Florida Health and Life Insurance 2-15
Final Exam
A characteristic of Preferred Provider Organizations (PPOs) would be:
ANSWER
Discounted fees for the patient (PPO - a group of doctors and hospitals in a designated
area contract with an insurer to provide services at a prearranged cost to the insured)
A disability elimination period is best described as a:
ANSWER
time deductible
A Health Reimbursement Arrangement MUST be established:
ANSWER - by the employer
A life policy loan in Florida cannot charge a fixed rate of interest higher than
ANSWER - 10%
A life policy with a death benefit that can fluctuate according to the performance of its
underlying investment portfolio is referred to as:
ANSWER - Variable Life
,A Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits?
ANSWER - Insurance
A person insured under a health policy is required to give the insurance company a
Notice of Claim within how many days after a covered loss?
ANSWER - 20
A physician opens up a new practice and qualifies for a $7,000/month Disability Income
policy. What rider would the physician add if he wants the ability to increase his policy
benefit as his practice and income grow?
ANSWER - Guaranteed Insurability Option rider
A policy loan is made possible by which of these life insurance policy features? -
ANSWER - Cash value provision
A policy that becomes a Modified Endowment Contract (MEC): -
ANSWER - will lose many of its tax advantages
A policyowner's rights are limited under which beneficiary designation? -
ANSWER - Irrecovable
,A student pilot can pay regular premium costs for her life insurance policy with the
addition of which of the following? -
ANSWER - Aviation exclusion
A variable insurance policy: -
ANSWER - does not guarantee a return on investment accounts
A young, married teacher has two children and owns a Whole Life policy. If the teacher
wants an Increasing Death Benefit to protect against inflation, the teacher should select
which of the following Dividend Options? –
ANSWER - Paid-Up Additional Insurance
ABC Insurance Company has accepted a life insurance application which contains
unanswered questions. The company then makes the application part of the life
contract. In this situation, the insurer has -
ANSWER - waived one of its legal rights
Accidental Death coverage is provided to commercial airline passengers in which of the
following types of policies? -
ANSWER - Blanket Accident policy
According to Florida law, a Group Life insurance policy requires a minimum of how
many insureds? -
, ANSWER - No minimum
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
According to Florida's rules on disclosure, a life insurance applicant is expected to be
provided with -
ANSWER - a Buyer's Guide and Policy Summary
According to Mandatory Uniform Policy Provisions, what is the maximum amount of
time after the premium due date during which the policy remains in force even though
the premium has not been paid? -
ANSWER - 31 days
According to the Time Limit of Certain Defenses provision in an Individual Health
Insurance Policy, nonfraudulent misstatements first become incontestable: -
ANSWER - two years from the date of the policy was issued
After an insured gives notice of loss, what must he/she do if the insurer does not furnish
forms? -
ANSWER - File written proof of loss
Final Exam
A characteristic of Preferred Provider Organizations (PPOs) would be:
ANSWER
Discounted fees for the patient (PPO - a group of doctors and hospitals in a designated
area contract with an insurer to provide services at a prearranged cost to the insured)
A disability elimination period is best described as a:
ANSWER
time deductible
A Health Reimbursement Arrangement MUST be established:
ANSWER - by the employer
A life policy loan in Florida cannot charge a fixed rate of interest higher than
ANSWER - 10%
A life policy with a death benefit that can fluctuate according to the performance of its
underlying investment portfolio is referred to as:
ANSWER - Variable Life
,A Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits?
ANSWER - Insurance
A person insured under a health policy is required to give the insurance company a
Notice of Claim within how many days after a covered loss?
ANSWER - 20
A physician opens up a new practice and qualifies for a $7,000/month Disability Income
policy. What rider would the physician add if he wants the ability to increase his policy
benefit as his practice and income grow?
ANSWER - Guaranteed Insurability Option rider
A policy loan is made possible by which of these life insurance policy features? -
ANSWER - Cash value provision
A policy that becomes a Modified Endowment Contract (MEC): -
ANSWER - will lose many of its tax advantages
A policyowner's rights are limited under which beneficiary designation? -
ANSWER - Irrecovable
,A student pilot can pay regular premium costs for her life insurance policy with the
addition of which of the following? -
ANSWER - Aviation exclusion
A variable insurance policy: -
ANSWER - does not guarantee a return on investment accounts
A young, married teacher has two children and owns a Whole Life policy. If the teacher
wants an Increasing Death Benefit to protect against inflation, the teacher should select
which of the following Dividend Options? –
ANSWER - Paid-Up Additional Insurance
ABC Insurance Company has accepted a life insurance application which contains
unanswered questions. The company then makes the application part of the life
contract. In this situation, the insurer has -
ANSWER - waived one of its legal rights
Accidental Death coverage is provided to commercial airline passengers in which of the
following types of policies? -
ANSWER - Blanket Accident policy
According to Florida law, a Group Life insurance policy requires a minimum of how
many insureds? -
, ANSWER - No minimum
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
According to Florida's rules on disclosure, a life insurance applicant is expected to be
provided with -
ANSWER - a Buyer's Guide and Policy Summary
According to Mandatory Uniform Policy Provisions, what is the maximum amount of
time after the premium due date during which the policy remains in force even though
the premium has not been paid? -
ANSWER - 31 days
According to the Time Limit of Certain Defenses provision in an Individual Health
Insurance Policy, nonfraudulent misstatements first become incontestable: -
ANSWER - two years from the date of the policy was issued
After an insured gives notice of loss, what must he/she do if the insurer does not furnish
forms? -
ANSWER - File written proof of loss
