Florida Health and Life Insurance State Exam Practice Part 1 Questions With Verified Answers

Which Accident and Health policy provision addresses preexisting conditions? - Answer Time Limit on Certain Defenses Which of the following individual health insurance policies will provide the broadest protection? - Answer Major Medical Which of the following situations does NOT apply to the Florida Replacement Rule? - Answer An existing policyholder purchases an additional policy from the same insurer Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take? - Answer Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company Under which of the following circumstances will the benefits under COBRA continuation coverage end? - Answer All group health plans are terminated by the employer 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 for the overall risk class? - Answer Garunteed Renewable An incomplete life insurance application submitted to an insurer will result in which of these actions? - Answer Application will be returned to the writting agent The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond - Answer 6 Months Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance? - Answer Entire cash surrender value is taxable Which of these is considered a mandatory provision? - Answer Payment of Claims Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a Disability Income policy? - Answer Issue the policy with an altered Time of Payment of Claims provision Which of the following phrases refers to the fees charged by a healthcare professional? - Answer Usual, customary, and reasonable expenses D was actively serving in the Marines when he was killed in an automobile accident while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How much will D's beneficiary's receive? - Answer The full face amount N is covered under an individual Disability policy with a 30-day Elimination period and a monthly benefit of $500. N is totally disabled for 3 1/2 months. N's total benefit received on this claim is: - Answer $1,250 No benefits are available during the elimination period. Who does an agent represent during the solicitation or insurance? - Answer The insurance company Which of the following costs would a Basic Hospital/Surgical policy likely cover? - Answer Sugically removing a facial birthmark The federal income tax treatment of employer-provided group Medical Expense insurance can be accurately described as: - Answer Employee's premiums paid by the employer is tax-deductible to the employer as a business expenditure Premiums paid by an employer for an employee's coverage are deductible by the employer as a buisness expense What must the policyowner provide to the insurer for validation that a loss has occurred? - Answer proof of loss Association Plans that are designed to provide health benefits to their members are regulated by the state because - Answer They are insured by and authorized insurer Which of the following statements is CORRECT about the period in which a Term Policy can be converted? - Answer It varies according to contracts When does a life insurance contract become effective if the initial premium is not collected during the application process? - Answer When producer delives policy and collects initial premium A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the: - Answer Policy Loan Provision Medicare Part A and Part B do no pay for: - Answer Dental Work When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take? - Answer Void the policy only if it is discovered during the Contestable period and proven to be material The insuring Clause - Answer States the scope and limits of the coverage An applicant's medical information recieved from the Medical Information Bureau (MIB) may be furnished to the: - Answer Applicant's physician K has an Accidental Death and Dismemberment (AD&D) insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? - Answer Daughter K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? - Answer Primary Beneficiary. Which of the following is NOT considered rebating - Answer Sharing commissions with an agent licensed in the same line of buisness Which of the following employer tasks does a Professional Employer Organization normally handle? - Answer Administration tasks What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time? - Answer Decreasing Term Which action could result in a hearing being ordered by the Department of Financial Services? - Answer Performing insurance transactions without a license What kind of special need would a policyowner require with an Adjustable Life insurance policy? - Answer Flexible Premiums The premiums paid by an employer for his employee's group life insurance are usually considered to be: - Answer Tax deductible to the employer Which of the following consists of an offer, acceptance, and consideration? - Answer Contract Which of the following statements is true about most Blue Cross/Blue Shield organizations? - Answer They are non-profit organizations Upon delivery of a rated life insurance policy, the Producer must obtain each of the following, EXCEPT: - Answer Signed HIPAA disclosure Which of the following characteristics is associated with a large group disability income policy? - Answer No medical underwritting When an insured changes to a more hazardous occupation, which disability policy provision allows an insurer to adjust policy benefits and rates? - Answer Change of Occupation Provision 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? - Answer Waiver of Premium Rider 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? - Answer Conditional Recipt A conditional recipt binds the insurer to coverage as the date of the application or medical exam, provided the proposed insured is determined to be an aceptable risk When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n): - Answer Exclusion A Stock insurance Company - Answer is owned exclusively by it's shareholders A stock insurance company is best defined as an incorperated company that has its capital divided into shares and is owned exclusively by its shareholders.