Exam Questions Second Take

What is the typical deductible for basic surgical expense insurance?

$0

If an agent does not notify the insurer of an address change, what is the maximum penalty that can be imposed for a one-time offense?

$250

An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy?

10 days

The Florida health insurance coverage continuation act requires insurers that sell health plans to small employers to offer in those plans a right to elect to continue coverage, without providing evidence of insurability, to employees who lose their coverage and are unable to replace it. The premium rate for this coverage may NOT exceed

115% of the original group rate

If a parent would like to enroll a child over the age of 5 into the Florida Healthy Kids program, their family income must be under a certain percentage of the federal poverty level, What percentage?

200%

What is the waiting period on a waiver of premium rider in life insurance policies?

6 months

Before starting operations as an HMO, the organization must meet which of the following requirements?

All of the above 1) Obtain a certificate of authority from the insurance department 2)Obtain a valid Health Care Provider certificate from the Department of Health and Rehabilitative services 3)Make a deposit of $10,000 to the rehabilitation Administration Expense Fund All of the Above

At what point must an outline of coverage be delivered?

At the time of application or upon delivery of the policy

How are state insurance Guaranty Associations funded?

By their members-authorized insurers

What term is used for replacing insurance policies for the sole purpose of making commissions?

Churning

Which of the following authorities grants and revokes licenses?

Department of Financial Services

A waiver of premium provision may be included with which kind of health insurance policy?

Disability income

Which of the following statements about occupational vs. nonoccupational coverage is TRUE?

Disability insurance can be written as occupational or nonoccupational

Who can provide skilled nursing care?

Doctor

An insured is hospitalized with a back injury. Upon checking his disability income policy, he learns that he will not be eligible for benefits for at least 30 days. This indicated that his policy is written with a 30-day

Elimination period.

Which of the following insurance providers must be a nonprofit and sell insurance only to its members?

Fraternal

The automatic premium loan provision is activated at the end of the

Grace period

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be avaliable in the future. Which of the following options should be included in the policy?

Guaranteed insurability option

Which of the following entities must approve all medicare supplement advertisements?

Insurance commissioner or Director

Which of the following entities has the authority to make changes to an insurance policy?

Insurer's executive officer

Why is an equity indexed annuity considered to be a fixed annuity?

It has a guaranteed minimum interest rate

Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type insurance would be the most affordable and still provide a death benefit should one of them die?

Joint Life

When replacing life insurance, the duties of the replacing insurance company included all of the following EXCEPT

Maintaining a copy of the notice regarding replacement and all sales proposals used for at least 5 years

Premium payments for personally-owned disability income policies are

Non tax deductible

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

Notice regarding replacement

Which of the following documents must be provided to the policy-owner or applicant during a policy replacement?

Notice regarding replacement

During replacement of life insurance, a replacing insurer must do which of the following?

Obtain a list of all life insurance policies that will be replaced

Prior to purchasing a medigap policy, a person must be enrolled in which of the following?

Parts A and B of medicare

Under the accidental death and dismemberment (AD&D) coverage, what type of benefit will be paid to the beneficiary in the event of the insured's accidental death?

Principal sum

In respect to the consideration clause, which of the following is consideration on the part of the insurer?

Promising to pay in accordance with the contract terms

Which nonforfeiture provides coverage for the longest period of time?

Reduced paid-up

The policyowner pays for her life-insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?

Reduction of premium

What method do insurers use to protect themselves against catastrophic losses?

Reinsurance

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

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

Replacement rule

Which of the following best details the underwriting process for life insurance?

Selection, classification, and rating of risks

All of the following long-term coverages would allow an insured to receive care at home EXCEPT

Skilled care

Which of the following terms describes the specified dollar amount beyond which the insured no longer participates in the sharing of expenses?

Stop loss limit

Which of the following would help prevent a universal life policy from lapsing?

Target premium

A customer with an existing life insurance contract is considering exchanging it for a newer contract. What Florida insurance regulation should the customer's insurance agent consult?

The Florida Replacement Rule

Before a customer's agent delivers his policy, the insurer makes a last-minute change to the policy. The agent informs the customer of this change, and he accepts it. What must the agent do now?

The agent should ask the customer to sign a statement acknowledging that he is aware of the change

Which of the following is not the consideration in a policy?

The application given to a prospective insured

Who does the secondary addresse provision protect?

The insured over the age of 64

A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional payor benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?

The insured's premiums will be waived until she is 21

Under an extended term nonforfeiture option, the policy cash value is converted to

The same face amount as in the whole life policy

Which of the following is true regarding METS?

They allow several small employers to purchase less expensive insurance togther

All of the following are requirements for life insurance illustrations EXCEPT

They must be part of the contract

What is the purpose of a disclosure statement in life insurance policies?

To explain features and benefits of a proposed policy to the consumer

An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy/s cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?

Universal Life

In a survivorship life policy, when does the insurer pay the death benefit?

Upon the last death

A medical expense policy that established the amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor if similar training and experience in that geographic area is known as

Usual, customary and reasonable

When would a 20-pay whole life policy endow?

When the insured reaches age 100

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

at the time of application

A producer who fails to segregate premium monies from his own personal funds is guilty of

commingling

Annually renewable term policies provide a level death benefit for a premium that

increases annually

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their to their children when they reach a certain age. Which settlement option should the policyowner choose?

interest only option

If a policy includes a free-look period of at least 10 days, the buyer's guide may be delivered to the applicant

with the policy