HEALTH INSURANCE FLORIDA 2-40 PRACTICE EXAM QUESTIONS #2
WITH COMPLETE AND WELL DETAILED ANSWERS 2025 | THIS SET
INCLUDES ONLY THE HEALTH PORTION OF THE STATE EXAM FOR THOSE
WHO ARE TAKING THE 2-40.!!!
Which of the following is NOT a form of medical insurance?
-Business overhead expense
-Surgical expense
-Hospital expense
-Long term care - CORRECT ANSWER -Business overhead expense
(Explanation:Business Overhead Expense insurance is designed to reimburse
a business for overhead expenses in the event a business owner becomes
disabled. Expenses such as rent, utilities, telephone, equipment, employees'
salaries, etc.)
All of the following are state or federal government programs that provide
health insurance, EXCEPT?
-Medicare
-OASDI disability
-Medicaid
-Medigap - CORRECT ANSWER -Medigap (Explanation:A Medigap
policy is a Medicare supplement insurance policy sold by private insurance
companies to fill "gaps" in Medicare Parts A and B.)
Page 1 of 119
,What type of health insurance is available to assist low-income individuals? -
CORRECT ANSWER -Medicaid
What types of reserves are set aside and held by health insurance companies?
- CORRECT ANSWER -Premium and Claims reserves
(Explanation:Reserves are set aside for the payment of future claims.)
Group health insurance is generally written on a basis that provides for
dividends or experience rating. What is the basis called? - CORRECT
ANSWER -Participating (Explanation:Group plans written by mutual
companies provide for dividends while stock companies frequently issue
experience-rated plans.)
Which of the following is NOT TRUE regarding eligibility for subsidies for
families under the new health care act?
-For those who make between 100-400% of the Federal Poverty -Level
-Cannot be covered by an employer
-Cannot be eligible for Medicare
-Can be eligible for Medicaid - CORRECT ANSWER -Can be eligible
for Medicaid
Which of the following operates as a corporation, society, or association to
provide life insurance primarily for the mutual benefit of its members, has a
lodge or social system with rituals and representative form of government?
A) Mutual companies
Page 2 of 119
,B) Fraternal associations
C) Stock companies
-Fraternal benefit society - CORRECT ANSWER -B) Fraternal
associations
What does each member pay in a typical HMO plan?
-Fixed premium based on a deductible and copay
-Fixed premium whether or not plan is used
-Premium based on how often plan is used - CORRECT ANSWER -
Fixed premium whether or not plan is used
Which of the following is correct about those who are eligible for Medicare
and wish to join an HMO?
-They must have a current Medicare supplement policy
-They must be told that'll be getting all the benefits from the Medicare
Advantage plan
-They must be age 70 and above
-They must have been enrolled previously in an HMO - CORRECT
ANSWER -They must be told that'll be getting all the benefits from the
Medicare Advantage plan
Joyce is totally disabled. Her HMO policy just terminated. All of the following
are correct regarding "extension of benefits" for Joyce, EXCEPT?
-Coverage ends once maximum benefits have been exhausted
-Coverage ends once another carrier assumes coverage
Page 3 of 119
, -Coverage ends if no longer totally disabled
-Coverage ends after 18 months - CORRECT ANSWER -Coverage
ends after 18 months
All of the following are correct regarding Florida regulation of HMOs, EXCEPT?
-Must obtain a Certificate of Authority
-Must file a report of its activities within 3 months of the end of each fiscal
year
-Must deposit $100,000 with the Rehabilitation Administration Expense Fund
-Must be sold by agents licensed and appointed as health insurance agents -
CORRECT ANSWER -Must deposit $100,000 with the Rehabilitation
Administration Expense Fund (Explanation:
They must deposit $10,000 with the Rehabilitation Administration Expense
Fund.)
What is "capitation" as it relates to an HMO?
-Amount to be collected by the HMO from participating health care providers
-Fixed amount paid by an HMO during a policy period
-Fixed amount paid by an HMO to a physician for medical services
-Amount required to be deposited with the State of Florida -
CORRECT ANSWER -Fixed amount paid by an HMO to a physician for
medical services
When a person is covered by an HMO, the contract certificate or member's
handbook must be delivered within how many days after approval of the
enrollment by the HMO?
Page 4 of 119
WITH COMPLETE AND WELL DETAILED ANSWERS 2025 | THIS SET
INCLUDES ONLY THE HEALTH PORTION OF THE STATE EXAM FOR THOSE
WHO ARE TAKING THE 2-40.!!!
Which of the following is NOT a form of medical insurance?
-Business overhead expense
-Surgical expense
-Hospital expense
-Long term care - CORRECT ANSWER -Business overhead expense
(Explanation:Business Overhead Expense insurance is designed to reimburse
a business for overhead expenses in the event a business owner becomes
disabled. Expenses such as rent, utilities, telephone, equipment, employees'
salaries, etc.)
All of the following are state or federal government programs that provide
health insurance, EXCEPT?
-Medicare
-OASDI disability
-Medicaid
-Medigap - CORRECT ANSWER -Medigap (Explanation:A Medigap
policy is a Medicare supplement insurance policy sold by private insurance
companies to fill "gaps" in Medicare Parts A and B.)
Page 1 of 119
,What type of health insurance is available to assist low-income individuals? -
CORRECT ANSWER -Medicaid
What types of reserves are set aside and held by health insurance companies?
- CORRECT ANSWER -Premium and Claims reserves
(Explanation:Reserves are set aside for the payment of future claims.)
Group health insurance is generally written on a basis that provides for
dividends or experience rating. What is the basis called? - CORRECT
ANSWER -Participating (Explanation:Group plans written by mutual
companies provide for dividends while stock companies frequently issue
experience-rated plans.)
Which of the following is NOT TRUE regarding eligibility for subsidies for
families under the new health care act?
-For those who make between 100-400% of the Federal Poverty -Level
-Cannot be covered by an employer
-Cannot be eligible for Medicare
-Can be eligible for Medicaid - CORRECT ANSWER -Can be eligible
for Medicaid
Which of the following operates as a corporation, society, or association to
provide life insurance primarily for the mutual benefit of its members, has a
lodge or social system with rituals and representative form of government?
A) Mutual companies
Page 2 of 119
,B) Fraternal associations
C) Stock companies
-Fraternal benefit society - CORRECT ANSWER -B) Fraternal
associations
What does each member pay in a typical HMO plan?
-Fixed premium based on a deductible and copay
-Fixed premium whether or not plan is used
-Premium based on how often plan is used - CORRECT ANSWER -
Fixed premium whether or not plan is used
Which of the following is correct about those who are eligible for Medicare
and wish to join an HMO?
-They must have a current Medicare supplement policy
-They must be told that'll be getting all the benefits from the Medicare
Advantage plan
-They must be age 70 and above
-They must have been enrolled previously in an HMO - CORRECT
ANSWER -They must be told that'll be getting all the benefits from the
Medicare Advantage plan
Joyce is totally disabled. Her HMO policy just terminated. All of the following
are correct regarding "extension of benefits" for Joyce, EXCEPT?
-Coverage ends once maximum benefits have been exhausted
-Coverage ends once another carrier assumes coverage
Page 3 of 119
, -Coverage ends if no longer totally disabled
-Coverage ends after 18 months - CORRECT ANSWER -Coverage
ends after 18 months
All of the following are correct regarding Florida regulation of HMOs, EXCEPT?
-Must obtain a Certificate of Authority
-Must file a report of its activities within 3 months of the end of each fiscal
year
-Must deposit $100,000 with the Rehabilitation Administration Expense Fund
-Must be sold by agents licensed and appointed as health insurance agents -
CORRECT ANSWER -Must deposit $100,000 with the Rehabilitation
Administration Expense Fund (Explanation:
They must deposit $10,000 with the Rehabilitation Administration Expense
Fund.)
What is "capitation" as it relates to an HMO?
-Amount to be collected by the HMO from participating health care providers
-Fixed amount paid by an HMO during a policy period
-Fixed amount paid by an HMO to a physician for medical services
-Amount required to be deposited with the State of Florida -
CORRECT ANSWER -Fixed amount paid by an HMO to a physician for
medical services
When a person is covered by an HMO, the contract certificate or member's
handbook must be delivered within how many days after approval of the
enrollment by the HMO?
Page 4 of 119
