Health Insurance Florida 2-40 Practice Exam
Questions 1/ Q&A.
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
Which of the following definitions of disability would cover a permanent partial disability?
-Own occupation
-Any occupation
Page 1 of 16
,-Residual disability
-Presumptive disability - Answer: Residual disability
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-keeping 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
The Social Security program provides all of the following benefits EXCEPT:
-Retirement
-survivor
-disability
-workers compensation - Answer: workers compensation
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 policyowner - Answer: The waiting period a new hire must satisfy prior to becoming eligible
for group health coverage
Under a group health plan, an employer may offer additional benefits to classes of employees
on the basis of all of the following factors EXCEPT:
-length of employment
-gender
Page 2 of 16
, -salary grade
-job category - Answer: gender
An insured becomes disabled three years after his Disability Income policy is issued. The
disability is caused by a condition that existed prior to the policy issue date but was not
specifically excluded from coverage. In this situation, the insurer will most likely take which of
the following actions?
-Pay the full claim
-Pay the claim for a maximum of six months only
-Deny the claim on the basis of misrepresentation
-Deny the claim because it involves a pre-existing condition - Answer: Pay the full claim
On June 1, S purchased a Major Medical policy and paid the initial premium to Producer T. On
July 1, Producer T received the policy from the insurance company. The policy contained a Ten-
Day Free Look provision. On July 3, Producer T attempted to deliver the policy but found that S
was not at home. On July 5, Producer T was able to deliver the policy to S. On July 7, S decided
he did not want the policy. S had 10 days from which of the following dates to return the policy
to the company and obtain a full premium refund?
-July 1
-July 3
-July 5
-July 7 - Answer: July 5
Five years ago, at age forty-five, X stated that he was forty years old on a disability income
insurance application. X now submits a claim and the insurer discovers X's true age. The insurer
will most likely take which of the following actions?
-Deny the claim due to material misrepresentation on the application
-Pay the claim as filed because the policy becomes incontestable after two years
-Pay the claim and cancel the policy
Page 3 of 16
Questions 1/ Q&A.
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
Which of the following definitions of disability would cover a permanent partial disability?
-Own occupation
-Any occupation
Page 1 of 16
,-Residual disability
-Presumptive disability - Answer: Residual disability
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-keeping 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
The Social Security program provides all of the following benefits EXCEPT:
-Retirement
-survivor
-disability
-workers compensation - Answer: workers compensation
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 policyowner - Answer: The waiting period a new hire must satisfy prior to becoming eligible
for group health coverage
Under a group health plan, an employer may offer additional benefits to classes of employees
on the basis of all of the following factors EXCEPT:
-length of employment
-gender
Page 2 of 16
, -salary grade
-job category - Answer: gender
An insured becomes disabled three years after his Disability Income policy is issued. The
disability is caused by a condition that existed prior to the policy issue date but was not
specifically excluded from coverage. In this situation, the insurer will most likely take which of
the following actions?
-Pay the full claim
-Pay the claim for a maximum of six months only
-Deny the claim on the basis of misrepresentation
-Deny the claim because it involves a pre-existing condition - Answer: Pay the full claim
On June 1, S purchased a Major Medical policy and paid the initial premium to Producer T. On
July 1, Producer T received the policy from the insurance company. The policy contained a Ten-
Day Free Look provision. On July 3, Producer T attempted to deliver the policy but found that S
was not at home. On July 5, Producer T was able to deliver the policy to S. On July 7, S decided
he did not want the policy. S had 10 days from which of the following dates to return the policy
to the company and obtain a full premium refund?
-July 1
-July 3
-July 5
-July 7 - Answer: July 5
Five years ago, at age forty-five, X stated that he was forty years old on a disability income
insurance application. X now submits a claim and the insurer discovers X's true age. The insurer
will most likely take which of the following actions?
-Deny the claim due to material misrepresentation on the application
-Pay the claim as filed because the policy becomes incontestable after two years
-Pay the claim and cancel the policy
Page 3 of 16
