Florida Life and Health Insurance Practice Questions With Verified Answers

Within how many days must a licensee notify the Department of Financial Services of a change in address? - Answer 30 All of the following entries are classified under the four principal areas of Florida insurance law EXCEPT... - Answer An agent's commission Which of the following factors is NOT considered when the Department of Financial Services determines if an agent's home is an insurance agency? - Answer The amount of premium collected at this location Florida requires that an insurance agent must complete __ hours of continuing education on the subject of law and ethics every two years - Answer 5 Agents that have been licensed for less than six years must complete __ hours of continuing education every two years - Answer 24 A licensed agent must be appointed by an insurance company to solicit insurance in Florida. The agent's license will terminate if a certain period of time elapses without being appointed. How long is this period of time? - Answer 48 What is the maximum percentage of controlled business an agent may produce? - Answer 50% A group plan was recently terminated. In Florida how many days are covered individuals guaranteed coverage after a group plan's termination? - Answer 31 days The Financial Services Commision may hold hearings... - Answer For any reason deemed necessary In Florida, an insurer domiciled and incorporated in this state is called... - Answer Domestic company According to Florida law, which of the following statements accurately describes an admitted mail order insurance company? - Answer It may solicit insurance business by mail only without the assistance of a licensed Florida agent According to Florida law, an additional lapse notice must be issued after the standard grace period has expired for policyowners age... - Answer 64 years or older Which action could result in a hearing being ordered by the Department of Financial Services? - Answer Performing insurance transactions without a license Which of the following professional organizations has its code of ethics incorporated into Florida law? - Answer National Association of Insurance and Financial Advisors (NAIFA) Which entity approves the insurance policy forms used in Florida? - Answer Office of Insurance Regulation (OIR) In Florida, agents are allowed to engage in rebating if... - Answer Offered to all insured in the same actuarial class In Florida, when agents recommend changes be made for existing coverage, the agent must follow established procedures. The name of this rule is called the... - Answer Florida Replacement Rule In Florida, an element of an insurance transaction would be... - Answer Issuing an insurance contract The Bureau of Unclaimed Property is overseen by... - Answer The chief financial officer One of the stated purposes of the Life and Health Insurance Guaranty Association is... - Answer To assist in the prevention of insurer insolvencies The Life and health Insurance Guaranty Association is funded by... - Answer Assessments on member companies The purpose of the Guaranty Fund is to... - Answer Ensure that claims filed against involvement insurance companies will be paid The rules and regulations of the Life and health Insurance Guaranty Association apply to... - Answer Life and health policies issues by companies authorized in that particular state The fund that assures policyholder payment of benefits on Life and Health Policies, if the company is involved at the time of the claim, is called the... - Answer The Life and Health Insurance Guaranty Association A stock life insurance company that issues both participating and nonparticipating policies is doing business on... - Answer Mixed plan A stock insurance company is owned by - Answer Its stockholders Who is a mutual insurance company owned by? - Answer Its policyholders Which type of insurance company allows their policyowners to elect a governing body? - Answer Mutual What percentage of eligible persons must a policy cover in a noncontributory group? - Answer 100% Which of the following employer tasks does a Professional Employer Organization normally handle? - Answer Administration tasks The Coordination of Benefits (COB) provision exists in order to... - Answer Avoid duplication of benefit payments M completes an application for health insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT? - Answer Free look period has expired Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation? - Answer Policy was returned within the free-look period, premium will be fully refunded According to Florida law, which of the following info does NOT need to be obtained by an agent recommending an annuity purchase? - Answer Marital status K is an agent who made improper sales of an annuity to a client. Which of the following corrective actions would the Department of Financial Services likely order K to take? - Answer Pay a monetary restitution to the client Under Florida law, a variable annuity policyowner must be notified of the accumulated value of the contract... - Answer Once each year Which two entities regulate variable annuities? - Answer Department of Financial Services and Securities Exchange Commission If an agent would like to sell Variable annuities, which state examination must the agent pass? - Answer Life and Variable contracts According to Florida's rules on disclosure, a life insurance applicant is expected to be provided with... - Answer Buyer's Guide and Policy Summary In Florida, most life insurance policies have a contestability period of... - Answer 2 years Nonprofit life insurance providers that are covered by a special section in the Florida insurance code are called - Answer Fraternal life insurance organizations The 14-day free look period for life insurance policies begins at the... - Answer Day of delivery According to Florida law, group life insurance conversion privileges must NOT - Answer Require evidence of insurability Which of the following situations are NOT subject to Florida life insurance laws? - Answer Insurance companies' day-to-day operations What are adjustable rates for life policy loans in Florida based on? - Answer Moody's corporate bond index A life policy loan in Florida cannot charge a fixed rate of interest higher than... - Answer 10% The minimum age at which a person can sign a life insurance application is... - Answer 15 years 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 According to Florida's life insurance replacement laws, a policyowner must be provided with a written Comparison and Summary Statement when it's requested by.... - Answer the policyowner A variable life insurance agent must be licensed and appointed as a life and variable contract agent, as well as... - Answer a broker dealer Which of these is NOT a legal entity for selling life insurance in Florida? - Answer risk management advisors The Replacement of Life Insurance and Annuities regulation is designed to protect the interest of... - Answer the policyowner When an existing life insurance policy is being reissued with a reduction in cash value, the agent must sign the... - Answer Notice regarding the replacement of life insurance or annuity The life insurance and annuity replacement regulation defines replacement as - Answer Exchanging an existing policy for a new policy Replacement regulation applies to which of the following types of contracts? - Answer ordinary life Replacement is involved in all of the following situations EXCEPT when... - Answer A Term policy is converted to a permanent plan with the same insurance company Which policy is EXEMPT from replacement regulations? - Answer Group life policy Which of the following statements is CORRECT about the replacement of one insurance policy with another? - Answer It is strictly regulated and requires full disclosure by both the agent and the replacing insurance company Which of the following parties must provide an insured with proper disclosure concerning the replacement of an insurance company? - Answer The agent who sells the new insurance policy Which of the following statements is CORRECT if an insured converts his Life policy to Paid-Up Insurance and buys new insurance? - Answer The transaction is considered a replacement When replacing or exchanging an annuity, the agent must disclose to the annuitant... - Answer The possible tax ramifications as a result of the transaction A life insurance policyowner may sell their policy to a(n) ___ in order to receive a percentage of the policy's face value - Answer Viatical settlement provider A written agreement to provide a Life Insurance Policy holder immediate cash in exchange for the sale and transfer of a Life Insurance Policy is... - Answer Viatical settlement Group life policies MUST include all of the following provisions EXCEPT... - Answer Right to loan proceeds Which of the following employees may NOT be excluded from a group life plan? - Answer Full-time employees after a probationary period All of the following provisions are required in a group life policy EXCEPT... - Answer An accidental death and dismemberment provision Which of the following is a standard provision of the conversion privileges in a Group Life Policy? - Answer Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis An individual covered under a Group Life insurance policy is considered to be... - Answer A certificate holder The conversion period for a terminated employee to convert group life coverage to an individual plan is... - Answer 31 days T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert... - Answer To an individual policy upon employment termination J owns a business and has a Group Life policy covering her employees. J decides to cancel the policy by letting it lapse on the renewal date. What action must be taken? - Answer All of the employees must be notified of the cancellation either by the insurance company or through J Individual life insurance proceed are exempt from creditor's claims when they are payable to any of the following entities EXCEPT the insured's - Answer estate All of the following provisions must be included in life insurance policies EXCEPT... - Answer Extended term If, at the time of an insured's death, the insurance company discovers that the insured's age was misstated on the application for life insurance, the company will most likely... - Answer Pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age An insurance company can contest a life insurance contract due to application fraud within... - Answer 2 years Which of the following BEST describes Credit Life Insurance? - Answer Insurance issued on a debtor to cover outstanding balances on installment loans Which of the following areas of state regulation is NOT protected by the savings clause in ERISA? - Answer Commerce According to Florida law, in which of the following situations would a dependent handicapped child NOT be covered under a Family Health policy? - Answer The premiums for the handicapped child are not paid The Florida Employee health Care Access Act was established to make... - Answer Group health insurance available to employers with up to 50 employees What do families pay that are covered by the Florida Healthy kids Corporation? - Answer A portion of the premium What is required in the Florida Employee Health Cares Access Act? - Answer Small group benefit plans are to be issued on a "guaranteed-issue" basis In Florida, the underwriting and issuance of a master group health policy requires that all employees... - Answer Are eligible to participate, regardless of their individual health history Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy? - Answer Limitations on preexisting condition for up to 12 months Employers with less than __ employees are affected by Florida's health Insurance Coverage Continuation Act (Mini COBRA) - Answer 20 In Florida, which of the following practitioners normally do NOT receive payment from health insurance policies? - Answer Naturopaths Florida requires that coverage for newborns begins "from the moment of birth" and continues for... - Answer 18 months A long-term care lapse notice must be delivered to both the applicant and... - Answer Secondary addressee An agent MUST give a prospective insured in Outline of Coverage when taking an application for... - Answer Medicare Supplement Policy Individual Medicare Supplement policies must allow an insured a MINIMUM of how many days after policy delivery to return the policy and receive a refund of premium? - Answer 30 days Which of the following is NOT required in the Outline of Coverage for a health insurance policy? - Answer Projection of the policy's future costs Under a Long-Term Care policy, which of the following is considered an activity of daily living? - Answer Dressing A Long-Term Care policy must offer a MINIMUM benefit period of how many months? - Answer 12 The Free-Look provision of any health policy begins the date... - Answer The policy is delivered to the insured Disclosure standards require that which of the following be delivered with a Medicare Supplement policy? - Answer The outline of coverage The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond... - Answer 6 months An Outline of Coverage for Medicare Supplement policy MUST be given to the applicant at which of the following times? - Answer The time of application When is a Group Health policy required to provide coverage for a newborn child? - Answer At the moment of birth A Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits? - Answer Insurance All of the following statements about health coverage for newborns are correct EXCEPT... - Answer Coverage during the first year is limited to congenital defects Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent... - Answer Only if the child is incapable of employment and chiefly dependent on the policyowner All of the following statements about health coverage for physically handicapped dependents of insureds are correct EXCEPT that the dependent must... - Answer Have been covered under the insured's policy at the time the handicap was incurred Association Plans that are designed to provide health benefits to their members are regulated by the state because... - Answer They are insured by an authorized insurer An agent selling Medicare Supplement policies must provide every applicant with... - Answer A suitability form All of the following are Nonforfeiture Options EXCEPT - Answer Automatic premium loan option Which entity approves the insurance policy forms used in Florida? - Answer Office of insurance regulation Deductibles are used in health policies to lower - Answer Overuse of medical services 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 - Answer A representation Advertising gifts not to exceed___ area allowed to be given by an agents to a prospective client - Answer $25 What is considered a valid reason for small businesses to insures the lives of its major shareholders - Answer Fund a buy-sell agreement Group Life policies in Florida are required to contain a conversion privilege that allows for conversion - Answer To an individual policy for a stated period of time Which of these statements describe a Modified Endowment Contract (MEC)? - Answer Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract Which two entities regulate variable annuities? - Answer Department of financial services & Securities exchange commission Which of the following is NOT an unfair claim settlement practice? - Answer Needing written documentation for claim details S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation? - Answer single premium When a person returns to work after a period of total disability but cannot earn as much as he or she did before the disability, this situation is called - Answer Residual disability T has a term policy that allows him to continue the coverage after expiration of the initial policy period. What type of term coverage is this? - Answer renewable Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan? - Answer collateral assignment P died 5 years after purchasing a life policy. While investigating the claim, the insurer discovered material misrepresentations made by P during the application process. Which of these actions will the insurer take? - Answer Beneficiary will be paid the death benefit The Accelerated Death Benefit provision in a life insurance policy is also known as a - Answer living benefit According to the Mandatory Uniform Policy Provisions, what is the maximum amount of time after the premium due date during which the policy reminds in force even though the premium has not been paid? - Answer 31 days In Florida, monthly-premium health insurance policies must provide a grace period of at least - Answer 10 days How would a contingent beneficiary receive the policy proceeds in a AD&D policy? - Answer If the primary beneficiary dies before the insured