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2024 / 2025 Florida Health and Life Insurance
State Exam Prep COMPLETE EXAM WITH
ANSWERS (ANSWERED BY VERIFIED TUTORS)
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? Garunteed Renewable An incomplete life insurance application submitted to an insurer will result in which of these actions? 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 6 Months
Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance? Entire cash surrender value is taxable Which of these is considered a mandatory provision? 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? Issue the policy with an altered Time of Payment of Claims provision Which of the following phrases refers to the fees charged by a healthcare professional? 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?
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? proof of loss Association Plans that are designed to provide health benefits to their members are regulated by the state because 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? It varies according to contracts
When does a life insurance contract become effective if the initial premium is not collected during the application process? 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: Policy Loan Provision Medicare Part A and Part B do no pay for: Dental Work When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take? Void the policy only if it is discovered during the Contestable period and proven to be material The insuring Clause States the scope and limits of the coverage
Which of the following employer tasks does a Professional Employer Organization normally handle? Administration tasks What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time? Decreasing Term Which action could result in a hearing being ordered by the Department of Financial Services? Performing insurance transactions without a license What kind of special need would a policyowner require with an Adjustable Life insurance policy? Flexible Premiums
The premiums paid by an employer for his employee's group life insurance are usually considered to be: Tax deductible to the employer Which of the following consists of an offer, acceptance, and consideration? Contract Which of the following statements is true about most Blue Cross/Blue Shield organizations? They are non-profit organizations Upon delivery of a rated life insurance policy, the Producer must obtain each of the following, EXCEPT: Signed HIPAA disclosure Which of the following characteristics is associated with a large group disability income policy? No medical underwritting
When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n): Exclusion A Stock insurance Company 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? 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 an agents comission Which Accident and Health policy provision addresses preexisting conditions?
Time Limit on Certain Defenses Which of the following individual health insurance policies will provide the broadest protection? Major Medical Which of the following situations does NOT apply to the Florida Replacement Rule? 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? 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?
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: 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: $300, 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? The insured
The minimum age at which a person can sign a life insurance application is 15 Years Which of these would be considered a Limited-Pay Life policy? 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? 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? 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?
Which of the following factors affects the amount of monthly disability benefits payable under Social Security? The amount of benefits availible from other sources Which of the following statements regarding a Tax Sheltered Annuity (TSA) is INCORRECT? 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: 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? 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: noncancellable Which of the following is NOT included in an annuity contract? AD&D rider Disability policies do NOT normally pay for disabilities arising from which of the following? War All of these are considered sources of underwriting information about an applicant, EXCEPT: Rating Services Taking receipt of premiums and holding them for the insurance company is an example of: Fiduciary Responsibillity
Z owns a Disability Income policy with a 30-day Elimination period. Z contracts pneumonia that leaves him unable to work from January 1 until January 15. Z then becomes disabled from an accident on February 1 and the disability lasts until July 1 the same year. Z will become eligible to receive benefits starting on: March 1 The elimination period of the time between the onset of a disability, and the time you are eligibe for benefits. It is best thought of as a deductible period for your policy. After a 30-Day Elimination period, Z will become eligible for recieving benefits on March 1. When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? at future dates specifies in the contrac with no evidence of insurability required Which is true concerning a Variable Life Universal Life Policy? Policyowner controls where the investment will go and selects the amount of the premium payment
A whole life insurance policy endows when the: Cash Value equals the death benefit Health insurance benefits NOT covered due to an act of war are: excluded by the insurer in the contract provisions When applied to Whole Life insurance, the word "straight" denotes: the duration of premium payments Which statement is TRUE in regards to a policy loan? Past-due interest on a policy loan is added to the total debt WHat is the purpose of the U.S.A. Patriot Act? detect and deter terrorism
