Florida Life and Health Insurance
A situation in which a person can only experience a loss and no gain represents what type of
risk? - ANS -Pure Risk
\A waiver of premium provision may be included with what type of health insurance policies? -
ANS -Disability income and LTC
\A whole life policy that requires premium payments only for a specified number of years is
known as what kind of policy? - ANS -Limited-Pay Whole Life
\According to the Affordable Care Act, what are the cost-sharing requirements for preventive
care? - ANS -No cost sharing.
\According to the coordination of benefits provision, if both parents have coverage for a child
and their employers' policies, which policy would pay first? - ANS -The order of payment will be
determined by the birthday rule.
\According to the reinstatement provision, once a lapsed policy is reinstated, how soon will
coverage be available for accidents? - ANS -Immediately
\According to the taxation rules of life insurance policies, how are cash value increases taxed? -
ANS -Cash value growth is tax-deferred
\According to the time limit on certain defenses provision in health insurance policies, when can
an insurer contest fraudulent misstatements on a health insurance application? - ANS -Any time
while the policy is in force.
\Adverse Selection - ANS -The tendency of risk with higher probability of loss to purchase and
maintain insurance more often than the risks who represent lower probability of loss.
\Agent - ANS -An individual who is licensed to sell, negotiate, or effect insurance contracts on
behalf of the insurer.
\An agent offer a client free tickets to a sporting event in exchange for the purchase of an
insurance policy. What is the agent guilty of? - ANS -Rebating
\At what point does coverage begin when an agent issues a conditional insurability receipt for a
life insurance policy? - ANS -Either on the date of the application or the date of the medical
exam, whichever occurs last.
\Can Alzheimer's disease be excluded from coverage under a ling-term care policy? - ANS -NO,
organic cognitive disorders, such as Alzheimer's or Parkinson's must be covered.
\Certificate of Insurance - ANS -A document issued to insureds under a group plan that states
the coverage being issued, and indicates the coverage type and amounts.
\Concealment - ANS -The withholding of known facts that, if material, can void a contract.
\Conditions that increase the chance of a loss are known as what? - ANS -Hazards
\Contract of Adhesion - ANS -A contract prepared by one party that must be accepted as written
or be rejected by the other party.
\Disclosure - ANS -Providing sufficient information to help someone make informed decision.
\Face Amount - ANS -The amount of benefit stated in the life insurance policy.
\Fiduciary - ANS -A producer who handles insurer's funds in a trust capacity.
\Field Underwriter - ANS -An insurance agent who conducts an initial policy solicitation and
application. (The company's front line of underwriting)
, \For a retirement plan to be qualified, it must be designed for whose benefit? - ANS -Employees
\How are benefits received by the business from a key person disability insurance? - ANS
-Income tax free
\How are excess funds in an employee's health savings account (HSA) handled? - ANS -The
funds can be carried forward to the next year.
\How are individually owned disability income benefits taxed once received by that insured? -
ANS -Disability benefits are not taxed; they are received income tax free
\How are the benefits of a group accidental death and dismemberment policy received? - ANS
-Income Tax free
\How can AD&D coverage be written? - ANS -As a rider to a health insurance policy, or as a
seperate policy.
\How can health insurance policies be delivered to the insured? - ANS -Personally delivered by
the agent or mailed.
\How do insurers determine that cost for a group health policy? - ANS -The main variables are
the ration of men and women in the group, and the average age of the group.
\How is Medicaid funded? - ANS -Medicaid is a federal and state funded program
\How is Medicare part B funded? - ANS -By monthly premiums and from the general revenues
of the federal government.
\How long do short-term disability group plans pay benefits? - ANS -For a period of less than
two years
\How many consecutive months of coverage must long-term care insurance provide? - ANS -12
Months
\How soon can income payments begin in an immediate annuity? - ANS -No later that one year
from the time of annuity purchase.
\How will changing one's occupation to be more hazardous, affect the health insurance policy in
force? - ANS -Claim benefits will be reduced to what the premium would have brought for a
more hazardous occupation.
\If a settlement option is not chosen by the policy owner or the beneficiary, what option will be
used by the insurer? - ANS -Lump-Sum payment
\If an agent makes a correction on the application for health insurance, who must initial the
correct answer? - ANS -The Applicant
\If an insurer meets the states financial requirements and is approved to transact business in the
state, it is considered what type of insurer? - ANS -Authorized
\If an underwriter requires extensive information about the applicants medical history, what
report will best serve this purpose? - ANS -Attending Physician's statement.
\If someone wants to buy a life insurance policy that will provide lifetime protection against
premature death, what type of life insurance policy should it be? - ANS -Permanent
\If the beneficiary of a life insurance policy receives death benefit payments that consist of
principal and interest, which portion, if any, will be taxed? - ANS -Interest Only
\If the insured pays a monthly premium for health insurance, how long will the grace period be
on the policy? - ANS -10 Days
\If the insureds share in the cost of health insurance premiums with the employer, this would be
known as what type of group health plan? - ANS -Contributory
A situation in which a person can only experience a loss and no gain represents what type of
risk? - ANS -Pure Risk
\A waiver of premium provision may be included with what type of health insurance policies? -
ANS -Disability income and LTC
\A whole life policy that requires premium payments only for a specified number of years is
known as what kind of policy? - ANS -Limited-Pay Whole Life
\According to the Affordable Care Act, what are the cost-sharing requirements for preventive
care? - ANS -No cost sharing.
\According to the coordination of benefits provision, if both parents have coverage for a child
and their employers' policies, which policy would pay first? - ANS -The order of payment will be
determined by the birthday rule.
\According to the reinstatement provision, once a lapsed policy is reinstated, how soon will
coverage be available for accidents? - ANS -Immediately
\According to the taxation rules of life insurance policies, how are cash value increases taxed? -
ANS -Cash value growth is tax-deferred
\According to the time limit on certain defenses provision in health insurance policies, when can
an insurer contest fraudulent misstatements on a health insurance application? - ANS -Any time
while the policy is in force.
\Adverse Selection - ANS -The tendency of risk with higher probability of loss to purchase and
maintain insurance more often than the risks who represent lower probability of loss.
\Agent - ANS -An individual who is licensed to sell, negotiate, or effect insurance contracts on
behalf of the insurer.
\An agent offer a client free tickets to a sporting event in exchange for the purchase of an
insurance policy. What is the agent guilty of? - ANS -Rebating
\At what point does coverage begin when an agent issues a conditional insurability receipt for a
life insurance policy? - ANS -Either on the date of the application or the date of the medical
exam, whichever occurs last.
\Can Alzheimer's disease be excluded from coverage under a ling-term care policy? - ANS -NO,
organic cognitive disorders, such as Alzheimer's or Parkinson's must be covered.
\Certificate of Insurance - ANS -A document issued to insureds under a group plan that states
the coverage being issued, and indicates the coverage type and amounts.
\Concealment - ANS -The withholding of known facts that, if material, can void a contract.
\Conditions that increase the chance of a loss are known as what? - ANS -Hazards
\Contract of Adhesion - ANS -A contract prepared by one party that must be accepted as written
or be rejected by the other party.
\Disclosure - ANS -Providing sufficient information to help someone make informed decision.
\Face Amount - ANS -The amount of benefit stated in the life insurance policy.
\Fiduciary - ANS -A producer who handles insurer's funds in a trust capacity.
\Field Underwriter - ANS -An insurance agent who conducts an initial policy solicitation and
application. (The company's front line of underwriting)
, \For a retirement plan to be qualified, it must be designed for whose benefit? - ANS -Employees
\How are benefits received by the business from a key person disability insurance? - ANS
-Income tax free
\How are excess funds in an employee's health savings account (HSA) handled? - ANS -The
funds can be carried forward to the next year.
\How are individually owned disability income benefits taxed once received by that insured? -
ANS -Disability benefits are not taxed; they are received income tax free
\How are the benefits of a group accidental death and dismemberment policy received? - ANS
-Income Tax free
\How can AD&D coverage be written? - ANS -As a rider to a health insurance policy, or as a
seperate policy.
\How can health insurance policies be delivered to the insured? - ANS -Personally delivered by
the agent or mailed.
\How do insurers determine that cost for a group health policy? - ANS -The main variables are
the ration of men and women in the group, and the average age of the group.
\How is Medicaid funded? - ANS -Medicaid is a federal and state funded program
\How is Medicare part B funded? - ANS -By monthly premiums and from the general revenues
of the federal government.
\How long do short-term disability group plans pay benefits? - ANS -For a period of less than
two years
\How many consecutive months of coverage must long-term care insurance provide? - ANS -12
Months
\How soon can income payments begin in an immediate annuity? - ANS -No later that one year
from the time of annuity purchase.
\How will changing one's occupation to be more hazardous, affect the health insurance policy in
force? - ANS -Claim benefits will be reduced to what the premium would have brought for a
more hazardous occupation.
\If a settlement option is not chosen by the policy owner or the beneficiary, what option will be
used by the insurer? - ANS -Lump-Sum payment
\If an agent makes a correction on the application for health insurance, who must initial the
correct answer? - ANS -The Applicant
\If an insurer meets the states financial requirements and is approved to transact business in the
state, it is considered what type of insurer? - ANS -Authorized
\If an underwriter requires extensive information about the applicants medical history, what
report will best serve this purpose? - ANS -Attending Physician's statement.
\If someone wants to buy a life insurance policy that will provide lifetime protection against
premature death, what type of life insurance policy should it be? - ANS -Permanent
\If the beneficiary of a life insurance policy receives death benefit payments that consist of
principal and interest, which portion, if any, will be taxed? - ANS -Interest Only
\If the insured pays a monthly premium for health insurance, how long will the grace period be
on the policy? - ANS -10 Days
\If the insureds share in the cost of health insurance premiums with the employer, this would be
known as what type of group health plan? - ANS -Contributory
