Florida Life and Health Final Exam – Questions and Answers Latest Version Already Passed

Florida Life and Health Final Exam – Questions and Answers Latest Version Already Passed What does a whole life insurance policy guarantee? A fixed premium and guaranteed cash value accumulation What is the purpose of the incontestability clause in a life insurance policy? It prevents the insurer from contesting a claim after the policy has been in force for two years What is the free-look period required by Florida law for life insurance policies? 14 days What does the waiver of premium rider do? Waives premium payments if the insured becomes disabled What is the primary function of underwriting in life and health insurance? To assess the risk of the applicant and determine premium rates 2 How long is the grace period for health insurance premiums in Florida? 31 days Who can be named as a beneficiary in a life insurance policy? Any person or entity with insurable interest What is a renewable term life insurance policy? A policy that can be renewed at the end of the term without a new medical exam What does a health maintenance organization (HMO) require members to do? Use network providers and usually select a primary care physician What is coinsurance in a health insurance policy? The percentage of costs shared between the insurer and insured after the deductible is met What is a contingent beneficiary? The person or entity who receives the death benefit if the primary beneficiary is deceased 3 What is the purpose of the Florida Life and Health Insurance Guaranty Association? To protect policyholders if an insurer becomes insolvent What type of life insurance policy combines insurance with an investment feature? Variable life insurance What is a nonforfeiture option in a life insurance policy? A provision allowing the policyholder to receive some value if the policy lapses What is the elimination period in disability insurance? The waiting period before benefits begin after a disability occurs What does a long-term care insurance policy cover? Custodial care services such as nursing home and assisted living care What is the Florida law requirement for continuing education for life and health agents? 24 hours every two years 4 When must a producer notify the Florida Department of Financial Services of a change of address? Within 30 days of the change What is a riders’ role in a life insurance policy? To add or modify benefits beyond the basic policy coverage What is the difference between a health savings account (HSA) and a flexible spending account (FSA)? An HSA is owned by the individual and can roll over funds, while an FSA is owned by the employer and generally has a “use-it-or-lose-it” rule What is the Florida law regarding replacement of life insurance policies? Agents must provide a Notice Regarding Replacement and submit it with the application What does the guaranteed insurability rider allow? The insured to purchase additional insurance at specified times without proof of insurability 5 How is the death benefit paid in a life insurance policy? As a lump sum to the beneficiary unless otherwise specified What is the difference between a group and an individual health insurance policy? Group policies cover multiple members under one contract; individual policies cover one person What is the primary purpose of a coinsurance clause in a major medical policy? To prevent overutilization of benefits by sharing costs with the insured When does a health insurance policy typically become incontestable in Florida? After two years from the policy issue