A binding arrangement under which an insured requests that payments under their health plan be made directly to a person or facility that they designate (such as a doctor or hospital) is called:
a. Rights of conversion
b. Assignment of benefits
c. Managed
B. Assignment of benefits
Upon the death of an insured, life insurance policy proceeds are designated for:
Select one:
a. The beneficiary only
b. Creditors first, then the beneficiary
c. The beneficiary first, then the creditors
d. The beneficiary and the creditors must split the
a. The beneficiary only
In what provision does this statement appear: "Benefits are subject to all the provisions, conditions and exclusions of the policy?"
a. Entire contract clause
b. Consideration clause
c. Owner's rights
d. Insuring clause
d. Insuring clause
The definition of "Medicare eligible expense" for a Medicare supplement policy cannot be:
a. Less restrictive than Medicare's
b. Less restrictive than or equally restrictive as Medicare's
c. Equally restrictive as Medicare's
d. More restrictive than Medic
d. More restrictive than Medicare's
Under an HMO contract, when does coverage for newborns begin?
a. The moment of birth
b. When the newborn leaves the hospital
c. One day after the newborn arrives at their home
d. 31 days after birth
a. The moment of birth
Which of the following is intended to be covered by health insurance?
a. Accidental injury
b. Illness
c. Medical costs
d. All of the above
d. All of the above
In what type of health insurance contract are the premiums guaranteed not to increase and the insurance company may not cancel the policy?
a. Guaranteed renewable
b. Non-Cancellable
c. Guaranteed for life
d. Maximum premium
b. Non-Cancellable
A schedule that reimburses based on general costs in the geographical area is known as:
a. Scheduled benefits
b. Indemnity plan
c. URC (Usual, reasonable and customary)
d. Pre-authorization plan
c. URC (Usual, reasonable and customary)
What is the minimum grace period for group life insurance policies in Florida?
a. 14 days
b. 21 days
c. 30 days
d. 31 days
d. 31 days
What can Isabelle do to increase her coverage on a predetermined schedule without further evidence of insurability?
a. Add a disability income rider to help pay premiums
b. Add a cost of living benefit which will follow the CPI
c. Add a guaranteed insurab
c. Add a guaranteed insurability option
Which of the following is not considered "transacting" insurance?
a. Effectuation
b. Solicitation
c. Investigation
d. Negotiation
c. Investigation
All of the following are true about a Medical Expense policy, EXCEPT:
a. Available on a group basis only
b. Covers both accidental and sickness losses
c. Pays benefits outlined in the policy
d. Covers both inpatient and outpatient expenses
a. Available on a group basis only
Which of the following is a characteristic of an interest sensitive whole life policy?
a. The policy is guaranteed for life, it will never increase.
b. The insured can access cash value through loans and withdrawals
c. It has a guaranteed cash value
d. Al
d. All of the above
Which of the following statements is not true about the guaranteed insurability rider (GIR)?
a. This rider provides specific dates on which additional life insurance policies can be bought.
b. If the option is not exercised within 90 days of the specific
d. The older the insured gets, the more frequent the purchase option dates.
What guarantee states that if the policyholder discontinues payment of premiums, the policyholder can have access to the cash value of the policy?
a. Policy loan provision
b. Conversion option
c. Nonforfeiture provision
d. Settlement option
c. Nonforfeiture provision
Marilyn's husband was mowing the yard, and a rock hit her in the eye causing her to lose sight in that eye. Her husband tried to stop the lawnmower and lost a finger. Marilyn has a family accidental death and dismemberment policy through her employer. Wha
a. Marilyn will receive a benefit for the loss of an eye.
Which of the following is an effective and legal way to deliver a policy?
a. Personal delivery by an agent
b. Mailing the policy to the policyowner
c. Giving the policy to an agent of the policyowner
d. All of the above
d. All of the above
Mark names his wife and children as beneficiaries on his life policy. They would not be considered:
a. Irrevocable beneficiaries
b. Contingent beneficiaries
c. Primary beneficiaries
d. Other insureds
d. Other insureds
The Entire Contract Provision' states:
a. The producing agent will have a copy of the contract on file for the insured's inspection by appointment.
b. The policy along with all attached riders and endorsements and other papers constitutes the entire contr
b. The policy along with all attached riders and endorsements and other papers constitutes the entire contract between the policyholder and the company.
Which of the following is not an advantage of a survivorship policy?
a. It is less expensive.
b. It helps to build your estate.
c. They are limited to term life policies.
d. They can help pay estate taxes.
c. They are limited to term life policies.
If the total of a taxpayer's medical expense exceeds 10% of their adjusted gross income, all of the following can be deducted, EXCEPT:
a. Accident insurance premiums
b. Disability insurance premiums
c. Health insurance premiums
d. Long-term care premiums
b. Disability insurance premiums
After Michelle filed her income taxes, she received a check from the insurance company that reimbursed her for some of the expenses she deducted. What is the tax situation for these benefits?
a. Michelle can ignore any tax issues, since health insurance b
c. Michelle should file an amended return, since reimbursed medical expenses do not count toward the 10% threshold.
Where replacement is involved, what must the replacing insurance company provide to the applicant of a policy that does not contain an unconditional refund provision prior to accepting the applicant's initial premium?
Select one:
a. Buyer's Guide only
b.
c. Buyer's Guide and Policy Summary
The insuring clause on the face of a life insurance policy contains all the following, EXCEPT:
Select one:
a. Amount of the coverage
b. Name of the insurance company
c. Name of the insured
d. Name of the beneficiary
d. Name of the beneficiary
Who must sign the Notice Regarding Replacement of Accident and Sickness or Long-term Care Coverage?
Select one:
a. The applicant only
b. The replacing agent only
c. The applicant and the replacing agent
d. The applicant, the replacing agent and the insure
a. The applicant only
Which of the following is a benefit of a qualified retirement plan?
Select one:
a. Employers can deduct contributions for each participant.
b. Contributions, and earning on the contributions are tax deferred until withdrawn.
c. Transferring the contributi
d. All of the above
On the death of an insured, settlement of a life insurance policy is made when:
a. Proof of death is received
b. Surrender of the policy
c. Proof of death and surrender of the policy
d. Proof of death, surrender of the policy and a notarized request
d. Proof of death, surrender of the policy and a notarized request
What riders provide for payment of double or triple the accidental death or dismemberment benefits based on the cause of death or specific type of dismemberment?
Select one:
a. Multiple indemnity rider
b. Impairment rider
c. Waiver of premium rider
d. Gua
a. Multiple indemnity rider
In Florida, what is the minimum age to become licensed as an insurance producer?
Select one:
a. 18
b. 19
c. 20
d. 21
a. 18
At what point will the APL (automatic premium loan) provision on a life policy no longer pay premiums?
Select one:
a. It only pays one time
b. It takes money from the cash value of the policy
c. It takes money from the face value of the policy
d. It will
d. It will pay until there is no longer cash value to cover the premium
An answer an applicant provides on an application is considered a:
Select one:
a. Warranty
b. Fraud
c. Representation
d. Concealment
c. Representation
What requires that an individual have a valid concern for the continuation of the life or well being of the person insured?
Select one:
a. Insuring Clause
b. Insurable interest
c. Named insured
d. All of the above
b. Insurable interest
The insurer can void a life policy during the contestable period for:
Select one:
a. Not divulging a life-threatening medical condition
b. Misstatement of gender
c. Misstatement of age
d. Not divulging correct marital status
a. Not divulging a life-threatening medical condition
Level premium term provides a level face amount with level premiums during the policy period. In order to provide this protection, the insurer:
Select one:
a. Charges premiums that are higher in the early years
b. Pays a smaller commission to the agent
c.
a. Charges premiums that are higher in the early years
Which of the following is correct concerning representations?
Select one:
a. Carla has guaranteed that everything she has put in the application is exactly correct without exception.
b. Carla has represented that the information she has furnished is true
b. Carla has represented that the information she has furnished is true to the best of her knowledge.
What organization did Florida create to improve access to health insurance for uninsured children in Florida?
Select one:
a. Florida Insurance for Children's Health (FISH)
b. Florida Children's Health Insurance Corporation
c. Florida Children's Health Cor
d. Florida Healthy Kids Corporation
What places offer mature adults the ability to _age in place_ without ever needing to move for health reasons?
Select one:
a. Traditional retirement communities
b. Continuing Care Retirement Communities
c. Custodial Care Communities
d. Hospice Care Commun
b. Continuing Care Retirement Communities
If a person is covered by 2 health policies, one as an employee and one as a dependent, which policy pays first when there is a claim?
Select one:
a. The policy as an employee
b. The policy as a dependent
c. The policy applied for first
d. The policy appl
a. The policy as an employee
Riders and endorsements can be used to accomplish any of the following, EXCEPT:
Select one:
a. Modify the time limit for certain defense clause
b. Provide additional benefits
c. Restrict or eliminate benefits
d. Increase premiums
a. Modify the time limit for certain defense clause
Take it or leave it" is the basis for insurance policies. Because of this, they are referred to as:
Select one:
a. Contracts of Adhesion
b. Aleatory Contracts
c. Unilateral Contracts
d. Contracts
a. Contracts of Adhesion
Statements made in an insurance application are held to a principle of:
Select one:
a. Rescission
b. Subrogation
c. Warranties
d. Representation
d. Representation
A person insured under a group life insurance policy may make an assignment of all of the following, EXCEPT:
Select one:
a. Conversion
b. Beneficiary
c. Policy proceeds
d. Insured
d. Insured
Which of the following policies is a special risk policy?
Select one:
a. Dread disease
b. Hospital indemnity
c. Travel accident
d. Cancer
c. Travel accident
An application consists of all of the following, EXCEPT:
Select one:
a. Part I, the applicant's statements
b. Part II, the insured health information, including medical exam, if required
c. Part III, the agent's report
d. Part IV, the insurer's report
d. Part IV, the insurer's report
What action will an insurance company take in issuing an individual health insurance policy to someone who has had asthma since childhood?
Select one:
a. Issue the policy with an extended pre-existing condition provision
b. Deny coverage due to a pre-exis
c. Issue the policy with an impairment rider
All of the following are common methods to obtain medical information, EXCEPT:
Select one:
a. Contacting the Medical Information Bureau
b. An exam by a physician in his office or clinic
c. A consumer credit report
d. Having medical technologist take sampl
c. A consumer credit report
Which policy would best suit someone who retires with a large amount of cash?
Select one:
a. Level term insurance
b. Single premium whole life insurance
c. Limited premium whole life insurance
d. Continuous premium straight life insurance
b. Single premium whole life insurance
Which of the following is NOT a life insurance policy nonforfeiture option in Florida?
Select one:
a. Secondary universal life benefit
b. Cash surrender value
c. Extended term life insurance
d. Reduced paid-up life insurance
a. Secondary universal life benefit
Which of the following is not a characteristic of a joint life insurance policy?
Select one:
a. The premiums are always a lot higher than if each life was insured separately.
b. Joint life policies are often used for business continuation arrangements.
c.
a. The premiums are always a lot higher than if each life was insured separately.
What is the latest that the outline of coverage can be delivered?
Select one:
a. At least 24 hours before the initial meeting
b. At the time of application
c. When the policy is delivered
d. When the policy is completed
c. When the policy is delivered
Which of the following is considered a reimbursement contract?
Select one:
a. Life insurance contract
b. Disability income contract
c. Major medical contract
d. Accidental Death and Dismemberment contract
c. Major medical contract
Which of the following is not a characteristic of a group life insurance plan?
Select one:
a. Minimum participation standards
b. Lower overall costs
c. Individual selection of benefits
d. Master policy for all employees
c. Individual selection of benefits
To prevent major illness devastation, a self-employed person might consider:
Select one:
a. A flexible spending account with no other insurance.
b. A cancer plan with a health savings account
c. A high deductible health plan in conjunction with a health s
c. A high deductible health plan in conjunction with a health savings account
When can the Office of Insurance Regulation examine the records of an insurer?
Select one:
a. Anytime
b. Only with 48 hours notice
c. Only with a court order
d. Only when a complaint is filed
a. Anytime
What is the maximum percentage of premiums for policies sold by a licensee in a 12-month period can be from controlled business?
Select one:
a. 15%
b. 25%
c. 33%
d. 50%
d. 50%
Medicaid will provide all of the following benefits, EXCEPT:
Select one:
a. Hospital Care
b. Physician Services
c. Monthly Income
d. Home health Care
c. Monthly Income
Jamie had group life insurance with his former employer, but his new company does not offer life insurance. What are his options?
Select one:
a. He can convert his insurance to an individual policy.
b. He can transfer his insurance to his new company.
c.
a. He can convert his insurance to an individual policy.
When does an applicant have the right to designate a second addressee?
Select one:
a. At the time of the policy application only
b. Within a 30-day window after the policy application
c. At the time of the policy application or on the anniversary date of
d. At the time of the policy application or at any time the policy is in force
All of the following are features of variable universal life, EXCEPT:
Select one:
a. Flexible premiums
b. Cash value based on investment in separate account
c. Insurer decides where to invest premiums
d. Death protection is deducted from cash value
c. Insurer decides where to invest premiums
Which of the following provisions will limit benefits in an insurance contract?
Select one:
a. Waiver of premium
b. Exclusions
c. Conditions
d. Declarations
b. Exclusions
What rider can decrease the death benefit when utilized?
Select one:
a. Payor rider
b. Waiver of premium rider
c. Long-term care rider
d. Cost of living rider
c. Long-term care rider
The clause that prevents an insurer from denying a claim, except for nonpayment of premiums, after the policy has been in force for over 2 years is called the:
Select one:
a. Execution clause
b. Suicide clause
c. Incontestability clause
d. Insuring clause
c. Incontestability clause
In Florida, what is the minimum number of employees to be considered a "small employer?"
Select one:
a. 1
b. 2
c. 5
d. 7
a. 1
All of the following out of pocket expenses qualify for a medical deduction, EXCEPT:
Select one:
a. Prescription Drugs
b. Dental Expense
c. Diabetic supplies
d. Disability insurance premium
d. Disability insurance premium
All of the following are true concerning taxation of medical benefits, EXCEPT:
Select one:
a. Medical reimbursement benefits are not taxable.
b. Disability income may be taxable depending on who pays the premium.
c. Benefits paid from a hospital indemnity
d. Medical expenses deducted from income tax become taxable in the next year if they are reimbursed after the deduction is taken.
A group health plan's rates may be affected by any of the following, EXCEPT:
Select one:
a. Experience of the group (claims vs. premium)
b. Stability of the group
c. Mortality tables
d. Morbidity tables
c. Mortality tables
Thomas submitted an application for health insurance with the full first premium and was issued a conditional receipt. On which provision of the contract is the application and premium payment based?
Select one:
a. The rights of ownership clause
b. The in
c. The consideration clause
What is a type of Medicare health plan that provides all the Part A and Part B benefits?
Select one:
a. Medicare Advantage
b. Medicare Enhanced
c. Medicare Extended
d. Medicare Combination
a. Medicare Advantage
An HMO will stress all of the following, EXCEPT:
Select one:
a. Higher deductibles for curative services
b. Low or no co-pay for doctor visits
c. Screenings for potential health conditions
d. Wellness as a lifestyle
a. Higher deductibles for curative services
What would be best for someone who received a large lump sum from their company retirement and wants to be sure their basic living needs are always covered?
Select one:
a. A deferred annuity
b. An immediate annuity purchased with a lump sum
c. A deferred
b. An immediate annuity purchased with a lump sum
Which of the following statements is true about conditions to reinstate a lapsed life insurance policy?
Select one:
a. On a reinstatement, the policyowner does not need to provide proof of insurability.
b. The reinstated policy will use the insured's atta
c. The policy has been expired no more than 3 years
The fact that an insurance agent cannot commingle their insurance funds with their personal funds is referred to in legal terms as:
Select one:
a. Separation of assets
b. Legal liability
c. Monetary Reconciliation
d. Fiduciary responsibility
d. Fiduciary responsibility
Question 73
Question text
Max and Janet were killed simultaneously. Max had a life policy with Janet as the primary beneficiary. How will the proceeds from the policy be disbursed?
Select one:
a. The proceeds were disbursed to their children.
b. The proce
c. The proceeds were disbursed to the contingent beneficiary.
Which of the following is not a case in which life insurance proceeds would be included in the deceased's estate?
Select one:
a. The deceased was the policyowner.
b. The deceased's wife was the beneficiary.
c. The estate was the named beneficiary.
d. The
b. The deceased's wife was the beneficiary.
Which of the following is not necessary for a policy to take effect?
Select one:
a. The initial premium was collected
b. The policy was reviewed by the applicant
c. The policy was delivered
d. The policy was issued by the insurer
b. The policy was reviewed by the applicant
What unfair trade practice uses force to compel a person to purchase an insurance policy?
Select one:
a. Coercion
b. Twisting
c. Churning
d. Sliding
a. Coercion
What is the first action the Office of Insurance Regulation will take for an insurer engaging in an unsound practice?
Select one:
a. A cease and desist order
b. A contempt of court order
c. An arrest warrant
d. A revocation of license decree
a. A cease and desist order
Which of the following statements is not true about a straight whole life policy?
Select one:
a. The policies credit guaranteed interest to the cash value account.
b. The cash value would equal the death benefit upon maturity.
c. The cash value goes to th
c. The cash value goes to the beneficiary upon the death of the insured.
How much time does an appointing entity have to report a termination to the Florida Department of Insurance?
Select one:
a. 14 days
b. 15 days
c. 30 days
d. 31 days
c. 30 days
Which of the following would be a routine exclusion in a life policy?
Select one:
a. A military pilot dies flying a fighter plane
b. A stunt rider dies trying to leap 25 buses on a motorcycle
c. A medic dies in a war zone
d. All of the above
d. All of the above
Giving a client's child a stuffed animal with a company's logo that is valued at less than $25 would be considered:
Select one:
a. False advertising
b. Advertising
c. Rebating
d. Coercion
b. Advertising
All of the following are required provisions for health policies, EXCEPT:
Select one:
a. Grace Period
b. Reinstatement
c. Proof of loss
d. Exclusions
d. Exclusions
James has agreed to purchase insurance. When will the coverage be in force?
Select one:
a. When he signs the application
b. When he writes the check for the initial premium
c. When the agent delivers the policy to the insured
d. When the agent delivers th
c. When the agent delivers the policy to the insured
The grace period in a health insurance plan is based on which of the following?
Select one:
a. The premium mode
b. The maximum policy benefit allowance
c. The addition of a restrictive rider
d. The length of the probationary period
a. The premium mode
Which of the following is true about the loan status after a loan is made from the cash value of a life policy?
Select one:
a. Policyowner has one year to repay the loan.
b. No Interest is assessed by the insurer.
c. Outstanding loan balances are deducted
c. Outstanding loan balances are deducted from policy proceeds.
If an insured has a claim when he discovers that his age was misstated on the policy application, what will be the probable action of the insurance company?
Select one:
a. The company will cancel the policy and return all premiums paid.
b. If the premium
c. The claim will be adjusted to reflect the correct age.
Florida insurance laws are administered by all the following, EXCEPT:
Select one:
a. The Financial Services Commission
b. The Chief Financial Officer
c. The Commissioner of the Office of Insurance Regulation
d. The Florida legislature
d. The Florida legislature
When must an outline of coverage be given to a prospective applicant for long-term care insurance?
Select one:
a. Prior to the presentation
b. At the time of solicitation
c. At the time of application
d. When the policy is delivered
b. At the time of solicitation
What defines proper business practices expected of agents?
Select one:
a. The Florida Insurance Code
b. The Florida Insurance Responsibility Entity (FIRE)
c. The Florida Business Practices Act
d. The Florida Code of Ethics
d. The Florida Code of Ethics
Individual and group health policies must provide coverage for newborn children of a family member from the moment of birth for at least:
Select one:
a. 1 month
b. 3 months
c. 9 months
d. 18 months
d. 18 months
How much time before coverage is in effect for a Medicare supplemental policy that replaces another Medicare supplemental policy that was held for 1 year?
Select one:
a. Immediately
b. 30 days
c. 60 days
d. 90 days
a. Immediately
How frequently must domestic insurers be examined by the Office of Insurance Regulation?
Select one:
a. Annually
b. At least once every other year
c. At least once every 5 years
d. Upon the Office's discretion
c. At least once every 5 years
Term insurance provides:
Select one:
a. A fixed schedule and level premium
b. Pure protection and is the least expensive form of insurance
c. A flexible schedule and a flexible premium
d. None of the above
b. Pure protection and is the least expensive form of insurance
Which clause in a policy contains information on the parameters to pay claims in the event of a loss?
Select one:
a. Time requirements for claims payments
b. Payment of claims
c. Entire Contract
d. Notice of claim
b. Payment of claims
Which of the following is NOT a right of the owner of a life insurance policy?
Select one:
a. Changing the irrevocable beneficiary
b. Implementing a verbally agreed change
c. Borrowing funds before cash value exists
d. All of the above
d. All of the above
An individual annuity may serve any of the following purposes, EXCEPT:
Select one:
a. Individual Retirement Account (Qualified)
b. Tax deferred savings
c. Short term savings account
d. Retirement income
c. Short term savings account
Samantha purchased a universal life policy when the death benefit in the policy was $200,000. With a current cash value of $50,000, she has selected death benefit option B. How much is her current death benefit?
Select one:
a. $50,000
b. $150,000
c. $200,
d. $250,000
When does an agent have to inform a proposed insured that a credit report may be pulled?
Select one:
a. It should be covered during the first contact.
b. It should only be covered if the underwriter actually orders the report.
c. There should be a stateme
d. The proposed insured should be informed at the time of application.
All of the following may be considered risk factors for a health insurance policy, EXCEPT:
Select one:
a. Family health history
b. Gender
c. Age
d. Geographic location
d. Geographic location
What is a managed-care arrangement under which a selected group of independent hospitals and medical practitioners in an area agrees to provide a range of services at a prearranged cost?
Select one:
a. PPO
b. POS
c. EPO
d. HMO
a. PPO
What is the waiting period under the waiver of premium rider before the first premium will be waived?
Select one:
a. 30 days
b. 60 days
c. 3 or 6 months
d. 1 year
c. 3 or 6 months
What is the minimum free look period for life insurance policies in Florida?
Select one:
a. 14 days
b. 21 days
c. 30 days
d. 31 days
a. 14 days
Where replacement is involved, what else must an agent give the insurer with an application for life insurance?
Select one:
a. Notice to Applicant Regarding Replacement of Life Insurance only
b. A copy of all sales proposals only
c. Notice to Applicant Re
c. Notice to Applicant Regarding Replacement of Life Insurance and a copy of all sales proposals
All of the following are elements of insurable risks, EXCEPT:
Select one:
a. Loss must occur by chance or accident
b. Large number of homogenous units
c. Loss must be predictable
d. Loss must be catastrophic
d. Loss must be catastrophic
An annual maximum benefit will provide the following:
Select one:
a. A lifetime benefit of $1,000,000
b. No specified life time amount, but a limited benefit for each year
c. A limited benefit per month
d. No lifetime maximum at all
b. No specified life time amount, but a limited benefit for each year
A one-sided agreement whereby a promise to do (or refrain from doing) something in return for a performance (not a promise) is what type of contract?
Select one:
a. A conditional contract
b. A contract of adhesion
c. A unilateral contract
d. An aleatory c
c. A unilateral contract
Does an employee retain any ownership rights under a group contract?
Select one:
a. No, the employer owns all parts of the plan.
b. Yes, the employee may change a beneficiary and convert to an individual policy.
c. No, the insurance company will not recog
b. Yes, the employee may change a beneficiary and convert to an individual policy.
In a group health insurance contract, the individual insureds are each given:
Select one:
a. A Certificate of Insurance
b. A Certificate of Participation
c. A master policy
d. An individual policy
a. A Certificate of Insurance
used by agents selling annuities to senior citizens, EXCEPT:
Select one:
a. The agent must make reasonable efforts to obtain information regarding the client's tax and financial status to assure that the purchase is in the client's best interest
b. The ag
d. Cold lead advertising
Which of the following is not a settlement option for a life policy?
Select one:
a. Interest only option
b. Life income option
c. Extended term option
d. Fixed amount option
c. Extended term option
Who must sign the Notice Regarding Replacement of Medicare Supplement Coverage?
Select one:
a. The applicant only
b. The replacing agent only
c. The applicant and the replacing agent
d. The applicant, the replacing agent and the insurer
c. The applicant and the replacing agent
Which of the following is NOT a duty or power of the Office of Insurance Regulation?
Select one:
a. Write and amend insurance statutes
b. Enforce the Insurance Code
c. Conduct investigations of insurance matters
d. Examine insurers
What is the minimum grace period for individual life insurance policies in Florida?
Select one:
a. 14 days
b. 21 days
c. 30 days
d. 31 days
Who sells the Small Business Health Plan insurance?
Select one:
a. All Florida insurers must offer this type of insurance
b. Any Florida insurers can offer this type of insurance
c. Only Florida insurers that do not sell personal health insurance policies
d. Only Florida insurers chosen by the Office of Insurance Regulation
What is the length of time that the suicide clause is in effect?
Select one:
a. 6 months
b. 1 year
c. 2 years
d. 3 years
c. 2 years
If a replacement is involved, the agent must do all of the following, EXCEPT:
Select one:
a. Provide the insurer with the signed statement from the applicant pertaining to replacement.
b. Notify the insurer of the policy being replaced - of any policies t
b. Notify the insurer of the policy being replaced - of any policies to be replaced.
Which of the following is not true about nonoccupational and occupational policies?
Select one:
a. Social Security benefits do not impact benefit payments on either of these policies.
b. Short-term disability policies usually cover nonoccupational disabil
a. Social Security benefits do not impact benefit payments on either of these policies.
The Fair Credit Reporting Act states that generally, consumer reports cannot contain the following information, EXCEPT:
Select one:
a. Adverse information about an individual that dates back over seven years
b. Tax liens older than seven years
c. An indiv
c. An individual's character
How many hours of continuing education are required every 2 years for Florida life and health agents?
b. 24 hours
Eligibility for the payment of long-term care benefits may not be more restrictive than requiring a deficiency in the ability to perform not more than:
Select one:
a. 1 activity of daily living
b. 2 activities of daily living
c. 3 activities of daily livi
c. 3 activities of daily living
Martha has both Medicare Part A and a group policy to cover her medical costs. When she is injured in an accident at work, which of her policies is considered primary?
Select one:
a. Medicare Part A
b. Her group policy
c. Workers' Compensation
d. Her husb
c. Workers' Compensation
Florida's Long-term Care Partnership Program is a partnership between Medicaid and:
Select one:
a. Medicare
b. The state of Florida
c. Private long-term care insurers
d. Public long-term care insurers
c. Private long-term care insurers
When an agent or insurer does not truthfully explain the terms of an insurance policy, this is:
Select one:
a. Misrepresentation
b. Defamation
c. False financial statements
d. Twisting
a. Misrepresentation
What type of health insurance policy states that the insurance company may not cancel the policy, but they may increase the rates on a specified class of insureds?
Select one:
a. Non-cancellable policy
b. Optionally renewable policy
c. Guaranteed renewabl
c. Guaranteed renewable policy
Based on the following, which of the statements is true? When John dies, the death benefit will be paid to Sherrie. If Sherrie dies before John, the benefit would go to Collin.
Select one:
a. The tertiary beneficiary is Sherrie and Collin is the secondary
c. The primary beneficiary is Sherrie, and the Collin is the contingent beneficiary.
What is the minimum number of employees that must be insured under contributory employer-sponsored group health insurance plans?
Select one:
a. 5
b. 50
c. 100
d. There is no minimum
d. There is no minimum
Individuals may purchase long-term care benefits from all of the following sources, EXCEPT:
Select one:
a. Individual long-term care policies
b. Group policies through an employer
c. Medicare Part B
d. Life Insurance policy with a long-term care rider
c. Medicare Part B
In order to transact insurance policies in Florida, insurance agents must be:
Select one:
a. Licensed only
b. Appointed only
c. Licensed and appointed
d. Licensed, appointed and approved
c. Licensed and appointed
Which of the following is required for the conversion/exchange to take place in a convertible term policy?
Select one:
a. It requires that premiums be paid on time.
b. It requires a background check.
c. It requires a reduction in the face value of the pol
a. It requires that premiums be paid on time.
Which of the following is not an option for handling the designation of minor beneficiaries on a life policy?
Select one:
a. Set up a trust to receive and administer the proceeds of the policies
b. Set up a tertiary beneficiary to receive the proceeds
c.
b. Set up a tertiary beneficiary to receive the proceeds
Which of the following is described as charging insureds additional fees without their consent?
Select one:
a. Churning
b. Sliding
c. Coercion
d. Twisting
b. Sliding
How much time does someone have to transfer funds from one IRA to another without incurring a tax penalty?
Select one:
a. 30 days
b. 60 days
c. 90 days
d. 120 days
b. 60 days
What is an entity which, in return for a prepayment, undertakes to provide or arrange for, or provide access to, the provision of a limited health service to enrollees through an exclusive panel of providers?
Select one:
a. DMPO
b. EPO
c. PLHSO
d. MEWA
c. PLHSO
What type of care is nursing care and rehabilitation needed on a daily basis that is performed by a medical professional under a physician's orders?
Select one:
a. Skilled care
b. Intermediate care
c. Custodial care
d. Hospice care
a. Skilled care
After breaking his leg, Oliver purchased a major medical policy and filed a claim for the treatment on his broken leg. The claim is denied due to:
Select one:
a. The insuring clause
b. The consideration clause
c. The entire contract clause
d. The pre-exis
d. The pre-existing clause
To fall under the common disaster provision, most policies specify that the death of the primary beneficiary must occur:
Select one:
a. Immediately
b. Within 10 days of the accident
c. Within 30 days of the accident
d. Within 30 - 90 days of the accident
d. Within 30 - 90 days of the accident
Who of the following is NOT on the Financial Services Commission?
Select one:
a. The Florida Commissioner of Insurance
b. The Florida Commissioner of Agriculture
c. The Florida Attorney General
d. The Governor of Florida
a. The Florida Commissioner of Insurance
The Insurance Department may place on probation, suspend, revoke or refuse to issue or renew an insurance producer license for which of the following reasons?
Select one:
a. Failing to pay child support
b. Failing to pay alimony
c. Failing to pay property
a. Failing to pay child support
Which of the following is not a standard claim procedure?
Select one:
a. Claim notice must be provided to the insurer within 20 days of the loss
b. The insurer must provide claim forms
c. If the insurer does not provide claim forms, insured can submit on
d. No legal action can be taken prior to 120 days after proof of claims has been provided to the insurer
In Florida, which of the following is NOT a type of "agent"?
Select one:
a. General lines agent
b. Annuity agent
c. Health agent
d. Title agent
b. Annuity agent
A Medicare supplement insurer cannot deny an application for a Medicare supplement policy if the applicant is both 65 and enrolled in:
Select one:
a. Medicare Part A
b. Medicare Part B
c. Medicare Part C
d. Medicare Part D
b. Medicare Part B
What law requires that an applicant be notified that an insurance underwriter may request a report from an investigative agency?
Select one:
a. Freedom of information Act
b. Medical Information Bureau Disclosure Act
c. Uniform Provision Law
d. Fair Credit
d. Fair Credit Reporting Act
What must an insurance agent provide to the applicant of a life insurance policy that does not contain an unconditional refund provision prior to accepting the applicant's initial premium?
Select one:
a. Buyer's Guide only
b. Policy Summary only
c. Buyer'
c. Buyer's Guide and Policy Summary
In a group life policy, an insured's dependent spouse may be covered up to what percentage of the amount of insurance for which the employee is insured?
Select one:
a. 50%
b. 75%
c. 100%
d. 150%
c. 100%
Irving has a policy that states that his coverage is renewable to age 65 and beyond that age in the event certain circumstances are present. This type of renewability is know as :
Select one:
a. Noncancellable
b. Optionally renewable
c. Guaranteed renewab
d. Conditionally renewable
What is the purpose of the Florida Life and Health Guaranty Association?
Select one:
a. To protect insurers from various market conditions
b. To protect insurers from fraudulent claims
c. To protect policy holders and insureds from insurers who cannot ful
c. To protect policy holders and insureds from insurers who cannot fulfill their financial obligations
What type of insurer is formed under the laws of Florida?
Select one:
a. Domestic
b. Alien
c. Foreign
d. Mutual
a. Domestic
How much time does an individual have to convert to a new individual life policy after they are terminated from employment covered by a group life policy?
Select one:
a. 28 days
b. 30 days
c. 31 days
d. 60 days
c. 31 days
When recommending a replacement policy, a producer should remember that:
Select one:
a. He/she has liabilities because of errors or omissions
b. Replacements are illegal
c. Replacements are not regulated
d. All of the above
a. He/she has liabilities because of errors or omissions
Appropriately addressing an applicant's financial objectives is known as determining:
Select one:
a. Objectivity
b. Suitability
c. Financability
d. Convertibility
b. Suitability