Final Exam Study Set

Which of the following BEST describes how pre-admission certifications are used?

Used to prevent nonessential medical costs

When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take?

Void the policy only if it is discovered during the Contestable period and proven to be material

Which of these is an element of a Variable Life policy?

a fixed, level premium

An example of an unfair trade practice is

an agent making a material misrepresentation to the insured

All of the following entries are classified under the four principal areas of Florida insurance law EXCEPT

an agents commission

What is required in the Florida Employee Health Care Access Act?

Small group benefit plans are to be issued on a "guarantee-issue" basis

Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund?

30

M's insurance company denied a reinstatement application for her lapsed health insurance policy. The company did not notify M of this denial. How many days from the reinstatement application date does the insurance company have to notify M of the denial before the policy will be automatically placed back in force??

45 days

The Bureau of Unclaimed Property is overseen by the

Chief Financial Officer

All of the following are eligibility requirements for an association group EXCEPT

Contributory plans require a minimum of 25 participants

Which of these statements describe a Modified Endowment Contract (MEC)?

Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract

Which Federal law allows an insurer to obtain an inspection report on a potential insured?

Fair Credit Reporting Act

Which organization was established to provide funds to protect an insured in the event of an insurer's insolvency?

Florida Life and Health Insurance Guaranty Association

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

Which of the following actions require a policyowner to provide proof of insurability in an Adjustable Life policy?

Increase face amount

Which health policy clause specifies the amount of benefits to be paid?

Insuring

Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a Disability Income policy?

Issue the policy with an altered Time of Payment of Claims provision

S filed a written Proof of Loss for a Disability Income claim on September 1. The insurance company did not respond to the claim. S can take legal action against the insurer beginning

November 1 must wait 60 days after written claim to take legal action

In a life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be the recipient of any financial benefits from the policy?

Owner's rights

Void the policy only if it is discovered during the Contestable period and proven to be material

P will still receive declared dividends

Which statement is TRUE in regards to a policy loan?

Past-due interest on a policy loan is added to the total debt

M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take?

Pay face amount minus the past due premium

A mutual insurance company and a stock insurance company have one main difference between them. What is this major contrast?

Stock company is owned by its shareholders. Mutual company is owned by its policyholders.

K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective?

The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured

J, an Accidental Death and Dismemberment (AD&D) policy holder, dies after injuries sustained in an accident. J's age as stated on the application five years ago was found to be understated by ten years. Which of the following actions will the insurance company take?

The insurer will adjust the benefit to what the premiums paid would have purchased at the insured's actual age

All of these statements about Equity Indexed Life Insurance are correct EXCEPT

The premiums can be lowered or raised, based on investment performance

How long does the coverage normally remain on a limited-pay life policy?

age 100

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

an individual policy upon employee termination

An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the

applicants physician

When does a Guaranteed Insurability Rider allow the insured to buy additional coverage?

at future dates specified in the contract with no evidence of insurability required

S has a Whole Life policy with a premium payment due soon. Which provision would keep the policy in force if S does not make the required payment and the policy has adequate cash value from which the premium payment can be made?

automatic policy loan

In a Life insurance contract, an insurance company's promise to pay stated benefits is called the

basic promise of the insurance company

Which of the following can an agent provide to help a prospective client understand and purchase the most appropriate product?

buyers guide

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 policyowner 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 place

Which of the following areas of state regulation is NOT protected by the savings clause in ERISA?

commerce

An insurance company receives E's application for an individual health policy. E did not complete all of the medical history questions because she could not remember the exact dates. E signed the policy and submitted it to the insurance company anyway. A few weeks later, E suffers a heart attack and is hospitalized without completing the medical history questions and paying the initial premium. E is not insured. Which of the following clauses details the conditions that E did not meet?

consideration clause

The incontestable clause allows an insurer to

contest a claim during the contestable period

When a policyowner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply?

conversion provision

Florida's 14-day free-look period for life insurance policies begins at the

date of delivery

Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it?

decreasing term

What is the purpose of the U.S.A. Patriot Act?

deter and detect terrorism

A producer 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

T is an agent and when hired, is reminded that he has a responsibility to handle clients' funds in an honest and ethical manner. This responsibility is referred to as

fiduciary responsibility

Nonprofit life insurance providers that are covered by a special section in the Florida insurance code are called

fraternal life insurance organizations

What type of renewability guarantees premium rates and renewability?

guaranteed renewable

A Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits?

insurance

Which of the following situations are NOT subject to Florida life insurance laws?

insurance company day to day operations

Which of the following health insurance policy provisions specifies the health care services a policy will provide?

insuring clause

A foreign insurance company doing business in Florida

is a company that was formed under the laws of another state

Pre-hospitalization authorization is considered an example of

managed care

Which type of plan normally includes hospice benefits?

managed care plans

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

The Notice of Claims provision requires a policyowner to

notify an insurer of a claim within a specified time

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?

twenty

Which entity approves the insurance policy forms used in Florida?

office of insurance regulations (OIR)

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

once a year

Which of the following provisions guarantees that premiums will be waived if a Juvenile Life policyowner becomes disabled?

payor clause

M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the

policy proceeds

Which of these Nonforfeiture Options continue a build-up of cash value?

reduced paid up

An agent selling Medicare Supplement policies must provide every applicant with a(n)

suitable form

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

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

the possible tax ramifications as a result of the transaction

T files a claim on his Accident and Health policy after being treated for an illness. The insurance company believes that T misrepresented his actual health on the initial insurance application and is, therefore, disputing the claim's validity. The provision that limits the time period during which the company may dispute a claim's validity is called

time limit on certain defenses

A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of the policy's face value.

vertical settlement provider

An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?

when the conditions of the receipt are met