FLORIDA 240 LICENSE EXAM AND PRACTICE
EXAM 2024-2025 WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
ANSWERS|FREQUENTLY TESTED QUESTIONS
AND SOLUTIONS |ALREADY GRADED A+|BRAND
NEW!!|LATEST UPDATE|GUARANTEED PASS
Which of these types of coverage is best described as a short term medical policy?
interim coverage
A Business Disability Buyout plan policy is designed:
to pay benefits to the Corporation or other shareholders
Group/voluntary long-term care policy premiums are typically deducted from the employee's income
and
are less costly as compared to individual long term care coverage
B has a $100,000 Accidental Death and Dismemberment policy that pays triple indemnity for common
carrier death. If B is killed from an accident on a commercial flight, what will the policy pay B's
beneficiary?
$300,000
A policyowner's rights are limited under which beneficiary designation?
irrevocable
The reason for a business having a Business Overhead Expense Disability Plan is to cover
fixed business expenses
Which statement is true regarding a minor beneficiary?
Normally, a guardian is required to be appointed in the Beneficiary clause of the contract
1|Page
,T is covered by two health insurance plans: a group plan through his employer and his spouse's plan as a
dependent. When T submits a claim, his employer's plan is considered what type of carrier under the
Model Group Coordination of Benefits provision?
Primary carrier
Which of the following BEST describes how a Preferred Provider Organization (PPO) is less restrictive
than a Health Maintenance Organization (HMO)?
More physicians to choose from
The health insurance program which is administered by each state and funded by both the federal and
state governments is called:
Medicaid
Under what system do a group of doctors and hospitals in a designated area contract with an insurer to
provide services at a prearranged cost to the insured?
PPO
The individual who provides general medical care for a patient as well as the referral for specialized care
is known as a
primary care physician
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?
Her group health plan
Which of the following does Social Security NOT provide benefits for?
dismemberment
Medicaid was designed to assist individuals who are
below a specific income limit
What is the maximum Social Security Disability benefit amount an insured can receive?
100% of the insured's Primary Insurance Amount
What is Medicare?
is a hospital and medical expense insurance program
Medicare is intended for all of the following groups EXCEPT
Those enrolled as a full-time student
Medicare Part A and Part B do NOT pay for
Dental work
2|Page
,Which of the following reimburses its insureds for covered medical expenses?
Commercial insurers
The situation in which a group of physicians are salaried employees and conduct business in an HMO
facility is called a(n):
closed panel
What does Medicare Parts A and B cover?
Part A covers hospitalization; Part B covers doctor's services
A medical care provider which typically delivers health services at its own local medical facility is known
as a
Health maintenance organization (HMOs)
Which of the following statements is true about most Blue Cross/Blue Shield organizations?
They are nonprofit organizations
Which of these is considered a true statement regarding Medicaid?
Funded by both state and federal governments
Which of the following types of organizations are prepaid group health plans, where members pay in
advance for the services of participating physicians and hospitals that have agreements?
HMO
Which of these statements is INCORRECT regarding a Preferred Provider Organization (PPO)?
PPO's are NOT a type of managed care systems
J is a subscriber to a plan which contracts with doctors and hospitals to provide medical benefits at a
preset price. What type of plan does J belong to?
health maintenance organization
Which of the following organizations would make reimbursement payments directly to the insured
individual for covered medical expenses?
Commercial insurer
The percentage of an individual's Primary Insurance Amount (PIA) determines the benefits paid in which
of the following programs?
Social Security Disability Income
Which type of provider is known for stressing preventative medical care?
Health Maintenance Organizations (HMO's)
Which of the following statements BEST defines usual, customary, and reasonable (UCR) charges?
3|Page
, The maximum amount considered eligible for reimbursement by an insurance company under a health
plan
Which of the following phrases refers to the fees charged by a healthcare professional?
Usual, customary, and reasonable expenses
Comprehensive Major Medical policies usually combine:
Major Medical with Basic Hospital/Surgical coverage
Which of these options can an individual use their medical flexible spending account to pay for?
prescription drugs
Which of the following BEST describes a Hospital Indemnity policy?
Coverage that pays a stated amount per day of a covered hospitalization
Which of the following is NOT a limited benefit plan?
Life insurance policies
An insured covered by a group Major Medical plan is hospitalized after sustaining injuries that resulted
from an automobile accident. Assuming the plan had a $1,000 deductible and an 80/20 Coinsurance
clause, how much will the INSURED be responsible to pay with $11,000 in covered medical expenses?
$3,000
Deductibles are used in health policies to lower:
overuse of medical services
All of the following statements about Major Medical benefits are true, EXCEPT:
Benefits have no maximum limit
Major Medical policies typically:
contain a deductible and coinsurance
In Major Medical Expense policies, what is the intent of a Stop Loss provision?
Limits an insured's out-of-pocket medical expenses
What type of policy would only provide coverage for specific types of illnesses (cancer, stroke, etc)?
Dread disease insurance
Basic Hospital and Surgical policy benefits are:
lower than the actual expenses incurred
Basic Medical Expense insurance:
has lower benefit limits than Major Medical insurance
4|Page
EXAM 2024-2025 WITH ACTUAL CORRECT
QUESTIONS AND VERIFIED DETAILED
ANSWERS|FREQUENTLY TESTED QUESTIONS
AND SOLUTIONS |ALREADY GRADED A+|BRAND
NEW!!|LATEST UPDATE|GUARANTEED PASS
Which of these types of coverage is best described as a short term medical policy?
interim coverage
A Business Disability Buyout plan policy is designed:
to pay benefits to the Corporation or other shareholders
Group/voluntary long-term care policy premiums are typically deducted from the employee's income
and
are less costly as compared to individual long term care coverage
B has a $100,000 Accidental Death and Dismemberment policy that pays triple indemnity for common
carrier death. If B is killed from an accident on a commercial flight, what will the policy pay B's
beneficiary?
$300,000
A policyowner's rights are limited under which beneficiary designation?
irrevocable
The reason for a business having a Business Overhead Expense Disability Plan is to cover
fixed business expenses
Which statement is true regarding a minor beneficiary?
Normally, a guardian is required to be appointed in the Beneficiary clause of the contract
1|Page
,T is covered by two health insurance plans: a group plan through his employer and his spouse's plan as a
dependent. When T submits a claim, his employer's plan is considered what type of carrier under the
Model Group Coordination of Benefits provision?
Primary carrier
Which of the following BEST describes how a Preferred Provider Organization (PPO) is less restrictive
than a Health Maintenance Organization (HMO)?
More physicians to choose from
The health insurance program which is administered by each state and funded by both the federal and
state governments is called:
Medicaid
Under what system do a group of doctors and hospitals in a designated area contract with an insurer to
provide services at a prearranged cost to the insured?
PPO
The individual who provides general medical care for a patient as well as the referral for specialized care
is known as a
primary care physician
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?
Her group health plan
Which of the following does Social Security NOT provide benefits for?
dismemberment
Medicaid was designed to assist individuals who are
below a specific income limit
What is the maximum Social Security Disability benefit amount an insured can receive?
100% of the insured's Primary Insurance Amount
What is Medicare?
is a hospital and medical expense insurance program
Medicare is intended for all of the following groups EXCEPT
Those enrolled as a full-time student
Medicare Part A and Part B do NOT pay for
Dental work
2|Page
,Which of the following reimburses its insureds for covered medical expenses?
Commercial insurers
The situation in which a group of physicians are salaried employees and conduct business in an HMO
facility is called a(n):
closed panel
What does Medicare Parts A and B cover?
Part A covers hospitalization; Part B covers doctor's services
A medical care provider which typically delivers health services at its own local medical facility is known
as a
Health maintenance organization (HMOs)
Which of the following statements is true about most Blue Cross/Blue Shield organizations?
They are nonprofit organizations
Which of these is considered a true statement regarding Medicaid?
Funded by both state and federal governments
Which of the following types of organizations are prepaid group health plans, where members pay in
advance for the services of participating physicians and hospitals that have agreements?
HMO
Which of these statements is INCORRECT regarding a Preferred Provider Organization (PPO)?
PPO's are NOT a type of managed care systems
J is a subscriber to a plan which contracts with doctors and hospitals to provide medical benefits at a
preset price. What type of plan does J belong to?
health maintenance organization
Which of the following organizations would make reimbursement payments directly to the insured
individual for covered medical expenses?
Commercial insurer
The percentage of an individual's Primary Insurance Amount (PIA) determines the benefits paid in which
of the following programs?
Social Security Disability Income
Which type of provider is known for stressing preventative medical care?
Health Maintenance Organizations (HMO's)
Which of the following statements BEST defines usual, customary, and reasonable (UCR) charges?
3|Page
, The maximum amount considered eligible for reimbursement by an insurance company under a health
plan
Which of the following phrases refers to the fees charged by a healthcare professional?
Usual, customary, and reasonable expenses
Comprehensive Major Medical policies usually combine:
Major Medical with Basic Hospital/Surgical coverage
Which of these options can an individual use their medical flexible spending account to pay for?
prescription drugs
Which of the following BEST describes a Hospital Indemnity policy?
Coverage that pays a stated amount per day of a covered hospitalization
Which of the following is NOT a limited benefit plan?
Life insurance policies
An insured covered by a group Major Medical plan is hospitalized after sustaining injuries that resulted
from an automobile accident. Assuming the plan had a $1,000 deductible and an 80/20 Coinsurance
clause, how much will the INSURED be responsible to pay with $11,000 in covered medical expenses?
$3,000
Deductibles are used in health policies to lower:
overuse of medical services
All of the following statements about Major Medical benefits are true, EXCEPT:
Benefits have no maximum limit
Major Medical policies typically:
contain a deductible and coinsurance
In Major Medical Expense policies, what is the intent of a Stop Loss provision?
Limits an insured's out-of-pocket medical expenses
What type of policy would only provide coverage for specific types of illnesses (cancer, stroke, etc)?
Dread disease insurance
Basic Hospital and Surgical policy benefits are:
lower than the actual expenses incurred
Basic Medical Expense insurance:
has lower benefit limits than Major Medical insurance
4|Page
