HEALTH AND LIFE
INSURANCE EXAM 280
QUESTIONS AND ANSWERS
2025
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
,1. Which Accident and Health policy provision addresses preexisting conditions?
Time Limit on Certain Defenses
2. Which of the following individual health insurance policies will provide the
broadest protection?
Major Medical
3. Which of the following situations does NOT apply to the Florida Replacement
Rule?
An existing policyholder purchases an additional policy from the same
insurer
4. Agent J takes an application and initial premium from an applicant and sends the
application and premium check to the insurance company. The insurance
company returns the check back to J because the check is made out to J instead
of the insurance company. What action should J take?
Return to the customer, collect a new check made out to the insurance
company, and send the new check out to the insurance company
5. Under which of the following circumstances will the benefits under COBRA
continuation coverage end?
All group health plans are terminated by the employer
6. 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?
Guaranteed Renewable
7. An incomplete life insurance application submitted to an insurer will result in
which of these actions?
Application will be returned to the writing agent
8. The waiting period for a pre-existing condition under a Medicare Supplement
policy may NOT go beyond:
6 Months
9. Which of these statements is INCORRECT regarding the federal income tax
treatment of life insurance?
Entire cash surrender value is taxable
10. Which of these is considered a mandatory provision?
Payment of Claims
11. Which of the following actions will an insurance company most likely NOT take if
an applicant, who has diabetes, applies for a Disability Income policy?
Issue the policy with an altered Time of Payment of Claims provision
, 12. Which of the following phrases refers to the fees charged by a healthcare
professional?
Usual, customary, and reasonable expenses
13. D was actively serving in the Marines when he was killed in an automobile
accident while on leave. His $100,000 Whole life policy contains a War Exclusion
clause. How much will D's beneficiary receive?
The full face amount
14. N is covered under an individual Disability policy with a 30-day Elimination
period and a monthly benefit of $500. N is totally disabled for 3 ½ months. N's
total benefit received on this claim is:
$1,250
(No benefits are available during the elimination period.)
15. Who does an agent represent during the solicitation of insurance?
The insurance company
16. Which of the following costs would a Basic Hospital/Surgical policy likely cover?
Surgically removing a facial birthmark
17. The federal income tax treatment of employer-provided group Medical Expense
insurance can be accurately described as:
Employee's premiums paid by the employer are tax-deductible to the
employer as a business expenditure
18. What must the policyowner provide to the insurer for validation that a loss has
occurred?
Proof of loss
19. Association Plans that are designed to provide health benefits to their members
are regulated by the state because:
They are insured by an authorized insurer
20. Which of the following statements is CORRECT about the period in which a Term
Policy can be converted?
It varies according to contracts
21. When does a life insurance contract become effective if the initial premium is
not collected during the application process?
When the producer delivers the policy and collects the initial premium
22. A provision in a life insurance policy that pays the policyowner an amount that
does not surpass the guaranteed cash value is called the:
Policy Loan Provision
INSURANCE EXAM 280
QUESTIONS AND ANSWERS
2025
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
,1. Which Accident and Health policy provision addresses preexisting conditions?
Time Limit on Certain Defenses
2. Which of the following individual health insurance policies will provide the
broadest protection?
Major Medical
3. Which of the following situations does NOT apply to the Florida Replacement
Rule?
An existing policyholder purchases an additional policy from the same
insurer
4. Agent J takes an application and initial premium from an applicant and sends the
application and premium check to the insurance company. The insurance
company returns the check back to J because the check is made out to J instead
of the insurance company. What action should J take?
Return to the customer, collect a new check made out to the insurance
company, and send the new check out to the insurance company
5. Under which of the following circumstances will the benefits under COBRA
continuation coverage end?
All group health plans are terminated by the employer
6. 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?
Guaranteed Renewable
7. An incomplete life insurance application submitted to an insurer will result in
which of these actions?
Application will be returned to the writing agent
8. The waiting period for a pre-existing condition under a Medicare Supplement
policy may NOT go beyond:
6 Months
9. Which of these statements is INCORRECT regarding the federal income tax
treatment of life insurance?
Entire cash surrender value is taxable
10. Which of these is considered a mandatory provision?
Payment of Claims
11. Which of the following actions will an insurance company most likely NOT take if
an applicant, who has diabetes, applies for a Disability Income policy?
Issue the policy with an altered Time of Payment of Claims provision
, 12. Which of the following phrases refers to the fees charged by a healthcare
professional?
Usual, customary, and reasonable expenses
13. D was actively serving in the Marines when he was killed in an automobile
accident while on leave. His $100,000 Whole life policy contains a War Exclusion
clause. How much will D's beneficiary receive?
The full face amount
14. N is covered under an individual Disability policy with a 30-day Elimination
period and a monthly benefit of $500. N is totally disabled for 3 ½ months. N's
total benefit received on this claim is:
$1,250
(No benefits are available during the elimination period.)
15. Who does an agent represent during the solicitation of insurance?
The insurance company
16. Which of the following costs would a Basic Hospital/Surgical policy likely cover?
Surgically removing a facial birthmark
17. The federal income tax treatment of employer-provided group Medical Expense
insurance can be accurately described as:
Employee's premiums paid by the employer are tax-deductible to the
employer as a business expenditure
18. What must the policyowner provide to the insurer for validation that a loss has
occurred?
Proof of loss
19. Association Plans that are designed to provide health benefits to their members
are regulated by the state because:
They are insured by an authorized insurer
20. Which of the following statements is CORRECT about the period in which a Term
Policy can be converted?
It varies according to contracts
21. When does a life insurance contract become effective if the initial premium is
not collected during the application process?
When the producer delivers the policy and collects the initial premium
22. A provision in a life insurance policy that pays the policyowner an amount that
does not surpass the guaranteed cash value is called the:
Policy Loan Provision
