2-40 HEALTH AND ACCIDENT INSURANCE STATE EXAM PREP WITH
VERIFIED AND CONFIRMED QUESTIONS AND ANSWERS 2025
Multiple Employer Welfare Arrangement (MEWA) provides what type of
benefits? - CORRECT ANSWER -Insurance
XYZ Company pays the entire premium for its group health plan. The
MINIMUM percentage of eligible employees that must be covered is -
CORRECT ANSWER -100%
In Major Medical Expense policies, what is the intent of Stop Loss provision? -
CORRECT ANSWER -Limits an insured's out-of-pocket medical
expenses
Q is hospitalized for 3 days and receives a bill for $10,100. Q has a Major
Medical policy with a $100 deductible and 80/20 coinsurance. How much will
Q be responsible for paying on this claim? - CORRECT ANSWER -
$2,100
Omitting information that affects the issuance or the rate of an insurance
contract is called - CORRECT ANSWER -concealment
Page 1 of 16
,Florida requires that coverage for newborns begins "from the moment of
birth" and continues for - CORRECT ANSWER -18 months
In order to establish a Health Reimbursement Arrangement (HRA), it MUST -
CORRECT ANSWER -be established by the employer
Which provision allows a portion of any used medical benefits to be restored
following a particular amount of benefits has been used, or after the policy has
been in effect for a particular period of time? - CORRECT ANSWER -
Restoration of used benefit
Disability policies do NOT normally pay for disabilities arising from which of
the following? - CORRECT ANSWER -War
According to Florida law, when must an agent deliver the Outline of Coverage
to a Medicare Supplement applicant? - CORRECT ANSWER -At the
time of application
An agent selling Medicare Supplement policies must provide every applicant
with a(n) - CORRECT ANSWER -Suitability form
One definition of replacement is "the act of replacing an existing insurance
policy with another". Replacement is - CORRECT ANSWER -closely
regulated and requires full disclosure
Page 2 of 16
, Who makes the legally enforceable promises in a unilateral insurance policy? -
CORRECT ANSWER -insurance company
Which of the following acts is an agent NOT authorized to do on behalf of an
insurer? - CORRECT ANSWER -Authorize claim payments
Which of the following BEST describes a Hospital Indemnity policy? -
CORRECT ANSWER -Coverage that pays a stated amount PER DAY of a
covered hospitalization
What is required in the Florida Employee Health Care Access Act? -
CORRECT ANSWER -Small group benefit plan are to be issued on a
"guarantee-issue" basis
The waiting period for a pre-existing condition under a Medicare Supplement
policy may NOT go beyond - CORRECT ANSWER -6 months
J purchased a Disability Income Policy that ONLY J can terminate and on which
the rates will never increase above those illustrated in the policy. Which of the
following types of policies did J purchase? - CORRECT ANSWER -
Noncancelable
What is the elimination period of an individual disability policy? -
CORRECT ANSWER -Time period a disabled person must wait before
benefits are paid
Page 3 of 16
VERIFIED AND CONFIRMED QUESTIONS AND ANSWERS 2025
Multiple Employer Welfare Arrangement (MEWA) provides what type of
benefits? - CORRECT ANSWER -Insurance
XYZ Company pays the entire premium for its group health plan. The
MINIMUM percentage of eligible employees that must be covered is -
CORRECT ANSWER -100%
In Major Medical Expense policies, what is the intent of Stop Loss provision? -
CORRECT ANSWER -Limits an insured's out-of-pocket medical
expenses
Q is hospitalized for 3 days and receives a bill for $10,100. Q has a Major
Medical policy with a $100 deductible and 80/20 coinsurance. How much will
Q be responsible for paying on this claim? - CORRECT ANSWER -
$2,100
Omitting information that affects the issuance or the rate of an insurance
contract is called - CORRECT ANSWER -concealment
Page 1 of 16
,Florida requires that coverage for newborns begins "from the moment of
birth" and continues for - CORRECT ANSWER -18 months
In order to establish a Health Reimbursement Arrangement (HRA), it MUST -
CORRECT ANSWER -be established by the employer
Which provision allows a portion of any used medical benefits to be restored
following a particular amount of benefits has been used, or after the policy has
been in effect for a particular period of time? - CORRECT ANSWER -
Restoration of used benefit
Disability policies do NOT normally pay for disabilities arising from which of
the following? - CORRECT ANSWER -War
According to Florida law, when must an agent deliver the Outline of Coverage
to a Medicare Supplement applicant? - CORRECT ANSWER -At the
time of application
An agent selling Medicare Supplement policies must provide every applicant
with a(n) - CORRECT ANSWER -Suitability form
One definition of replacement is "the act of replacing an existing insurance
policy with another". Replacement is - CORRECT ANSWER -closely
regulated and requires full disclosure
Page 2 of 16
, Who makes the legally enforceable promises in a unilateral insurance policy? -
CORRECT ANSWER -insurance company
Which of the following acts is an agent NOT authorized to do on behalf of an
insurer? - CORRECT ANSWER -Authorize claim payments
Which of the following BEST describes a Hospital Indemnity policy? -
CORRECT ANSWER -Coverage that pays a stated amount PER DAY of a
covered hospitalization
What is required in the Florida Employee Health Care Access Act? -
CORRECT ANSWER -Small group benefit plan are to be issued on a
"guarantee-issue" basis
The waiting period for a pre-existing condition under a Medicare Supplement
policy may NOT go beyond - CORRECT ANSWER -6 months
J purchased a Disability Income Policy that ONLY J can terminate and on which
the rates will never increase above those illustrated in the policy. Which of the
following types of policies did J purchase? - CORRECT ANSWER -
Noncancelable
What is the elimination period of an individual disability policy? -
CORRECT ANSWER -Time period a disabled person must wait before
benefits are paid
Page 3 of 16
