Florida 240 Practice Exam
Complete Questions and Answers
100% Verified Graded A+
1. A medical expense policy that establishes the amount of benefit paid based
upon the prevailing charges which fall within the standard range of fees nor-
mally charged for a specific procedure by a doctor of similar training and
experience in that geographic area is known as
Answer: Usual, customary and reasonable
2. What provision would prevent an insurance company from paying a reim-
bursement claim to someone other than the policyowner?
Answer: Payment of Claims
3. All of the following are true about group disability Income insurance EXCEPT
a) The longer the waiting period, the lower the premium.
b) Coverage applies both on and off the job.
c) Benefits are usually short term.
,d) The waiting period starts at the onset of the injury or sickness.
Answer: Coverage applies both on and ott the job.
4. Which of the following statements regarding Business Overhead Expense
policies is NOT true?
a) Premiums paid for BOE are tax-deductible.
b) Any benefits received are taxable to the business.
c) Leased equipment expenses are covered by the plan.
d) Benefits are usually limited to six months,
Answer: d) Benefits are usually limited to six months
5. In long-term care insurance, what type of care is provided with intermediate
care?
Answer: Occasional nursing or rehabilitative care
6. After a person's employment is terminated, it is possible to obtain individual
health insurance after losing the group health coverage provided by the em-
ployer. Which of the following is NOT true?
a) The employee can convert from group to individual insurance within 31 days
of termination.
b) The premium of the individual health insurance policy can be higher than the
, original policy.
c) By law, the new, individual policy must provide the same benefits as the
group insurance policy.
d) Continuation of group coverage need not include dental, vision, or prescrip-
tion drug benefits.
Answer: c) By law, the new, individual policy must provide the same benefits as the group insurance policy.
7. An insured has endured multiple surgeries and hospitalizations for an illness
during the last few months. Her insurer no longer bills her for medical expens- es.
Which of the following allows for that?
a) Waiver of premium
b) Maximum loss
c) Stop-loss limit
d) Grace period
Answer: c) Stop-loss limit
8. L has a major medical policy with a $500 deductible and 80/20 coinsurance.
Lis hospitalized and sustains a $2.500 loss.
What is the maximum amount that L will have to pay?
Complete Questions and Answers
100% Verified Graded A+
1. A medical expense policy that establishes the amount of benefit paid based
upon the prevailing charges which fall within the standard range of fees nor-
mally charged for a specific procedure by a doctor of similar training and
experience in that geographic area is known as
Answer: Usual, customary and reasonable
2. What provision would prevent an insurance company from paying a reim-
bursement claim to someone other than the policyowner?
Answer: Payment of Claims
3. All of the following are true about group disability Income insurance EXCEPT
a) The longer the waiting period, the lower the premium.
b) Coverage applies both on and off the job.
c) Benefits are usually short term.
,d) The waiting period starts at the onset of the injury or sickness.
Answer: Coverage applies both on and ott the job.
4. Which of the following statements regarding Business Overhead Expense
policies is NOT true?
a) Premiums paid for BOE are tax-deductible.
b) Any benefits received are taxable to the business.
c) Leased equipment expenses are covered by the plan.
d) Benefits are usually limited to six months,
Answer: d) Benefits are usually limited to six months
5. In long-term care insurance, what type of care is provided with intermediate
care?
Answer: Occasional nursing or rehabilitative care
6. After a person's employment is terminated, it is possible to obtain individual
health insurance after losing the group health coverage provided by the em-
ployer. Which of the following is NOT true?
a) The employee can convert from group to individual insurance within 31 days
of termination.
b) The premium of the individual health insurance policy can be higher than the
, original policy.
c) By law, the new, individual policy must provide the same benefits as the
group insurance policy.
d) Continuation of group coverage need not include dental, vision, or prescrip-
tion drug benefits.
Answer: c) By law, the new, individual policy must provide the same benefits as the group insurance policy.
7. An insured has endured multiple surgeries and hospitalizations for an illness
during the last few months. Her insurer no longer bills her for medical expens- es.
Which of the following allows for that?
a) Waiver of premium
b) Maximum loss
c) Stop-loss limit
d) Grace period
Answer: c) Stop-loss limit
8. L has a major medical policy with a $500 deductible and 80/20 coinsurance.
Lis hospitalized and sustains a $2.500 loss.
What is the maximum amount that L will have to pay?
