Series 215 Health Insurance License
Pierre is covered by his employer's group major medical plan. His employer pays for 75% of the premium and he pays for 25%. How much would a $10,000 benefit be taxable as income under this plan?
$0- Benefits that fall under a major medical plan are considered to be a reimbursement for a loss, and is not taxable as income.
An agent may provide a prospective client with an advertising gift, as long as the value about a gift does not exceed
$100
A group plan was recently terminated. In Florida, how many days are covered individuals guaranteed coverage after a group plan's terminated
31 Days
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
An insurance company must act on Accident and Health insurance application for the reinstatement within how many days?
45 days
How many days does an insurance company have to reject a reinstatement application before it is automatically reinstated? -31, 45, 60, 120
45 days
A license agent must be appointed by an insurance company to solicit insurance in Florida. The agents license will terminate if a certain period of lapses without being appointed. How long is this period
48 months
Oh, my policy loan in Florida cannot charge a fixed rate of interest higher than 7%, 8%, 9%, 10%
10%
Richard owns an insurance policy that is renewable only at the option of the insurance company. His policy is considered to be
Optionally renewable
Richard owns an insurance policy that is renewable only at the option of the insurance company. His policy is considered to be.
Optionally renewable
In group health care, what is the purpose of the coordination of benefits provision?
Determines what is paid by the primary and secondary insurers in the event of a claim
If an agent would like to sell Variable annuities, which state examination must the agent pass?
Life and Variable contracts
The monthly benefit for an individual disability, income policy is usually limited to a percentage of the insurance income, in order to avoid
Over insurance
In Florida, monthly, premium health insurance policies must provide a grace period of at least Seven days, 10 days, 14 days, 31 days
10 days
Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the consumer price index has gone up 4%, how much may Ron increase the face value of the policy?
$4,000
If an employee contributes 50% toward the disability plan premium provided by an employer; what would be considered the taxable income of $1000 monthly disability benefit
$500
Which of the following areas of state regulation is not protected by the savings clause in ERISA? Insurance, commerce, banking, securities
*Commerce (All of these areas of state regulation are protected by the savings clause in ERISA EXCEPT for commerce.)
Medicare supplement policies
-suitability -provide 30 day free look period on guaranteed basis -only limit preexisting conditions up to 6 months
What is the required minimum percentage of an employee participation for non contributory group health insurance plan, according to Florida law?
0%
A life policy loan in Florida cannot charge a fixed rate of interest higher than
10%
Long term care policies must offer a minimum benefit period of how long?
12 months
An insurer must furnish to a claimant forms for filing proof of loss within ___ days upon receiving a notice of claim.
15
The minimum age at which a person can sign a life insurance application is
15 years
Florida requires that coverage for newborns begins "from the moment of birth" and continues for
18 months
An insurance company can contest a life insurance contract due to application fraud within
2 years
In Florida, most life insurance policies have a contestability period of
2 years
In Florida, most life insurance policies have a contestability period of 1 year, 2 year, 3 years, 4 years
2 years
In Florida, most life insurance policy have a contestable period of
2 years
An insured must notify an insurer of a medical claim within how many days after an accident?
20
Eligibility for coverage under the Florida healthy kids corporation requires a Family to be within ?% a federal poverty level.
200%
In what year was the Florida office of financial regulation (OFR) created?
2003
How many hours of continuing education must a newly licensed agent complete every two years
24
How many hours of continuing education was a newly licensed agent complete every two years? 4, 8, 16, 24
24
Within how many days after a policy delivery can a Medicare supplement policy be returned for 100% premium refund? 15, 20, 25, 30
30
Within how many days must a licensee notify the department of financial services of a chain address? -30, 60, 90, 120
30
A life insurance policies grace period entitles the insured a period of no less than ___ days to make the premium payment 25 30 35 40
30 days
A life insurance policy is Grace. Entitles the insured no less than ____ days to make the premium payment. 25, 30, 35, 40
30 days
The free look period for all qualified long-term care policy sold in Florida is ___ days 10, 20, 30, 40
30 days
Within how many days after policy delivery can a Medicare supplement policy be returned for 100% premium refund?
30 days
___ is NOT an element of a valid contract -legal -competent parties -countersignature -consideration
Countersignature
A licensed agent must be appointed by an insurance company to solicit insurance in Florida. The agents license will terminate of 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 agents license will terminate if the agent last 48 months to a lapse without being appointed for the class or glasses of insurance listed on the license
The legal action provision, and a half contract is limited to no more than __ years -4 -3 -2 -5
5
One becomes eligible for Social Security disability benefits after having been disabled for
5 months
Every resident agent must have and maintain at their place of business the usual and customary records pertaining to transactions under their license for at least how long?
5 years
In Florida, what is the maximum percentage of controlled business an agent may produce?
50%
In Florida? What is the maximum percentage of controlled business? An agent may produce? -30%, 40%, 50%, 60%
50% In Florida, an agent's controlled business may NOT exceed a maximum of 50%.
An application for Medicare supplement coverage may not be denied by the insurer if the application was submitted within how many months after the applicant reaches the age of 65 One, three, six, nine months
6 months
Within how many days just a rollover be completed in order to avoid being taxed as current income
60 day rollover
And an employee sponsor contributory disability income plan the employer pays 60% of the premium on each employee pays 40% of the premium
60% of the benefit
According to Florida law an additional lapse notice must be issued after the standard grace period has expired for policy owners age
64 years or older
The open enrollment period for Medicare supplements begins at the age
65
When an insured changes to be more hazardous occupation, which disability policy provision allows an insurer to adjust policy benefits and rates
A change of occupation
Which of the following best describes a conditional insurance contract
A contract that requires certain conditions or acts by the insured individual
If an agent would like to sell variable annuities, which state exam must the agent pass? -variable annuities, accident and health insurance, life insurance, life and variable contracts
Life and variable contracts
All of these are valid options for an Adjustable Life Policy EXCEPT
A nonforfeiture option can be used to increase the death benefit
Which of the following is an example of the insureds consideration
A paid premium
What do families pay that are covered by the Florida Healthy Kids Corporation?
A portion of the premium. (Families with children covered by the Florida Healthy Kids Corporation program pay only a portion of the premium.)
If an insured's age was misstated on a life insurance policy has been misstated what is the insurers liability if the insured dies
A prorated death benefit
What do Dread Disease policies cover? -a specific disease or illness -all diseases and illnesses -only terminal illnesses -only heart-related diseases
A specific disease or illness
What is Florida's definition of life insurance replacement?
A transaction in which a new policy is bought and an old policy is terminated
Which of these is considered to be a living benefit option in a life insurance policy
Accelerated death benefit
Under a disability income policy, which provision would be payable at the cause of an injury is unexpected an accidental
Accidental bodily injury provision
Of the following different options, which of these is taxable Accumulation of interest, one-year term, reduction of premium, paid up additions
Accumulation at interest
All of the following will result in the suspension of an agents license, except Intentionally misrepresenting the provisions of a policy Acting with a fiduciary responsibility Forging name on an insurance application Been convicted of a felony
Acting with a fiduciary responsibility
Which of the following employer tasks does a a professional employer organization normally handle? Marketing strategies Setting sales quotas Administration tasks hiring staff
Administration tasks
Which of the following statements accurately describes the time limit on certain defenses
After a stated period of time, claims cannot be denied due to material misrepresentation on the application
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
An example of an unfair trade practice is
An agent making a material misrepresentation to the insured. (Making a material misrepresentation to an insured is considered to be an unfair trade practice.)
Which of following situations does not apply to Florida replacement rule
An existing policyholder purchases an additional policy from the same insurer
An example of false advertising would be
An insurer exaggerating its dividends in a magazine advertisement
Which of these is not considered to be a purpose of an annuity
Annuities are intended to create an estate
All of the following statements about health coverage for newborns are correct, except
Coverage during the first year is limited to congenital defects
One of the stated purposes of the life and health insurance guaranty association To guarantee interest rates on life and annuity policies To provide to all companies a guaranteed number of prospects each year To assist in the prevention of insure insolvencies To provide legal services for suits filed against insolvent company
Assist in the prevention of insure insolvencies
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? -accept premiums from policy owners -complete insurance applications -authorize claim payments -ask health related questions
Authorize claim payments
Which of the following acts is an agent not authorized to do on behalf of the insurer
Authorize claim payments
The following are nonforfeiture options, except -Cash surrender option Extended term option Reduced paid up Option Automatic premium loan option
Automatic premium loan option
Which of these factors helps determine an insurance life insurance premium
Avocation (hobby)
An accident and health insurer has just received written proof of loss from one of his insurance. The insured must now wait 60 days before -submitting another claim The insurer will pay the claim Bringing legal action against the insurer Purchasing more insurance from this insurer
Bringing legal action against the insurer
A variable life insurance agent must be licensed and appointed as a life and variable contract agent, as well as a -Accredited agent, broker dealer, certified variable dealer, registered managing agent
Broker dealer
A variable life insurance agent must be licensed and appointed as a life and variable contract agent, as well as...
Broker dealer
Which of the following can an agent provide to help a prospective client understand purchase the most appropriate product
Buyer's Guide
According to Florida's rules on disclosure, life insurance application is expected to be provided with -certificate of coverage and buyers guide -summary statement and buyers guide -buyers guide and policy summary -Written comparison and policy summary
Buyers Guide and a Policy Summary
According to floridas rules on disclosure, a life insurance applicant is expected to be provided with...
Buyers guide and policy summary
All of the following are eligibility requirements for association, group, life insurance, except
Contributory plans require a minimum of 25 participants
K is insured under a group life policy. K is considered to be a. Policy owner, annuitant, certificate holder, beneficiary
Certificate holder
The Bureau of Unclaimed Property is overseen by the
Chief Financial Officer
All of the following are elements of an insurance policy, except Are there insurance, definitions, conditions, claim forms
Claim forms
What would happen if a life insurance applicant is given a conditional receipt from an insurance agent and then dies the next day?
Claim will be paid if application is approved
J is an agent who recently told a claimant that his right might be impaired if he does not complete a release form within a specified time. What could this agent be found guilty of? Twisting, defamation, Coercion, rebating
Coercion
An applicant who pays the initial premium at the time of application is typically given a(n)
Conditional receipt
In an insurance contract, the element that shows each party is giving something of value is called Consideration Acceptance Purpose Offer
Consideration (Consideration is the element of an insurance contract which demonstrates that each party is giving something of value.)
An accident and health insurance policies premium requirements are set forth in which of the following provisions
Consideration clause
In Florida, which agency is responsible for the rehabilitation or liquidation of insurers? Office of attorney, general (OAG) department of financial services (DFS) office of consumer affairs (OCA) office of financial regulation (OFR)
Department of Financial Services (DFS)
Which two entities regulate variable annuities?
Department of Financial Services; and Securities Exchange Commission
Florida's 14 day free look period for life insurance policy begins at the Date of delivery Date of approval Date of application Date of physical examination
Date of delivery
The 14 day tree look period for life insurance behinds at the
Date of delivery
In what part of an insurance policy our policy benefits found? -Waivers -Declarations -Conditions -Entire contract
Declarations
Which of the following unfair trade practices involves an agent who makes malicious statements about another person's financial condition
Defamation
An insurance company incorporated under the laws of the state in which it's home office is located is a ____ company
Domestic
Florida, and insured domiciled in Inc. in this state is called a Alien company, admitted, domestic, foreign
Domestic company
In Florida, which employee is eligible for an employer's group term life plan?
Employee who works more than 40 hours per week
Which type of life insurance policy pays the face amount at the end of a specified. If the insured is still alive.
Endowment policy
All of the following qualifications for establishing a health care, savings account, HSA, except
Enroll in health plan with a prescription drug benefit
The purpose of the guaranty fund is to Ensure that claims filed against install that insurance companies will be home Ensure that premium rates are uniform throughout this state Approve disability policy forms Protect the public from fraudulent insurance company, marketing practices
Ensure that claims filed against insolvent insurance companies will be paying
S takes out a health insurance policy, which contains a provision that states that the agent does not have the authority to change the policy or waive any of its provisions. Which health policy provision is this?
Entire Contract
What is the name of the provision which states that a copy of the application must be attached to the policy when issued
Entire Contract
S takes out a health insurance policy, which contains a provision that states that the agent does not have the authority to change the policy or Waveny it's provisions. Which of the policy provision is this? Legal action Insurance with other insurers Entire contract Reinstatement
Entire contract
Which of the following health insurance provision requires that the application becomes part of the policy
Entire contract clause
Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. What kind of policy is this?
Equity index whole life
Which of these would limit a company's liability to provide insurance
Exclusion
Which of these would limit accompanies liability to provide insurance coverage -Waiver -rider -Exclusion -provision
Exclusion An exclusion as a condition in which limits the companies liability to provide coverage
Example of an unfair claim practice would be
Failing to effectuate prompt, Fair, and equitable settlements of a claim
Which of the following is not a consequence for placing business with an unauthorized insurer?
First degree misdemeanor
Which organization was established to provide funds to protect an insured in the event of an insurer's insolvency? National Association of insurance, commissioners Florida insurance guaranty fund association Department of financial services Office of insurance regulation
Florida insurance guaranty fund association
In Florida one agents, recommend changes being made for existing coverage. The agent must follow establish procedures. The name of this role is called.
Florida replacement rule
The financial services commission may hold hearings For any reason deemed necessary Only one a felony is involved When approved by the NAIC Only if there's a complaint filed
For any reason deemed necessary
In Florida and insurance license to conduct business in Florida, but domiciled in New Jersey is a
Foreign company
Nonprofit insurance providers that are covered by a special section in the Florida insurance code are called
Fraternal insurance organizations
Nonprofit life insurance providers that are covered by a special section in the Florida insurance code are called
Fraternal life insurance organizations
Nonprofit life insurance providers that are covered by a special section in the Florida insurance code are called. Fraternal life insurance organizations Domestic life insurance Unauthorized insurer's Mutual life insurers
Fraternal life insurance organizations
Which of the following employees may not be excluded from group life plan?
Full-time employees after the probationary period.
Which of these will typically authorize treatment from a specialist
Gatekeeper. A gatekeeper must authorize treatment from a specialist.
Which policy is exempt from replacement regulations
Group Life policy
The Florida employee health care access act was established to make -Group health insurance available to employees with up to 50 -Health insurance affordable for families with children -Individual Health insurance available to all Floridians -Health insurance affordable to retired individuals
Group health insurance available to employers with 50 or fewer employees
Barbara's policy includes a writer which allows her to purchase additional insurance at specific days or events without evidence of insurability. This writer is called.
Guaranteed insurability rider
I live insurance rider that allows an individual to purchase insurance as they grow older regardless of insurability is called -cost of living rider Guaranteed term rider Guaranteed insurability rider Accelerated benefit rider
Guaranteed insurability rider
All of the following statements about health coverage for physically, handicapped dependence of insurance, are correct, except the dependent must
Have been over 10 years of age when the handicap was incurred
Upon reaching the limiting age, a handicap child can extend their health coverage as a dependent...
Only if the child is in capable of employment and chiefly dependent on the policy owner
What does the consolidated omnibus budget reconciliation act cobra of 1985 allow an employee to do?
In the event of employment termination, group health insurance can be kept if the employee pays the premiums
Which of the following actions may an insurance company not do and a health policy that contains a guaranteed renewable premium benefit?
Increase the premiums on an individual basis
How is the cost of a policy effective on a policy owner praise premiums more frequently
Increases
Which of the following actions me an insurance company not do in a health policy that contains a guaranteed renewable premium benefit
Increases the premiums on an individual basis
All of the following are characteristics of a group life insurance plan except
Individual underwriting
Which of the following is present with an applicant stands to lose value, if the insured dies Consideration Offer and acceptance Insurability Insurable interest
Insurable interest
A Multiple Employer Welfare Agreement (MEWA) provide what type of benefits?
Insurance (insurance benefits)
Which of the following situations are not subject to florida life insurance laws
Insurance companies' day-to-day operations
Which of the following situation's are not subject to Florida life insurance laws?
Insurance companies, day-to-day operations
Which of these is not considered to be a nonforfeiture option and a whole life insurance policy Extended term, insurance, cash, surrender, or, interest, only, reduced paid up insurance
Interest only
Which settlement option involves having the proceeds remain with the insurer and earnings paid on a monthly basis to the beneficiary
Interest only
An applicant character and personal habits can be obtained for underwriting purposes from which source?
Investigative consumer report
An applicant's character and personal habits can be obtained for underwriting purposes from which source?
Investigative consumer report
A stock insurance company
Is owned exclusively by its shareholders
What is the purpose for having an accelerated death benefit on a life insurance policy?
It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill
Which of the following statements is correct about the replacement of one insurance policy with another?
It is strictly regulated and requires full disclosure by both the producer and the replacing insurance company
Which of the following would disqualify a company's retirement plan from receiving favorable tax treatment It is temporary Contributions are applied with no regard to income Formed for the sole benefit of employees and their beneficiaries Contains a vesting schedule
It is temporary
What makes an insurance policy a unilateral contract
Only the insurer is legally bound
Who is a mutual insurance company owned by? -it's board of directors, it's policyholders, state of Florida, it's employees
Its policyholders
Who is a mutual insurance company owned by? Board of Directors, policy holders, state of Florida, employees
Its policyholders (Correct.) A mutual insurance company is owned by its policyholders.
What kind of life insurance policy covers two or more people with the death benefit payable upon the last person's death? -Dual life insurance -joint life insurance -Last survivor life insurance -Shared Life Insurance
Last survivor life insurance
Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy? - Suitability Form - Guaranteed issue - Free-Look period of 30 days -Limitation on pre existing conditions for up to 12 months
Limitation on pre-existing conditions for up to 12 months
A life insurance policy that has premiums fully paid up within a state of time period is called -Stated modified insurance -Stated payment insurance -Limited payment insurance -Limited universal insurance
Limited payment insurance
Insurance premiums is determined by each of the following factors except
Liquidity
Which of the following typically does not provide a form of managed care
Major medical indemnity plan
The reinstatement provision in a health insurance policy is Voluntary, optional, mandatory, discretionary
Mandatory
Asset protection can be provided by a long-term care partnership policy, if the policyholder qualifies for
Medicaid
Asset protection can pay provided by long-term care partnership policy, if the policyholder qualifies for Medicaid Medicare part C Disability Social Security
Medicaid
Which of these gaps in Medicare coverage is addressed with Medicare Supplemental Insurance?
Medicare in-hospital deductible
Which type of plan would be most appropriate for an individual on Medicare, and is concerned that Medicare will not pay for charges exceeding the approved amount
Medicare supplement Plan F Medicare supplement plans, F & G are the only Medicare supplement insurance plans that cover cost known as Medicare part B access charges. An access charge is the difference between what doctor or provider charges, and the amount Medicare will pay.
During the course of an insurance transaction, if an agent makes a false claim, he, or she can be found guilty of
Misrepresentation
In florida, deception advertising is
Misrepresentation
Which Under Trade Practice involves an agent, telling a prospective client that a policies dividends are guaranteed?
Misrepresentation
Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed?
Misrepresentation
Under an individual disability in Florida, what is the minimum schedule of time in which claims must be made to an insured? -annually, weekly, monthly, daily
Monthly
Under an individual disability policy in Florida what is the minimum schedule of time and which claims must be made to an insured? Annually, weekly, monthly, daily
Monthly
What are adjustable rates for life policy loans Florida based on
Moody's corporate bond index
Outline of Coverage = Medicare supplement policy
Must be provided at time of application
Which type of insurance policy allows their policy owners to elect a governing body Stock, mixed, admitted, mutual
Mutual
Which of the following professional organizations has its code of ethics incorporated into Florida law?
NAIFA (National Association of Insurance and Financial Advisors)
All of these are considered sources of information that can assist an underwriter in determine whether or not to accept a risk except
National Association of insurance underwriters
Under which circumstance me a licensed agent in Florida, represent an unauthorized entity?
Never
According to Florida law, a group life insurance policy requires a minimum of how many insureds?
No minimum
Tim is covered by an accident and health insurance policy that may not be changed in any way by the insurer up to a stated age, as long as the premiums are paid. What type of policy is this?
Noncancelable
Which of the following health insurance plans charges a premium that cannot be increased
Noncancelable
A noncancelable policy may not be changed in anyway by the insurer up to a state at age, as long as the premiums are paid
Noncancelable policy
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 documents must an agent submit to be replacing insurance company during the replacement of an existing life insurance policy?
Notice to existing and replacing insures of intention to replace
An insured is covered with a health insurance policy. If the insured would like to cancel the policy here she must.
Notify the insurance company in writing
Which entity approve the insurance policy form is used in Florida?
Office of Insurance Regulation (OIR)
How can an agent in charge have more than one location? Only if locations are in Florida By keeping all locations within close proximity An agent in charge can only have one Only the agent and charges present when insurance activity occurs
Only if the agent-in-charge is present when insurance activity occurs
According to the health insurance, portability and accountability act, HIPAA, when can a group policy renewal be denied
Participation or contribution rules have been violated
The automatic, premium loan provision, authorizes, and ensure to withdraw from a policies, cash value the amount of
Past due premiums, I have not been paid by the end of Grace period.
K is an agent who made an improper sale of an annuity to a client which of the following corrective actions with the department of financial services likely order today K to take? Sell the client for more appropriate annuity Pay monetary restitution to the client Provide a written apology letter Pay a penalty of three times the clients laws
Pay monetary restitution to the client
K is an agent who made an improper sale of an annuity to a client. Which of the following corrective actions with the department of financial services likely order K to take Sell the client a more appropriate annuity Pay monetary restitution to the client Pay a penalty of three times the clients loss Provide a written apology letter
Pay monetary restitution to the client
Which type of disability would be less than total impairment an equal to permanent impairment
Permanent partial disability
Which of these is considered to be a document that describes the critical segments of a life insurance policy
Policy summary
Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation?
Policy was returned within the free-look period, premium will be fully refunded
Under a modified endowment contract, what are the likely tax consequences? -Premium payments are tax deductible -Predeath distributions will become taxable -Interest on policy loans is tax deductible -Cash value cannot be surrendered early
Pre-death distributions will become taxable
Claims payable to a disability income insured even when the insured can continue to work are the result of a
Presumptive disability
All of the following are functions of an insuring clause except
Primarily describes the free-look period
According to the principle of utmost good faith, the insured will answer questions on the application to the best of our knowledge, and pay the required premium while the insurer will deal fairly with the insured and it's
Promises made
Which of the following is a reinstatement condition
Proof of insurability
What is the primary reason for buying an annuity
Provide future economic security
Premiums paid that exceed 7 1/2% of an insured's Adjusted Gross Income (AGI) are tax-deductible when paid for which of the following plans? -accidental death and dismemberment -Qualified long-term care program -Group disability income plan -Personal disability income plan
Qualified Long-Term Care plan
Department of Financial Services serves as the receiver of any insurer placed into
Receivership
Omar is covered by disability income policy. He is hurt while performing an occupation more has the rest of the occupational is not in his policy. The policies change of occupation provision will have what effect? -reduce the benefit level -Increase the premiums -Increase the benefit level -Decrease the premiums
Reduce the benefit level
What is the primary feature of a viatical settlement?
Reduced death benefit prepayment
All of the following are considered to be nonforfeiture options available to a policy owner except -Reduction of premium -Extended term insurance -Reduced paid up insurance -Cash surrender
Reduction of premium
Which. of these is NOT a legal entity for selling life insurance in Florida - independent agency system - risk management advisors - career agency system -personal producing general agency
Risk Management Advisors
Which of these retirement plans do NOT qualify for a federal income tax deduction?
Roth IRA
A long-term care lapse notice must be delivered to both applicant and
Secondary addressee
Which of the following provisions is not required an HMO contracts/certificates? No pre-existing exclusions for children, seven day grace period, rates shall not be excessive, enrollment
Seven day grace. Period.
Continuous 24 hour care provided by licensed medical professionals under the direct supervision of a position is called
Skilled nursing care
Generally speaking, which three levels of care are long term care policies provided with
Skilled nursing, intermediate, and custodial care
What is required in the Florida Employee Health Care Access Act? -small group issues on conditionally issue -small group issued on guaranteed issue -60 day grace period - no lifetime benefit limits
Small group benefit plans are to be issued on a "guarantee-issue" basis
What is required in the Florida employee health care access act
Small group benefit plans are to be issued on a "guarantee-issue" basis
Which of these ensures that proceeds of a life insurance policy will be free from attachment or seizure by the beneficiary's creditors?
Spendthrift Clause
A mutual insurance company and a stock insurance company have one main difference between them. What is the major contrast?
Stock company is owned by its shareholders. Mutual company is owned by its policyholders.
An agent selling Medicare Supplement policies must provide every applicant with a(n)
Suitability form
An agent selling Medicare supplement policy must provide every applicant with a MIB Form COBRA form Suitability form Signed consent form
Suitability form
Which type of multiple protection policy pays on the death of the last person
Survivorship life policy
Justin is receiving disability income benefits from a group policy paid for by his employer. How are these benefits treated for tax purposes?
Taxable income Disability insurance benefits from a group policy paid for by an employer is considered taxable income.
Kristi purchases an annuity that will pay her husband an income for 15 years. If he dies this income will become payable to their children for the remainder of the period. Kristi has what kind of annuity.
Temporary annuity certain
Pre-death distributions from a modified endowment contract MEC receive different text him, and then other life insurance policies because
The MEC tends to be an investment vehicle
Which of the following parties must provide an insured with proper disclosure concerning the replacement of an insurance company
The agent who sells the new insurance policy
Which of the following statements is correct regarding an individual applying for life or health insurance?
The applicant's medical history may be analyzed and reported
The insurance consideration given for health policy is -The initial premium payment only -The initial premium and an investigative report -Application -the first premium payment and the application
The first premium payment, and the application
In which of the following situations, would the insurer be liable for a loss?
The insured suffered an injury as an innocent bystander during a bank robbery Because the insured did not commit or participate in the felony, the loss will be covered .
Which of the following statements is correct if an insured converts his life policy to paid up insurance and buys new insurance
The transaction is considered replacement
Who may terminate coverage under a cancelable health insurance policy? The insurer only The insurer or the insured An officer of the insurer The insured only
The insurer or the insured
Policyholder payment of benefits on life and health policy. If the company is it at the time of the claim is called the... Insurance, portability, and accountability act Employees, retirement income, security act National Association of insurance, commissioners Life and health insurance guaranty association
The life and health insurance guaranty association
Which of the following MUST be included in a Medicare Supplement policy's Outline of Coverage? -future costs -limitations and exceptions -agent's contact info -copy of the MIB report
The policy's limitations and exceptions
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? -paid in full due to incontestable period -reduced based on premium amount purchases at age 59 -no death proceeds paid out -insurer is only obligated to refund all premiums paid
The proceeds would be reduced based on whatever the premium would have been if purchased at age 59
In order for a domestic foreign or alien insurance company to conduct business, must be authorized by whom?
The state where they are conducting business
Association plans are designed to provide health benefits to their members are regulated by the state because -insured by an authorized insurer Conduct business in Florida Provide a service to their members Require a certain level of member participation
They are insured by an authorized insurer
Association plans that are designed to provide health benefits, for their members are regulated by the state because
They are insured by an authorized insurer
T is an employee covered under a group life policy. If T's employment terminated, the conversion for your privilege gives T the right to convert.
To an individual policy upon employment termination
Group life policy is in Florida are required to contain a conversion privilege that allows for conversion
To individual policy for stated period of time
Bob and Tom start a business. Since each partner contributes an important element to the success of the business, they decide to take life insurance policies out on each other, and name each other as beneficiaries. Eventually, they retire and dissolve the business. Bob dies 12 months later. The policies continue in force with no change. Both partners are still married at the time of Bob's death. In this situation, who will receive Bob's policy proceeds?
Tom
All of these are considered to be a benefit of Social Security, except for Disability, survivorship, unemployment, retirement
Unemployment
A partial surrender is allowed in which of the following life policies?
Universal Life
David submits a $500 claim for medical expenses. There is a past-due amount owed for insurance premiums of $200. As a result, the insurer only pays $300 for the claim. This deduction came as a result of which provision?
Unpaid provision
A life insurance policy owner may sell their policy to a ________ In order to receive a percentage of the policies base value.
Viatical settlement provider
All of the following writers can increase the death benefit amount, except
Waiver of Premium
Replacement is involved in all of the following situations, except when
a Term policy is converted to a permanent plan with the same insurance company
Continued coverage under COBRA would be provided to all of the following EXCEPT:
a covered employee is terminated for gross misconduct
Elizabeth is the beneficiary of a life insurance policy. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. Which option was chosen?
a fixed amount The fixed amount installment option pays a fixed death benefit in specified installments amounts until the principal and interest are exhausted
In Florida, deceptive advertising is considered to be Coercion, sliding, rebating, misrepresentation
a form of misrepresentation
A stock life insurance company that issues both participating and nonparticipating policies is doing business on Mixed plan diverse plan A multiple plan assorted plan
a mixed plan
A medical provider that accepts Medicare Assignment must
accept payment based upon a defined Medicare schedule as payment in full
All of these are valid policy, dividend options for a life insurance policy owner except
accumulate without interest
A non contributory health insurance plan helps the insurer avoid
adverse selection Because all eligible employees are usually covered, non-contributory plans are desirable from an underwriting standpoint, because adverse selection is minimized
An example of an unfair trade practice is
an agent making a material misrepresentation to the insured
The entire contract includes the actual policy and the
application
In Florida, the underwriting issuance of a master group health policy requires all employees
are eligible to participate, regardless of their individual health history
The life and health insurance guaranty association is funded by The insurance commissioners, directors office The board of Risk and Insurance management General revenue bonds Assessments on member companies
assessments on member companies
The Coordination of Benefits (COB) provision exists in order to
avoid duplication of benefit payments
The purpose of the Coordination of Benefits provision in group accident and health plans is to
avoid overpayment of claims
Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT
beneficiary
The period in which there are no Social Security benefits for the surviving spouse is called the
blackout period
A variable life insurance agent must be licensed and appointed as life and variable contract agent, as well as
broker-dealer
The type of policy where the insurer can send a notice to the insured that the policy has been cancelled in the middle of the term is called
cancelable
Under a group life policy, the insurer will issue an individual _____ to the policyowner for delivery to each person insured.
certificate
K is insured under a Group Life Insurance policy. K is considered to be a(n)
certificate holder
Which of the following is not a required provision in an accident and health insurance policy
change of occupation
An example of sliding would be
charging for an additional product without the applicant's consent
A waiver of premium rider allows an insured to waive premium payments if the insured is
completely and permanently disabled
Intentional withholding of material facts that would affect an insurance policy's validity is called a(n)
concealment
A guaranteed issue insurance policy has no
medical underwriting
The least expensive option to pay off a 30 year mortgage balance would be
decreasing term life
The least expensive option to pay off a 30-year mortgage balance would be
decreasing term life
Medicare supplement policy
designed to fill in the gaps of Part A and Part B Medicare
All of these are standard exclusions found in a life insurance policy EXCEPT
disability
The department may request all of these during the licensing application process, except Fees, drug test, proof of citizenship, fingerprints
drug test
A professional liability for which producers can be sued for mistakes of putting policy into effect is called
errors and omissions
In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey, is called a(n) -non-admitted company -Foreign company -Domestic company -Alien company
foreign company
M completes an application for health 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
A tax free section 1035 exchange of a life insurance policy to a different policy is permitted if it occurs
from insurer to insurer and no cash is received by the policyowner
A group disability income plan that pays tax free benefits to covered employees is considered
fully contributory
When a qualified plan starts making payments to its recipient, which portion of the distributions is taxable?
gains
Underwriters can acquire information from all of the following sources, except
genetic testing
The Florida Employee Health Care Access Act was established to make
group health insurance available to employers with up to 50 employees
Level premium term life insurance policies
have premiums that are averaged over the policy period
Mike has inherited his father's traditional IRA. As beneficiary, he will pay ____ taxes on any money withdrawn. No, income, probate, estate
income
During the application process, the agent's primary responsibility is to
insurance company
Who does an agent represent during the solicitation of insurance?
insurance company
An accident and health policy that provides reimbursement benefits makes them payable to the
insured
An example of primary care physician would be
internist
A license may be denied, suspended, or revoked if the licensee
is found guilty of misrepresentation
A license may be denied, suspended, or revoked, if the licensee
is found guilty of misrepresentation
Which contract element is insurable interest a component of?
legal purpose
Which contract element is insurable interest a component of? Competent parties, legal purposes, offer and acceptance, consideration
legal purpose
When a decreasing term policy is purchased, it contains a decreasing death benefit and
level premiums
The rules and regulations of the life and health insurance guaranty association apply to Policies, under which risk is born by the policyholder Contracts of reinsurance that are sold in that particular state Life and health policies issued by companies authorized in that particular state Life and health insurance coverage issued under a self funded Multiple employer, welfare arrangement (MEWA)
life and health policies issued by companies authorized in that particular state
In contrast to a guaranteed renewable policy, a noncancellable policy
may never raise premiums
The focus of major medical insurance is providing coverage for
medical and hospitalization expenses
Periodic health claim payments MUST be made at least
monthly
Under an Individual Disability policy in Florida, what is the minimum schedule of time in which claims must be made to an insured?
monthly
With a medical discount plan, how often would a person generally pay a fee to get discounts on specific services?
monthly
A whole life policy option where extended term insurance is selected is called a(n)
nonforfeiture option
How are premiums paid by the insured for personally owned disability income insurance treated for tax purposes?
not tax deductible
The gatekeeper's role when used by an HMO is: establishing out-of-network providers obtaining referrals to specialists from primary care physicians taking applications for enrollment into an HMO processing the subscriber's payments
obtaining referrals to specialists from primary care physicians
An example of rebating would be
offering a client something of value not stated in the contract in exchange for their business
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
Replacement regulations apply to which of the following types of contracts
ordinary life
A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a(n)
payor rider
Medicaid is intended for
poverty stricken people Medicaid is a government funded program intended to provide healthcare for poverty stricken people
A person Who is a non-smoker of average weight, and in excellent health, would most likely be in which risk classification?
preferred
A guaranteed renewable provision allows
premiums which can only be increased per rate class
Which of the following does Medicare part D cover
prescription drugs
In order to activate the reinstatement clause of a lapsed life insurance policy the insured must
provide evidence of insurability to the insurer
An indemnity plan
provides the insured a specific dollar amount for services
The role of the federal government was expanded when Medicaid was established by allowing the state to
receive matching funds to expand public assistance programs
What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as?
representation
According to Florida law, group life insurance conversion privileges must NOT
require evidence of insurability
Kurt is an active duty service man who was recently killed in an accident while home on leave. Which military service exclusion clause would pay upon his death.
results The results clause states, the insurer is excused from paying the amount, only if the debt is a result of war
An annuity is primarily used to provide
retirement income
An endorsement found in an insurance plan which modifies the provisions of the policy is called a
rider
A long-term care lapse notice must be delivered to both the applicant and
secondary addressee
A stock insurance company is owned by it's Directors, common stockholders, agents, insured's
stockholders
The type of policy which pays on the death of the last person is called
survivorship life
Converting a group plan to permanent life insurance requires
the conversion being applied for within 31 days of termination
Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because
the MEC tends to be an investment vehicle
When replacing or exchanging an annuity, the agent must disclose the annuitant
the possible tax ramifications as a result of the transaction
When replacing or exchanging an annuity, the agent must disclose to the annuitant
the possible tax ramifications as a result of the transaction
The free-look provision gives the policyowner
the right to return the policy for a full refund within a specified number of days
Under a contract of adhesion,
the terms must be accepted or rejected in full
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
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
An agent who makes misleading statements that lead to the termination of an existing insurance policy so that a new policy with another insurer can be taken out has committed
twisting
A securities license is required for a life insurance producer to sell
variable life insurance
A policy owner can receive an immediate payment before the insured dies by using a(n)
viatical settlement contract
A health insurer MUST provide a proof of loss form
within 15 days of receipt of the notice of loss
What must an insurer obtain to conduct an hiv test
written consent