Florida 2-40 health license Exam UPDATED ACTUAL Questions and
CORRECT Answers
1. owners rights: if an individual health insurance policy provides a death benefit, the policyowner will be able
to designate a beneficiary and, unless the beneficiary designation is irrevocable, to change the beneficiary. the power
to change the beneficiary is provided in the change of beneficiary provision. the policyowner also has the right to make
any other change without the consent of the beneficiaries.
2. dependent children benefits: the group coverage may be extended to cover the insureds dependents.
eligible dependents include the insureds children, spouse, dependent parents, and anyone else upon which depen -
dency can be proven.
every policy providing coverage for a dependent child until a specified age will not terminate that coverage if the child
is dependent upon the insured and is incapable of self support because of physical or mental handicaps. proof of the
dependency is required within 31 days of the child attaining the maximum age. upon request, proof of dependency is
required annually after a 2 year period following attainment of maximum age
3. modes of premium payment: higher frequency of payments = higher premium payments
4. nonduplication and coordination of benefits: the purpose of the coordination of benefits
(COB) provision, found only in group health plans, is to avoid duplication of benefit payments and overinsurance when
an individual is covered under multiple group health insurance plans. the provision limits the total amount of claims
paid from all insurers covering the patient to no more than the total allowable medical expenses
5. primary plan: the plan that is responsible for providing the full benefit amounts as it specifies.
6. secondary or excess plan: once the primary plan has paid its full promised benefit, the insured submits
the claim to the secondary provider for any additional benefits payable (including deductibles and coinsurance). in no
case will the total amount the insured receives exceed the costs incurred or the total maximum benefits available under
all plans.
7. loss: amount covered by primary plan = amount covered by secondary plan
8. occupational coverage: provides benefits for illness, injury or disability resulting from accidents that occur
on or off the job
9. nonoccupational coverage: only covers claims that result from accidents or sickness occurring off the
job
10. personally owned health insurance: premium payments on personally owned disability income
policies are non deductible by the individual. however, desability income benefits are recieved income tax free by the
individual.
, in either medical expense insurance policies or long term care insurance policies, premiums paid by the individual
2/4
CORRECT Answers
1. owners rights: if an individual health insurance policy provides a death benefit, the policyowner will be able
to designate a beneficiary and, unless the beneficiary designation is irrevocable, to change the beneficiary. the power
to change the beneficiary is provided in the change of beneficiary provision. the policyowner also has the right to make
any other change without the consent of the beneficiaries.
2. dependent children benefits: the group coverage may be extended to cover the insureds dependents.
eligible dependents include the insureds children, spouse, dependent parents, and anyone else upon which depen -
dency can be proven.
every policy providing coverage for a dependent child until a specified age will not terminate that coverage if the child
is dependent upon the insured and is incapable of self support because of physical or mental handicaps. proof of the
dependency is required within 31 days of the child attaining the maximum age. upon request, proof of dependency is
required annually after a 2 year period following attainment of maximum age
3. modes of premium payment: higher frequency of payments = higher premium payments
4. nonduplication and coordination of benefits: the purpose of the coordination of benefits
(COB) provision, found only in group health plans, is to avoid duplication of benefit payments and overinsurance when
an individual is covered under multiple group health insurance plans. the provision limits the total amount of claims
paid from all insurers covering the patient to no more than the total allowable medical expenses
5. primary plan: the plan that is responsible for providing the full benefit amounts as it specifies.
6. secondary or excess plan: once the primary plan has paid its full promised benefit, the insured submits
the claim to the secondary provider for any additional benefits payable (including deductibles and coinsurance). in no
case will the total amount the insured receives exceed the costs incurred or the total maximum benefits available under
all plans.
7. loss: amount covered by primary plan = amount covered by secondary plan
8. occupational coverage: provides benefits for illness, injury or disability resulting from accidents that occur
on or off the job
9. nonoccupational coverage: only covers claims that result from accidents or sickness occurring off the
job
10. personally owned health insurance: premium payments on personally owned disability income
policies are non deductible by the individual. however, desability income benefits are recieved income tax free by the
individual.
, in either medical expense insurance policies or long term care insurance policies, premiums paid by the individual
2/4
