FLORIDA HEALTH 240 INSURANCE EXAM
WITH ANSWERS.
1. Hospital confinement - correct answer -Elimination period waived when
insured is hospitalized as an inpatient. Pays total disability while in
hospital.
2. Impairment rider - correct answer -When a condition is excluded from
coverage protecting insurance company from undue risk and providing
health care needs for applicant.
3. Nondisabiling Injury rider - correct answer -Pays for medical expense
not disability
4. AD&D - correct answer -Covers life insurance and health insurance
benefit.
5. Annual Renewable Term - correct answer -Level term insurance
which has a level face amount and increasing premiums.
6. Return of Premium Rider - correct answer -Allows for a portion of the
, premium to be returned if the policy owner is not disabled
7. Future increase option - correct answer -Provides for the insured to be
able to purchase additional amounts of disability income periodically
without proving insurability.
8. Waiver of Premium - correct answer -- exempts the owner from paying
premiums while they're disabled.
9. Usual Customary and Reasonable - correct answer -amount customarily
charged for services and supplies
10. Corridor Deductible - correct answer -the deductible between a basic and
major medical policy
11. Per-cause deductible - correct answer -Injury or sickness deductible
12. All cause deductible - correct answer -Cumulative or calendar
year deductible.
13. Carryover Provision - correct answer -Permits expenses from the
last three months of the calendar year to be carried over into the new
, year.
14. Common injury or illness provision - correct answer -One
deductible per family for the same illness or accident.
15. Medical Expense Policies - correct answer -- Basic
- Major Medical
- Comprehensive major medical
16. Consolidated Omnibus Budget Reconciliation Act (COBRA) - correct
answer -Requires employers of 20 or more to offer continuation of benefits
to their families.
17. Omnibus Budget Reconciliation Act (OBRA) - correct answer
-Extends COBRA for disabled employees 18 to 29 months. Spouse and
dependents for up to 36 months.
18. Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) - correct
answer -Prevents employers discriminating and Medicare second pay or..
19. Employee Retirement Income Security Act (ERISA) - correct answer -
Stringent reporting and disclosure requirement for establishing and
maintaining gmo. Group and employee policy.
, 20. Rules of Construction - correct answer -Help to identify and establish
the intent of the parties to the contract
21. Utmost good faith - correct answer -Each party is entitled to rely on the
representation of the other, and each party should have a reasonable
expectation that the other is acting in good faith without attempts to
conceal or deceive.
22. Aleatory Contract - correct answer -A contract under which one
party's performance is contingent on an uncertain event.
23. property and casualty agent - correct answer -has the power to bind the
insurer
24. Adhesion Contract - correct answer -Insurance company drafts
contract and the insured adheres to it. Any ambiguity resolved in favor
of the insured.
25. Unilateral contract - correct answer -Insured has completed paying the
premium, only one party of the contract is legally required to do
something. Insured promises to pay the death benefit in the event of loss.
Can not be held for breach of contract.
WITH ANSWERS.
1. Hospital confinement - correct answer -Elimination period waived when
insured is hospitalized as an inpatient. Pays total disability while in
hospital.
2. Impairment rider - correct answer -When a condition is excluded from
coverage protecting insurance company from undue risk and providing
health care needs for applicant.
3. Nondisabiling Injury rider - correct answer -Pays for medical expense
not disability
4. AD&D - correct answer -Covers life insurance and health insurance
benefit.
5. Annual Renewable Term - correct answer -Level term insurance
which has a level face amount and increasing premiums.
6. Return of Premium Rider - correct answer -Allows for a portion of the
, premium to be returned if the policy owner is not disabled
7. Future increase option - correct answer -Provides for the insured to be
able to purchase additional amounts of disability income periodically
without proving insurability.
8. Waiver of Premium - correct answer -- exempts the owner from paying
premiums while they're disabled.
9. Usual Customary and Reasonable - correct answer -amount customarily
charged for services and supplies
10. Corridor Deductible - correct answer -the deductible between a basic and
major medical policy
11. Per-cause deductible - correct answer -Injury or sickness deductible
12. All cause deductible - correct answer -Cumulative or calendar
year deductible.
13. Carryover Provision - correct answer -Permits expenses from the
last three months of the calendar year to be carried over into the new
, year.
14. Common injury or illness provision - correct answer -One
deductible per family for the same illness or accident.
15. Medical Expense Policies - correct answer -- Basic
- Major Medical
- Comprehensive major medical
16. Consolidated Omnibus Budget Reconciliation Act (COBRA) - correct
answer -Requires employers of 20 or more to offer continuation of benefits
to their families.
17. Omnibus Budget Reconciliation Act (OBRA) - correct answer
-Extends COBRA for disabled employees 18 to 29 months. Spouse and
dependents for up to 36 months.
18. Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) - correct
answer -Prevents employers discriminating and Medicare second pay or..
19. Employee Retirement Income Security Act (ERISA) - correct answer -
Stringent reporting and disclosure requirement for establishing and
maintaining gmo. Group and employee policy.
, 20. Rules of Construction - correct answer -Help to identify and establish
the intent of the parties to the contract
21. Utmost good faith - correct answer -Each party is entitled to rely on the
representation of the other, and each party should have a reasonable
expectation that the other is acting in good faith without attempts to
conceal or deceive.
22. Aleatory Contract - correct answer -A contract under which one
party's performance is contingent on an uncertain event.
23. property and casualty agent - correct answer -has the power to bind the
insurer
24. Adhesion Contract - correct answer -Insurance company drafts
contract and the insured adheres to it. Any ambiguity resolved in favor
of the insured.
25. Unilateral contract - correct answer -Insured has completed paying the
premium, only one party of the contract is legally required to do
something. Insured promises to pay the death benefit in the event of loss.
Can not be held for breach of contract.
