insurance part 4

Which statement best defines a Multiple Employer Welfare Arrangement (MEWA)?

A joining together by employers to provide health benefits for employee

What is a foreign insurer?

An insurer with a home office in another state

1. When must an insurance company present an outline of coverage to an applicant for a Medicare supplement policy?

At the time of application

When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?

Foreign

In order for an employee to be considered eligible for small group insurance, he/she must work at least how many hours per week?

25

A state program of medical assistance for needy persons that is administered under federal guidelines is

Medicaid

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?

Mutual

Which term describes the benefits of a life insurance policy that the policyowner does not automatically relinquish even if the policy lapses?

Nonforfeiture values

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are

Not taxable since the IRS treats them as a return of portion of the premium paid

Which of the following is NOT specifically prohibited by state law as an unfair trade practice?

Reducing the premiums paid by employers for group insurance based on loss experience

If an employer decides to change its life insurance policy to a similar one with a different insurer, which of the following describes the extent that replacement regulations will be exercised?

Replacement regulations will not apply in this situation

All of the following are activities of daily living EXCEPT

Speaking

Which of the following may NOT be included in an insurance company's advertisement?

That its policies are covered by a state Guaranty Association

Who does the secondary addressee provision protect?

The insured over the age of 64

All of the following actions can be described as twisting EXCEPT

explaining to client the advantages of permanent insurance over term and suggesting changing policies

An insurance agent B likes to add additional coverages to applicants' policies and charge them for such coverages without their knowledge. The agents is guilty of

Sliding

Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another?

Twisting

Which document helps ensure that full and fair disclosure is provided to the recipient of a policy?

Outline of Coverage

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

Replacement rule

When are HMOs required to file a report of their activities with the Department of Financial Services?

Within 3 months of the end of each fiscal year

If an employee is accepted into a group insurance plan, which status will the employee have?

Certificate holder

What kind of policy issues certificates of insurance to insureds?

Group insurance

Shortly after a replacement transaction on a Medicare supplement policy, the insured decided to cancel the policy, but is unsure whether the free-look provision applies. The insured could find that information in the

Notice Regarding Replacement

Coverage of a newborn includes all of the following EXCEPT

transportation costs of up to $3,000 if medically necessary

Which of the following must an insurer obtain in order to transact insurance within a given state?

Certificate of authority

All small employer group health plans, in order to comply with the requirements of the Florida Employee Health Care Access Act, must be issued on what basis?

Guaranteed issue

Which statement is NOT true regarding a policy summary?

It must be combined with a sales illustration

An annuity contract is issued to a senior consumer over age 65. What is the maximum surrender charge for a withdrawal of money allowed on this annuity?

10%

What is the minimum age that a person can obtain a life insurance license?

18

In order to maintain an insurance license, an agent will need to satisfy Florida's continuing education requirement of

24 hours of continuing education education in every 2 year period

If a claim is made on a policy during the grace period, an insurer is allowed to deduct the overdue premium and to charge interest. What is the maximum allowed interest rate?

8%

All of following are the general qualifications for an agent's license EXCEPT

have a high school diploma

What term best describes the act of withholding material information that would be crucial to an underwriting decision?

Concealment

Long-term care policies require that in addition to the applicant at least one person must be designated in the policy. What is the role of that designated person?

To receive notice of policy lapse or termination

How must a replacing producer respond to an applicant wishing to replace existing life insurance?

The producer must provide the applicant with a Notice Regarding Replacement

In accordance with the Code of Ethics, agents must provide a completed application to

The prospective insured and the insurer