Final ExaFinal Exam - Florida Life and Health Questions and answers

Final Exam - Florida Life and Health
Questions and answers.

Which Unfair Trade Practice involves making a false statement on an insurance application in order to re
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ceive money from an insurer? - (correct answer) - Misrepresentation
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Who owns a stock company? - (correct answer) -
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A stock insurance company is owned by its stockholders.
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In Florida, which of the following is considered an Unfair Trade Practice? - (correct answer) - Coercion
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Which of these options can an individual use their medical flexible spending account to pay for? -
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(correct answer) -
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Prescription drugs are an allowable expense when paid for by a medical flexible spending account.
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Which of the following features of a group Term Life policy enables an individual to leave the group and
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continue his or her insurance without providing evidence of insurability? - (correct answer) -
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The conversion privilege allows an individual to leave the group term plan and continue his or her insur
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ance without providing evidence of insurability.
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An example of false advertising would be - (correct answer) -
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An insurer exaggerating its dividends in a magazine advertisement
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Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies
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suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the foll
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owing insurance contract features? - (correct answer) - Aleatory.
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Insurance contracts are aleatory in that the amount the insured will pay in premiums is unequal to the a
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mount that the insurer will pay in the event of a loss.
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An example of an unfair trade practice is - (correct answer) -
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Making a material misrepresentation to an insured is considered to be an unfair trade practice.
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How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismember
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ment (AD&D) policy? - (correct answer) -
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A contingent beneficiary will receive the policy proceeds if the primary beneficiary dies before the insur
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ed's death. xs




Which of these terms accurately defines an underwriter's assessment of information on a life insurance
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application? - (correct answer) - Risk classification. xs xs xs xs xsxs xs xs

,Underwriting, another term for risk selection, is the process of reviewing the many characteristics that
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make up the risk profile of an applicant to determine if the applicant is insurable and, if so, at standard o
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r substandard rates.
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T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage
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as of the date of the application or medical examination, whichever is later. Assuming that T is an accept
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able risk, what item is given to T? - (correct answer) - Conditional receipt.
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A conditional receipt binds the insurer to coverage as of the date of the application or medical exam, pr
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ovided the proposed insured is determined to be an acceptable risk.
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What is required in the Florida Employee Health Care Access Act? - (correct answer) -
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Small group benefit plans are to be issued on a "guarantee-issue" basis
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P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Di
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smemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a
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car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to -
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(correct answer) - P.
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In this situation, benefits will be paid to P because P survived the accident and is the primary beneficiary
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.

The health insurance program which is administered by each state and funded by both the federal and s
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tate governments is called - (correct answer) - Medicaid-
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is funded by both the federal and state governments and administered by individual states.
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Which of the following BEST describes a short-term medical expense policy? - (correct answer) -
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Nonrenewable.
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xs 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? -
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(correct answer) -
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A minimum number of employees is required to participate". Noncontributory employee group life ins
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urance plans must cover ALL eligible employees at all times
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A Disability Income policyowner recently submitted a claim for a chronic neck problem that has now res
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ulted in total disability. The original neck injury occurred before the application was taken 5 years prior.
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The neck injury was never disclosed to the insurer at the time of application. How will the insurer handle
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this claim? - (correct answer) - Claim will be paid and coverage will remain in force.
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, After a policy has been in force for 2 (sometimes 3) years, it enters the incontestable period, in which th
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e insurer may not deny a claim based on information not disclosed at the time of application.
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S takes out a health insurance policy which contains a provision that states that the agent does not have
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the authority to change the policy or waive any of its provisions. Which health policy provision is this? -
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(correct answer) - Entire Contract.
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The Entire Contract provision states that the agent does NOT have the authority to change the policy or
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waive any of its provisions. xs xs xs xs




What type of life insurance gives the greatest amount of coverage for a limited period of time? -
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(correct answer) - Term life.
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Level Term or Level- xs xs xs




Premium: Level term life insurance provides the insured with coverage for a specified period of time; th
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e term may be one, five, 10, 20 years or longer. The premium is calculated based on the age and health
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of the insured.xs xs




Periodic health claim payments MUST be made at least - (correct answer) - monthly.
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Under an individual health policy, periodic claim payments must be made at least monthly.
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Many small business owners worry how their business would survive financially if the owner becomes di
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sabled. The policy which BEST addresses this concern is - (correct answer) - Business Overhead Expense.
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A Business Overhead Expense policy's purpose is to cover certain overhead expenses that continue whe
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n the businessowner is disabled.
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J purchased a Disability Income Policy that ONLY J can terminate and on which the rates will never incre
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ase above those illustrated in the policy. Which of the following types of policies did J purchase? -
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(correct answer) - Noncancelable.
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A Disability Income Policy that only the policyowner can terminate and on which the rates will never incr
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ease is a Noncancelable policy.
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Under an Individual Disability policy in Florida, what is the minimum schedule of time in which claims m
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ust be made to an insured? - (correct answer) - Monthly.
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