K is insured under a Group Life insurance policy. K is considered to be a(n) -
ANSWER certificate holder
Typically a life insurance death benefit is paid by a lump-sum payment. A(n)
________ option is a method of distributing a Life Insurance policy's death benefit
OTHER than by a lump sum payment. - ANSWER settlement
N is a student pilot with a large life insurance policy. Which of these features would
limit the insurer's obligation in the event N was killed while flying as a student pilot? -
ANSWER Exclusion
The Coordination of Benefits provision: - ANSWER prevents an insured covered by
two health plans from making a profit on a covered loss
All of the following statements regarding a Tax Sheltered Annuity (TSA) are true
EXCEPT - ANSWER Income derived from the TSA is received income tax-free
A prospective insured completes and signs an application for health insurance but
intentionally conceals information about a pre-existing heart condition. The company
issues the policy. Two months later, the insured suffers a heart attack and submits a
claim. While processing the claim, the company discovers the pre-existing condition.
In this situation, the company will: - ANSWER Continue coverage, but exclude the
heart condition
According to Florida's rules on disclosure, a life insurance applicant is expected to be
provided with - ANSWER a Buyer's Guide and a Policy Summary
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 which of the
following? - ANSWER Residual disability
According to Florida law, group life insurance conversion privileges must NOT -
ANSWER require evidence of insurability
A long-term care lapse notice must be delivered to both the applicant and -
ANSWER secondary addressee
Medicare Part B does NOT cover: - ANSWER inpatient hospital services
C was injured while deep sea diving and requires a hospital stay. C has a Major
Medical policy with a 80/20 coinsurance clause and a $400 deductible. What is the
MAXIMUM C will pay if the covered medical expenses are $2000? - ANSWER $720
($400 deductible + 20% of the remaining bill which would be $1600)
Credit life insurance is typically issued with which of the following types of coverage?
- ANSWER Decreasing Term
An agent may provide a prospective client with an advertising gift as long as the
value of that gift does not exceed ______. - ANSWER $100
,S has a Whole Life policy with a premium payment due soon. Which provision would
keep the policy in force if S does not make the required payment and the policy has
adequate cash value from which the premium payment can be made? - ANSWER
Automatic Policy Loan
What would be an accurate definition of "controlled business"? - ANSWER
Insurance business that is written on the agent's own life, property, or interests
J has a Disability Income policy that does NOT provide benefits for losses occurring
as the result of his employment. What kind of coverage is this? - ANSWER
Nonoccupational coverage
The Bureau of Unclaimed Property is overseen by the - ANSWER Chief Financial
Officer
Which of the following phrases refers to the fees charged by a healthcare
professional? - ANSWER Usual, customary, and reasonable expenses
T has a Disability Income policy that pays a monthly benefit of $5000. If T becomes
partially disabled, what can he likely expect? - ANSWER Less than $5,000 per
month benefit regardless of the cause
Insurers/agents must, in Florida, offer and issue all small employer health plans on a
________ basis: - ANSWER guaranteed-issue
An incomplete life insurance application submitted to an insurer will result in which of
these actions? - ANSWER Application will be returned to the writing agent
What do Dread Disease policies cover? - ANSWER A specific disease or illness
Periodic health claim payments MUST be made at least: - ANSWER monthly
In what year was The Florida Office of Financial Regulation (OFR) created? -
ANSWER 2003
S is the policyowner of a Major Medical policy. The premiums are paid monthly and
due on the 1st of each month. S fails to make September's payment and is
hospitalized October 15th. When S files the claim for this hospitalization, the insurer
will likely - ANSWER deny the claim
A foreign insurance company doing business in Florida - ANSWER is a company
that was formed under the laws of another state
In Florida, monthly-premium health insurance policies must provide a grace period of
at least - ANSWER 10 days
Under a Graded Premium policy, the premiums - ANSWER are lower during the
policy's early years
, Which of the following is TRUE about a qualified retirement that is "top heavy"? -
ANSWER More than 60% of plan assets are in key employee accounts
How are Roth IRA distributions normally taxed? - ANSWER Distributions are
received tax-free
C is the policyowner of a Comprehensive individual Major Medical policy. C pays an
annual premium which is due September 1. If C forgets to pay the premium and is
hospitalized September 10, how will the insurer handle this claim? - ANSWER Pay
the claim in full minus the premium due
The cash value in a(n) __________ life policy may fluctuate to reflect changing
assumptions regarding mortality cost, interest, and expense factors - ANSWER
Universal
What is the required minimum percentage of employee participation for a
noncontributory group health insurance plan according to Florida Law? - ANSWER
0%
How are surrender charges deducted in a life policy with a rear-end loaded
provision? - ANSWER Deducted when the policy is discontinued
When is it acceptable to share commissions with another agent? - ANSWER as long
as both agents are licensed for the same lines of insurance
Taking receipt of premiums and holding them for the insurance company is an
example of - ANSWER Fiduciary responsibility
The type of annuity that must be purchased with one monetary deposit is called a(n):
- ANSWER Immediate annuity
Which type of policy would pay an employee's salary if the employer was injured in a
bicycle accident and out of work for six weeks? - ANSWER Business Overhead
Expense
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 Guaranteed Renewable
Which of these is NOT a legal entity for selling life insurance in Florida? - ANSWER
Risk management advisers
A policy of adhesion can only be modified by whom? - ANSWER The insurance
company
An example of rebating would be - ANSWER offering a client something of value not
stated in the contract in exchange for their business
ANSWER certificate holder
Typically a life insurance death benefit is paid by a lump-sum payment. A(n)
________ option is a method of distributing a Life Insurance policy's death benefit
OTHER than by a lump sum payment. - ANSWER settlement
N is a student pilot with a large life insurance policy. Which of these features would
limit the insurer's obligation in the event N was killed while flying as a student pilot? -
ANSWER Exclusion
The Coordination of Benefits provision: - ANSWER prevents an insured covered by
two health plans from making a profit on a covered loss
All of the following statements regarding a Tax Sheltered Annuity (TSA) are true
EXCEPT - ANSWER Income derived from the TSA is received income tax-free
A prospective insured completes and signs an application for health insurance but
intentionally conceals information about a pre-existing heart condition. The company
issues the policy. Two months later, the insured suffers a heart attack and submits a
claim. While processing the claim, the company discovers the pre-existing condition.
In this situation, the company will: - ANSWER Continue coverage, but exclude the
heart condition
According to Florida's rules on disclosure, a life insurance applicant is expected to be
provided with - ANSWER a Buyer's Guide and a Policy Summary
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 which of the
following? - ANSWER Residual disability
According to Florida law, group life insurance conversion privileges must NOT -
ANSWER require evidence of insurability
A long-term care lapse notice must be delivered to both the applicant and -
ANSWER secondary addressee
Medicare Part B does NOT cover: - ANSWER inpatient hospital services
C was injured while deep sea diving and requires a hospital stay. C has a Major
Medical policy with a 80/20 coinsurance clause and a $400 deductible. What is the
MAXIMUM C will pay if the covered medical expenses are $2000? - ANSWER $720
($400 deductible + 20% of the remaining bill which would be $1600)
Credit life insurance is typically issued with which of the following types of coverage?
- ANSWER Decreasing Term
An agent may provide a prospective client with an advertising gift as long as the
value of that gift does not exceed ______. - ANSWER $100
,S has a Whole Life policy with a premium payment due soon. Which provision would
keep the policy in force if S does not make the required payment and the policy has
adequate cash value from which the premium payment can be made? - ANSWER
Automatic Policy Loan
What would be an accurate definition of "controlled business"? - ANSWER
Insurance business that is written on the agent's own life, property, or interests
J has a Disability Income policy that does NOT provide benefits for losses occurring
as the result of his employment. What kind of coverage is this? - ANSWER
Nonoccupational coverage
The Bureau of Unclaimed Property is overseen by the - ANSWER Chief Financial
Officer
Which of the following phrases refers to the fees charged by a healthcare
professional? - ANSWER Usual, customary, and reasonable expenses
T has a Disability Income policy that pays a monthly benefit of $5000. If T becomes
partially disabled, what can he likely expect? - ANSWER Less than $5,000 per
month benefit regardless of the cause
Insurers/agents must, in Florida, offer and issue all small employer health plans on a
________ basis: - ANSWER guaranteed-issue
An incomplete life insurance application submitted to an insurer will result in which of
these actions? - ANSWER Application will be returned to the writing agent
What do Dread Disease policies cover? - ANSWER A specific disease or illness
Periodic health claim payments MUST be made at least: - ANSWER monthly
In what year was The Florida Office of Financial Regulation (OFR) created? -
ANSWER 2003
S is the policyowner of a Major Medical policy. The premiums are paid monthly and
due on the 1st of each month. S fails to make September's payment and is
hospitalized October 15th. When S files the claim for this hospitalization, the insurer
will likely - ANSWER deny the claim
A foreign insurance company doing business in Florida - ANSWER is a company
that was formed under the laws of another state
In Florida, monthly-premium health insurance policies must provide a grace period of
at least - ANSWER 10 days
Under a Graded Premium policy, the premiums - ANSWER are lower during the
policy's early years
, Which of the following is TRUE about a qualified retirement that is "top heavy"? -
ANSWER More than 60% of plan assets are in key employee accounts
How are Roth IRA distributions normally taxed? - ANSWER Distributions are
received tax-free
C is the policyowner of a Comprehensive individual Major Medical policy. C pays an
annual premium which is due September 1. If C forgets to pay the premium and is
hospitalized September 10, how will the insurer handle this claim? - ANSWER Pay
the claim in full minus the premium due
The cash value in a(n) __________ life policy may fluctuate to reflect changing
assumptions regarding mortality cost, interest, and expense factors - ANSWER
Universal
What is the required minimum percentage of employee participation for a
noncontributory group health insurance plan according to Florida Law? - ANSWER
0%
How are surrender charges deducted in a life policy with a rear-end loaded
provision? - ANSWER Deducted when the policy is discontinued
When is it acceptable to share commissions with another agent? - ANSWER as long
as both agents are licensed for the same lines of insurance
Taking receipt of premiums and holding them for the insurance company is an
example of - ANSWER Fiduciary responsibility
The type of annuity that must be purchased with one monetary deposit is called a(n):
- ANSWER Immediate annuity
Which type of policy would pay an employee's salary if the employer was injured in a
bicycle accident and out of work for six weeks? - ANSWER Business Overhead
Expense
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 Guaranteed Renewable
Which of these is NOT a legal entity for selling life insurance in Florida? - ANSWER
Risk management advisers
A policy of adhesion can only be modified by whom? - ANSWER The insurance
company
An example of rebating would be - ANSWER offering a client something of value not
stated in the contract in exchange for their business
