Health Insurance Florida 2-40 Practice Exam Questions 1 with complete solutions

Health Insurance Florida 2-40 Practice Exam Questions 1 with complete solutions Which of the following laws requires an insurer to notify an applicant in writing that an investigative consumer report may be made on the applicant? -Uniform Provisions Law. -Freedom of Information Act. -Medical Information Bureau Disclosure Act -Fair Credit Reporting Act (Insurance Information and Privacy Protection Act) - answer Fair Credit Reporting Act (Insurance Information and Privacy Protection Act) Group health insurance specifies that what percentage of eligible individuals MUST be offered coverage under a noncontributory plan? -25 -50 -75 -100 - answer 100 Under an Accidental Death and Dismemberment (AD&D) policy, insurable interest must exist at which of the following times? -When a change of beneficiary is requested -At the inception of the policy -When a beneficiary other than a relative is named -At the time a claim is submitted - answer At the inception of the policy When periodic claim payments are required under a long-term disability income policy, an insurer MUST make payments to an insured at least once every: CLASSROOM CLASSROOM CLASSROOM CLASSROOM CLASSROOM CLASSROOM -month -three months -six months -year - answer month M and N own a small interior design studio that employs six people. The owners are concerned about the financial continuation of the business if either of them should become permanently disabled. In this situation, a producer would MOST likely recommend which of the following types of contracts? -Basic Hospital -Disability Buy-Out -Comprehensive Major Medical -Short-Term Disability Income - answer Disability Buy-Out Which of the following health policies requires a beneficiary designation? -Travel Accident -Medicare Supplement -Blanket -Long Term Care - answer Travel Accident Suicide, pre-existing conditions and self-inflicted injuries are dealt with in which of the following policy features? -Extensions of coverage -Benefits clause -Riders -Exclusions - answer Exclusions CLASSROOM CLASSROOM CLASSROOM CLASSROOM CLASSROOM CLASSROOM An insured whose Disability Income policy contains a Change of Occupation clause takes a new job in a more hazardous occupation and fails to notify the insurer of the change. One year later, the insured becomes disabled. The insurer will most likely take which of the following actions? -Cancel the policy and refund one year's premiums -Settle the claim according to what the premiums would have purchased under the more hazardous occupation -Pay the claim in full and then cancel the policy -Pay the claim after deducting an extra one-year premium payment - answer Settle the claim according to what the premiums would have purchased under the more hazardous occupation Which of the following definitions of disability would cover a permanent partial disability? -Own occupation -Any occupation -Residual disability -Presumptive disability - answer Residual disability When delivering a policy to a client, a producer should take all of the following actions EXCEPT: -Collect any premiums due -fully explain all exclusions and/or riders -keep the policy in the producer's office for safe-keeping on behalf of the client -review all benefits provided by the policy - answer keep the policy in the producer's office for safe-keeping on behalf of the client The Social Security program provides all of the following benefits EXCEPT: -Retirement -survivor -disability -workers compensation - answer workers compensation CLASSROOM CLASSROOM CLASSROOM CLASSROOM CLASSROOM CLASSROOM Which of the following definitions MOST accurately describes the Probationary Period? -The period of time from the date of the loss until the benefits begin -The period of time from the date of the loss until benefits are actually received by the policyowner -The waiting period a new hire must satisfy prior to becoming eligible for group health coverage -The period of time once a claim is received by the insurance company before it pays benefits to the policyowner - answer The waiting period a new hire must satisfy prior to becoming eligible for group health coverage Under a group health plan, an employer may offer additional benefits to classes of employees on the basis of all of the following factors EXCEPT: -length of employment -gender -salary grade -job category - answer gender An insured becomes disabled three years after his Disability Income policy is issued. The disability is caused by a condition that existed prior to the policy issue date but was not specifically excluded from coverage. In this situation, the insurer will most likely take which of the following actions? -Pay the full claim -Pay the claim for a maximum of six months only -Deny the claim on the basis of misrepresentation -Deny the claim because it involves a pre-existing condition - answer Pay the full claim