounted fees for the patient what is the initial requirement for an insured to become eligible for benefits under the waiver of premium provision? - Answer: insured must be under a physician's care in major medical expense policies, what is the intent of a stop loss provision? - Answer: 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? - Answer: pay face amount minus the past due premium A policy of adhesion can only be modified by whom? - Answer: insurance company Page 26 of 43 On delivery of a policy, a signed statement of good health is typically requested if - Answer: The application was submitted without the initial premium Long term care policies will usually pay for eligibility benefits using which of the following methods? - Answer: Expense incurred MEWA provides what type of benefits - Answer: insurance Medicare part a and b do not pay for - Answer: dental work An incomplete life insurance application submitted to an insurer will result in which of these actions? - Answer: Application will be returned to the writing agent S is covered by a whole life policy. Which insurance product can cover his children? - Answer: Child term rider What is the max social security disability benefit amount an insured can receive? - Answer: 1oo % of the insured' primary insurance amount An applicant who pays the initial premium at the time of application is typically given a - Answer: Conditional receipt The provision that define to whom the insurer will pay benefits to is called - Answer: Payment of claims Which of the following consists of an offer, acceptance, and consideration? - Answer: contract Page 27 of 43 which of the following is a characterstic of a variable annuity? - Answer: underlying equity investment all of these statements concerning settlement options are true, except - Answer: only the beneficiary may select M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the - Answer: policy proceeds Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party? - Answer: subrogation The benefits under a disability buy-out policy are - Answer: Payable to the company or another shareholder Which of these statement accurately describes the waiver of premium provision in an accident and health policy - Answer: Premiums are waived after the insured has been totally disabled for a specified time period Which of these statements is NOT the reason for purchasing life insurance on the life of a minor? - Answer: If both parents were to die, it would provide death benefits to the child K purchased a $10,000 life policy that will pay the face amount to her if she lives to age 65, or to her beneficiary if she dies before age 65. K purchased which of the following types of policies? - Answer: Endowment at age 65 In Florida, the underwriting and issuance of a master group health policy requires that all employees - Answer: Are eligibility to participate, regardless of their individual health history Page 30 of 43 Under the USA Patriot Act, insurers are required to report receipt of cash payment in excess of - Answer: 10,000 The universal life policy is called an unbundled life policy because he policyholder can see the expense charges, the interest earned, and the - Answer: Cost of insurance Equity indexed annuities are invested in which of the following - Answer: S&P 500 Which of the following provisions guarantees that premiums will be waived if a juvenile life policyowner becomes disabled? - Answer: payor clause K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this? - Answer: Modified whole life Which rider provides coverage for a child under a parent's life insurance policy? - Answer: child term rider T is covered by two health insurance plans: a group plan through his employer and his spouse's plan as a dependent. Under the Model Group Coordination of Benefits provision, when T files a claim, his employer's plan is considered the - Answer: primary carrier What is a warranty? - Answer: Is a statement guaranteed to be true Which policy requires an agent to register with the national association of securities dealers before selling? - Answer: variable life Page 31 of 43 According to Florida law, an additional lapse notice must be issued after the standard grace period has expired for policyowners age - Answer: 64 years or older A policy loan is made possible by which of the following life insurance policy features? - Answer: Cash value provision An insurer received proof of loss for an acceptable medical expense claim under an individual health insurance policy. Under the time of payment of claims provision, the insurer must pay the benefits - Answer: Immediately When is the face amount paid under a joint life and survivor policy? - Answer: Upon death of the last insured Which statement about a whole life policy is correct? - Answer: Cash value may be borrowed against When determining the monthly benefit amount for a disability income policy, the factor that limits the amount a prospective insured may purchase is - Answer: income An insured's inability to perform two or more activities of daily living may trigger which type of policy rider? - Answer: Long term care S is employed by a large corporation that provides group health coverage for its employees and their dependents. If S dies, the company must allow his surviving spouse and dependent to continue their group health coverage for a maximum of how many months under COBRA regulations? - Answer: 36 When a life insurance policy exceeds certain IRS table values, the result would create which of the following? - Answer: Modified endowment contract Page 32 of 43 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 S takes out a health insurance policy which contains a provision that states that the agent does not have the authority to change the policy or waive any of its provisions. Which health policy provision is this? - Answer: entie contract A 15-year mortgage is best protected by what kind of life policy? - Answer: 15-year decreasing term A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy. What rider would the physician add if he wants the ability to increase his policy benefit as his practice and income grow? - Answer: guaranteed insurability option rider If an annuity is terminated prior to beginning of the income payment period, the contract owner receives - Answer: the contract surrender value at that time Medicaid was designed to provide health care - Answer: in poor health the incontestable clause allows an insurer to - Answer: contest a claim during the contestable period an example of an unfair trade practice is - Answer: is an agent making a material misrepresentation to the insured an example of rebating would be - Answer: offering a client something of value not stated in the contract in exchange for their business Page 35 of 43 Any changes made on an insurance application requires the initials of whom? - Answer: applicant what percent of personal life insurance premiums is usually deductible for federal income tax purposes? - Answer: 0% All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPT - Answer: interest only a life insurance policy that provides a policy owner with cash value along with a level face amount is called - Answer: whole life which of these is not considered to be a right given to a policyowner - Answer: modify a provision in the insurance contract Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called - Answer: representations a policy that becomes a MEC - Answer: will lose many of its tax advantages which of the following combination plans is designed to protect an insured from an unpaid mortgage balance upon premature death? - Answer: joint life which of the following best describes a short-term medical expense policy? - Answer: nonrenewable A Loss-Purchase Buy and Sell agreement among three partners, funded with individual life insurance, would require how many policies? - Answer: 6 Page 36 of 43 Information obtained from a phone conversation to the proposed insured can be found in which of these reports? - Answer: inspection report a variable insurance policy - Answer: does not guarantee a return on its investment acounts Variable Whole Life Insurance can be described as - Answer: both an insurance and securities product All of these are characteristics of an Adjustable Life policy EXCEPT - Answer: face amount can be adjusted using policy dividends In Florida, most life insurance policies have a contestability period of - Answer: 2 years How are policyowner dividends treated in regards to income tax? - Answer: interstate's on accumulations is taxed which of these is an element of a variable life policy? - Answer: a fixed, level premium which of the following does social security NOT provide benefits for? - Answer: dismemberment an immediate annuity consists of a - Answer: single premium how does an indexed annuity differ from a fixed annuity? - Answer: indexed annuity owners receive credited interest tied to the fluctuations of the linked index All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPT - Answer: interest only Page 37 of 43 all of these statements about equity indexed life insure are correct except - Answer: the premiums can be lowered or raised, based on investment performance P purchases a $50,000 term life insurance policy in 2005. One of the questions on the application ask if P engages in scuba diving, to which P answers "No". The policy is then issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related accident in 2011. What will the insurer pay to P's beneficiary? - Answer: $50,000 minus any outstanding policy loans P is a new employee and will be obtaining non-contributory group Major Medical insurance from her employer. Which of the following actions must she take during the open enrollment period? - Answer: sign an enrollment card An insurance company receives E's application for an individual health policy. E did not complete all of the medical history questions because she could not remember the exact dates. E signed the policy and submitted it to the insurance company anyway. A few weeks later, E suffers a heart attack and is hospitalized without completing the medical history questions and paying the initial premium. E is not insured. Which of the following clauses details the conditions that E did not meet? - Answer: consideration clause which of the following statements does not accurately describe the tax treatment of premiums and benefits of individual AD&D insurance? - Answer: disability income policy premiums are tax-deductible T was treated for an ailment 2 months prior to applying for a health insurance policy. This condition was noted on the application and the policy was issued shortly afterwards.How will the insurer likely consider this condition? - Answer: insurer will likely treat as a pre-existing condition which may not be covered for one year Page 40 of 43 according to the time limit of certain defenses provision in an individual health insurance policy, nonfraudluent misstatements first become incontestable - Answer: two years from the date of the policy was issued T was insured under an individual Disability Income policy and was severely burned in a fire. As a result, T became totally disabled. The insurer began making monthly benefit payments, but later discovered that the fire was set by T in what was described as arson. What actions will the insurer take? - Answer: the insurer will rescind the policy, deny the claim, and recover all payments made a prepaid application for individual disability income insurance was recently submitted to an insurer. when the insurer received the medical information bureau report, the report showed that the applicant had suffered a stroke 18 months ago, something that was not disclosed on the application. which of the following actions would the insurance company not take? - Answer: send a notice to the MIB that the applicant was declined Within how many days must a licensee notify the Department of Financial Services of a change in address? - Answer: 30 All of the following entries are classified under the four principal areas of Florida insurance law EXCEPT... - Answer: An agent's commission Which of the following factors is NOT considered when the Department of Financial Services determines if an agent's home is an insurance agency? - Answer: The amount of premium collected at this location Florida requires that an insurance agent must complete __ hours of continuing education on the subject of law and ethics every two years - Answer: 5 Page 41 of 43 Agents that have been licensed for less than six years must complete __ hours of continuing education every two years - Answer: 24 A licensed agent must be appointed by an insurance company to solicit insurance in Florida. The agent's license will terminate if a certain period of time elapses without being appointed. How long is this period of time? - Answer: 48 What is the maximum percentage of controlled business an agent may produce? - Answer: 50% A group plan was recently terminated. In Florida how many days are covered individuals guaranteed coverage after a group plan's termination? - Answer: 31 days The Financial Services Commision may hold hearings... - Answer: For any reason deemed necessary In Florida, an insurer domiciled and incorporated in this state is called... - Answer: Domestic company According to Florida law, which of the following statements accurately describes an admitted mail order insurance company? - Answer: It may solicit insurance business by mail only without the assistance of a licensed Florida agent According to Florida law, an additional lapse notice must be issued after the standard grace period has expired for policyowners age... - Answer: 64 years or older Which action could result in a hearing being ordered by the Department of Financial Services? - Answer: Performing insurance transactions without a license Page 42 of 43