3. Which of the following statements about the Fair Credit Reporting Act is correct?
It provides that consumers have the right to question reports made about them by investigative agencies
All of the following unreimbursed medical expenses may be considered and lumped together to determine their deductibility except:I. Prescription drugsII. Contributions to group disabilityIII. Contributions to group AD&DIV. Contributions to a group medical
2 and 3
6. The Viatical Settlement Act includes all of the following except:
viatical providers are regulated by Dept. of Viatical Settlements
7. Ibey Broke, age 62, has been paying premiums for many years on his Whole Life policy, which now has a cash value of $9,850. If Ibey decided to drop the policy, which of the following would apply?
Ibey could elect to surrender his policy for a lump-sum cash payment of $9,850, less any policy indebtedness.
9. Which of the following statements is not correct regarding an association group?
must have been in existence for one year
Which of the following statements concerning the Florida Employee Health Care Access Act are true?1. It mandates guarantee issue for small group plans.2. It determines open enrollments for all small group plans.3. It mandated a modified community rating m
1 and 3
17. An individual has how many days in which to notify the company of a claim?
20 days
19. When dealing with annuity investments for seniors, an agent should obtain at a minimum all of the following except:
occupation
21. Total disability does not always occur immediately after an accident but does develop days or weeks later. A specified time frame is allowed for this and the insured would still be eligible for benefits. What is the maximum amount of time specified in
90 days
22. The miscellaneous expense benefit in a basic hospital expense policy will cover
drugs and medicine administered in the hospital
26. A doctor who is receiving Disability Income benefits is unable to return to work full-time, but continues her practice on a part-time basis. Which of the following would allow the doctor to continue to receive benefits?
A Residual Benefit clause
35. What per centage of employees must agree to a non-contributory group health plan in order for it to be approved by the state?
0%
37. Which of the following statements is true regarding Multiple Employer Trusts ?
The Multiple Employer Trust, not the employer, is the contract holder.
41. Luke has had a disability income policy for 7 years in which the premium is paid semi-annually. He forgot to pay the premium that was due on July 1, 2014. On July 31, 2014 he became totally disabled and notified the insurance company immediately. How
The company will pay the benefit, less the premium owed.
42. Which of the following is not true regarding Long Term Care policies in Florida?
LTC policies may restrict coverage solely to nursing home confinement.
46. Which is correct concerning a GRADED PREMIUM WHOLE LIFE policy?
Premiums start low, increasing each year during the early years of the contract and then remain constant for life.
48. Regarding eligibility requirements in a group life plan, for the plan to receive favorable tax treatment the government requires the plan to cover what percentage of the eligible employees?
70%
50. Titus has absolutely assigned his $100,000 life insurance policy to the bank to cover a $75,000 mortgage. His wife is named as primary beneficiary. If Titus were to die which statement correctly reflects the insurance company's obligation?
the bank would receive the entire amount
53. In the formation of a life insurance contract, the special significance of a conditional receipt is that it:
is intended to provide coverage on a date earlier than the date of the issuance of the policy.
57. If the growing cash value-to-total death benefit ratio exceeds a certain percentage fixed by federal law, an additional amount of pure insurance, called the "corridor", is added to maintain the minimum death benefit. This statement pertains to which o
Universal Life, Option 1
60. Florida law requires continuing education for all agents. Which of the following is true concerning an agent who has five years' experience and has earned the Chartered Life Underwriter designation?
The agent needs 24 hours of continuing education
63. An insured's disability income policy defines total disability as the insured's inability to perform the duties of any occupation for which he or she is reasonably qualified by education, training or experience. Which of the following is true about th
It is the any occupation definition and is more restrictive than other definitions.
66. Which of the following is not true concerning the FICA tax?
The FICA tax has no limits as to the retirement portion.
67. Where is the insuring clause of a life insurance policy found?
On the cover of the policy
71. A company that is licensed to sell insurance in a particular state is
an authorized company
74. Which annuity option is not taxed according to the Last In First Out (LIFO) method?
Annuitized settlements
79. When soliciting Medicare supplements, the insurance application must ask questions to elicit information as to whether the applicant currently has all of the following types of coverage except:
disability income insurance
80. Which of the following policies would have a higher premium?
Participating Policies
81. A Medicare supplement has _______ free look.
30 days
91. Which of the following would not be a characteristic of an annuity?
typical mandatory distributions by age 70 1/2
95. John owned a life insurance policy on his sister. His sister's children were named as the beneficiaries. If his sister and her children were killed in an accident, to whom would the insurance company pay the benefits?
john
97. The purpose of the COBRA requirements concerns:
continuation of health insurance.
98. Which of the following is not true concerning the waiver of premium rider?
The definition of disability may change from any occupation to own occupation after two years of the disability
105. Which of the following statements about the Misstatement of Age provision in a life insurance policy is true?
If the insured's age has been understated, it provides that a Death benefit smaller than the face amount of the policy will be payable.
110. Which of the following statements is true about the conditional receipt issued to an applicant for an individual disability income policy?
If an applicant is an acceptable risk, the conditional receipt binds the insurance company as of either date of the receipt or date of the medical exam, whichever is later.
112. Which of the following may not be limited or excluded in a long term care policy?
Alzeimer's disease
117. A residual disability benefit would pay a benefit
based upon the proportion of income lost due to partial disability
118. Long term care policies must offer coverage for all of the following except:
mental disorders
120. Will the annual premium required for a 3% reserve interest assumption be greater or smaller than for a 3 1/2% reserve interest assumption?
Greater
121. The lifetime reserve for Medicare is:
60 days
124. For a group life plan to receive favorable tax treatment, the government imposes certain requirements to ensure that the rank-and-file employees are not discriminated against. Which of the following statements regarding eligibility requirements is no
The life insurance must be the same amount for all.
127. All of the following describe an unaffiliated agent except:
a limited lines agent
139. Who comprises the Financial Services Commission?
The Governor, CFO, Attorney General, & the Agriculture Commissioner
141. Many major medical policies include a provision whereby when expenses reach a certain dollar amount, the insured no longer shares in the cost of expenses: the insurer pays 100% of remaining covered charges. This is referred to as the:
stop-loss limit
144. Qualified corporate retirement programs must meet all requirements below EXCEPT:
Employee contributions must be vested by 3 years.
146. Which of the following is called the fifth dividend option?
term
147. All of the following are true about health insurance dividends except:
Mutual (participating) insurers generally issue experience-rated plans