Health Insurance Florida 2-40 Practice
Exam Questions with Accurate
Answers
Which of the following laws requires an insurer to notify an applicant in writing that an
investigative consumer report may be made on the applicant? - ANSWERSFair Credit
Reporting Act (Insurance Information and Privacy Protection Act)
Group health insurance specifies that what percentage of eligible individuals MUST be
offered coverage under a noncontributory plan? - ANSWERS100
Under an Accidental Death and Dismemberment (AD&D) policy, insurable interest must
exist at which of the following times? - ANSWERSAt the inception of the policy
When periodic claim payments are required under a long-term disability income policy,
an insurer MUST make payments to an insured at least once every: - ANSWERSmonth
M and N own a small interior design studio that employs six people. The owners are
concerned about the financial continuation of the business if either of them should
become permanently disabled. In this situation, a producer would MOST likely
recommend which of the following types of contracts? - ANSWERSDisability Buy-Out
Which of the following health policies requires a beneficiary designation? -
ANSWERSTravel Accident
Suicide, pre-existing conditions and self-inflicted injuries are dealt with in which of the
following policy features? - ANSWERSExclusions
An insured whose Disability Income policy contains a Change of Occupation clause
takes a new job in a more hazardous occupation and fails to notify the insurer of the
change. One year later, the insured becomes disabled. The insurer will most likely take
which of the following actions? - ANSWERSSettle the claim according to what the
premiums would have purchased under the more hazardous occupation
Which of the following definitions of disability would cover a permanent partial disability?
- ANSWERSResidual disability
When delivering a policy to a client, a producer should take all of the following actions
EXCEPT: - ANSWERSkeep the policy in the producer's office for safe-keeping on
behalf of the client
, The Social Security program provides all of the following benefits EXCEPT: -
ANSWERSworkers compensation
Which of the following definitions MOST accurately describes the Probationary Period?
- ANSWERSThe waiting period a new hire must satisfy prior to becoming eligible for
group health coverage
Under a group health plan, an employer may offer additional benefits to classes of
employees on the basis of all of the following factors EXCEPT: - ANSWERSgender
An insured becomes disabled three years after his Disability Income policy is issued.
The disability is caused by a condition that existed prior to the policy issue date but was
not specifically excluded from coverage. In this situation, the insurer will most likely take
which of the following actions? - ANSWERSPay the full claim
On June 1, S purchased a Major Medical policy and paid the initial premium to Producer
T. On July 1, Producer T received the policy from the insurance company. The policy
contained a Ten-Day Free Look provision. On July 3, Producer T attempted to deliver
the policy but found that S was not at home. On July 5, Producer T was able to deliver
the policy to S. On July 7, S decided he did not want the policy. S had 10 days from
which of the following dates to return the policy to the company and obtain a full
premium refund? - ANSWERSJuly 5
Five years ago, at age forty-five, X stated that he was forty years old on a disability
income insurance application. X now submits a claim and the insurer discovers X's true
age. The insurer will most likely take which of the following actions? - ANSWERSAdjust
the benefits downward according to the benefits that X would have been entitled to
based on the premiums
All of the following elements are required of a contract EXCEPT: -
ANSWERSassignment
Which of the following types of provisions guarantees renewability to a specified date or
age unless certain specified events occur? - ANSWERSConditionally Renewable
In an Accidental Death and Dismemberment (AD&D) policy, the term "capital sum"
refers to: - ANSWERSa lump sum payment made for an accidental dismemberment
The PRIMARY purpose of Medicaid is to: - ANSWERSprovide Medical Expense
coverage to persons meeting certain minimum income requirements
A health care plan that reimburses a flat fee for medical care it provides at a clinic it
owns and operates is referred to as: - ANSWERSHealth Maintenance Organization
Exam Questions with Accurate
Answers
Which of the following laws requires an insurer to notify an applicant in writing that an
investigative consumer report may be made on the applicant? - ANSWERSFair Credit
Reporting Act (Insurance Information and Privacy Protection Act)
Group health insurance specifies that what percentage of eligible individuals MUST be
offered coverage under a noncontributory plan? - ANSWERS100
Under an Accidental Death and Dismemberment (AD&D) policy, insurable interest must
exist at which of the following times? - ANSWERSAt the inception of the policy
When periodic claim payments are required under a long-term disability income policy,
an insurer MUST make payments to an insured at least once every: - ANSWERSmonth
M and N own a small interior design studio that employs six people. The owners are
concerned about the financial continuation of the business if either of them should
become permanently disabled. In this situation, a producer would MOST likely
recommend which of the following types of contracts? - ANSWERSDisability Buy-Out
Which of the following health policies requires a beneficiary designation? -
ANSWERSTravel Accident
Suicide, pre-existing conditions and self-inflicted injuries are dealt with in which of the
following policy features? - ANSWERSExclusions
An insured whose Disability Income policy contains a Change of Occupation clause
takes a new job in a more hazardous occupation and fails to notify the insurer of the
change. One year later, the insured becomes disabled. The insurer will most likely take
which of the following actions? - ANSWERSSettle the claim according to what the
premiums would have purchased under the more hazardous occupation
Which of the following definitions of disability would cover a permanent partial disability?
- ANSWERSResidual disability
When delivering a policy to a client, a producer should take all of the following actions
EXCEPT: - ANSWERSkeep the policy in the producer's office for safe-keeping on
behalf of the client
, The Social Security program provides all of the following benefits EXCEPT: -
ANSWERSworkers compensation
Which of the following definitions MOST accurately describes the Probationary Period?
- ANSWERSThe waiting period a new hire must satisfy prior to becoming eligible for
group health coverage
Under a group health plan, an employer may offer additional benefits to classes of
employees on the basis of all of the following factors EXCEPT: - ANSWERSgender
An insured becomes disabled three years after his Disability Income policy is issued.
The disability is caused by a condition that existed prior to the policy issue date but was
not specifically excluded from coverage. In this situation, the insurer will most likely take
which of the following actions? - ANSWERSPay the full claim
On June 1, S purchased a Major Medical policy and paid the initial premium to Producer
T. On July 1, Producer T received the policy from the insurance company. The policy
contained a Ten-Day Free Look provision. On July 3, Producer T attempted to deliver
the policy but found that S was not at home. On July 5, Producer T was able to deliver
the policy to S. On July 7, S decided he did not want the policy. S had 10 days from
which of the following dates to return the policy to the company and obtain a full
premium refund? - ANSWERSJuly 5
Five years ago, at age forty-five, X stated that he was forty years old on a disability
income insurance application. X now submits a claim and the insurer discovers X's true
age. The insurer will most likely take which of the following actions? - ANSWERSAdjust
the benefits downward according to the benefits that X would have been entitled to
based on the premiums
All of the following elements are required of a contract EXCEPT: -
ANSWERSassignment
Which of the following types of provisions guarantees renewability to a specified date or
age unless certain specified events occur? - ANSWERSConditionally Renewable
In an Accidental Death and Dismemberment (AD&D) policy, the term "capital sum"
refers to: - ANSWERSa lump sum payment made for an accidental dismemberment
The PRIMARY purpose of Medicaid is to: - ANSWERSprovide Medical Expense
coverage to persons meeting certain minimum income requirements
A health care plan that reimburses a flat fee for medical care it provides at a clinic it
owns and operates is referred to as: - ANSWERSHealth Maintenance Organization
