Health Insurance Florida 2-40 Practice Exam Questions 1
with Answers Graded A
Which of the following laws requires an insurer to about the financial continuation of the business if
notify an applicant in writing that an investigative either of them should become permanently
consumer report may be made on the applicant? disabled. In this situation, a producer would
-Uniform Provisions Law. MOST likely recommend which of the following
-Freedom of Information Act. types of contracts?
-Medical Information Bureau Disclosure Act -Basic Hospital
-Fair Credit Reporting Act (Insurance Information -Disability Buy-Out
and Privacy Protection Act) - ANSWER - -Comprehensive Major Medical
Fair Credit Reporting Act (Insurance Information -Short-Term Disability Income - ANSWER -
and Privacy Protection Act) Disability Buy-Out
Group health insurance specifies that what Which of the following health policies requires a
percentage of eligible individuals MUST be beneficiary designation?
offered coverage under a noncontributory plan? -Travel Accident
-25 -Medicare Supplement
-50 -Blanket
-75 -Long Term Care - ANSWER -Travel
-100 - ANSWER -100 Accident
Under an Accidental Death and Dismemberment Suicide, pre-existing conditions and self-inflicted
(AD&D) policy, insurable interest must exist at injuries are dealt with in which of the following
which of the following times? policy features?
-When a change of beneficiary is requested -Extensions of coverage
-At the inception of the policy -Benefits clause
-When a beneficiary other than a relative is -Riders
named -Exclusions - ANSWER -Exclusions
-At the time a claim is submitted -
ANSWER -At the inception of the policy
An insured whose Disability Income policy
contains a Change of Occupation clause takes a
When periodic claim payments are required new job in a more hazardous occupation and fails
under a long-term disability income policy, an to notify the insurer of the change. One year
insurer MUST make payments to an insured at later, the insured becomes disabled. The insurer
least once every: will most likely take which of the following
-month actions?
-three months -Cancel the policy and refund one year's
-six months premiums
-year - ANSWER -month -Settle the claim according to what the premiums
would have purchased under the more
hazardous occupation
M and N own a small interior design studio that -Pay the claim in full and then cancel the policy
employs six people. The owners are concerned -Pay the claim after deducting an extra one-year
1/8
, Health Insurance Florida 2-40 Practice Exam Questions 1
with Answers Graded A
premium payment - ANSWER -Settle the the insurance company before it pays benefits to
claim according to what the premiums would the policyowner - ANSWER -The waiting
have purchased under the more hazardous period a new hire must satisfy prior to becoming
occupation eligible for group health coverage
Which of the following definitions of disability Under a group health plan, an employer may
would cover a permanent partial disability? offer additional benefits to classes of employees
-Own occupation on the basis of all of the following factors
-Any occupation EXCEPT:
-Residual disability -length of employment
-Presumptive disability - ANSWER - -gender
Residual disability -salary grade
-job category - ANSWER -gender
When delivering a policy to a client, a producer
should take all of the following actions EXCEPT: An insured becomes disabled three years after
-Collect any premiums due his Disability Income policy is issued. The
-fully explain all exclusions and/or riders disability is caused by a condition that existed
-keep the policy in the producer's office for safe- prior to the policy issue date but was not
keeping on behalf of the client specifically excluded from coverage. In this
-review all benefits provided by the policy - situation, the insurer will most likely take which of
ANSWER -keep the policy in the producer's the following actions?
office for safe-keeping on behalf of the client -Pay the full claim
-Pay the claim for a maximum of six months only
-Deny the claim on the basis of misrepresentation
The Social Security program provides all of the -Deny the claim because it involves a pre-existing
following benefits EXCEPT: condition - ANSWER -Pay the full claim
-Retirement
-survivor
-disability On June 1, S purchased a Major Medical policy
-workers compensation - ANSWER - and paid the initial premium to Producer T. On
workers compensation July 1, Producer T received the policy from the
insurance company. The policy contained a Ten-
Day Free Look provision. On July 3, Producer T
Which of the following definitions MOST attempted to deliver the policy but found that S
accurately describes the Probationary Period? was not at home. On July 5, Producer T was able
-The period of time from the date of the loss until to deliver the policy to S. On July 7, S decided he
the benefits begin did not want the policy. S had 10 days from which
-The period of time from the date of the loss until of the following dates to return the policy to the
benefits are actually received by the policyowner company and obtain a full premium refund?
-The waiting period a new hire must satisfy prior -July 1
to becoming eligible for group health coverage -July 3
-The period of time once a claim is received by -July 5
2/8
with Answers Graded A
Which of the following laws requires an insurer to about the financial continuation of the business if
notify an applicant in writing that an investigative either of them should become permanently
consumer report may be made on the applicant? disabled. In this situation, a producer would
-Uniform Provisions Law. MOST likely recommend which of the following
-Freedom of Information Act. types of contracts?
-Medical Information Bureau Disclosure Act -Basic Hospital
-Fair Credit Reporting Act (Insurance Information -Disability Buy-Out
and Privacy Protection Act) - ANSWER - -Comprehensive Major Medical
Fair Credit Reporting Act (Insurance Information -Short-Term Disability Income - ANSWER -
and Privacy Protection Act) Disability Buy-Out
Group health insurance specifies that what Which of the following health policies requires a
percentage of eligible individuals MUST be beneficiary designation?
offered coverage under a noncontributory plan? -Travel Accident
-25 -Medicare Supplement
-50 -Blanket
-75 -Long Term Care - ANSWER -Travel
-100 - ANSWER -100 Accident
Under an Accidental Death and Dismemberment Suicide, pre-existing conditions and self-inflicted
(AD&D) policy, insurable interest must exist at injuries are dealt with in which of the following
which of the following times? policy features?
-When a change of beneficiary is requested -Extensions of coverage
-At the inception of the policy -Benefits clause
-When a beneficiary other than a relative is -Riders
named -Exclusions - ANSWER -Exclusions
-At the time a claim is submitted -
ANSWER -At the inception of the policy
An insured whose Disability Income policy
contains a Change of Occupation clause takes a
When periodic claim payments are required new job in a more hazardous occupation and fails
under a long-term disability income policy, an to notify the insurer of the change. One year
insurer MUST make payments to an insured at later, the insured becomes disabled. The insurer
least once every: will most likely take which of the following
-month actions?
-three months -Cancel the policy and refund one year's
-six months premiums
-year - ANSWER -month -Settle the claim according to what the premiums
would have purchased under the more
hazardous occupation
M and N own a small interior design studio that -Pay the claim in full and then cancel the policy
employs six people. The owners are concerned -Pay the claim after deducting an extra one-year
1/8
, Health Insurance Florida 2-40 Practice Exam Questions 1
with Answers Graded A
premium payment - ANSWER -Settle the the insurance company before it pays benefits to
claim according to what the premiums would the policyowner - ANSWER -The waiting
have purchased under the more hazardous period a new hire must satisfy prior to becoming
occupation eligible for group health coverage
Which of the following definitions of disability Under a group health plan, an employer may
would cover a permanent partial disability? offer additional benefits to classes of employees
-Own occupation on the basis of all of the following factors
-Any occupation EXCEPT:
-Residual disability -length of employment
-Presumptive disability - ANSWER - -gender
Residual disability -salary grade
-job category - ANSWER -gender
When delivering a policy to a client, a producer
should take all of the following actions EXCEPT: An insured becomes disabled three years after
-Collect any premiums due his Disability Income policy is issued. The
-fully explain all exclusions and/or riders disability is caused by a condition that existed
-keep the policy in the producer's office for safe- prior to the policy issue date but was not
keeping on behalf of the client specifically excluded from coverage. In this
-review all benefits provided by the policy - situation, the insurer will most likely take which of
ANSWER -keep the policy in the producer's the following actions?
office for safe-keeping on behalf of the client -Pay the full claim
-Pay the claim for a maximum of six months only
-Deny the claim on the basis of misrepresentation
The Social Security program provides all of the -Deny the claim because it involves a pre-existing
following benefits EXCEPT: condition - ANSWER -Pay the full claim
-Retirement
-survivor
-disability On June 1, S purchased a Major Medical policy
-workers compensation - ANSWER - and paid the initial premium to Producer T. On
workers compensation July 1, Producer T received the policy from the
insurance company. The policy contained a Ten-
Day Free Look provision. On July 3, Producer T
Which of the following definitions MOST attempted to deliver the policy but found that S
accurately describes the Probationary Period? was not at home. On July 5, Producer T was able
-The period of time from the date of the loss until to deliver the policy to S. On July 7, S decided he
the benefits begin did not want the policy. S had 10 days from which
-The period of time from the date of the loss until of the following dates to return the policy to the
benefits are actually received by the policyowner company and obtain a full premium refund?
-The waiting period a new hire must satisfy prior -July 1
to becoming eligible for group health coverage -July 3
-The period of time once a claim is received by -July 5
2/8
