Florida Health and Life Insurance Exam
A characteristic of Preferred Provider Organizations (PPOs) would be: - ANS -Discounted fees
for the patient (PPO - a group of doctors and hospitals in a designated area contract with an
insurer to provide services at a prearranged cost to the insured)
\A disability elimination period is best described as a: - ANS -time deductible
\A Health Reimbursement Arrangement MUST be established: - ANS -by the employer
\A life policy loan in Florida cannot charge a fixed rate of interest higher than - ANS -10%
\A life policy with a death benefit that can fluctuate according to the performance of its
underlying investment portfolio is referred to as: - ANS -Variable Life
\A Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits? - ANS
-Insurance
\A person insured under a health policy is required to give the insurance company a Notice of
Claim within how many days after a covered loss? - ANS -20
\A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy.
What rider would the physician add if he wants the ability to increase his policy benefit as his
practice and income grow? - ANS -Guaranteed Insurability Option rider
\A policy loan is made possible by which of these life insurance policy features? - ANS -Cash
value provision
\A policy that becomes a Modified Endowment Contract (MEC): - ANS -will lose many of its tax
advantages
\A policyowner's rights are limited under which beneficiary designation? - ANS -Irrecovable
\A student pilot can pay regular premium costs for her life insurance policy with the addition of
which of the following? - ANS -Aviation exclusion
\A variable insurance policy: - ANS -does not guarantee a return on investment accounts
\A young, married teacher has two children and owns a Whole Life policy. If the teacher wants
an Increasing Death Benefit to protect against inflation, the teacher should select which of the
following Dividend Options? - ANS -Paid-Up Additional Insurance
\ABC Insurance Company has accepted a life insurance application which contains unanswered
questions. The company then makes the application part of the life contract. In this situation, the
insurer has - ANS -waived one of its legal rights
\Accidental Death coverage is provided to commercial airline passengers in which of the
following types of policies? - ANS -Blanket Accident policy
\According to Florida law, a Group Life insurance policy requires a minimum of how many
insureds? - ANS -No minimum
\According to Florida Law, in which of the following situations would a dependent handicapped
child NOT be covered under a Family Health policy? - ANS -The premiums for the handicapped
child are not paid
\According to Florida's rules on disclosure, a life insurance applicant is expected to be provided
with - ANS -a Buyer's Guide and Policy Summary
, \According to Mandatory Uniform Policy Provisions, what is the maximum amount of time after
the premium due date during which the policy remains in force even though the premium has
not been paid? - ANS -31 days
\According to the Time Limit of Certain Defenses provision in an Individual Health Insurance
Policy, nonfraudulent misstatements first become incontestable: - ANS -two years from the date
of the policy was issued
\After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?
- ANS -File written proof of loss
\Agents that have been licensed for less than six years must complete ___ hours of continuing
education every two years. - ANS -24
\An agent gives a conditional receipt to a client for an insurance policy after collecting the initial
premium. When will the policy become effective? - ANS -When the conditions of the receipt are
met
\An agent selling Medicare Supplement policies must provide every applicant with a(n) - ANS
-Suitability form
\An agent who makes misleading statements that lead to the termination of an existing
insurance policy so that a new policy with another insurer can be taken out has committed -
ANS -twisting
\An employee with $25,000 group term life coverage was recently fired. This employee's group
coverage may be converted to a: - ANS -$25,000 individual whole life policy
\An example of false advertising would be - ANS -An insurer exaggerating its dividends in a
magazine advertisement
\An example of rebating would be - ANS -offering a client something of value not stated in the
contract in exchange for their business
\An individual covered under a Group Life insurance policy is considered to be a(n) - ANS
-certificate holder
\An individual has a Major Medical policy with a $5,000 deductible and an 80/20 Coinsurance
clause. How much will the INSURED have to pay if a total of $15,000 in covered medical
expenses are incurred? - ANS -$7,000 ($5,000 + 20% of the remaining bill = $7,000)
\An insurance company incorporated under the laws of the state in which its home office is
located is called a(n) ___ company. - ANS -domestic
\An insurance company receives E's application for an individual health policy. E did not
complete all of the medical history questions because she could not remember the exact dates.
E signed the policy and submitted it to the insurance company anyway. A few weeks later, E
suffers a heart attack and is hospitalized without completing the medical history questions and
paying the initial premium. E is not insured. Which of the following clauses details the conditions
that E did not meet? - ANS -Consideration clause
\Any changes made on an insurance application requires the initials of whom? - ANS -Applicant
\Association Plans that are designed to provide health benefits to their members are regulated
by the state because - ANS -they are insured by an authorized insurer
\B is a teacher who was injured in a car accident and cannot work. She is now receiving monthly
benefits as a result of this accident. Which type of policy does B have? - ANS -Disability Income
A characteristic of Preferred Provider Organizations (PPOs) would be: - ANS -Discounted fees
for the patient (PPO - a group of doctors and hospitals in a designated area contract with an
insurer to provide services at a prearranged cost to the insured)
\A disability elimination period is best described as a: - ANS -time deductible
\A Health Reimbursement Arrangement MUST be established: - ANS -by the employer
\A life policy loan in Florida cannot charge a fixed rate of interest higher than - ANS -10%
\A life policy with a death benefit that can fluctuate according to the performance of its
underlying investment portfolio is referred to as: - ANS -Variable Life
\A Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits? - ANS
-Insurance
\A person insured under a health policy is required to give the insurance company a Notice of
Claim within how many days after a covered loss? - ANS -20
\A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy.
What rider would the physician add if he wants the ability to increase his policy benefit as his
practice and income grow? - ANS -Guaranteed Insurability Option rider
\A policy loan is made possible by which of these life insurance policy features? - ANS -Cash
value provision
\A policy that becomes a Modified Endowment Contract (MEC): - ANS -will lose many of its tax
advantages
\A policyowner's rights are limited under which beneficiary designation? - ANS -Irrecovable
\A student pilot can pay regular premium costs for her life insurance policy with the addition of
which of the following? - ANS -Aviation exclusion
\A variable insurance policy: - ANS -does not guarantee a return on investment accounts
\A young, married teacher has two children and owns a Whole Life policy. If the teacher wants
an Increasing Death Benefit to protect against inflation, the teacher should select which of the
following Dividend Options? - ANS -Paid-Up Additional Insurance
\ABC Insurance Company has accepted a life insurance application which contains unanswered
questions. The company then makes the application part of the life contract. In this situation, the
insurer has - ANS -waived one of its legal rights
\Accidental Death coverage is provided to commercial airline passengers in which of the
following types of policies? - ANS -Blanket Accident policy
\According to Florida law, a Group Life insurance policy requires a minimum of how many
insureds? - ANS -No minimum
\According to Florida Law, in which of the following situations would a dependent handicapped
child NOT be covered under a Family Health policy? - ANS -The premiums for the handicapped
child are not paid
\According to Florida's rules on disclosure, a life insurance applicant is expected to be provided
with - ANS -a Buyer's Guide and Policy Summary
, \According to Mandatory Uniform Policy Provisions, what is the maximum amount of time after
the premium due date during which the policy remains in force even though the premium has
not been paid? - ANS -31 days
\According to the Time Limit of Certain Defenses provision in an Individual Health Insurance
Policy, nonfraudulent misstatements first become incontestable: - ANS -two years from the date
of the policy was issued
\After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?
- ANS -File written proof of loss
\Agents that have been licensed for less than six years must complete ___ hours of continuing
education every two years. - ANS -24
\An agent gives a conditional receipt to a client for an insurance policy after collecting the initial
premium. When will the policy become effective? - ANS -When the conditions of the receipt are
met
\An agent selling Medicare Supplement policies must provide every applicant with a(n) - ANS
-Suitability form
\An agent who makes misleading statements that lead to the termination of an existing
insurance policy so that a new policy with another insurer can be taken out has committed -
ANS -twisting
\An employee with $25,000 group term life coverage was recently fired. This employee's group
coverage may be converted to a: - ANS -$25,000 individual whole life policy
\An example of false advertising would be - ANS -An insurer exaggerating its dividends in a
magazine advertisement
\An example of rebating would be - ANS -offering a client something of value not stated in the
contract in exchange for their business
\An individual covered under a Group Life insurance policy is considered to be a(n) - ANS
-certificate holder
\An individual has a Major Medical policy with a $5,000 deductible and an 80/20 Coinsurance
clause. How much will the INSURED have to pay if a total of $15,000 in covered medical
expenses are incurred? - ANS -$7,000 ($5,000 + 20% of the remaining bill = $7,000)
\An insurance company incorporated under the laws of the state in which its home office is
located is called a(n) ___ company. - ANS -domestic
\An insurance company receives E's application for an individual health policy. E did not
complete all of the medical history questions because she could not remember the exact dates.
E signed the policy and submitted it to the insurance company anyway. A few weeks later, E
suffers a heart attack and is hospitalized without completing the medical history questions and
paying the initial premium. E is not insured. Which of the following clauses details the conditions
that E did not meet? - ANS -Consideration clause
\Any changes made on an insurance application requires the initials of whom? - ANS -Applicant
\Association Plans that are designed to provide health benefits to their members are regulated
by the state because - ANS -they are insured by an authorized insurer
\B is a teacher who was injured in a car accident and cannot work. She is now receiving monthly
benefits as a result of this accident. Which type of policy does B have? - ANS -Disability Income
