Florida Life & Health Insurance License Exam 2-15 Questions With Correct Answers

Accumulation units are converted into annuity units: - Answer at the time of annuity payout. A group life insurance plan in which the employer pays the entire premium is known as a ________________ plan. - Answer noncontributory If a disabled worker covered under Social Security disability benefits recovers and then is disabled again within five years, a new waiting period is required before benefits begin again. - Answer FALSE Robert had an accident and qualified for Social Security disability. Given the waiting period, when will Robert begin to receive benefits? - Answer After 5 months The Insuring Clause includes all of the following EXCEPT the - Answer beneficiary Mutualization occurs when a stock company turns to a __________ company. - Answer mutual To provide a safeguard for insureds, most major medical policies contain a ____________ feature that limits the insured's out-of-pocket expenses. - Answer stop-loss Tom is a newly appointed life, health and variable annuity agent with Acme Insurance Agency. He is writing his first insurance policy on his brother-in-law's life. Who does Tom legally represent in this transaction? - Answer Acme Insurance Agency An insurance clause is a distinct article in a formal document that establishes the rules in the contract that _____________________ must adhere to. - Answer both the insurer and the insured "ACC" refers to the type of disability that prevents someone from performing the job he was performing prior to the disability. - Answer FALSE Which statement is CORRECT about the Department of Financial Services' right to examine an agent's records? - Answer An examination can be conducted at any time to discover any unfair trade practices. Bill gives Jim a couple of tickets to a Florida Gators game to thank him for purchasing a policy. This is an example of: - Answer rebating ____________ term insurance provides a level amount of protection for a specified period, after which the policy expires. - Answer Level Business overhead expense (B.O.E.) insurance does not provide benefits to cover the business owner's salary. - Answer TRUE Level, decreasing, and increasing insurance are all basic forms of ____________ insurance. - Answer term Hospice services are covered under Medicare Part A. - Answer TRUE Under Florida law, group health insurers must offer mental and nervous disorder insurance to policyowners. - Answer TRUE Deductibles under a group major medical plan usually run from $250 to $500; whereas individual health plans usually run from: - Answer $1,000 plus. Every HMO subscriber must receive a benefits package that includes a copy of the HMO contract and certificate, and: - Answer a member's handbook. A life insurance policy will not be reinstated if it has been: - Answer surrendered for its cash value. Which of the following is NOT a type of permanent life insurance? - Answer Term Life In Florida, a ______________ must sign for and on behalf of a minor purchasing life insurance. - Answer parent or legal guardian When an agent spreads a false story that damages a competing agent's reputation, the offense is called: - Answer defamation __________ is when policy values of an insurance policy are used to purchase another policy with the same insurer for the sole purpose of earning additional premiums or commissions. - Answer Churning Once an organization has filed an application to conduct insurance business, the Office of Insurance Regulation will begin its review for issuing a(n): - Answer Certificate of Authority Florida law requires health insurance policies and HMO contracts to provide coverage for all medically necessary equipment, supplies and services used to treat diabetes when the patient's physician certifies that they are medically necessary. - Answer TRUE If an insurance company reimburses the insured for medical expenses, can the insured deduct that amount from their federal income tax? - Answer NO Which of the following is NOT a benefit to key person insurance? - Answer Wage control The "currently insured" classification under Social Security limits survivorship benefits. In order to be eligible for Social Security survivor benefits, a person must have earned _________________ period ending with the quarter in which the worker died. - Answer six credits during the 13-quarter A prospectus for an individual variable insurance contract: - Answer must accompany every sales presentation. Most group disability policies use the ___________ method to calculate the amount of the insured's earnings prior to the accident. - Answer percentage Group health plans that are issued on an experience-rated basis can make both premium reductions and premium increases retroactive for 12 months. - Answer FALSE Employees may be classified for group life insurance in all of the following categories EXCEPT which? - Answer Gender Lauren wants to purchase an annuity that will pay her a guaranteed income for the remainder of her life once she retires. Which type of annuity should she purchase? - Answer Straight Life Income Annuity According to Florida's Standard Valuation Law, the __________________ is mandatory. - Answer legal reserve Equity indexed annuities are a form of: - Answer fixed rate annuity. Of the following, who would most likely pay a lower premium amount? - Answer A preferred risk client The Statute of Limitations states that if a lawsuit is to be filed, it must be brought within ______ years after Proof of Loss is furnished to the insurance company. - Answer five Which type of life insurance is sold by home service insurers? - Answer Industrial life insurance Social Security provides welfare benefits to all citizens. - Answer FALSE In general, the standard life insurance Incontestable Clause means that a policy is incontestable after: - Answer two years. A medical expense policy states that it will pay a flat $200 a day for each day of hospitalization. The policy pays benefits on what basis? - Answer Indemnity Basic Medical Expense insurance limits coverage to specific types of medical care. - Answer TRUE A _____________ group involves combining several parties into a group for the purpose of obtaining insurance. - Answer fictitious The ____________________ Act mandated once and for all that insurance would be regulated by the states. - Answer McCarran-Ferguson The type of annuity that provides a guaranteed rate of return is called a variable annuity. - Answer FALSE Mathew purchased an annuity naming his wife, Cher, beneficiary. Upon Mathew's death, Cher will receive the proceeds: - Answer taxed as ordinary income above Mathew's cost basis. Policy reserves are the intangible amounts set aside by the _____________ out of the insurer's assets at the beginning of the policy period. - Answer insurer SIMPLE plans can be structured as an IRA or a 401(k). - Answer TRUE A complete examination of an HMO's affairs is conducted at least: - Answer once every five years.