Florida Health, Life & Annuity End of Course Exam 3 Test Questions and Correct Answers

Florida Health, Life & Annuity End of Course Exam 3 Test Questions and Correct Answers How frequently must domestic insurers be examined by the Office of Insurance Regulation? Select one: a. Annually b. At least once every other year c. At least once every 5 years d. Upon the Office's discretion Domestic insurers must be examined by the Office of Insurance Regulation at least once every 5 years. The correct answer is: At least once every 5 years In Florida, what is the minimum number of employees to be considered a "small employer?" Select one: a. 1 b. 2 c. 5 d. 7 In Florida, a "small employer" has at least 1 and not more than 50 employees. The correct answer is: 1 Appropriately addressing an applicant's financial objectives is known as determining: Select one: a. Objectivity b. Suitability c. Financability d. Convertibility Insurers must determine the suitability of annuity products for applicants by establishing standards and procedures for making recommendations that appropriately address the applicant's financial objectives. The correct answer is: Suitability The services are provided on a prepaid per person basis called capitation in: Select one: a. PPOs b. HMOs c. POSs d. HSAs HMOs pay for services on a prepaid per person basis, which is called capitation. The correct answer is: HMOs The Insurance Department may place on probation, suspend, revoke or refuse to issue or renew an insurance producer license for which of the following reasons? Select one: a. Failing to pay child support b. Failing to pay alimony c. Failing to pay property tax d. Failing to pay union dues The Insurance Department may place on probation, suspend, revoke or refuse to issue or renew an insurance producer license for failing to pay child support. The correct answer is: Failing to pay child support Gregory recently purchased a one-year term insurance policy. At the end of the year, he can purchase an identical policy without having to show proof of insurability. Why type of policy did he purchase? Select one: a. Decreasing term b. Increasing term c. Renewable term d. Level premium term It is a renewable term policy that allows the policyowner to purchase another identical policy at the end of the year without proving insurability. The correct answer is: Renewable term When an insured completed his health policy application, his producer did not take a premium when he submitted it to the insurer. When the producer delivers the policy to the applicant, he needs to do all of the following EXCEPT: Select one: a. Ask the applicant to complete a statement of continued good health. b. Issue the applicant a conditional receipt. c. Collect the initial premium from the applicant. d. Explain the policy and provisions to the applicant. The producer does not need to issue the applicant a conditional receipt when he delivers the policy.