SIMULATOR EXAM FLORIDA-LIFE & HEALTH | (SOURCE Xcel solutions – Pearson) | FL HEALTH & LIFE AND ANNUITY COMPLETE STUDY GUIDE A

A non-contributory plan requires participation of all eligible employees 100% A characteristic of preferred provider or- ganizations (PPOS) would be: Discounted fees for the patient Which of the following areas of state reg- ulation is NOT protected by the saving clause in ERISA? Commerce Additional coverage can be added to a whole Life policy by adding a(n): decreasing term rider What benefit does the payor clause on a Juvenile Life policy provide? Premiums are waived if the payor be- comes disabled According to Florida law, when must an agent deliver the outline of Coverage to a Medicare Supplement applicant? N is a student pilot with a large life in- surance policy. Which of these features would limit the insurer's obligation in the event N was killed while flying as a stu- dent pilot? At the time of application Exclusion Which statement is true regarding a mi- nor beneficiary ? A sole proprietor may use this plan ONLY if the employees of this business are in- cluded. Normally, a guarding is required to be appointed in the Beneficiary clause of the contract Which of the following provisions is NOT required in HMO contracts/certificated? Individual Retirement Account (IRA) The Bureau of Unclaimed Property is overseen by the Seven-day grace period A life policy that contains a monthly mor- tality charge as well as self-directed in- vestment choices is called a(n) Chief Financial Officer Variable Universal Life policy 1 / 42 SIMULATOR EXAM FLORIDA-LIFE & HEALTH | (SOURCE Xcel solutions – Pearson) | FL HEALTH & LIFE AND ANNUITY COMPLETE STUDY GUIDE An insurance company normally has 2 years to contest information provided on an accident and health application. This 2 year period begins on the date that the: insurer dated the policy P is a new employee and will be obtain- ing non- contributory group Major Med- ical insurance from her employer. Which of the following actions must she take during the open enrollment period? Sign an enrollment card Which of the following statements is true about most Blue Cross/Blue Shield orga- nizations? They are nonprofit organizations A "reimbursement policy" pays what amount of covered Long-Term care ex- penses? Actual covered expenses up to the daily maximum An individual covered under a group life insurance policy is considered to be a (n) certificate holder The has the right to change a life insurance policy's beneficiary. policyowner Which of the following documents must an agent submit to the replacing insur- ance company during the replacement of an existing life insurance policy? Notice to existing and replacing insurers of intention to replace Which of these statements concerning an individual Disability income policy is TRUE? Normally includes an Elimination period A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as a representation A foreign insurance company doing busi- ness in Florida is a company that was formed under the laws of another state 15 2 / 42 SIMULATOR EXAM FLORIDA-LIFE & HEALTH | (SOURCE Xcel solutions – Pearson) | FL HEALTH & LIFE AND ANNUITY COMPLETE STUDY GUIDE An insurer must provide an insured with claim forms within days after receiv- ing notice of a loss. When an insurer issues a policy that re- fuses to cover certain risks, this is re- ferred to as a(n) : exclusion What is the initial source of underwriting for an insurance policy? Application containing statements from the insured T, age 70, withdraws cash from a prof- it-sharing plan and purchases a Straight life Annuity. What will this transaction pro- vide? Income that cannot be outlived by the owner Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested". How can this be interpreted? If Tom's employment is terminated, 20% of the funds would be forfeited Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? Life Income K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this? Modified Whole Life An Insured's inability to perform two or more activities of daily living may trigger which type of life policy rider? Long term care Which of these is an element of a Vari- able Life policy? A fixed, level premium F needs life insurance that provides cov- erage for only a limited amount of time with a death benefit that changes regu- larly to a schedule. What kind of policy is needed? Decreasing term policy