FLORIDA 240 LICENSE TEST QUESTIONS
LATEST WITH ACCURATE SOLUTIONS.
According to the Time Payment of Claims provision, the insurer must pay
Disability Income benefits no less frequently than which of the following
options?
monthly
The provision that defines to whom the insurer will pay benefits to is
called
Payment of Claims
K failed to pay a renewal premium within the time granted by the insurer. K
then sends in a payment which the insurer subsequently accepts. Which
policy provision specifies that coverage may be restored in this situation?
Reinstatement
Periodic health claim payments MUST be made at least
monthly
M's insurance company denied a reinstatement application for her lapses
health insurance policy. The company did not notify M of this denial. How
many days from the reinstatement application date does the insurance
company have to notify M of the denial before the policy will be
automatically placed back in force?
45 days
The policy provision that entitles the insurer to establish conditions the
insured must meet while a claim is pending is
Time Limit on Certain Defenses
,What type of rider would be added to an Accident and Health policy if the
policyowner wants to ensure the policy will continue if he/she ever
becomes totally disabled?
Waiver of premium rider
If an insurance company issues a Disability Income policy that it cannot
cancel or for which it cannot increase premiums, the type of renewability
that best desribes this policy is called
noncancellable
Which of the following statements BEST describes what the Legal Actions
provision of an Accident and Health policy requires?
An insured must wait at least 60 days after Proof of Loss has been submitted
before a lawsuit can be filed
T owns an Accident & Health policy and notifies her insurance company
that she has chosen a less hazardous occupation. Under the Change of
Occupation provision, which of the following actions may her insurance
company take?
Increase her policy's coverage amount
An assignment of benefits of a Health Policy
transfers payments to someone other than the policyowner
When does a Probationary Period provision become effective in a health
insurance contract?
At the policy's inception
(The probationary period begins when a policy goes into effect. During this
period, no benefits will be paid under the policy.)
The sections of an insurance contract which limit coverage are called
,Exclusions
Which of the following provisions specified how long a policyowner's
health coverage will remain in effect if the policyowner does not pay the
premium when it is due?
Grace period
K has a health policy that must be renewed by the insurer and the
premiums can only be increased if applied to the entire class of insureds.
This type of policy is considered
Guaranteed renewable
Which of the following health insurance policy provisions specified the
health care services a policy will provide?
Insuring clause
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 the application.
How will the insurer handle this claim?
Claim will be paid and coverage will remain in force
Which type of renewability best describes a Disability Income policy that
covers an individual until the age of 65, but the insurer has the right to
change the premium rate?
Guaranteed renewable
Which of the following policy provisions prohibits an insurance company
from incorporating external documents into an insurance policy?
Entire Contract
, The Notice of Claims provision requires a policyowner to
notify an insurer of a claim within a specified time
Which health policy clause stipulates that an insurance company must
attach a copy of the application to the policy to ensure that it is part of the
contract?
Entire Contract
After an insured gives notice of loss, what must he/she do if the insurer
does not furnish forms?
File written proof of loss
What type of renewability quarantines premium rates and renewability?
Noncancelable
According to the Mandatory Uniform Policy Provisions, what is the
maximum amount of time after the premium due date during which the
policy remains in force even though the premium has not been paid?
31
P is self-employed and owns an Individual Disability Income policy. He
becomes totally disabled on June 1 and receives $2,000 a month for the
next 10 months. How much of this income is subject to federal income
tax?
$0
From what authority derives the requirement that an insurance
application contains a disclosure stating that an investigative consumer
report may be obtained on an applicant?
Fair Credit Reporting Act
LATEST WITH ACCURATE SOLUTIONS.
According to the Time Payment of Claims provision, the insurer must pay
Disability Income benefits no less frequently than which of the following
options?
monthly
The provision that defines to whom the insurer will pay benefits to is
called
Payment of Claims
K failed to pay a renewal premium within the time granted by the insurer. K
then sends in a payment which the insurer subsequently accepts. Which
policy provision specifies that coverage may be restored in this situation?
Reinstatement
Periodic health claim payments MUST be made at least
monthly
M's insurance company denied a reinstatement application for her lapses
health insurance policy. The company did not notify M of this denial. How
many days from the reinstatement application date does the insurance
company have to notify M of the denial before the policy will be
automatically placed back in force?
45 days
The policy provision that entitles the insurer to establish conditions the
insured must meet while a claim is pending is
Time Limit on Certain Defenses
,What type of rider would be added to an Accident and Health policy if the
policyowner wants to ensure the policy will continue if he/she ever
becomes totally disabled?
Waiver of premium rider
If an insurance company issues a Disability Income policy that it cannot
cancel or for which it cannot increase premiums, the type of renewability
that best desribes this policy is called
noncancellable
Which of the following statements BEST describes what the Legal Actions
provision of an Accident and Health policy requires?
An insured must wait at least 60 days after Proof of Loss has been submitted
before a lawsuit can be filed
T owns an Accident & Health policy and notifies her insurance company
that she has chosen a less hazardous occupation. Under the Change of
Occupation provision, which of the following actions may her insurance
company take?
Increase her policy's coverage amount
An assignment of benefits of a Health Policy
transfers payments to someone other than the policyowner
When does a Probationary Period provision become effective in a health
insurance contract?
At the policy's inception
(The probationary period begins when a policy goes into effect. During this
period, no benefits will be paid under the policy.)
The sections of an insurance contract which limit coverage are called
,Exclusions
Which of the following provisions specified how long a policyowner's
health coverage will remain in effect if the policyowner does not pay the
premium when it is due?
Grace period
K has a health policy that must be renewed by the insurer and the
premiums can only be increased if applied to the entire class of insureds.
This type of policy is considered
Guaranteed renewable
Which of the following health insurance policy provisions specified the
health care services a policy will provide?
Insuring clause
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 the application.
How will the insurer handle this claim?
Claim will be paid and coverage will remain in force
Which type of renewability best describes a Disability Income policy that
covers an individual until the age of 65, but the insurer has the right to
change the premium rate?
Guaranteed renewable
Which of the following policy provisions prohibits an insurance company
from incorporating external documents into an insurance policy?
Entire Contract
, The Notice of Claims provision requires a policyowner to
notify an insurer of a claim within a specified time
Which health policy clause stipulates that an insurance company must
attach a copy of the application to the policy to ensure that it is part of the
contract?
Entire Contract
After an insured gives notice of loss, what must he/she do if the insurer
does not furnish forms?
File written proof of loss
What type of renewability quarantines premium rates and renewability?
Noncancelable
According to the Mandatory Uniform Policy Provisions, what is the
maximum amount of time after the premium due date during which the
policy remains in force even though the premium has not been paid?
31
P is self-employed and owns an Individual Disability Income policy. He
becomes totally disabled on June 1 and receives $2,000 a month for the
next 10 months. How much of this income is subject to federal income
tax?
$0
From what authority derives the requirement that an insurance
application contains a disclosure stating that an investigative consumer
report may be obtained on an applicant?
Fair Credit Reporting Act
