FLORIDA LICENSING EXAM QUESTIONS WITH
ACCURATE ANSWERS
The Florida Employee Health Care Access Act identifies a full-time
employee as one who works at least ___ hours per week.
1) 25
2) 15
3) 10
4) 5 Accurate Answer - 1) 25
The Act defines a small employer as one who employs 50 or fewer
employees and identifies a full-time employee as one who works at least 25
hours per week.
Medicare provides Hospice services for the:
1) ill and aged.
2) terminally ill.
3) chronically ill. Accurate Answer - 2) terminally ill.
Medicare Part A provides Hospice care for terminal illness (to the exclusion
of all other Medicare benefits, except for physician services).
Coordination of Benefits refers to insurance companies coordinating the
payment of health benefits when an insured is covered by two or more
policies as long as the reimbursement does not exceed _____ of the covered
expenses.
1) 100%
2) 90%
3) 80%
4) 70% Accurate Answer - 1) 100%
The benefits of these plans must be coordinated to eliminate duplicate
payments. The coordination establishes the primary and secondary payor.
Retirement plans that meet federal government approval and receive tax
benefits are known as __________ plans.
1) qualified
2) non-qualified
3) exempt
4) unqualified Accurate Answer - 1) qualified
Feedback:(Requirements are detailed in table format in Lesson 9.1.1)
,In regard to health insurance, the government bestows tax advantages to
provide incentive for an employer to:
1) hire more employees.
2) minimize turnovers.
3) offer health insurance to the employees.
4) generate more revenue by making employees contribute.
Accurate Answer - 3) offer health insurance to the employees.
Group premium payments made by an employer are tax deductible to the
employer and do not count as income to the employee.
A Salary Continuation Plan is set up between the employer and employees
and is funded by:
1) the government.
2) the employer.
3) the employee. Accurate Answer - 2) the employer.
A salary continuation plan allows corporate officers' discretion regarding
who can be promised benefits and how large the benefits can be.
To remain in compliance and maintain their licensure, all agents are
required to fulfill continuing education requirements of _______ every two
years in basic or higher-level courses approved by the Department.
1) 12 hours
2) 18 hours
3) 24 hours
4) 36 hours Accurate Answer - 3) 24 hours
The 24 hours of CE requirement includes 3 hours on the subject matter of
ethics.
When a stock life insurance company issues both participating and
nonparticipating policies, the company is doing business on a:
1) mixed plan.
2) commercial plan.
3) mutual plan.
4) stock company plan. Accurate Answer - 1) mixed plan.
A participating life insurance policy is one in which the insured receives
policy dividends. A nonparticipating policy does not share in the surplus
earnings of the insurance company
,The designated time period for an equity-indexed annuity is ________ years.
1) two
2) four
3) six
4) seven Accurate Answer - 4) seven
The designated time period for an equity indexed annuity is seven years.
An employer who is a member of an MET is issued a _________________
detailing the relationship between the trust and the employer and the
coverages the employer has chosen to offer its employees.
1) joinder agreement
2) certificate of insurance
3) certificate of compliance
4) certificate of completion Accurate Answer - 1) joinder agreement
Each employee in the company is issued an individual certificate of
insurance.
"ACC" refers to the type of disability that prevents someone from
performing the job he was performing prior to the disability.
1) TRUE
2) FALSE Accurate Answer - 2) FALSE
OCC - The inability to perform the same job or for which he/she is suited by
education, training and experience. ACC - The inability to perform any type
of work.
Pure risk involves only the chance of loss.
1) TRUE
2) FALSE Accurate Answer - 1) TRUE
Only pure risks are insurable because they involve only the chance of loss.
Insurable interest must exist at:
1) the time of death.
2) the time of delivery.
3) the time of application.
4) all times. Accurate Answer - 3) the time of application.
The policyowner must have a valid financial interest in the person or item
being insured at the time of contract purchase, not necessarily at the time
of claim.
, If a disabled worker covered under Social Security disability benefits
recovers and then is disabled again within five years, a new waiting period
is required before benefits begin again.
1) TRUE
2) FALSE Accurate Answer - 2) FALSE
No second five-month waiting period is required if the disabled worker
recovers and then is disabled again within five years.
In a guaranteed renewable health policy, the insurer can raise insurance
rates under which of the following conditions?
1) If the insured files a claim
2) If the insurer raises rates for the same class of insureds
3) If the insured acquires additional financial stability
4) If the insurer's financial stability becomes lessened Accurate
Answer - 2) If the insurer raises rates for the same class of insureds
The insurer cannot raise premium rates individually - any rise in rates
must pertain to an entire class of insureds.
Mutualization occurs when a stock company turns to a __________ company.
1) private
2) mutual
3) mixed
4) nonpar Accurate Answer - 2) mutual
Mutualization occurs when a stock company turns to a mutual company.
Demutualization occurs when a mutual company turns to a stock company.
Which of the following would most likely be considered a key person in a
business?
1) Any employee
2) The oldest employee
3) An officer of the company
4) An employee's spouse Accurate Answer - 3) An officer of the
company
Key person insurance is designed to help protect a business against
financial loss that may be caused by the death of a key, or economically
valuable, person.
ACCURATE ANSWERS
The Florida Employee Health Care Access Act identifies a full-time
employee as one who works at least ___ hours per week.
1) 25
2) 15
3) 10
4) 5 Accurate Answer - 1) 25
The Act defines a small employer as one who employs 50 or fewer
employees and identifies a full-time employee as one who works at least 25
hours per week.
Medicare provides Hospice services for the:
1) ill and aged.
2) terminally ill.
3) chronically ill. Accurate Answer - 2) terminally ill.
Medicare Part A provides Hospice care for terminal illness (to the exclusion
of all other Medicare benefits, except for physician services).
Coordination of Benefits refers to insurance companies coordinating the
payment of health benefits when an insured is covered by two or more
policies as long as the reimbursement does not exceed _____ of the covered
expenses.
1) 100%
2) 90%
3) 80%
4) 70% Accurate Answer - 1) 100%
The benefits of these plans must be coordinated to eliminate duplicate
payments. The coordination establishes the primary and secondary payor.
Retirement plans that meet federal government approval and receive tax
benefits are known as __________ plans.
1) qualified
2) non-qualified
3) exempt
4) unqualified Accurate Answer - 1) qualified
Feedback:(Requirements are detailed in table format in Lesson 9.1.1)
,In regard to health insurance, the government bestows tax advantages to
provide incentive for an employer to:
1) hire more employees.
2) minimize turnovers.
3) offer health insurance to the employees.
4) generate more revenue by making employees contribute.
Accurate Answer - 3) offer health insurance to the employees.
Group premium payments made by an employer are tax deductible to the
employer and do not count as income to the employee.
A Salary Continuation Plan is set up between the employer and employees
and is funded by:
1) the government.
2) the employer.
3) the employee. Accurate Answer - 2) the employer.
A salary continuation plan allows corporate officers' discretion regarding
who can be promised benefits and how large the benefits can be.
To remain in compliance and maintain their licensure, all agents are
required to fulfill continuing education requirements of _______ every two
years in basic or higher-level courses approved by the Department.
1) 12 hours
2) 18 hours
3) 24 hours
4) 36 hours Accurate Answer - 3) 24 hours
The 24 hours of CE requirement includes 3 hours on the subject matter of
ethics.
When a stock life insurance company issues both participating and
nonparticipating policies, the company is doing business on a:
1) mixed plan.
2) commercial plan.
3) mutual plan.
4) stock company plan. Accurate Answer - 1) mixed plan.
A participating life insurance policy is one in which the insured receives
policy dividends. A nonparticipating policy does not share in the surplus
earnings of the insurance company
,The designated time period for an equity-indexed annuity is ________ years.
1) two
2) four
3) six
4) seven Accurate Answer - 4) seven
The designated time period for an equity indexed annuity is seven years.
An employer who is a member of an MET is issued a _________________
detailing the relationship between the trust and the employer and the
coverages the employer has chosen to offer its employees.
1) joinder agreement
2) certificate of insurance
3) certificate of compliance
4) certificate of completion Accurate Answer - 1) joinder agreement
Each employee in the company is issued an individual certificate of
insurance.
"ACC" refers to the type of disability that prevents someone from
performing the job he was performing prior to the disability.
1) TRUE
2) FALSE Accurate Answer - 2) FALSE
OCC - The inability to perform the same job or for which he/she is suited by
education, training and experience. ACC - The inability to perform any type
of work.
Pure risk involves only the chance of loss.
1) TRUE
2) FALSE Accurate Answer - 1) TRUE
Only pure risks are insurable because they involve only the chance of loss.
Insurable interest must exist at:
1) the time of death.
2) the time of delivery.
3) the time of application.
4) all times. Accurate Answer - 3) the time of application.
The policyowner must have a valid financial interest in the person or item
being insured at the time of contract purchase, not necessarily at the time
of claim.
, If a disabled worker covered under Social Security disability benefits
recovers and then is disabled again within five years, a new waiting period
is required before benefits begin again.
1) TRUE
2) FALSE Accurate Answer - 2) FALSE
No second five-month waiting period is required if the disabled worker
recovers and then is disabled again within five years.
In a guaranteed renewable health policy, the insurer can raise insurance
rates under which of the following conditions?
1) If the insured files a claim
2) If the insurer raises rates for the same class of insureds
3) If the insured acquires additional financial stability
4) If the insurer's financial stability becomes lessened Accurate
Answer - 2) If the insurer raises rates for the same class of insureds
The insurer cannot raise premium rates individually - any rise in rates
must pertain to an entire class of insureds.
Mutualization occurs when a stock company turns to a __________ company.
1) private
2) mutual
3) mixed
4) nonpar Accurate Answer - 2) mutual
Mutualization occurs when a stock company turns to a mutual company.
Demutualization occurs when a mutual company turns to a stock company.
Which of the following would most likely be considered a key person in a
business?
1) Any employee
2) The oldest employee
3) An officer of the company
4) An employee's spouse Accurate Answer - 3) An officer of the
company
Key person insurance is designed to help protect a business against
financial loss that may be caused by the death of a key, or economically
valuable, person.
