Exam Simulator
Q is hospitalized for 3 days and receives a bill for $10,100. Q has a Major Medical policy with a $100 deductible and 80/20 coinsurance. How much will Q be responsible for paying on this claim?
$2,100
An individual working part-time has an annual income of $25,000. If this individual has an IRA, what is the maximum deductible IRA contribution allowable?
$2,500 10 %
A person insured under a health policy is required to give the insurance company a Notice of claim within how many days after a covered loss?
20
How many hours of continuing education must a newly licensed agent must complete every 2 years?
24
A life insurance policies grace. Entitles the insured a period of no less than ______ days to make the premium payment
30
In Florida, a health insurance policy that is paid quarterly basis requires a grace period of
31 days
According to Florida Law, an additional lapse notice of must be issued after the standard grace period has expired for policy owners age of
64 years and older
Which statement is true regarding a variable whole life policy?
A minimum guaranteed Death benefit is provided
In health insurance policies, a waiver of premium provision keeps the coverage in force without premium payments
After an insured has become totally disabled as defined in the policy
Under a Long Term Care policy, which benefit would be typically excluded or limited?
Alcohol rehabilitation
Insurance contracts are _______ in the sense that the amount the insured will pay in premiums is unequal to the amount the insurer will pay in the event of a loss
Aleatory
What type of insurance company is domiciled in England, but conducts business in Florida?
Alien
Under which of the following circumstances will the benefits under COBRA continuation coverage end
All group health plans are terminated by the employers
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
The Department of financial services may order an agent to be monetary restitution to the client if
An agent made an improper sale of an annuity to a client
Which f the following is the best description of insurer
Any person, corporation, association, or society that writes insurance contracts
Disability income premiums
Are tax deductible
Medicare part C is
Available to those who are enrolled in Medicare part a and part B
All of the following are considered to be typical characteristics describing the nature of an insurance contract EXCEPT Bilateral Unilateral Aleatory Adhesion
Bilateral
The difference between group insurance and blanket health policies is:
Blanket health policies do not issue certificates
Which of these is NOT considered to be a cost connected its an individuals death Funeral Expenses Business expenses Tax liability Probate costs
Business Expenses
A _________ policy is to cover certain overhead expenses that continue when the business owner is disabled
Business Overhead expense
Many small businesses owners worry how their business would survive financially if the owner becomes disabled. The policy which Best addresses this concern is
Business overhead expense
P loses an arm in a farm accident and is paid $10,000 from his accidental Death and Dismemberment policy. This benefit is known as the
Capital sum
_______ is the amount payable for the accidental loss of eyesight, or for an accidental dismemberment. It is usually a percentage of the principal sum and varies according to the severity of the injury
Capital sum
N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15. What action will the insurer take?
Claim will be denied
A disability income policy recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the application was taken 5 years prior. The neck injury was never disclosed to the insurer at the time of application. How will the insurer handle this claim?
Claim will be paid and coverage will remain in force
Which of the following features of a group Term Life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability?
Conversion privilege
Common exclusions to continuation of group coverage include
Dental care Dental Care and Other prescription drugs
Agent J takes an application And initial premium from an application and sent the application in premium Check to the insurance company. The insurance company returns the check back to Jay because the check is made out to Jay inside of the insurance company what action should you take?
Get new check
The purpose of the ________ period clause is to avoid unintentional lapse of a life insurance policy
Grace
Insurers / agents must, in Florida, offer and issue small employer health plans on an _____ basis
Guaranteed issue basis
Which type of renewability Best describes a disability income policy that covers an individual until the age of 65, but the insurer has the right to change the premium rate for the overall risk class?
Guaranteed renewable
______ are purchased with a single lump sum payment and will start providing income payments within the first year, but usually starting 30 days from the purchase date.
Immediate annuities
After a policy has been in force for 2 (sometimes 3) years it enters the _____ period
Incontestable
If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first where are the death proceeds to be directed under the uniform simultaneous death act?
Insured's contingent beneficiary
Dividends paid from a life insurance policy are
Issued by the insurer
What is the purpose of a policy summary?
It highlights the critical parts of the policy issued
Which of the following is NOT a limited benefit plan? Dental policy LIfe insurance policy Critical illness policy Cancer policy
Life insurance policy
The individual Health insurance policy that offers the broadest protection is a _________ __________ policy
Major Medical
And employer that offers a qualified retirement plan to its employers is eligible to
Make a tax deductible contributions to the plan
According the Florida Law which of the following does to need to be obtained by an agent recommending an annuity purchase
Marital Status
_____________ Is offered by private insurers and available to those who are enrolled in Medicare part a and Medicare part B
Medicare part C
Every agent soliciting ________ must provide a suitability form
Medicare supplements
J has a disability income policy that does NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this ?
Nonoccupational coverage
K made a fraudulent statement on her health insurance policy application. In the event of a claim on this policy, the insurance company is equipped to pay
Nothing
In Florida, agents are allowed to engage in rebating if
Offered to all insurers in the same actuarial class
Under Florida law, a variable annuity policy owner must be notified of the accumulated value of the contract
Once each year
Upon reaching the limit and Age a disabled child may extend their health insurance coverage as a dependent
Only if the child is in capable of employment and she fully dependent on the policy owner
Under a life insurance policy the _______ has the authority to name the beneficiary
Owner
What is issued to each employee of an employer health plan?
certificate
What is the. Suicide provision designed to do
safeguard the insurer from an applicant who is contemplating suicide
Under a Renewable Term policy,
the renewal premium is calculated on the basis of the insured's attained age
L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of Age provision, the insurer will
adjust the death benefit to a reduced amount
An applicants medical information received from the Medical Information Bureau (MIB) may be furnished to the
applicant's physician
Which of these types of insurance allows the policy owner to hav level regions and to also choose from a selection of investment options
Variable life
Which of these is considered a statement to be true in every aspect?
Warranty
Which statement is true in regards to a policy loan? Past due interest payments not paid after three months will void the policy Past due interest on a policy loan is added to the total debt Insurance companies can send the link with interest accounts to a collection agency Insurance companies can charge an interest rate based on the policy owners credit report
Past due interest on a policy loan is added to the total debt
What benefit does the pay or clause on a juvenile Life policy provide
Premiums are waived if pay or becomes disabled
A major medical Policy
Provides benefits for reasonable and necessary medical expenses, subject to policy limits.
A _________ amount benefit is based of the proportion of income actual lost due to partial disability.
Residual
D is an architect receiving Disability income benefits who is not able to return to work full time, but can work on a part-time basis. Which of these futures would allow D to keep receiving benefits?
Residual Benefit Clause
With a ______ beneficiary the policy owner has the right to change the beneficiary at anytime without notifying to getting permission from the beneficiary
Revocable
_______ insurance policies provide an insured the greatest amount of permanent protection per dollar of annual premium.
Straight Life
K is shopping for a permanent life insurance policy that will offer her the MOST protection per dollar of annual premium. Which of these policies best fits her needs?
Straight life
An agent selling Medicare supplement policies must provide every applicant with a
Suitability form
The common disaster clause provides that if the insured and the sole beneficiary were to die in a common accident, which of the following is true?
The clause provides the payment of proceeds to the insureds estate
What is the elimination period of an individual disability policy
Time period a disabled person must wait before benefits are paid
The cash value in a ________ life policy may fluctuate to reflect changing assumptions regarding mortality cost, interest and expense factors
Universal
When is the face amount paid under a Joint Lie and Survivor policy
Upon death of the last insured
R becomes disabled and owns a Individual disability income policy. When is E eligible to receive disability benefits?
Upon satisfying the elimination period requirment
In order to sell a _____ Life policy, a producer is required to register with the Financial Industry Regulatory Authority (FINRA)
Variable
________ is a life insurance policy that has a level premium but allows the policy owner to choose from a selection of investment options
Variable Life
Which of the following policies is characterized by a flexible premium and death benefit and allows the policy owner control of the investment aspect of the plan?
Variable Universal Life
In a _____ policy death benefit will not go lower than the policies guaranteed minimum.
Variable Whole life
Life insurance immediately creates an estate upon the death of an insured. Which of the following policies is characterized by a guaranteed minimum death benefit
Variable life
An agents license can be suspended or revoked by
Writing primarily controlled business
As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of?
coercion
An agent takes an individual Disability Income application, collects the appropriate premium, and issues the prospective insured a conditional receipt. The next step the insurance company will take is to
determine if the applicant is an acceptable risk by completing standard underwriting procedures
In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey, is called a(n)
foreign company
What type of renewability guarantees premium rates and renewability
noncancellable
An accident policy will most likely pay a benefit for a(n)
off-the-job accident
An example of rebating would be
offering a client something of value not stated in the contract in exchange for their business