Chapter exam - florida laws and rules

What is required in the Florida Employee Health Care Access Act?

Small group benefit plans are to be issued on a "guarantee-issue" basis

The coordination of benefits (COB) provisions exists in order to

Avoid duplication of benefit pyments

A licensed agent must be appointed by an insurance company to solicit insurance in Florida. The agent's license will terminate if a certain period of time elapses without being appointed. How long is this period of time? *12 months *24 months *36 months *48 months

*48 months (An agent's license will terminate if the agent allows 48 months to elapse without being appointed for the class or classes of insurance listed on the license.)

Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed? *Coercion *Fraud *Misrepresentation *Sliding

*Misrepresentation (An agent who tells a client that dividends are guaranteed may be guilty of misrepresentation.)

Association Plans that are designed to provide health benefits to their members are regulated by the state because *they are insured by an authorized insurer *they conduct business in Florida *they provide a service to their members *they require a certain level of member participation

*they are insured by an authorized insurer (Association Plans must be fully insured by an authorized insurer. The insurer is subject to state regulation.)

What is Florida's definition of Life insurance replacement?

A transaction in which a new policy is bought an an old policy.

When is a Group Health Policy required to provide coverage for a newborn child?

At the moment of birth

Which of the following situations are NOt subject to Florida life insurance laws?

Insurance companies' day-to-day operations

An agent selling Medicare Supplement policies must provide every applicant with a(n)

Suitability form

In Florida, the underwriting and issuance of a master group health policy requires that all employees

are eligible to participate, regardless of their individual health history

An individual covered under a Group Life insurance policy is considered to be a(n)

certificate holder

T is an agent and when hired, is reminded that he has a responsibility to handle clients' funds in an honest and ethical manner. This responsibility is referred to as

Fiduciary responsibility

Which of the following is NOT a consequence for placing business with an unauthorized insurer?

First degree misdemeanor

Nonprofit life insurance providers that are covered by a special section in the Florida insurance code are called

Fraternal life insurance organizations

Under Florida law, a variable annuity policyowner must be notified of the accumulated value of the contract

once each year

Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent

only if the child is incapable of employment and chiefly dependent on the policyowner

Florida's 14-day free-look period for life insurance policies begins at the

Date of delivery

When replacing or exchanging an annuity, the agent must disclose to the annuitant

the possible tax ramifications as a result of the transaction

T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert

to an individual policy upon employment termination

All of these are a prerequisite for becoming a licensed agent EXCEPT

to graduate from high school

J is an agent who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of?

twisting

A group plan was recently terminated. In Florida, how many days are covered individuals guaranteed coverage after a group plan's termination?

31 days

How many days does an insurance company have to reject a reinstatement application before it is automatically reinstated?

45

The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond

6 months

According to Florida law, an additional notice must be issued after the standard grace period has expired for policyowners age

64

Which of the following is an example of an Unfair Trade Practice?

coercion

An example of an unfair claims practice would be

failing to effectuate prompt, fair, and equitable settlements of a claim

What is the required minimum percentage of employee participation for a noncontributory group health insurance plan according to Florida Law?

0%

In Florida, a monthly-premium health insurance policies must provide a grace period of at least

10 days

The minimum age at which a person can sign a life insurance application is

15 years

In Florida, most life insurance policies heave a contestability period of

2 years

Agents that have been licensed for less than six years must complete __ hours of continuing education every two years.

24

Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund?

30

Which of the following employer tasks does a Professional Employer Organization normally handle?

Administration tasks

Which two entities regulate variable annuities?

Department of Financial Services; and Securities Exchange Commission

Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy?

Limitation on pre-existing conditions for up to 12 months

Which of the following documents must an agent submit to the replacing insurance company during the replacement of an existing life insurance?

Notice to existing and replacing insurer of intention to replace

How can an agent-in-charge have more than one location?

Only if the agent-in-charge is present when insurance activity occurs

K is an agent who made an improper sale of an annuity to a client. Which of the following corrective actions would the Department of Financial Services likely order K to take?

Pay monetary restitution to the client

Which action could result in a hearing being ordered by the Department of Financial Services?

Performing insurance transactions without a license

Which of the following is NOT required in the Outline of Coverage for a health insurance policy?

Projection of the policy's future costs

A mutual insurance company and a stock insurance company have one main difference between them. What is this major contract?

Stock company owned by shareholders and mutual company owned by policy owners

Which of the following factors is NOT considered when the Department of Financial Services determines if an agent's home is and insurance agency

The amount of premium collected at this location

According to Florida, which of the following situations would a dependent handicapped child NOT be covered under a Family Health Policy?

The premiums are not paid

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

Defamation occurs when an agent makes a false statement intended to

malign another insurer

According to Florida Law, which of the following information does NOT need to be obtained by an agent recommending an annuity purchase?

marital status

A stock life insurance company that issues both participating and nonparticipating policies is doing business on

mixed plan

Under an individual Disability policy in Florida, what is the minimum schedule of time in which claims must be made to an insured?

monthly