Laws and Rules Pertinent to Insurance (ch 8)

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

-0%

In Florida, 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

Employers with less than __ employees are affected by Florida's Health Insurance Coverage Continuation Act (Mini COBRA).

-20

In Florida, a health policy that is paid on a quarterly basis requires a grace period of:

-31 days

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?

-48 months

What do Dread Disease policies cover?

-A specific disease or illness

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 situations does NOT apply to the Florida Replacement Rule?

-An existing policyholder purchases an additional policy from the same insurer

When is it acceptable to share commissions with another agent?

-As long as both agents are licensed for the same lines of insurance

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

-At the moment of birth

Which of the following acts is an agent NOT authorized to do on behalf of an insurer?

-Authorize claim payments

Which of the following is a standard provision of the conversion privileges in a Group Life policy?

-Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis

What would be an accurate definition of "controlled business"?

-Insurance business that is written on the agent's own life, property, or interests.

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

-Marital status

Which Unfair Trade Practice involves making a false statement on an insurance application in order to receive money from an insurer?

-Misrepresentation

What are adjustable rates for life policy loans in Florida based on?

-Moody's corporate bond index

Which of the following is NOT an unfair claim settlement practice?

-Needing written documentation of claim details

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

-Notice to existing and replacing insurers of intention to replace

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

-Projection of the policy's future costs

Which of the following provisions is NOT required in HMO contracts/certificates?

-Seven-day grace period

Which of the following is NOT considered rebating?

-Sharing commissions with an agent licensed in the same line of business

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

-The amount of premium collected at this location

A stock insurance company:

is owned exclusively by its shareholders

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

-The possible tax ramifications as a result of the transaction. (An agent must disclose the possible tax consequences of replacing or exchanging an existing annuity or life insurance policy.)

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

-The premiums for the handicapped child 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

Group Life policies in Florida are required to contain a conversion privilege that allows for conversion:

-To an individual policy for a stated period of time. (In Florida, Group Life policies must contain a conversion privilege that allows for conversion to an individual policy for a specified period of time.)

Which of the following employer taks does a professional employer organization normally handle?

-administration tasks

Insurance companies that are organized in countries outside the United States are referred to as

-alien

Which of the following is the best description of 'insurer'?

-any person, coporation, association, or society that writes insurance contracts

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

-are eligible to participate, regardless of their individual health history

The coordination of benefits (COB) provision exists in order to:

-avoid duplication of benefit payments

The insurer must provide a prospective buyer with a(n)

-buyer's guide and policy summary

The policy summary contains specific information on all of the following, EXCEPT:

-commission

The insurance Guaranty Fund Association is

-funded by admitted insurance companied through assessments

A multiple Employer Welfare Arrangement provides what type of benefits?

-insurance

A license may be denied, suspended, or revoked if the licensee

-is found guilty of misrepresentation

With a medical discount plan, how often would a person generally pay a fee to get discounts on specific services?

-monthly

An example of unfair discrimination would be

-offering different terms of coverage for different policyowners having the same risk classification

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

-once each year

What is the purpose of the Insurance Guanraty Fund Association?

-protect policyowners against insolvent insurance companies

A long-term care lapse notice must be delivered to both the applicant and

-secondary addressee

According to Florida's life insurance replacement laws, a policyowner must be provided with a written Comparison and Summary Statement when it's requested by

-the policyowner

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

Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent A) only if the child is incapable of employment and chiefly dependent on the policyowner B) for up to an additional 10 years only C) only if physically disabled D) only if mentally disabled

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

Which of the following is NOT a consequence for placing business with an unauthorized insurer? A) Third degree felony B) First degree misdemeanor C) Insurance license revoked D) Responsible for unpaid claims

B) First degree misdemeanor

In Florida, deceptive advertising is considered to be A) a form of coercion B) a form of sliding C) a form of rebating D) a form of misrepresentation

D) a form of misrepresentation

Insurers/agent must, in Florida, offer and issue all small employer health plans on a ___ basis: A) fair B) nonrenewal C) discounted D) guaranteed-issue

D) guaranteed-issue

Who owns a stock company?

stockholders