Florida 2 – 40 Health License Exam Questions With Complete Solution

Florida 2 – 40 Health License Exam Questions
With Complete Solution

owners rights –ANS- if an individual health insurance policy provides a death benefit,
the policy owner will be able to designate a beneficiary and, unless the beneficiary
designation is irrevocable, to change the beneficiary. the power to change the
beneficiary is provided in the change of beneficiary provision. the policyowner also
has the right to make any other change without the consent of the beneficiaries.

Dependent children benefits - ANS- 1 1 1 1


the group coverage may be extended to cover the insureds dependents. eligible depe
1 1 1 1 1 1 1 1 1 1 1 1 1


ndents include the insureds children, spouse, dependent parents, and anyone else up
1 1 1 1 1 1 1 1 1 1 1


on which dependency can be proven.
1 1 1 1 1




Every policy providing coverage for a dependent child until a specified age will not te
1 1 1 1 1 1 1 1 1 1 1 1 1 1


rminate that coverage if the child is dependent upon the insured and is incapable of s
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1


elf support because of physical or mental handicaps. proof of the dependency is requi
1 1 1 1 1 1 1 1 1 1 1 1 1


red within 31 days of the child attaining the maximum age. upon request, proof of dep
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1


endency is required annually after a 2 year period following attainment of maximum
1 1 1 1 1 1 1 1 1 1 1 1 1


age

modes of premium payment - ANS- 1 1 1 1 1


higher frequency of payments = higher premium payments
11 1 1 1 1 1 1 1




nonduplication and coordination of benefits - ANS- 1 1 1 1 1 1


11the purpose of the coordination of benefits (COB) provision, found only in group heal
1 1 1 1 1 1 1 1 1 1 1 1 1


th plans, is to avoid duplication of benefit payments and overinsurance when an indiv
1 1 1 1 1 1 1 1 1 1 1 1 1


idual is covered under multiple group health insurance plans. the provision limits the
1 1 1 1 1 1 1 1 1 1 1 1


1total amount of claims paid from all insurers covering the patient to no more than th
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1


e total allowable medical expenses
1 1 1 1




primary plan - ANS- 1 1 1


the plan that is responsible for providing the full benefit amounts as it specifies.
1 1 1 1 1 1 1 1 1 1 1 1 1 1




secondary or excess plan - ANS- 1 1 1 1 1


once the primary plan has paid its full promised benefit, the insured submits the clai
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1


m to the secondary provider for any additional benefits payable (including deductibl
1 1 1 1 1 1 1 1 1 1 1


es and coinsurance). in no case will the total amount the insured receives exceed the c
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1


osts incurred or the total maximum benefits available under all plans.
1 1 1 1 1 1 1 1 1 1




loss - ANS- amount covered by primary plan = amount covered by secondary plan
1 1 1 1 1 1 1 1 1 1 1 1 1

, occupational coverage - 1 1


provides benefits for illness, injury or disability resulting from accidents that occur o
1 1 1 1 1 1 1 1 1 1 1 1 1


n or off the job
1 1 1 1




nonoccupational coverage - ANS- 1 1 1


only covers claims that result from accidents or sickness occurring off the job
11 1 1 1 1 1 1 1 1 1 1 1 1




personally owned health insurance - ANS- 1 1 1 1 1


premium payments on personally owned disability income policies are non deductib
11 1 1 1 1 1 1 1 1 1 1


le by the individual. however, desability income benefits are recieved income tax free
1 1 1 1 1 1 1 1 1 1 1 1


1by the individual. 1 1




in either medical expense insurance policies or long term care insurance policies, pre
1 1 1 1 1 1 1 1 1 1 1 1


miums paid by the individual policyholder are deductible as a medical expense to the
1 1 1 1 1 1 1 1 1 1 1 1 1 1


extent that when added to all other unreimbursed medical expenses, the total exceed
1 1 1 1 1 1 1 1 1 1 1 1


s 7.5% of the taxpayers adjusted gross income. however, there is a limit on the amoun
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1


t of premium that can be deducted depending on the age of the insured (taxpayer) at t
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1


he end of the year. the IRS sets annual limits for that amount, and any premium above
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1


1these limits will not be considered a medical expense, and therefore, cannot be tax de
1 1 1 1 1 1 1 1 1 1 1 1 1 1


ductible. the provision only applies if the insured itemizes these deductions on his/he
1 1 1 1 1 1 1 1 1 1 1 1


r tax return
1 1




Employer provided health insurance-premiums - ANS- 1 1 1 1 1


paid by the employer for disability income insurance for its employees are deductibl
1 1 1 1 1 1 1 1 1 1 1 1 1


e as a business expense and are not covered as taxable income to the employee.
1 1 1 1 1 1 1 1 1 1 1 1 1 1




Employer provided health insurance- benefits - ANS- 1 1 1 1 1 1


received by an employee that are attributable to employer contributions are fully tax
1 1 1 1 1 1 1 1 1 1 1 1 1


able to the employee as income 1 1 1 1 1




When the employer and employee share in premium contributions, the employees co
1 1 1 1 1 1 1 1 1 1 1


ntribution is not deductible; however, benefits received by the employee are attribui
1 1 1 1 1 1 1 1 1 1 1


ble to their portion of the contribution are not taxable as income. the taxation of inco
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1


me received by the employee would depend on the type of a group plan:
1 1 1 1 1 1 1 1 1 1 1 1 1


- ANS- noncontributory-
1 1 1


meaning the employer pays the entire cost, so the income benefits are included in the
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1


employees gross income and taxed as ordinary income
1 1 1 1 1 1 1 1




- fully contributory-
1 1 1


meaning that the employee pays the entire cost, so the income benefits are received i
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1


ncome tax free by the employee 1 1 1 1 1


- partially contributory - ANS-
1 1 1 1 1


meaning that the cost is paid partially by the employee and by the employer. in this c
11 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1


ase the portion paid by the employee is received income tax free and the portion paid
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1


by the employer is included in the employees gross income taxed as ordinary income
1 1 1 1 1 1 1 1 1 1 1 1 1