HEALTH INSURANCE FLORIDA 2-40 EXAM QUESTIONS
1 UPDATED AND CORRECT ANSWERS UPDATED
QUESTIONS AND CORRECT ANSWERS
Question:
1. Which of the following laws requires an insurer to no-tify an applicant in writing that an
investigative con-sumer report may be made on the applicant?
-Uniform Provisions Law.
-Freedom of Information Act.
-Medical Information Bureau Disclosure Act -Fair Credit Reporting Act (Insurance Information and
Privacy Protection Act)
Answer:
Fair Credit Reporting Act (Insurance Information and Privacy Protection Act)
Question:
2. Group health insurance specifies that what percentage of eligible individuals MUST be offered
coverage under a noncontributory plan?
-25 -50 -75 -100
Answer:
100
Question:
3. Under an Accidental Death and Dismemberment (AD&D) policy, insurable interest must exist at
which of the following times?
-When a change of beneficiary is requested -At the inception of the policy -When a beneficiary other
than a relative is named -At the time a claim is submitted
Answer:
At the inception of the pol-icy
Question:
4. When periodic claim payments are required under a long-term disability income policy, an insurer
MUST make payments to an insured at least once every:
-month -three months -six months -year
Answer:
month
Question:
5. M and N own a small interior design studio that em-ploys six people. The owners are concerned
about the financial continuation of the business if either of them should become permanently
disabled. In this situa-tion, a producer would MOST likely recommend which of the following types
of contracts?
-Basic Hospital -Disability Buy-Out -Comprehensive Major Medical -Short-Term Disability Income
Answer:
Disability Buy-Out
Question:
6. Which of the following health policies requires a bene-ficiary designation?
, -Travel Accident -Medicare Supplement -Blanket -Long Term Care
Answer:
Travel Accident
Question:
7. Suicide, pre-existing conditions and self-inflicted in-juries are dealt with in which of the following
policy features?
-Extensions of coverage -Benefits clause -Riders -Exclusions
Answer:
Exclusions
Question:
8. An insured whose Disability Income policy contains a Change of Occupation clause takes a new
job in a more hazardous occupation and fails to notify the insurer of the change. One year later, the
insured becomes disabled. The insurer will most likely take which of the following actions?
-Cancel the policy and refund one year's premiums -Settle the claim according to what the premiums
would have purchased under the more hazardous oc-cupation -Pay the claim in full and then cancel
the policy -Pay the claim after deducting an extra one-year pre-mium payment
Answer:
Settle the claim accord-ing to what the premiums would have purchased un-der the more hazardous
occupation
Question:
9. Which of the following definitions of disability would cover a permanent partial disability?
-Own occupation -Any occupation -Residual disability -Presumptive disability
Answer:
Residual disability
Question:
10. When delivering a policy to a client, a producer should take all of the following actions EXCEPT:
-Collect any premiums due -fully explain all exclusions and/or riders -keep the policy in the
producer's office for safe-keep-ing on behalf of the client -review all benefits provided by the policy
Answer:
keep the policy in the producer's office for safe-keeping on behalf of the client
Question:
11. The Social Security program provides all of the follow-ing benefits EXCEPT:
-Retirement -survivor -disability -workers compensation
Answer:
workers compensation
Question:
12. Which of the following definitions MOST accurately describes the Probationary Period?
-The period of time from the date of the loss until the benefits begin -The period of time from the date
of the loss until benefits are actually received by the policyowner -The waiting period a new hire must
satisfy prior to becoming eligible for group health coverage -The period of time once a claim is
received by the insurance company before it pays benefits to the poli-cyowner
1 UPDATED AND CORRECT ANSWERS UPDATED
QUESTIONS AND CORRECT ANSWERS
Question:
1. Which of the following laws requires an insurer to no-tify an applicant in writing that an
investigative con-sumer report may be made on the applicant?
-Uniform Provisions Law.
-Freedom of Information Act.
-Medical Information Bureau Disclosure Act -Fair Credit Reporting Act (Insurance Information and
Privacy Protection Act)
Answer:
Fair Credit Reporting Act (Insurance Information and Privacy Protection Act)
Question:
2. Group health insurance specifies that what percentage of eligible individuals MUST be offered
coverage under a noncontributory plan?
-25 -50 -75 -100
Answer:
100
Question:
3. Under an Accidental Death and Dismemberment (AD&D) policy, insurable interest must exist at
which of the following times?
-When a change of beneficiary is requested -At the inception of the policy -When a beneficiary other
than a relative is named -At the time a claim is submitted
Answer:
At the inception of the pol-icy
Question:
4. When periodic claim payments are required under a long-term disability income policy, an insurer
MUST make payments to an insured at least once every:
-month -three months -six months -year
Answer:
month
Question:
5. M and N own a small interior design studio that em-ploys six people. The owners are concerned
about the financial continuation of the business if either of them should become permanently
disabled. In this situa-tion, a producer would MOST likely recommend which of the following types
of contracts?
-Basic Hospital -Disability Buy-Out -Comprehensive Major Medical -Short-Term Disability Income
Answer:
Disability Buy-Out
Question:
6. Which of the following health policies requires a bene-ficiary designation?
, -Travel Accident -Medicare Supplement -Blanket -Long Term Care
Answer:
Travel Accident
Question:
7. Suicide, pre-existing conditions and self-inflicted in-juries are dealt with in which of the following
policy features?
-Extensions of coverage -Benefits clause -Riders -Exclusions
Answer:
Exclusions
Question:
8. An insured whose Disability Income policy contains a Change of Occupation clause takes a new
job in a more hazardous occupation and fails to notify the insurer of the change. One year later, the
insured becomes disabled. The insurer will most likely take which of the following actions?
-Cancel the policy and refund one year's premiums -Settle the claim according to what the premiums
would have purchased under the more hazardous oc-cupation -Pay the claim in full and then cancel
the policy -Pay the claim after deducting an extra one-year pre-mium payment
Answer:
Settle the claim accord-ing to what the premiums would have purchased un-der the more hazardous
occupation
Question:
9. Which of the following definitions of disability would cover a permanent partial disability?
-Own occupation -Any occupation -Residual disability -Presumptive disability
Answer:
Residual disability
Question:
10. When delivering a policy to a client, a producer should take all of the following actions EXCEPT:
-Collect any premiums due -fully explain all exclusions and/or riders -keep the policy in the
producer's office for safe-keep-ing on behalf of the client -review all benefits provided by the policy
Answer:
keep the policy in the producer's office for safe-keeping on behalf of the client
Question:
11. The Social Security program provides all of the follow-ing benefits EXCEPT:
-Retirement -survivor -disability -workers compensation
Answer:
workers compensation
Question:
12. Which of the following definitions MOST accurately describes the Probationary Period?
-The period of time from the date of the loss until the benefits begin -The period of time from the date
of the loss until benefits are actually received by the policyowner -The waiting period a new hire must
satisfy prior to becoming eligible for group health coverage -The period of time once a claim is
received by the insurance company before it pays benefits to the poli-cyowner
