FLORIDA LIFE AND HEALTH INSURANCE FINAL EXAM 2025

FLORIDA LIFE AND HEALTH INSURANCE FINAL EXAM 2025 The clause identifying which losses resulting from an accident or sickness are insured by the policy is called the: - Correct Answer-Insuring clause K applies for a life insurance policy on herself and submits the initial premium with the application. She is given a receipt by the agent stating that coverage begins immediately if the application is approved. What kind of receipt was used? - Correct Answer-Conditional A life insurance arrangement which circumvents insurable interest statutes is called: - Correct Answer-Investor-Originated Life Insurance Which of the following health policy provisions states that the producer does NOT have the authority to change the policy or waive any of its provisions? - Correct Answer Entire Contract Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund? - Correct Answer-30 Which of the following is NOT an unfair claim settlement practice? - Correct Answer Needing written documentation of claim details Who is NOT required to sign a life insurance application? - Correct Answer-Beneficiary To be eligible for Social Security disability benefits, an employee must be unable to perform: - Correct Answer-any occupation The type of annuity that can be purchased with one monetary deposit is called a(n): - Correct Answer-Immediate annuity A life insurance application must be signed by all of these, EXCEPT: - Correct Answer beneficiary Which of the following is considered an accurate statement of an unfair trade practice? - Correct Answer-Twisting involves an agent using misrepresentation to convince a policyowner to cancel their current policy so that they can purchase a new life insurance policy with another company The Accelerated Death Benefit provision in a life insurance policy is also known as a(n): - Correct Answer-Living Benefit FLORIDA LIFE FLORIDA LIFE Which of the following policy features allows an insured to defer current health charges to the following year's deductible instead of the current year's deducitble? - Correct Answer-Carryover provision Insurance policies are considered aleatory contracts because - Correct Answer performance is conditioned upon a future occurrence Within how many days must a licensee notify the Department of Financial Services of a change in address? - Correct Answer-30 Which organization was established to provide funds to protect an insured in the event of an insurer's insolvency? - Correct Answer-Florida Life and Health Insurance Guaranty Association The clause in an Accident and Health policy which defines the benefit amounts the insurer will pay is called the: - Correct Answer-Insuring clause When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n): - Correct Answer-Anti-Money Laundering violation According to the Time Payment of Claims provision, the insurer must pay Disability Income benefits no less frequently than which of the following options? - Correct Answer-Monthly What would the Medical Information Bureau (MIB) identify? - Correct Answer-Testing positive for marijuana use from a previous screening How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? - Correct Answer-If the primary beneficiary dies before the insured Under a Renewable Term policy, - Correct Answer-the renewal premium is calculated on the basis of the insured's attained age Which of the following statements is true about most Blue Cross/Blue Shield organizations? - Correct Answer-They are nonprofit organizations If a policyowner does not pay the premium by the due date, the - Correct Answer policyowner can make the premium payment during the grace period According to Florida law, which of the following information does NOT need to be obtained by an agent recommending an annuity purchase? - Correct Answer-Marital status FLORIDA LIFE FLORIDA LIFE Which of these characteristics is consistent with a Straight Life policy? - Correct Answer-Premiums are payable for as long as there is insurance coverage in force P completes an application for a $10,000 life policy, but does not give the producer the initial premium. P's coverage becomes effective when: - Correct Answer-P receives the policy and pays the premium On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the producer then take? - Correct Answer-Collect initial premium along with a signed health statement A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of the policy's face value. - Correct Answer-viatical settlement provider 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 Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE? - Correct Answer-It is taxed as ordinary income The automatic premium loan provision is designed to: - Correct Answer-avoid a policy lapse A term life insurance policy matures: - Correct Answer-upon the insured's death during the term of the policy What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies? - Correct Answer-Family Maintenance Policy The guarantee of insurability option provides a long-term care policyowner the ability to: - Correct Answer-buy additional coverage at a later date When determining the monthly benefit amount for a Disability Income policy, the factor that limits the amount a prospective insured may purchase is: - Correct Answer-income Periodic health claim payments MUST be made at least: - Correct Answer-monthly Which type of plan allows an employer to give money to an employee for buying a life insurance policy and also permits the employee to select the beneficiary? - Correct Answer-Split-dollar plan FLORIDA LIFE FLORIDA LIFE T is an agent and when hired, is reminded that he has a responsibility to handle clients' funds in an honest and ethical manner. This responsibility is referred to as - Correct Answer-fiduciary responsibility J is an agent who recently told a claimant that his rights might be impaired if he does not complete a release form within a specified time. What could this agent be found guilty of? - Correct Answer-Coercion An example of unfair discrimination would be - Correct Answer-offering different terms of coverage for different policyowners having the same risk classification Which of the following is a characteristic of a variable annuity? - Correct Answer Underlying equity investments A person insured under a health policy is required to give the insurance company a Notice of Claim within how many days after a covered loss? - Correct Answer-Twenty How many days does an insurance company have to reject a reinstatement application before it is automatically reinstated? - Correct Answer-45 The Life and Health Insurance Guaranty Association is - Correct Answer-funded by admitted insurance companies through assessments On January 8, an applicant filled out an application for a life insurance policy but did not include the initial premium. The insurance company approved the application on January 14 and issued the policy January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective? - Correct Answer-January 26 Which of the following types of insureds are life insurance companies allowed to make policy rate discriminations against? - Correct Answer-People that smoke P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to: - Correct Answer-P only An insured pays premiums on an annual basis for an individual health insurance policy. What is the MINIMUM number of days for the Grace Period provision? - Correct Answer-31 Which of the following services is NOT covered under a hospitalization expense policy? - Correct Answer-surgeon's fees P died five years after purchasing a life policy. While investigating the claim, the insurer discovered material misrepresentations made by P during the application process. FLORIDA LIFE FLORIDA LIFE Which of these actions will the insurer take? - Correct Answer-Beneficiary will be paid the Death Benefit Employers with less than __ employees are affected by Florida's Health Insurance Coverage Continuation Act (Mini COBRA). - Correct Answer-20 What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability? - Correct Answer-Conversion Which of the following policy provisions prohibits an insurance company from incorporating external documents into an insurance policy? - Correct Answer-Entire Contract The incontestable clause allows an insurer to: - Correct Answer-contest a claim during the contestable period Which of the following employees may NOT be excluded from a group life plan? - Correct Answer-Full-time employees after the probationary period An agent selling Medicare Supplement policies must provide every applicant with a(n) - Correct Answer-Suitability form When replacing or exchanging an annuity, the agent must disclose to the annuitant - Correct Answer-the possible tax ramifications as a result of the transaction The insuring clause - Correct Answer-States the scope and limits of the coverage A stock insurance company - Correct Answer-is owned exclusively by its shareholders Which Accident and Health policy provision addresses preexisting conditions? - Correct Answer-Time Limit on Certain Defenses The Accidental Death and Dismemberment (AD&D) provision in a life insurance policy would pay additional benefits if the insured: - Correct Answer-is blinded in an accident At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid? - Correct Answer-At the time of application A license may be denied, suspended, or revoked if the licensee - Correct Answer-is found guilty of misrepresentation What is the Suicide provision designed to do? - Correct Answer-safeguard the insure