FLORIDA HEALTH AND LIFE INSURANCE STATE EXAM PRACTICE PART 1 TEST QUESTIONS AND ANSWERS NEWEST 2025

Which Accident and Health policy provision addresses preexisting conditions? - Correct Ans-Time Limit on Certain Defenses Which of the following individual health insurance policies will provide the broadest protection? - Correct Ans-Major Medical Which of the following situations does NOT apply to the Florida Replacement Rule? - Correct Ans-An existing policyholder purchases an additional policy from the same insurer 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? - Correct Ans-Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company Under which of the following circumstances will the benefits under COBRA continuation coverage end? - Correct Ans-All group health plans are terminated by the employer 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? - Correct Ans-Garunteed Renewable An incomplete life insurance application submitted to an insurer will result in which of these actions? - Correct Ans-Application will be returned to the writting agent The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond - Correct Ans-6 Months Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance? - Correct Ans-Entire cash surrender value is taxable Which of these is considered a mandatory provision? - Correct Ans-Payment of Claims FLORIDA HEALTH FLORIDA HEALTH 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? - Correct Ans-Issue the policy with an altered Time of Payment of Claims provision Which of the following phrases refers to the fees charged by a healthcare professional? - Correct Ans-Usual, customary, and reasonable expenses 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's receive? - Correct Ans-The full face amount 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 1/2 months. N's total benefit received on this claim is: - Correct Ans-$1,250 No benefits are available during the elimination period. Who does an agent represent during the solicitation or insurance? - Correct Ans-The insurance company Which of the following costs would a Basic Hospital/Surgical policy likely cover? - Correct Ans-Sugically removing a facial birthmark The federal income tax treatment of employer-provided group Medical Expense insurance can be accurately described as: - Correct Ans-Employee's premiums paid by the employer is tax-deductible to the employer as a business expenditure Premiums paid by an employer for an employee's coverage are deductible by the employer as a buisness expense What must the policyowner provide to the insurer for validation that a loss has occurred? - Correct Ans-proof of loss Association Plans that are designed to provide health benefits to their members are regulated by the state because - Correct Ans-They are insured by and authorized insurer Which of the following statements is CORRECT about the period in which a Term Policy can be converted? - Correct Ans-It varies according to contracts When does a life insurance contract become effective if the initial premium is not collected during the application process? - Correct Ans-When producer delives policy and collects initial premium FLORIDA HEALTH FLORIDA HEALTH A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the: - Correct Ans-Policy Loan Provision Medicare Part A and Part B do no pay for: - Correct Ans-Dental Work When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take? - Correct Ans-Void the policy only if it is discovered during the Contestable period and proven to be material The insuring Clause - Correct Ans-States the scope and limits of the coverage An applicant's medical information recieved from the Medical Information Bureau (MIB) may be furnished to the: - Correct Ans-Applicant's physician K has an Accidental Death and Dismemberment (AD&D) insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? - Correct Ans-Daughter K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? - Correct Ans-Primary Beneficiary. Which of the following is NOT considered rebating - Correct Ans-Sharing commissions with an agent licensed in the same line of buisness Which of the following employer tasks does a Professional Employer Organization normally handle? - Correct Ans-Administration tasks What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time? - Correct Ans-Decreasing Term Which action could result in a hearing being ordered by the Department of Financial Services? - Correct Ans-Performing insurance transactions without a license What kind of special need would a policyowner require with an Adjustable Life insurance policy? - Correct Ans-Flexible Premiums The premiums paid by an employer for his employee's group life insurance are usually considered to be: - Correct Ans-Tax deductible to the employer Which of the following consists of an offer, acceptance, and consideration? - Correct Ans-Contract FLORIDA HEALTH FLORIDA HEALTH Which of the following statements is true about most Blue Cross/Blue Shield organizations? - Correct Ans-They are non-profit organizations Upon delivery of a rated life insurance policy, the Producer must obtain each of the following, EXCEPT: - Correct Ans-Signed HIPAA disclosure Which of the following characteristics is associated with a large group disability income policy? - Correct Ans-No medical underwritting When an insured changes to a more hazardous occupation, which disability policy provision allows an insurer to adjust policy benefits and rates? - Correct Ans-Change of Occupation Provision What type of rider would be added to an Accident and Health policy if the policyowner wants to ensure the policy will continue if he/she ever becomes totally disabled? - Correct Ans-Waiver of Premium Rider