FLORIDA 240 LICENSE EXAM QUESTIONS
AND ANSWERS WITH ACCURATE
RATIONALES(PASSED).
A "reimbursement policy" pays what amount of covered
Long-Term Care expenses? - correct answer - Actual
covered expenses up to the daily maximum
A 66 year-old is covered under a group health plan while
employed with a business that has 40 employees. If she
injures herself while walking in the park, what coverage
would be considered primary? - correct answer - Her
group health plan
A Business Disability Buyout plan policy is designed: -
correct answer - to pay benefits to the Corporation or
other shareholders
A Business Overhead Expense policy would cover which
of the following if a business owner becomes disabled? -
correct answer - Utilities and office rent
A Business Overhead Expense policy: - correct answer -
covers business expenses such as rent and utilities
,A CEO's personal assistant suffered injuries at home and
as a result, was unable to work for four months. Which
type of policy will pay a monthly benefit to the personal
assistant? - correct answer - Disability income
A characteristic of Preferred Provider Organizations
(PPOs) would be: - correct answer - Discounted fees for
the patient
A comprehensive major medical health insurance policy
contains an Eligible Expenses provision which identifies
the types of health care services that are covered. All of
the following health care services are typically covered,
EXCEPT for: - correct answer - experimental and
investigative services
A disability elimination period is best described as a -
correct answer - time deductible
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? -
correct answer - Claim will be paid and coverage will
remain in force
,A Disability Income policyowner suffers a disability which
was due to the same cause as a previous disability. Both
disabilities occurred within a five-month period. The
insurer may cover the second disability without a new
elimination period under the: - correct answer -
Recurrent Disability provision
A group plan was recently terminated. In Florida, how
many days are covered individuals guaranteed coverage
after a group plan's termination? - correct answer - 31
days
A group-owned insurance company that is formed to
assume and spread the liability ricks of its members is
known as a: - correct answer - Risk retention group
A group-owned insurance company that is formed to
assume and spread the liability risks of its members is
known as a: - correct answer - risk retention group
A Health Reimbursement Arrangement MUST be
established: - correct answer - by the employer
A Hospital/Surgical Expense policy was purchased for a
family of four in March of 2013. The policy was issued
, with a $500 deductible and a limit of four deductibles per
calendar year. Two claims were paid in September 2013,
each incurring medical expenses in excess of the
deductible. Two additional claims were filed in 2014, each
in excess of the deductible amount as well. What would
be this family's out-of-pocket medical expenses for 2013?
- correct answer - $1,000
A life insurance arrangement which circumvents insurable
interest statutes is called: - correct answer - Investor-
Originated Life Insurance
A life insurance policy would be considered a wagering
contract WITHOUT: - correct answer - insurable interest
A major medical policy typically: - correct answer -
provides benefits for reasonable and necessary medical
expenses, subject to policy limits
A medical care provider which typically delivers health
services at its own local medical facility is known as a -
correct answer - Health maintenance organization
(HMOs)
A nonprofit incorporated society that does not have
capital stock and operates for the sole benefit of its
AND ANSWERS WITH ACCURATE
RATIONALES(PASSED).
A "reimbursement policy" pays what amount of covered
Long-Term Care expenses? - correct answer - Actual
covered expenses up to the daily maximum
A 66 year-old is covered under a group health plan while
employed with a business that has 40 employees. If she
injures herself while walking in the park, what coverage
would be considered primary? - correct answer - Her
group health plan
A Business Disability Buyout plan policy is designed: -
correct answer - to pay benefits to the Corporation or
other shareholders
A Business Overhead Expense policy would cover which
of the following if a business owner becomes disabled? -
correct answer - Utilities and office rent
A Business Overhead Expense policy: - correct answer -
covers business expenses such as rent and utilities
,A CEO's personal assistant suffered injuries at home and
as a result, was unable to work for four months. Which
type of policy will pay a monthly benefit to the personal
assistant? - correct answer - Disability income
A characteristic of Preferred Provider Organizations
(PPOs) would be: - correct answer - Discounted fees for
the patient
A comprehensive major medical health insurance policy
contains an Eligible Expenses provision which identifies
the types of health care services that are covered. All of
the following health care services are typically covered,
EXCEPT for: - correct answer - experimental and
investigative services
A disability elimination period is best described as a -
correct answer - time deductible
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? -
correct answer - Claim will be paid and coverage will
remain in force
,A Disability Income policyowner suffers a disability which
was due to the same cause as a previous disability. Both
disabilities occurred within a five-month period. The
insurer may cover the second disability without a new
elimination period under the: - correct answer -
Recurrent Disability provision
A group plan was recently terminated. In Florida, how
many days are covered individuals guaranteed coverage
after a group plan's termination? - correct answer - 31
days
A group-owned insurance company that is formed to
assume and spread the liability ricks of its members is
known as a: - correct answer - Risk retention group
A group-owned insurance company that is formed to
assume and spread the liability risks of its members is
known as a: - correct answer - risk retention group
A Health Reimbursement Arrangement MUST be
established: - correct answer - by the employer
A Hospital/Surgical Expense policy was purchased for a
family of four in March of 2013. The policy was issued
, with a $500 deductible and a limit of four deductibles per
calendar year. Two claims were paid in September 2013,
each incurring medical expenses in excess of the
deductible. Two additional claims were filed in 2014, each
in excess of the deductible amount as well. What would
be this family's out-of-pocket medical expenses for 2013?
- correct answer - $1,000
A life insurance arrangement which circumvents insurable
interest statutes is called: - correct answer - Investor-
Originated Life Insurance
A life insurance policy would be considered a wagering
contract WITHOUT: - correct answer - insurable interest
A major medical policy typically: - correct answer -
provides benefits for reasonable and necessary medical
expenses, subject to policy limits
A medical care provider which typically delivers health
services at its own local medical facility is known as a -
correct answer - Health maintenance organization
(HMOs)
A nonprofit incorporated society that does not have
capital stock and operates for the sole benefit of its
