Final Exam - Florida Life and Health
Which Unfair Trade Practice involves making a false statement on an insurance
application in order to receive money from an insurer? - correct answer
Misrepresentation
Who owns a stock company? - correct answer A stock insurance company is
owned by its stockholders.
In Florida, which of the following is considered an Unfair Trade Practice? - correct
answer Coercion
Which of these options can an individual use their medical flexible spending
account to pay for? - correct answer Prescription drugs are an allowable expense
when paid for by a medical flexible spending account.
Which of the following features of a group Term Life policy enables an individual
to leave the group and continue his or her insurance without providing evidence
of insurability? - correct answer The conversion privilege allows an individual to
leave the group term plan and continue his or her insurance without providing
evidence of insurability.
An example of false advertising would be - correct answer An insurer
exaggerating its dividends in a magazine advertisement
Q purchases a $500,000 life insurance policy and pays $900 in premiums over the
first six months. Q dies suddenly and the beneficiary is paid $500,000. This
exchange of unequal values reflects which of the following insurance contract
features? - correct answer Aleatory.
Insurance contracts are aleatory in that the amount the insured will pay in
premiums is unequal to the amount that the insurer will pay in the event of a loss.
An example of an unfair trade practice is - correct answer Making a material
misrepresentation to an insured is considered to be an unfair trade practice.
How would a contingent beneficiary receive the policy proceeds in an Accidental
Death and Dismemberment (AD&D) policy? - correct answer A contingent
beneficiary will receive the policy proceeds if the primary beneficiary dies before
the insured's death.
,Final Exam - Florida Life and Health
Which of these terms accurately defines an underwriter's assessment of
information on a life insurance application? - correct answer Risk classification.
Underwriting, another term for risk selection, is the process of reviewing the
many characteristics that make up the risk profile of an applicant to determine if
the applicant is insurable and, if so, at standard or substandard rates.
T applies for a life insurance policy and is told by the producer that the insurer is
bound to the coverage as of the date of the application or medical examination,
whichever is later. Assuming that T is an acceptable risk, what item is given to T? -
correct answer Conditional receipt.
A conditional receipt binds the insurer to coverage as of the date of the
application or medical exam, provided the proposed insured is determined to be
an acceptable risk.
What is required in the Florida Employee Health Care Access Act? - correct
answer Small group benefit plans are to be issued on a "guarantee-issue" basis
P and Q are married and have three children. P is the primary beneficiary on Q's
Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the
contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are
killed instantly. The Accidental Death benefits will be paid to - correct answer P.
In this situation, benefits will be paid to P because P survived the accident and is
the primary beneficiary.
The health insurance program which is administered by each state and funded by
both the federal and state governments is called - correct answer Medicaid- is
funded by both the federal and state governments and administered by individual
states.
Which of the following BEST describes a short-term medical expense policy? -
correct answer Nonrenewable.
A typical short-term medical expense policy is best described as nonrenewable.
Which of the following statements about noncontributory employee group life
insurance is FALSE? - correct answer A minimum number of employees is
, Final Exam - Florida Life and Health
required to participate". Noncontributory employee group life insurance plans
must cover ALL eligible employees at all times
A Disability Income policyowner recently submitted a claim for a chronic neck
problem that has now resulted in total disability. The original neck injury occurred
before the application was taken 5 years prior. The neck injury was never
disclosed to the insurer at the time of application. How will the insurer handle this
claim? - correct answer Claim will be paid and coverage will remain in force.
After a policy has been in force for 2 (sometimes 3) years, it enters the
incontestable period, in which the insurer may not deny a claim based on
information not disclosed at the time of application.
S takes out a health insurance policy which contains a provision that states that
the agent does not have the authority to change the policy or waive any of its
provisions. Which health policy provision is this? - correct answer Entire Contract.
The Entire Contract provision states that the agent does NOT have the authority
to change the policy or waive any of its provisions.
What type of life insurance gives the greatest amount of coverage for a limited
period of time? - correct answer Term life.
Level Term or Level-Premium: Level term life insurance provides the insured with
coverage for a specified period of time; the term may be one, five, 10, 20 years or
longer. The premium is calculated based on the age and health of the insured.
Periodic health claim payments MUST be made at least - correct answer monthly.
Under an individual health policy, periodic claim payments must be made at least
monthly.
Which Unfair Trade Practice involves making a false statement on an insurance
application in order to receive money from an insurer? - correct answer
Misrepresentation
Who owns a stock company? - correct answer A stock insurance company is
owned by its stockholders.
In Florida, which of the following is considered an Unfair Trade Practice? - correct
answer Coercion
Which of these options can an individual use their medical flexible spending
account to pay for? - correct answer Prescription drugs are an allowable expense
when paid for by a medical flexible spending account.
Which of the following features of a group Term Life policy enables an individual
to leave the group and continue his or her insurance without providing evidence
of insurability? - correct answer The conversion privilege allows an individual to
leave the group term plan and continue his or her insurance without providing
evidence of insurability.
An example of false advertising would be - correct answer An insurer
exaggerating its dividends in a magazine advertisement
Q purchases a $500,000 life insurance policy and pays $900 in premiums over the
first six months. Q dies suddenly and the beneficiary is paid $500,000. This
exchange of unequal values reflects which of the following insurance contract
features? - correct answer Aleatory.
Insurance contracts are aleatory in that the amount the insured will pay in
premiums is unequal to the amount that the insurer will pay in the event of a loss.
An example of an unfair trade practice is - correct answer Making a material
misrepresentation to an insured is considered to be an unfair trade practice.
How would a contingent beneficiary receive the policy proceeds in an Accidental
Death and Dismemberment (AD&D) policy? - correct answer A contingent
beneficiary will receive the policy proceeds if the primary beneficiary dies before
the insured's death.
,Final Exam - Florida Life and Health
Which of these terms accurately defines an underwriter's assessment of
information on a life insurance application? - correct answer Risk classification.
Underwriting, another term for risk selection, is the process of reviewing the
many characteristics that make up the risk profile of an applicant to determine if
the applicant is insurable and, if so, at standard or substandard rates.
T applies for a life insurance policy and is told by the producer that the insurer is
bound to the coverage as of the date of the application or medical examination,
whichever is later. Assuming that T is an acceptable risk, what item is given to T? -
correct answer Conditional receipt.
A conditional receipt binds the insurer to coverage as of the date of the
application or medical exam, provided the proposed insured is determined to be
an acceptable risk.
What is required in the Florida Employee Health Care Access Act? - correct
answer Small group benefit plans are to be issued on a "guarantee-issue" basis
P and Q are married and have three children. P is the primary beneficiary on Q's
Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the
contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are
killed instantly. The Accidental Death benefits will be paid to - correct answer P.
In this situation, benefits will be paid to P because P survived the accident and is
the primary beneficiary.
The health insurance program which is administered by each state and funded by
both the federal and state governments is called - correct answer Medicaid- is
funded by both the federal and state governments and administered by individual
states.
Which of the following BEST describes a short-term medical expense policy? -
correct answer Nonrenewable.
A typical short-term medical expense policy is best described as nonrenewable.
Which of the following statements about noncontributory employee group life
insurance is FALSE? - correct answer A minimum number of employees is
, Final Exam - Florida Life and Health
required to participate". Noncontributory employee group life insurance plans
must cover ALL eligible employees at all times
A Disability Income policyowner recently submitted a claim for a chronic neck
problem that has now resulted in total disability. The original neck injury occurred
before the application was taken 5 years prior. The neck injury was never
disclosed to the insurer at the time of application. How will the insurer handle this
claim? - correct answer Claim will be paid and coverage will remain in force.
After a policy has been in force for 2 (sometimes 3) years, it enters the
incontestable period, in which the insurer may not deny a claim based on
information not disclosed at the time of application.
S takes out a health insurance policy which contains a provision that states that
the agent does not have the authority to change the policy or waive any of its
provisions. Which health policy provision is this? - correct answer Entire Contract.
The Entire Contract provision states that the agent does NOT have the authority
to change the policy or waive any of its provisions.
What type of life insurance gives the greatest amount of coverage for a limited
period of time? - correct answer Term life.
Level Term or Level-Premium: Level term life insurance provides the insured with
coverage for a specified period of time; the term may be one, five, 10, 20 years or
longer. The premium is calculated based on the age and health of the insured.
Periodic health claim payments MUST be made at least - correct answer monthly.
Under an individual health policy, periodic claim payments must be made at least
monthly.
