Health Insurance Florida 2-40 Practice EXAM 1 Questions and Answers (2022/2023) Verified Answers

Health Insurance Florida 2-40 Practice EXAM 1 Questions and Answers (2022/2023) Verified Answers Which of the following laws requires an insurer to notify an applicant in writing that an investigative consumer 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) Group health insurance specifies that what percentage of eligible individuals MUST be offered coverage under a noncontributory plan? -25 -50 -75 -100 Answer: 100 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 policy 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 M and N own a small interior design studio that employs six people. The owners are concerned about the financial continuation of the business if either of them should become permanently disabled. In this situation, 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 Which of the following health policies requires a beneficiary designation? -Travel Accident -Medicare Supplement -Blanket -Long Term Care Answer: Travel Accident Suicide, pre-existing conditions and self-inflicted injuries are dealt with in which of the following policy features? -Extensions of coverage -Benefits clause -Riders -Exclusions Answer: Exclusions 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 occupation -Pay the claim in full and then cancel the policy -Pay the claim after deducting an extra one-year premium payment Answer: Settle the claim according to what the premiums would have purchased under the more hazardous occupation