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 answersMisrepresentation
Who owns a stock company? correct answersA stock insurance company is
owned by its stockholders.
In Florida, which of the following is considered an Unfair Trade
Practice? correct answersCoercion
Which of these options can an individual use their medical flexible spending
account to pay for? correct answersPrescription 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 answersThe 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 answersAn 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 answersAleatory.
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 answersMaking 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 answersA
contingent beneficiary will receive the policy proceeds if the primary
beneficiary dies before the insured's death.
Which of these terms accurately defines an underwriter's assessment of
information on a life insurance application? correct answersRisk
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 answersConditional 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 answersSmall 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 answersP.
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
answersMedicaid- 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 answersNonrenewable.
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 answersA minimum number of employees is
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 answersClaim 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
answersEntire 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 answersTerm 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
answersmonthly.
Under an individual health policy, periodic claim payments must be
made at least monthly.
Many small business owners worry how their business would survive
financially if the owner becomes disabled. The policy which BEST
addresses this concern is correct answersBusiness Overhead Expense.
A Business Overhead Expense policy's purpose is to cover certain overhead
expenses that continue when the businessowner is disabled.
J purchased a Disability Income Policy that ONLY J can terminate and on
which the rates will never increase above those illustrated in the policy.
Which of the following types of policies did J purchase? correct
answersNoncancelable.
A Disability Income Policy that only the policyowner can terminate and
on which the rates will never increase is a Noncancelable policy.
Under an Individual Disability policy in Florida, what is the minimum
schedule of time in which claims must be made to an insured? correct
answersMonthly.
Claims on an individual disability policies must be paid out at monthly
intervals, at minimum.
Which of the following statements BEST describes what the Legal Actions
provision of an Accident and Health policy requires? correct answersAn
insured must wait at least 60 days after Proof of Loss has been submitted
before a lawsuit can be filed.
The Legal Actions provision of an Accident & Health policy requires that
the insurer settle a claim within 60 days after receipt of Proof of Loss.
Which Unfair Trade Practice involves making a false statement on an
insurance application in order to receive money from an insurer?
correct answersMisrepresentation
Who owns a stock company? correct answersA stock insurance company is
owned by its stockholders.
In Florida, which of the following is considered an Unfair Trade
Practice? correct answersCoercion
Which of these options can an individual use their medical flexible spending
account to pay for? correct answersPrescription 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 answersThe 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 answersAn 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 answersAleatory.
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 answersMaking 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 answersA
contingent beneficiary will receive the policy proceeds if the primary
beneficiary dies before the insured's death.
Which of these terms accurately defines an underwriter's assessment of
information on a life insurance application? correct answersRisk
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 answersConditional 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 answersSmall 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 answersP.
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
answersMedicaid- 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 answersNonrenewable.
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 answersA minimum number of employees is
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 answersClaim 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
answersEntire 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 answersTerm 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
answersmonthly.
Under an individual health policy, periodic claim payments must be
made at least monthly.
Many small business owners worry how their business would survive
financially if the owner becomes disabled. The policy which BEST
addresses this concern is correct answersBusiness Overhead Expense.
A Business Overhead Expense policy's purpose is to cover certain overhead
expenses that continue when the businessowner is disabled.
J purchased a Disability Income Policy that ONLY J can terminate and on
which the rates will never increase above those illustrated in the policy.
Which of the following types of policies did J purchase? correct
answersNoncancelable.
A Disability Income Policy that only the policyowner can terminate and
on which the rates will never increase is a Noncancelable policy.
Under an Individual Disability policy in Florida, what is the minimum
schedule of time in which claims must be made to an insured? correct
answersMonthly.
Claims on an individual disability policies must be paid out at monthly
intervals, at minimum.
Which of the following statements BEST describes what the Legal Actions
provision of an Accident and Health policy requires? correct answersAn
insured must wait at least 60 days after Proof of Loss has been submitted
before a lawsuit can be filed.
The Legal Actions provision of an Accident & Health policy requires that
the insurer settle a claim within 60 days after receipt of Proof of Loss.
