FLORIDA 2-40 HEALTH INSURANCE EXAM
EXAM PREPARATION PACK 2026 KEY
CONCEPTS AND REVISION NOTES
◉ In an Accidental Death and Dismemberment (AD&D) policy, the
term "capital sum" refers to:
-the benefit paid for death caused by a dread disease
-the monthly disability income paid if an insured loses a limb or the
sight in one or both eyes
-a lump sum payment made when disease causes the amputation of
an arm or a leg
-a lump sum payment made for an accidental dismemberment.
Answer: a lump sum payment made for an accidental
dismemberment
◉ The PRIMARY purpose of Medicaid is to:
-pay for expenses not covered by Medicare
-provide Disability Income benefits to people on Medicare
-provide Medical Expense coverage to persons meeting certain
minimum income requirements
-provide funds for people injured in natural disasters.
Answer: provide Medical Expense coverage to persons meeting
certain minimum income requirements
,◉ A health care plan that reimburses a flat fee for medical care it
provides at a clinic it owns and operates is referred to as:
-Health Maintenance Organization
-Medicaid
-Medicare
-a Multiple Employer Trust (MET).
Answer: Health Maintenance Organization
◉ A health care plan designed to combine small employers together
into a group to purchase medical expense insurance for their
employees is called a:
-risk retention group
-Multiple Employer Trust (MET)
-Preferred Provider Organization (PPO)
-Third Party Administrator (TPA).
Answer: Multiple Employer Trust (MET)
◉ Medicare Supplement policies are primarily designed to:
-offset the high cost of Medicare
-provide additional retirement income to supplement Social Security
retirement benefits
-provide additional benefits beyond those provided by Medicare
, -provide a reinsurance network that spreads the Medicare risk
among private insurance companies.
Answer: provide additional benefits beyond those provided by
Medicare
◉ An applicant for insurance submits an application to an insurer
for underwriting but does not forward any premium payment with
the application. Legally, the applicant is making
-an inquiry for an offer
-an offer
-a counteroffer
-an acceptance.
Answer: an inquiry for an offer
◉ Which of the following statements is CORRECT about a Waiver of
Premium provision in a Disability Income policy?
-It allows the insurer to deduct premiums due from the disabled
insured's benefit payments.
-It allows the insurer to increase the amount of premium during the
insured's time of disability.
-It allows the insured to extend the length of the Grace Period while
disabled.
-It allows the insured to maintain a policy in force while disabled
and unable to pay premiums..
EXAM PREPARATION PACK 2026 KEY
CONCEPTS AND REVISION NOTES
◉ In an Accidental Death and Dismemberment (AD&D) policy, the
term "capital sum" refers to:
-the benefit paid for death caused by a dread disease
-the monthly disability income paid if an insured loses a limb or the
sight in one or both eyes
-a lump sum payment made when disease causes the amputation of
an arm or a leg
-a lump sum payment made for an accidental dismemberment.
Answer: a lump sum payment made for an accidental
dismemberment
◉ The PRIMARY purpose of Medicaid is to:
-pay for expenses not covered by Medicare
-provide Disability Income benefits to people on Medicare
-provide Medical Expense coverage to persons meeting certain
minimum income requirements
-provide funds for people injured in natural disasters.
Answer: provide Medical Expense coverage to persons meeting
certain minimum income requirements
,◉ A health care plan that reimburses a flat fee for medical care it
provides at a clinic it owns and operates is referred to as:
-Health Maintenance Organization
-Medicaid
-Medicare
-a Multiple Employer Trust (MET).
Answer: Health Maintenance Organization
◉ A health care plan designed to combine small employers together
into a group to purchase medical expense insurance for their
employees is called a:
-risk retention group
-Multiple Employer Trust (MET)
-Preferred Provider Organization (PPO)
-Third Party Administrator (TPA).
Answer: Multiple Employer Trust (MET)
◉ Medicare Supplement policies are primarily designed to:
-offset the high cost of Medicare
-provide additional retirement income to supplement Social Security
retirement benefits
-provide additional benefits beyond those provided by Medicare
, -provide a reinsurance network that spreads the Medicare risk
among private insurance companies.
Answer: provide additional benefits beyond those provided by
Medicare
◉ An applicant for insurance submits an application to an insurer
for underwriting but does not forward any premium payment with
the application. Legally, the applicant is making
-an inquiry for an offer
-an offer
-a counteroffer
-an acceptance.
Answer: an inquiry for an offer
◉ Which of the following statements is CORRECT about a Waiver of
Premium provision in a Disability Income policy?
-It allows the insurer to deduct premiums due from the disabled
insured's benefit payments.
-It allows the insurer to increase the amount of premium during the
insured's time of disability.
-It allows the insured to extend the length of the Grace Period while
disabled.
-It allows the insured to maintain a policy in force while disabled
and unable to pay premiums..
