Florida Life and Health Final
Exam 150 questions with
verified solutions
Which Unfair Trade Practice involves making a false statement on an
|| || || || || || || || || || ||
insurance application in order to receive money from an insurer? - correct
|| || || || || || || || || || || ||
answer ✔Misrepresentation||
Who owns a stock company? - correct answer ✔A stock insurance company
|| || || || || || || || || || ||
is owned by its stockholders.
|| || || || ||
In Florida, which of the following is considered an Unfair Trade Practice? -
|| || || || || || || || || || || || ||
correct answer ✔Coercion || ||
Which of these options can an individual use their medical flexible spending
|| || || || || || || || || || ||
account to pay for? - correct answer ✔Prescription drugs are an allowable
|| || || || || || || || || || || || ||
expense when paid for by a medical flexible spending account.
|| || || || || || || || ||
Which of the following features of a group Term Life policy enables an
|| || || || || || || || || || || || ||
individual to leave the group and continue his or her insurance without
|| || || || || || || || || || || ||
providing evidence of insurability? - correct answer ✔The conversion
|| || || || || || || || ||
privilege allows an individual to leave the group term plan and continue his
|| || || || || || || || || || || ||
or her insurance without providing evidence of insurability.
|| || || || || || || ||
,An example of false advertising would be - correct answer ✔An insurer
|| || || || || || || || || || || ||
exaggerating its dividends in a magazine advertisement|| || || || || ||
Q purchases a $500,000 life insurance policy and pays $900 in premiums
|| || || || || || || || || || || ||
over the first six months. Q dies suddenly and the beneficiary is paid
|| || || || || || || || || || || || ||
$500,000. This exchange of unequal values reflects which of the following
|| || || || || || || || || || ||
insurance contract features? - correct answer ✔Aleatory.
|| || || || || ||
Insurance contracts are aleatory in that the amount the insured will pay in
|| || || || || || || || || || || || ||
premiums is unequal to the amount that the insurer will pay in the event
|| || || || || || || || || || || || || ||
of a loss.
|| ||
An example of an unfair trade practice is - correct answer ✔Making a
|| || || || || || || || || || || || ||
material misrepresentation to an insured is considered to be an unfair
|| || || || || || || || || || ||
trade practice. ||
How would a contingent beneficiary receive the policy proceeds in an
|| || || || || || || || || || ||
Accidental Death and Dismemberment (AD&D) policy? - correct answer ✔A
|| || || || || || || || || ||
contingent beneficiary will receive the policy proceeds if the primary
|| || || || || || || || || ||
beneficiary dies before the insured's death.|| || || || ||
Which of these terms accurately defines an underwriter's assessment of
|| || || || || || || || || ||
information on a life insurance application? - correct answer ✔Risk
|| || || || || || || || || ||
classification. ||
Underwriting, another term for risk selection, is the process of reviewing
|| || || || || || || || || || ||
the many characteristics that make up the risk profile of an applicant to
|| || || || || || || || || || || || ||
determine if the applicant is insurable and, if so, at standard or
|| || || || || || || || || || || ||
substandard rates. ||
,T applies for a life insurance policy and is told by the producer that the
|| || || || || || || || || || || || || || ||
insurer is bound to the coverage as of the date of the application or
|| || || || || || || || || || || || || ||
medical examination, whichever is later. Assuming that T is an acceptable
|| || || || || || || || || || ||
risk, what item is given to T? - correct answer ✔Conditional receipt.
|| || || || || || || || || || ||
A conditional receipt binds the insurer to coverage as of the date of the
|| || || || || || || || || || || || || || ||
application or medical exam, provided the proposed insured is determined
|| || || || || || || || || ||
to be an acceptable risk.
|| || || ||
What is required in the Florida Employee Health Care Access Act? - correct
|| || || || || || || || || || || || ||
answer ✔Small group benefit plans are to be issued on a "guarantee-issue"
|| || || || || || || || || || ||
basis
||
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.
|| || || || ||
In this situation, benefits will be paid to P because P survived the accident
|| || || || || || || || || || || || || ||
and is the primary beneficiary.
|| || || ||
The health insurance program which is administered by each state and
|| || || || || || || || || || ||
funded by both the federal and state governments is called - correct
|| || || || || || || || || || || ||
answer ✔Medicaid- is funded by both the federal and state governments
|| || || || || || || || || || ||
and administered by individual states.
|| || || ||
Which of the following BEST describes a short-term medical expense policy?
|| || || || || || || || || ||
- correct answer ✔Nonrenewable.
|| || || ||
, A typical short-term medical expense policy is best described as
|| || || || || || || || || || ||
nonrenewable.
Which of the following statements about noncontributory employee group
|| || || || || || || || ||
life insurance is FALSE? - correct answer ✔A minimum number of
|| || || || || || || || || || ||
employees is required to participate". Noncontributory employee group life
|| || || || || || || || ||
insurance plans must cover ALL eligible employees at all times
|| || || || || || || || ||
A Disability Income policyowner recently submitted a claim for a chronic
|| || || || || || || || || || ||
neck problem that has now resulted in total disability. The original neck
|| || || || || || || || || || || ||
injury occurred before the application was taken 5 years prior. The neck
|| || || || || || || || || || || ||
injury was never disclosed to the insurer at the time of application. How
|| || || || || || || || || || || || ||
will the insurer handle this claim? - correct answer ✔Claim will be paid and
|| || || || || || || || || || || || ||
coverage will remain in force.
|| || || || ||
After a policy has been in force for 2 (sometimes 3) years, it enters the
|| || || || || || || || || || || || || || ||
incontestable period, in which the insurer may not deny a claim based on|| || || || || || || || || || || || ||
information not disclosed at the time of application. || || || || || || ||
S takes out a health insurance policy which contains a provision that states
|| || || || || || || || || || || ||
that the agent does not have the authority to change the policy or waive
|| || || || || || || || || || || || || || ||
any of its provisions. Which health policy provision is this? - correct answer
|| || || || || || || || || || || ||
✔Entire Contract.
|| ||
The Entire Contract provision states that the agent does NOT have the
|| || || || || || || || || || || || ||
authority to change the policy or waive any of its provisions.
|| || || || || || || || || ||
What type of life insurance gives the greatest amount of coverage for a
|| || || || || || || || || || || || ||
limited period of time? - correct answer ✔Term life.
|| || || || || || || ||
Exam 150 questions with
verified solutions
Which Unfair Trade Practice involves making a false statement on an
|| || || || || || || || || || ||
insurance application in order to receive money from an insurer? - correct
|| || || || || || || || || || || ||
answer ✔Misrepresentation||
Who owns a stock company? - correct answer ✔A stock insurance company
|| || || || || || || || || || ||
is owned by its stockholders.
|| || || || ||
In Florida, which of the following is considered an Unfair Trade Practice? -
|| || || || || || || || || || || || ||
correct answer ✔Coercion || ||
Which of these options can an individual use their medical flexible spending
|| || || || || || || || || || ||
account to pay for? - correct answer ✔Prescription drugs are an allowable
|| || || || || || || || || || || || ||
expense when paid for by a medical flexible spending account.
|| || || || || || || || ||
Which of the following features of a group Term Life policy enables an
|| || || || || || || || || || || || ||
individual to leave the group and continue his or her insurance without
|| || || || || || || || || || || ||
providing evidence of insurability? - correct answer ✔The conversion
|| || || || || || || || ||
privilege allows an individual to leave the group term plan and continue his
|| || || || || || || || || || || ||
or her insurance without providing evidence of insurability.
|| || || || || || || ||
,An example of false advertising would be - correct answer ✔An insurer
|| || || || || || || || || || || ||
exaggerating its dividends in a magazine advertisement|| || || || || ||
Q purchases a $500,000 life insurance policy and pays $900 in premiums
|| || || || || || || || || || || ||
over the first six months. Q dies suddenly and the beneficiary is paid
|| || || || || || || || || || || || ||
$500,000. This exchange of unequal values reflects which of the following
|| || || || || || || || || || ||
insurance contract features? - correct answer ✔Aleatory.
|| || || || || ||
Insurance contracts are aleatory in that the amount the insured will pay in
|| || || || || || || || || || || || ||
premiums is unequal to the amount that the insurer will pay in the event
|| || || || || || || || || || || || || ||
of a loss.
|| ||
An example of an unfair trade practice is - correct answer ✔Making a
|| || || || || || || || || || || || ||
material misrepresentation to an insured is considered to be an unfair
|| || || || || || || || || || ||
trade practice. ||
How would a contingent beneficiary receive the policy proceeds in an
|| || || || || || || || || || ||
Accidental Death and Dismemberment (AD&D) policy? - correct answer ✔A
|| || || || || || || || || ||
contingent beneficiary will receive the policy proceeds if the primary
|| || || || || || || || || ||
beneficiary dies before the insured's death.|| || || || ||
Which of these terms accurately defines an underwriter's assessment of
|| || || || || || || || || ||
information on a life insurance application? - correct answer ✔Risk
|| || || || || || || || || ||
classification. ||
Underwriting, another term for risk selection, is the process of reviewing
|| || || || || || || || || || ||
the many characteristics that make up the risk profile of an applicant to
|| || || || || || || || || || || || ||
determine if the applicant is insurable and, if so, at standard or
|| || || || || || || || || || || ||
substandard rates. ||
,T applies for a life insurance policy and is told by the producer that the
|| || || || || || || || || || || || || || ||
insurer is bound to the coverage as of the date of the application or
|| || || || || || || || || || || || || ||
medical examination, whichever is later. Assuming that T is an acceptable
|| || || || || || || || || || ||
risk, what item is given to T? - correct answer ✔Conditional receipt.
|| || || || || || || || || || ||
A conditional receipt binds the insurer to coverage as of the date of the
|| || || || || || || || || || || || || || ||
application or medical exam, provided the proposed insured is determined
|| || || || || || || || || ||
to be an acceptable risk.
|| || || ||
What is required in the Florida Employee Health Care Access Act? - correct
|| || || || || || || || || || || || ||
answer ✔Small group benefit plans are to be issued on a "guarantee-issue"
|| || || || || || || || || || ||
basis
||
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.
|| || || || ||
In this situation, benefits will be paid to P because P survived the accident
|| || || || || || || || || || || || || ||
and is the primary beneficiary.
|| || || ||
The health insurance program which is administered by each state and
|| || || || || || || || || || ||
funded by both the federal and state governments is called - correct
|| || || || || || || || || || || ||
answer ✔Medicaid- is funded by both the federal and state governments
|| || || || || || || || || || ||
and administered by individual states.
|| || || ||
Which of the following BEST describes a short-term medical expense policy?
|| || || || || || || || || ||
- correct answer ✔Nonrenewable.
|| || || ||
, A typical short-term medical expense policy is best described as
|| || || || || || || || || || ||
nonrenewable.
Which of the following statements about noncontributory employee group
|| || || || || || || || ||
life insurance is FALSE? - correct answer ✔A minimum number of
|| || || || || || || || || || ||
employees is required to participate". Noncontributory employee group life
|| || || || || || || || ||
insurance plans must cover ALL eligible employees at all times
|| || || || || || || || ||
A Disability Income policyowner recently submitted a claim for a chronic
|| || || || || || || || || || ||
neck problem that has now resulted in total disability. The original neck
|| || || || || || || || || || || ||
injury occurred before the application was taken 5 years prior. The neck
|| || || || || || || || || || || ||
injury was never disclosed to the insurer at the time of application. How
|| || || || || || || || || || || || ||
will the insurer handle this claim? - correct answer ✔Claim will be paid and
|| || || || || || || || || || || || ||
coverage will remain in force.
|| || || || ||
After a policy has been in force for 2 (sometimes 3) years, it enters the
|| || || || || || || || || || || || || || ||
incontestable period, in which the insurer may not deny a claim based on|| || || || || || || || || || || || ||
information not disclosed at the time of application. || || || || || || ||
S takes out a health insurance policy which contains a provision that states
|| || || || || || || || || || || ||
that the agent does not have the authority to change the policy or waive
|| || || || || || || || || || || || || || ||
any of its provisions. Which health policy provision is this? - correct answer
|| || || || || || || || || || || ||
✔Entire Contract.
|| ||
The Entire Contract provision states that the agent does NOT have the
|| || || || || || || || || || || || ||
authority to change the policy or waive any of its provisions.
|| || || || || || || || || ||
What type of life insurance gives the greatest amount of coverage for a
|| || || || || || || || || || || || ||
limited period of time? - correct answer ✔Term life.
|| || || || || || || ||
