FLORIDA 240 PRACTICE EXAM QUESTIONS AND
ANSWERS 2024/2025 100% PASS
"An insured pays a monthly premium of $100 for her health insurance. What would be the duration of
the grace period under her policy? - CORRECT ANSWER=> 10 days.
The grace period is 7 days if the premium is paid weekly, 10 days if paid monthly, and 31 days for all
other modes."
"An insurance contract requires that both the insured and the insurer meet certain conditions in order
for the contract to be enforceable. What contract characteristic does this describe? - CORRECT
ANSWER=> Conditional
A conditional contract requires both the insurer and policyowner to meet certain conditions before the
contract can be executed, unlike other types of policies which put the burden of condition on either the
insurer or the policyowner."
"How are HMO territories typically divided? - CORRECT ANSWER=> Geographic areas"
"A participating insurance policy may do which of the following?
a) Provide group coverage
b) Pay dividends to the stockholder
c) Require 80% participation
d) Pay dividends to the policyowner - CORRECT ANSWER=> d) Pay dividends to the policyowner."
"When may an insurer require an insured to provide genetic information? - CORRECT ANSWER=>
Never.
Insurers are prohibited from requesting a person or relative of a person to supply genetic information."
"An insured has endured multiple surgeries and hospitalizations for an illness during the last few months.
Her insurer no longer bills her for medical expenses. Which of the following allows for that?
a) Waiver of premium
b) Maximum loss
c) Stop-loss limit
d) Grace period - CORRECT ANSWER=> c) Stop-loss limit"
"L has a major medical policy with a $500 deductible and 80/20 coinsurance. Lis hospitalized and
sustains a $2.500 loss.
, What is the maximum amount that L will have to pay? - CORRECT ANSWER=> $900 L would first pay
the $500 deductible; out of the remaining $2,000, the insurer will pay 80% ($1,600) and the insured will
pay 20% ($400)."
"Which of the following entities has the authority to make changes to an insurance policy?
a) Department of Insurance
b) Broker
c) Producer
d) Insurer's executive officer - CORRECT ANSWER=> d) Insurer's executive officer
Only an executive officer of the company, not an agent, has authority to make any changes to the policy.
The insurer must have the insured's written agreement to the change."
"All of the following statements about Medicare supplement insurance policies are correct EXCEPT
a) They cover the cost of extended nursing home care.
b) They cover Medicare deductibles and copayments.
c) They supplement Medicare benefits.
d) They are issued by private insurers. - CORRECT ANSWER=> a) They cover the cost of extended
nursing home care."
"Long-term care coverage may be available as any of the following options EXCEPT:
a) Endorsement to a life policy.
b) Endorsement to a health policy.
c) Group long-term care
d) Individual long-term care. - CORRECT ANSWER=> b) Endorsement to a health policy.
LTC policies may be purchased on an individual or group basis, or as an endorsement to a life insurance
policy."
"If an insurance company offers Medicare supplement policies, it must offer which of the following
plans?
a) В-N
b) A-D
c) A
d) A & B - CORRECT ANSWER=> c) A
An insurance company must make available to each applicant a policy form offering the basic core
benefits (Plan A) if it will offer any Medicare Supplement policies. An insurance company does not have
to issue all or any of the plans B through N."
ANSWERS 2024/2025 100% PASS
"An insured pays a monthly premium of $100 for her health insurance. What would be the duration of
the grace period under her policy? - CORRECT ANSWER=> 10 days.
The grace period is 7 days if the premium is paid weekly, 10 days if paid monthly, and 31 days for all
other modes."
"An insurance contract requires that both the insured and the insurer meet certain conditions in order
for the contract to be enforceable. What contract characteristic does this describe? - CORRECT
ANSWER=> Conditional
A conditional contract requires both the insurer and policyowner to meet certain conditions before the
contract can be executed, unlike other types of policies which put the burden of condition on either the
insurer or the policyowner."
"How are HMO territories typically divided? - CORRECT ANSWER=> Geographic areas"
"A participating insurance policy may do which of the following?
a) Provide group coverage
b) Pay dividends to the stockholder
c) Require 80% participation
d) Pay dividends to the policyowner - CORRECT ANSWER=> d) Pay dividends to the policyowner."
"When may an insurer require an insured to provide genetic information? - CORRECT ANSWER=>
Never.
Insurers are prohibited from requesting a person or relative of a person to supply genetic information."
"An insured has endured multiple surgeries and hospitalizations for an illness during the last few months.
Her insurer no longer bills her for medical expenses. Which of the following allows for that?
a) Waiver of premium
b) Maximum loss
c) Stop-loss limit
d) Grace period - CORRECT ANSWER=> c) Stop-loss limit"
"L has a major medical policy with a $500 deductible and 80/20 coinsurance. Lis hospitalized and
sustains a $2.500 loss.
, What is the maximum amount that L will have to pay? - CORRECT ANSWER=> $900 L would first pay
the $500 deductible; out of the remaining $2,000, the insurer will pay 80% ($1,600) and the insured will
pay 20% ($400)."
"Which of the following entities has the authority to make changes to an insurance policy?
a) Department of Insurance
b) Broker
c) Producer
d) Insurer's executive officer - CORRECT ANSWER=> d) Insurer's executive officer
Only an executive officer of the company, not an agent, has authority to make any changes to the policy.
The insurer must have the insured's written agreement to the change."
"All of the following statements about Medicare supplement insurance policies are correct EXCEPT
a) They cover the cost of extended nursing home care.
b) They cover Medicare deductibles and copayments.
c) They supplement Medicare benefits.
d) They are issued by private insurers. - CORRECT ANSWER=> a) They cover the cost of extended
nursing home care."
"Long-term care coverage may be available as any of the following options EXCEPT:
a) Endorsement to a life policy.
b) Endorsement to a health policy.
c) Group long-term care
d) Individual long-term care. - CORRECT ANSWER=> b) Endorsement to a health policy.
LTC policies may be purchased on an individual or group basis, or as an endorsement to a life insurance
policy."
"If an insurance company offers Medicare supplement policies, it must offer which of the following
plans?
a) В-N
b) A-D
c) A
d) A & B - CORRECT ANSWER=> c) A
An insurance company must make available to each applicant a policy form offering the basic core
benefits (Plan A) if it will offer any Medicare Supplement policies. An insurance company does not have
to issue all or any of the plans B through N."
