Florida Health and Life Insurance State Exam Revised Practice Exam 1 2025

Florida Health and Life Insurance State Exam Revised Practice Exam 1 2025 Which Accident and Health policy provision addresses preexisting conditions? - Correct Ans-Time Limit on Certain Defenses Which of the following individual health insurance policies will provide the broadest protection? - Correct Ans-Major Medical Which of the following situations does NOT apply to the Florida Replacement Rule? - Correct Ans-An existing policyholder purchases an additional policy from the same insurer Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take? - Correct Ans-Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company Under which of the following circumstances will the benefits under COBRA continuation coverage end? - Correct Ans-All group health plans are terminated by the employer Which type of renewability best describes a Disability Income policy that covers an individual until the age of 65, but the insurer has the right to change the premium rate for the overall risk class? - Correct Ans-Garunteed Renewable An incomplete life insurance application submitted to an insurer will result in which of these actions? - Correct Ans-Application will be returned to the writting agent The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond - Correct Ans-6 Months Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance? - Correct Ans-Entire cash surrender value is taxable Which of these is considered a mandatory provision? - Correct Ans-Payment of Claims Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a Disability Income policy? - Correct Ans-Issue the policy with an altered Time of Payment of Claims provision FLORIDA LIFE FLORIDA LIFE Which of the following phrases refers to the fees charged by a healthcare professional? - Correct Ans-Usual, customary, and reasonable expenses D was actively serving in the Marines when he was killed in an automobile accident while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How much will D's beneficiary's receive? - Correct Ans-The full face amount N is covered under an individual Disability policy with a 30-day Elimination period and a monthly benefit of $500. N is totally disabled for 3 1/2 months. N's total benefit received on this claim is: - Correct Ans-$1,250 No benefits are available during the elimination period. Who does an agent represent during the solicitation or insurance? - Correct Ans-The insurance company Which of the following costs would a Basic Hospital/Surgical policy likely cover? - Correct Ans-Sugically removing a facial birthmark The federal income tax treatment of employer-provided group Medical Expense insurance can be accurately described as: - Correct Ans-Employee's premiums paid by the employer is tax-deductible to the employer as a business expenditure Premiums paid by an employer for an employee's coverage are deductible by the employer as a buisness expense What must the policyowner provide to the insurer for validation that a loss has occurred? - Correct Ans-proof of loss Association Plans that are designed to provide health benefits to their members are regulated by the state because - Correct Ans-They are insured by and authorized insurer Which of the following statements is CORRECT about the period in which a Term Policy can be converted? - Correct Ans-It varies according to contracts When does a life insurance contract become effective if the initial premium is not collected during the application process? - Correct Ans-When producer delives policy and collects initial premium A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the: - Correct Ans-Policy Loan Provision Medicare Part A and Part B do no pay for: - Correct Ans-Dental Work FLORIDA LIFE FLORIDA LIFE When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take? - Correct Ans-Void the policy only if it is discovered during the Contestable period and proven to be material The insuring Clause - Correct Ans-States the scope and limits of the coverage An applicant's medical information recieved from the Medical Information Bureau (MIB) may be furnished to the: - Correct Ans-Applicant's physician K has an Accidental Death and Dismemberment (AD&D) insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? - Correct Ans-Daughter K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? - Correct Ans-Primary Beneficiary. Which of the following is NOT considered rebating - Correct Ans-Sharing commissions with an agent licensed in the same line of buisness Which of the following employer tasks does a Professional Employer Organization normally handle? - Correct Ans-Administration tasks What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time? - Correct Ans-Decreasing Term Which action could result in a hearing being ordered by the Department of Financial Services? - Correct Ans-Performing insurance transactions without a license What kind of special need would a policyowner require with an Adjustable Life insurance policy? - Correct Ans-Flexible Premiums The premiums paid by an employer for his employee's group life insurance are usually considered to be: - Correct Ans-Tax deductible to the employer Which of the following consists of an offer, acceptance, and consideration? - Correct Ans-Contract Which of the following statements is true about most Blue Cross/Blue Shield organizations? - Correct Ans-They are non-profit organizations Upon delivery of a rated life insurance policy, the Producer must obtain each of the following, EXCEPT: - Correct Ans-Signed HIPAA disclosure FLORIDA LIFE FLORIDA LIFE Which of the following characteristics is associated with a large group disability income policy? - Correct Ans-No medical underwritting When an insured changes to a more hazardous occupation, which disability policy provision allows an insurer to adjust policy benefits and rates? - Correct Ans-Change of Occupation Provision What type of rider would be added to an Accident and Health policy if the policyowner wants to ensure the policy will continue if he/she ever becomes totally disabled? - Correct Ans-Waiver of Premium Rider 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 Ans Conditional Recipt A conditional recipt binds the insurer to coverage as the date of the application or medical exam, provided the proposed insured is determined to be an aceptable risk When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n): - Correct Ans-Exclusion A Stock insurance Company - Correct Ans-is owned exclusively by it's shareholders A stock insurance company is best defined as an incorperated company that has its capital divided into shares and is owned exclusively by its shareholders. When an insurance application is taken by a producer, which of these statements is true? - Correct Ans-Any changes made on the applicationrequire the applicants initials All of the following entries are classified under the four principal areas of Florida insurance law EXCEPT - Correct Ans-an agents comission Which of the following claims are typically excluded from Medical expense policies? - Correct Ans-Intentionally Self-Inflicted injuries T files a claim on his Accident and Health policy after being treated for an illness. The insurance company believes that T misrepresented his actual health on the initial insurance application and is, therefore, disputing the claim's validity. The provision that limits the time period during which the company may dispute a claim's validity is called: - Correct Ans-Time lImit of certain Defenses If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have? - Correct Ans-contributory FLORIDA LIFE FLORIDA LIFE What do families pay that are covered by the Florida Healthy Kids Corporation? - Correct Ans-A Portion of the premium A comprehensive major medical health insurance policy contains an Eligible Expenses provision which identifies the types of health care services that are covered. All of the following health care services are typically covered, EXCEPT for: - Correct Ans experimental and investigative servives A comprehensive major medical health insurance policy contains an Eligible Expenses provision which identifies the types of health care services that are covered. All of the following health care services are typically covered, EXCEPT for: - Correct Ans $300,000 G is involved in an automobile accident as a result of driving while intoxicated and suffers numerous injuries. According to the Intoxicants and Narcotics exclusion in G's policy, who is responsible for paying the medical bills? - Correct Ans-The insured The minimum age at which a person can sign a life insurance application is - Correct Ans-15 Years Which of these would be considered a Limited-Pay Life policy? - Correct Ans-Life Paid Up at age 70 J owns a business and has a Group Life policy covering her employees. J decides to cancel the policy by letting it lapse on the renewal date. What action must be taken? - Correct Ans-All of the employees must be notified of the cancellation either by the insurance company or through J Which of the following provisions is NOT required in HMO contracts/certificates? - Correct Ans-Seven-day Grace Period J is an agent who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of? - Correct Ans-Twisting The unfair trade practice of replacing an insurance policy from one insurer to another based on misrepresentation Which of the following statements about a Guaranteed Renewable Health Insurance policy is CORRECT? - Correct Ans-Premiums normally increase at the time of renewal M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take? - Correct Ans Pay face amount minus the past due premium Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company? - Correct Ans-annuity FLORIDA LIFE FLORIDA LIFE Which of the following factors affects the amount of monthly disability benefits payable under Social Security? - Correct Ans-The amount of benefits availible from other sources Which of the following statements regarding a Tax Sheltered Annuity (TSA) is INCORRECT? - Correct Ans-the income from the TSA is recieved tax-free M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect, EXCEPT: - Correct Ans Free-look period has expired W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the company discovered W's true age at issue had been 59. What would the normal procedure be under the misstatement of age provision in regard to the payment of the death claim? - Correct Ans-The proceeds would be reduced based on whatever the premium would have been if purchased at age 59 If an insurance company issues a Disability Income policy that it cannot cancel or for which it cannot increase premiums, the type of renewability that best desribes this policy is called: - Correct Ans-noncancellable Which of the following is NOT included in an annuity contract? - Correct Ans-AD&D