Life, Health, & Annuity 2-15 Exam Questions and Verified Answers

Life, Health, & Annuity 2-15 Exam Questions and Verified Answers Replacing a life insurance policy When replacing a life insurance policy an insurance producer must submit a notice to both the applicant and the insurance producers own company regarding the replacement All must appear on all applications Agents name & signature, the name of the company and the agents license number disability benefits Can be delayed up to 90 days depending on the policy Transaction insurance Includes all of the following: preliminary negotiations towards the sale of insurance, solicitation or inducement to purchase insurance, and effecting a contract of insurance. Group plan The law requires that each HMO offering a group plan within Florida must have an open enrollment period of not less than 30 days during every 18 month period. CFO penalties Fine, suspension of license, revocation of license NAIC Objectives To promote uniformity of insurance legislation among the states, to increase efficiency of insurance regulation, and to protect the interest of the insuring public. Florida Life & Heath Guaranty Association All states have guaranty funds or guaranty associations Re-entry option Provides the insured a rate lower than what the contract states Renewable Term Insurance The company must renew the policy at the insureds request, without the insured having to prove good health. Adhesion Life insurance is a contract of adhesion because it is drawn up solely by the insured company Consideration for Health Insurance The considers clause may specify the insureds right to renew, two principal elements are the premium payment and the application and the amount and frequency of payment are stated within the consideration clause. Twisting and rebating Apply to both life and health insurance Term Is the most commonly used for group life insurance Health insurance companies Are not voluntary service organizations A multiple protection policy Pays a benefit of double or triple the face amount if death occurs during a specific period Typical health insurance Covers most things except expenses associated with treatment of injury or sickness Emergency period Is not recognized as an income need period for survivors in life insurance planning Coinsurance The insured bears a percentage of the cost of health care services being received.