Final Exam - Florida Life and Health/ 150
Quizzes & Correct Ans.
Which of these terms accurately defines an underwriter's assessment of
information on a life insurance application? - Answer: Risk classification.
Underwriting, another term for risk selection, is the process of reviewing the
many characteristics that make up the risk profile of an applicant to determine if
the applicant is insurable and, if so, at standard or substandard rates.
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,
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,whichever is later. Assuming that T is an acceptable risk, what item is given to T? -
Answer: Conditional receipt.
A conditional receipt binds the insurer to coverage as of the date of the
application or medical exam, provided the proposed insured is determined to be
an acceptable risk.
What is required in the Florida Employee Health Care Access Act? - Answer: Small
group benefit plans are to be issued on a "guarantee-issue" basis
P and Q are married and have three children. P is the primary beneficiary on Q's
Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the
contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are
killed instantly. The Accidental Death benefits will be paid to - Answer: P.
In this situation, benefits will be paid to P because P survived the accident and is
the primary beneficiary.
The health insurance program which is administered by each state and funded by
both the federal and state governments is called - Answer: Medicaid- is funded by
both the federal and state governments and administered by individual states.
Which of the following BEST describes a short-term medical expense policy? -
Answer: Nonrenewable.
A typical short-term medical expense policy is best described as nonrenewable.
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,Which of the following statements about noncontributory employee group life
insurance is FALSE? - Answer: A minimum number of employees is required to
participate". Noncontributory employee group life insurance plans must cover ALL
eligible employees at all times
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 application. How will the insurer handle this claim? -
Answer: Claim will be paid and coverage will remain in force.
After a policy has been in force for 2 (sometimes 3) years, it enters the
incontestable period, in which the insurer may not deny a claim based on
information not disclosed at the time of application.
S takes out a health insurance policy which contains a provision that states that
the agent does not have the authority to change the policy or waive any of its
provisions. Which health policy provision is this? - Answer: Entire Contract.
The Entire Contract provision states that the agent does NOT have the authority
to change the policy or waive any of its provisions.
What type of life insurance gives the greatest amount of coverage for a limited
period of time? - Answer: Term life.
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, Level Term or Level-Premium: Level term life insurance provides the insured with
coverage for a specified period of time; the term may be one, five, 10, 20 years or
longer. The premium is calculated based on the age and health of the insured.
Periodic health claim payments MUST be made at least - Answer: monthly.
Under an individual health policy, periodic claim payments must be made at least
monthly.
Many small business owners worry how their business would survive financially if
the owner becomes disabled. The policy which BEST addresses this concern is -
Answer: Business Overhead Expense.
A Business Overhead Expense policy's purpose is to cover certain overhead
expenses that continue when the businessowner is disabled.
J purchased a Disability Income Policy that ONLY J can terminate and on which the
rates will never increase above those illustrated in the policy. Which of the
following types of policies did J purchase? - Answer: Noncancelable.
A Disability Income Policy that only the policyowner can terminate and on which
the rates will never increase is a Noncancelable policy.
Under an Individual Disability policy in Florida, what is the minimum schedule of
time in which claims must be made to an insured? - Answer: Monthly.
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Quizzes & Correct Ans.
Which of these terms accurately defines an underwriter's assessment of
information on a life insurance application? - Answer: Risk classification.
Underwriting, another term for risk selection, is the process of reviewing the
many characteristics that make up the risk profile of an applicant to determine if
the applicant is insurable and, if so, at standard or substandard rates.
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,
Page 1 of 36
,whichever is later. Assuming that T is an acceptable risk, what item is given to T? -
Answer: Conditional receipt.
A conditional receipt binds the insurer to coverage as of the date of the
application or medical exam, provided the proposed insured is determined to be
an acceptable risk.
What is required in the Florida Employee Health Care Access Act? - Answer: Small
group benefit plans are to be issued on a "guarantee-issue" basis
P and Q are married and have three children. P is the primary beneficiary on Q's
Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the
contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are
killed instantly. The Accidental Death benefits will be paid to - Answer: P.
In this situation, benefits will be paid to P because P survived the accident and is
the primary beneficiary.
The health insurance program which is administered by each state and funded by
both the federal and state governments is called - Answer: Medicaid- is funded by
both the federal and state governments and administered by individual states.
Which of the following BEST describes a short-term medical expense policy? -
Answer: Nonrenewable.
A typical short-term medical expense policy is best described as nonrenewable.
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,Which of the following statements about noncontributory employee group life
insurance is FALSE? - Answer: A minimum number of employees is required to
participate". Noncontributory employee group life insurance plans must cover ALL
eligible employees at all times
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 application. How will the insurer handle this claim? -
Answer: Claim will be paid and coverage will remain in force.
After a policy has been in force for 2 (sometimes 3) years, it enters the
incontestable period, in which the insurer may not deny a claim based on
information not disclosed at the time of application.
S takes out a health insurance policy which contains a provision that states that
the agent does not have the authority to change the policy or waive any of its
provisions. Which health policy provision is this? - Answer: Entire Contract.
The Entire Contract provision states that the agent does NOT have the authority
to change the policy or waive any of its provisions.
What type of life insurance gives the greatest amount of coverage for a limited
period of time? - Answer: Term life.
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, Level Term or Level-Premium: Level term life insurance provides the insured with
coverage for a specified period of time; the term may be one, five, 10, 20 years or
longer. The premium is calculated based on the age and health of the insured.
Periodic health claim payments MUST be made at least - Answer: monthly.
Under an individual health policy, periodic claim payments must be made at least
monthly.
Many small business owners worry how their business would survive financially if
the owner becomes disabled. The policy which BEST addresses this concern is -
Answer: Business Overhead Expense.
A Business Overhead Expense policy's purpose is to cover certain overhead
expenses that continue when the businessowner is disabled.
J purchased a Disability Income Policy that ONLY J can terminate and on which the
rates will never increase above those illustrated in the policy. Which of the
following types of policies did J purchase? - Answer: Noncancelable.
A Disability Income Policy that only the policyowner can terminate and on which
the rates will never increase is a Noncancelable policy.
Under an Individual Disability policy in Florida, what is the minimum schedule of
time in which claims must be made to an insured? - Answer: Monthly.
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