Florida Health Insurance Exam
Questions with Verified Answers
K is insured under a Group Life insurance policy. K is considered to be a(n) - ✔✔certificate
holder
Typically a life insurance death benefit is paid by a lump-sum payment. A(n) ________ option is
a method of distributing a Life Insurance policy's death benefit OTHER than by a lump sum
payment. - ✔✔settlement
N is a student pilot with a large life insurance policy. Which of these features would limit the
insurer's obligation in the event N was killed while flying as a student pilot? - ✔✔Exclusion
The Coordination of Benefits provision: - ✔✔prevents an insured covered by two health plans
from making a profit on a covered loss
All of the following statements regarding a Tax Sheltered Annuity (TSA) are true EXCEPT -
✔✔Income derived from the TSA is received income tax-free
A prospective insured completes and signs an application for health insurance but intentionally
conceals information about a pre-existing heart condition. The company issues the policy. Two
months later, the insured suffers a heart attack and submits a claim. While processing the
claim, the company discovers the pre-existing condition. In this situation, the company will: -
✔✔Continue coverage, but exclude the heart condition
According to Florida's rules on disclosure, a life insurance applicant is expected to be provided
with - ✔✔a Buyer's Guide and a Policy Summary
,When a person returns to work after a period of total disability but cannot earn as much as he
or she did before the disability, this situation is called which of the following? - ✔✔Residual
disability
According to Florida law, group life insurance conversion privileges must NOT - ✔✔require
evidence of insurability
A long-term care lapse notice must be delivered to both the applicant and - ✔✔secondary
addressee
Medicare Part B does NOT cover: - ✔✔inpatient hospital services
C was injured while deep sea diving and requires a hospital stay. C has a Major Medical policy
with a 80/20 coinsurance clause and a $400 deductible. What is the MAXIMUM C will pay if the
covered medical expenses are $2000? - ✔✔$720 ($400 deductible + 20% of the remaining bill
which would be $1600)
Credit life insurance is typically issued with which of the following types of coverage? -
✔✔Decreasing Term
An agent may provide a prospective client with an advertising gift as long as the value of that
gift does not exceed ______. - ✔✔$100
S has a Whole Life policy with a premium payment due soon. Which provision would keep the
policy in force if S does not make the required payment and the policy has adequate cash value
from which the premium payment can be made? - ✔✔Automatic Policy Loan
What would be an accurate definition of "controlled business"? - ✔✔Insurance business that is
written on the agent's own life, property, or interests
, J has a Disability Income policy that does NOT provide benefits for losses occurring as the result
of his employment. What kind of coverage is this? - ✔✔Nonoccupational coverage
The Bureau of Unclaimed Property is overseen by the - ✔✔Chief Financial Officer
Which of the following phrases refers to the fees charged by a healthcare professional? -
✔✔Usual, customary, and reasonable expenses
T has a Disability Income policy that pays a monthly benefit of $5000. If T becomes partially
disabled, what can he likely expect? - ✔✔Less than $5,000 per month benefit regardless of the
cause
Insurers/agents must, in Florida, offer and issue all small employer health plans on a ________
basis: - ✔✔guaranteed-issue
An incomplete life insurance application submitted to an insurer will result in which of these
actions? - ✔✔Application will be returned to the writing agent
What do Dread Disease policies cover? - ✔✔A specific disease or illness
Periodic health claim payments MUST be made at least: - ✔✔monthly
In what year was The Florida Office of Financial Regulation (OFR) created? - ✔✔2003
S is the policyowner of a Major Medical policy. The premiums are paid monthly and due on the
1st of each month. S fails to make September's payment and is hospitalized October 15th.
When S files the claim for this hospitalization, the insurer will likely - ✔✔deny the claim
Questions with Verified Answers
K is insured under a Group Life insurance policy. K is considered to be a(n) - ✔✔certificate
holder
Typically a life insurance death benefit is paid by a lump-sum payment. A(n) ________ option is
a method of distributing a Life Insurance policy's death benefit OTHER than by a lump sum
payment. - ✔✔settlement
N is a student pilot with a large life insurance policy. Which of these features would limit the
insurer's obligation in the event N was killed while flying as a student pilot? - ✔✔Exclusion
The Coordination of Benefits provision: - ✔✔prevents an insured covered by two health plans
from making a profit on a covered loss
All of the following statements regarding a Tax Sheltered Annuity (TSA) are true EXCEPT -
✔✔Income derived from the TSA is received income tax-free
A prospective insured completes and signs an application for health insurance but intentionally
conceals information about a pre-existing heart condition. The company issues the policy. Two
months later, the insured suffers a heart attack and submits a claim. While processing the
claim, the company discovers the pre-existing condition. In this situation, the company will: -
✔✔Continue coverage, but exclude the heart condition
According to Florida's rules on disclosure, a life insurance applicant is expected to be provided
with - ✔✔a Buyer's Guide and a Policy Summary
,When a person returns to work after a period of total disability but cannot earn as much as he
or she did before the disability, this situation is called which of the following? - ✔✔Residual
disability
According to Florida law, group life insurance conversion privileges must NOT - ✔✔require
evidence of insurability
A long-term care lapse notice must be delivered to both the applicant and - ✔✔secondary
addressee
Medicare Part B does NOT cover: - ✔✔inpatient hospital services
C was injured while deep sea diving and requires a hospital stay. C has a Major Medical policy
with a 80/20 coinsurance clause and a $400 deductible. What is the MAXIMUM C will pay if the
covered medical expenses are $2000? - ✔✔$720 ($400 deductible + 20% of the remaining bill
which would be $1600)
Credit life insurance is typically issued with which of the following types of coverage? -
✔✔Decreasing Term
An agent may provide a prospective client with an advertising gift as long as the value of that
gift does not exceed ______. - ✔✔$100
S has a Whole Life policy with a premium payment due soon. Which provision would keep the
policy in force if S does not make the required payment and the policy has adequate cash value
from which the premium payment can be made? - ✔✔Automatic Policy Loan
What would be an accurate definition of "controlled business"? - ✔✔Insurance business that is
written on the agent's own life, property, or interests
, J has a Disability Income policy that does NOT provide benefits for losses occurring as the result
of his employment. What kind of coverage is this? - ✔✔Nonoccupational coverage
The Bureau of Unclaimed Property is overseen by the - ✔✔Chief Financial Officer
Which of the following phrases refers to the fees charged by a healthcare professional? -
✔✔Usual, customary, and reasonable expenses
T has a Disability Income policy that pays a monthly benefit of $5000. If T becomes partially
disabled, what can he likely expect? - ✔✔Less than $5,000 per month benefit regardless of the
cause
Insurers/agents must, in Florida, offer and issue all small employer health plans on a ________
basis: - ✔✔guaranteed-issue
An incomplete life insurance application submitted to an insurer will result in which of these
actions? - ✔✔Application will be returned to the writing agent
What do Dread Disease policies cover? - ✔✔A specific disease or illness
Periodic health claim payments MUST be made at least: - ✔✔monthly
In what year was The Florida Office of Financial Regulation (OFR) created? - ✔✔2003
S is the policyowner of a Major Medical policy. The premiums are paid monthly and due on the
1st of each month. S fails to make September's payment and is hospitalized October 15th.
When S files the claim for this hospitalization, the insurer will likely - ✔✔deny the claim
