Insurance Final Exam

Which of the following statements pertaining to the medical report is correct?

* The medical Report must be completed by an approved person

Which of the following statements pertaining to life insurance policy settlement options is not correct?

* Under the fixed amount option the payment of excess interest payments has no affect on the payment amount but the payment period is extended

Which of the following statements regarding annuity payouts options is correct

11.3.3

Which of the following best describes equity index contracts?

11.3.4

In determining social security retirement benefits whicheof the following statements is not correct?

12.3.2

Which of the following statements regarding survivor financial needs is correct?

14.2.1

On receipt of a Notice of claim under an individual policy the insurance company must provide the claimant with the claim form within a smax of how many days?

15 days

A licensee who has been licensed for sic or more years must complete a min of how many hours of continuing education and how oftern?

15/2

If Cindy age 45 sets up a traditional IRA what is the maximum contribution she can make and deduct from taxes for 2016

1500 13.4.1

the waiting period before qualifying for social security disability benefits is how many months?

16.3.2

The head of the state of office of insurance regulation is generally responsible for all of the following except

2.3.2

Which of the following statements pertaining to the basic benefits of Plan A developed by the NAIC as a standard Medicare Supplement policy is not correct

21.1

Which of the following is the usual grace period for a semiannual premium policy

22.1.1

Chris covered by her employers contributory group disability plan. the premium each month is 100 which chris pays 25% on her own. I chris was to become disabled and receive 1000 a month how much of each benefit payment would be considered taxable income?

24.3.2

Which of the following are methods of keeping premium costs to a minimum in a health policy?

25.2.2

Complete the statement. The Affortable Health Care Act mandates that children of the insured are eligible for health insurance coverage until they attain age

26

No person may act as an insurer directly or indirectly transacting insurance in the state of Florida except as authorized by which of the following?

26.4.3

Which of the following statements about unaffiliated agents is true

26.6.2

For a policy summary that includes dividend a statsement indicating which of the following must be uncluded.

27.1.3

Except for nonpayment of premiums the validity of the policy shall not be contested after which of the following occurs?

27.4.1 27.4.2

What policies provide medical expense coverage for specific kinds of illnesss

29.10

All of the following are adls except

29.5.3

Which of the following is an example of legal consideration in an insurance contract?

3.1.2

An insurer is considered competent if it

3.1.4

Which of the following regarding insurable interest is not correct

3.2.8

Which of the following statements about authority is not correct?

3.3.2

Theree is generaly a limited amount of time in which policies may be reinstated after lapse. This period is

30 days

The office of insurance regulation will NOT issue a certificate of authority to an HMO until is has

30.4

FICAquarters

4

The unetichal act of misrepresentation by the producer to convince the policy owner to switch insurance companies or policies is known as

4.6.1

If an insurance company fails to nofy an applicant that a reinstatment application was not approved insurance will be placed back in force within how many day

45

The waiting period before qualifying for Social Security disability benefits is how many months?

5 months

In which of the following does the incontestible clause not apply?

6.2.8

When a whole life policy is surrended for a reduced paid up policy the cash value of his new policy will

6.4.2

Which of the following pertaining to life insurance is NOT correct?

8.2.5

The proof of loss provision in an individual policy requires that written proof of loss be submitted to the insurance company within how many days after the date of loss?

90

which of the following statements regarding types of insures is not correct?

A fraternal benefit society operates aa a no organizationnprofit

The rider that provides for a waiver of premiums on a juvenile policy if the adult responsivle for paying the premiums dies or becomes disabled is:

A payor rider

The first page of an applicanet Lic Numer)tion for an annuity contract must display

All (Insurer name, agenet name and age

Which of the following about simple plans is correct?

All of the above Simple plans can be structures as an IRA or as a 401K cash or deferred arrangement; Am employer may establish a Simple plan if another qualified plan is not already in place; only emplyess with no more than 100 employees can establish a simple plan

Which of the following statements regarding the belemination period in disability income policies is corect?

An ellimination period follows the start of disability

Which of the following statements pertaining to the conversion priveledge of group term life insurance is correct?

An employee has 31 says to convert the plan after termination

Which of the following about simple plans is correct?

An emplyer may establish a simple plan if another plan is not in place

The type of insurance most frequently used in group life plans is?

Annually renewable term

How often must HMO file a report of their activities to the Office of Insurance Regulation?

At the end of each calendar year

An airline that wants group health coverage for its passengers would purchase what kind of insurarnce?

Blanket Health Insurance

The beneficiary on Chris Life insurance says "all of my childre" which of the following phrases best describes this type of beneficiary designation?

Class beneficiaries

Which of the following organizations would make reimbursements payments directly to the insured for covered medical expenses?

Commercial Insurer

Life or health insurance or annuity contracts covvering the agent or family members, officers, stockholders or corporation of which the agent is an officer director partner or employee is known as which of the following?

Controlled business

Any transaction in which a new life insurance is to be purchased that causes existing insurathernce to be converted to reduced paid up insurance continues as extended term insurance or reduced in value by the use of nonforfeiture is known as which term?

Conversion 27.2

A partnership owns pays for and is the beneficiary of the life insurance on the lives of its individual partners. This is known as

Cross purchase plan

An insurance company that is organized and headquatered in Florida can be described as what type of company in Florida?

Domestic

An insurance company that is organized and headquatered in Florida cany be described as what company

Domestic

All of the following statements correctly describe the tax advantage of a qualified retirement plan except?

Employess are taxed on

Which provision of life insurance policy states that the application is part of the contract?

Entire Contact Clause

Which of the following terms does not relate to disability income insurance?

Fixed period provision

The purpose and intent of what act is to ensure acess to affordable health insurance coverage to emplyees of small business and beneficiaries not covered under the Consolidated Omnibus Reconciliation Act of 1985?

Florida Health Insurance Coverage Act

A life insurance company organized and incorporated in Georgia with its home in North Carolina is licensed to conduct business in Florida, this company is classified as?

Foreign

Which life insurance provision allows for the policy owner to inspect and if dissatisfied to return the policy for a full refund?

Free look

When a health policy is delivered in Florida the person to whom the policy is issued is permitted to return the policy within a specified period of time. What is this concept know as?

Free look period

Which of the following allows 30 days during which premiums may be paid to keep policies in force?

Grace period

Which of the following is one of the basic types of variable annuity?

Guaranteed

Bella sign and app for a 75000 nonmedical life policy pay the first premium and gets a conditional insurability receipt. If Bella gets killed in a car crash two days later.

He beneficiary would receive the 7500 if bell qualified as she applied for

Which of the following is true regarding a grandfathered health plan?

Health Insurance coverage my continue dependent coverage or unmarried adult children until to age of 21 29.1.1

Bella signs an application for a75000 nonmedical life policy, pays the first premium and receives a wo da75000 ys later.ttional insurability receipt. If Bella were killed in an auto accident

Her beneficiary would recieve the 75000 if bella qualified for the policy as applied for

The incontestible clause in a life insurance policy specifies that?

Insurers can void a contract even after the specified period provided they can prove the policy was purchased fraudulently 6.2.8

All s are of the following statements regarding variable annuities are correct except

Investmesnt are usually geared to a portfolio of common stocks

All of the following characteristics are associated with a disability buy opt option except?

It has a lengthy elimination period 25.3.2

Which of the following is not a basis for occupational suitability when determining total disability?

JOb interest

Jim and Sue purchase an insurance polucy. Jim dies in a car acident and no death benefit is paid until sue dies 3 years later>

Joint and last survivor policy.

Which of the following regarding key person insurance is correct

Key person life iynsurance indemnifies a business for financial loss caused by the death of a key emplyee or excutive

Which of the following insurance concepts is founded ont he ability to predict the approximate number of deaths or likelihood wi nn a certain group during a specific time?

Law of large numbers

When level premium insurance is renewed, the premium amount rises to reflect the increases mortality risk of the insureds older age. What phrase best describes this approach to increasing premiums?

Level term rate

In order to sell HMO contracts an agent must do all of the following except

Maintain a bond of less than 10000

The head of state office of insurance regulation is generally responsible for all of the following except?

Making new laws and amending existing laws relating to insurance

Which of the following statements about waiver of premium in health insurance policies is not correct?

May apply retroactively

Identify the policy that is jointly funded by the state and federal

Medicaid

Individual and group health insurance policies coverage of newborn children starting with which time frame?

Moment of birth

Fred's daughter is worried that her father is taking unnecessary risks by driving recklessly and participating in dangerous physical activities. What kind of hazard is described?

Morale Hazard

Which of the following factors is most important when compiling basic premiums for life insurance?

Mortality 8.2.1

An error in age was discovered after death and before the proceeds were distributed. the inisure was yournger that previously assumed. How would an insurance handle such a situation?

No Adjustment would be made because the contestibel period has passed 6.2.12.

All of the following statements regarding a cost of living rider on a life insurance policy are correct except?

No evidence of insurability is required to acquire additonal amounts of life insurance 6.6.9

What is the minimum number of loves required for a group policy in Florida

No minimum

Patty a single working mother dies at age 36. David her only son would receive a one time lump sum benefit?

Non of the above

Which of the following is not part of product presentation?

Obtaining referrals opportunitiesor additional sales

Which entity oversees and regulates Florida's financial entities including state chartered bank and securties industry participants

Office of Financial Regulation

Which entity oversees the regulation of insurance companies in the state of Florida and is responsible for issuing certificates of authority to qualified insurers?

Office of Insurance Regulations

Maria is a participant n her companys group health plan. One of the plans provisions specifies that in the event she is eleigible for benefits under another policy her group plan will serve as the primary plan. What is this provision called?

Other insurer provision

The miscellaneous expense benefit in basic hospital policy will cover all of the following except

Physician services

A written statement that describes the elements of the policy?

Policy Summary

All of the following statements describing health insurance benefits are corricaect except?

Policy owners who have ploicies with identical benefits pay the same premiums

Which of the following is not part of a sales presentation?

Review and re esatablish the client producer relationship 4.5.3

What is the purp fose of establishing standards and procedures for making recommendationns to consumer that result in transactions involving annuity products

Suitability

The purpose of the Buyers Guid is to provide the buyer with all of the following except?

The ability to select the most appropriate plan of life insurance for their needs 27.1.2

All of the following are general duties of the Department of Financial Services except:

The department may employ actuaries 26.2/26.2.1

Which of the following statements is correct about variable annuities?

The insurance company bears the risk rather than the ontract owner

Which of the following does not describe the elements of an insurable risk?

The loss must be catastrophic

The cash values of life insurance policies belong to which of the following?

The policyowner

Which of the following statements describes an insurable interest?

The policyowner must expect to suffer a loss when the insured dies or becomes disabled 3.2.8

Preexisting conditions are referred to in which of the following required health insurance policy provisions?

Time limit on defenses

Which of the following is not one of the Activities of Daily Living?

Transferring 21.2.4

The basis for many state statutes regulating insurance advertising is the NAICs?

Unfair Trade Practices Act

Common stocks are used in the investment portfolio underlying variable annuities because common stocks:

Usually provide a hedge against inflation 28.3

Three business partners individually agree to acquire the interest of a deceased partner and own life insurance on each of the other partners in the amount of his or her share of the business buyout value. What is described here is?

a partnership cross purchase buy sell plan 14.3.3

Which of the following premium factors is unique to health insurance as opposed to life insurance?

age and sex15.3.2

Which definition of total disability is more favorable to the insured?

any occupation

No person may act as an insurance agent unless they are currently licensed by the department and are what by an insurer or other appropriate entity?

appointed

All of the following statements regarding types of insurers is Not correct?

cancellation

Cheri has purchased an annuity that will pay her a monthly income for the rest of her life. If she dies before the annuity has paid back as much as she put into it the insurance company has agreed to pay the difference to Cheris beneficiary. What annuity payout option did Cheri select?

cash refund annuity

When an agent spreads a false story that maliciously damaes a competing agents reputation the offese is called

defamation

A life insurance policy that provides a 50000 coverage to age 65 is best referred to as a?

level term policy

The term capitation means

limit on the allowable premium for the HMO coverage

All of the following should be eligible to establish a Keogh retirement plan except?

major stockholder employee in an employee owned corporation

Which of the following are basic forms of health insurance coverage?

medical expense

Referring to a policy as anything other than insurance such as wealth building plan is an unethical practice called

misrepresentation

Before selling a variable annuity the agent must furnish the propect with a

prospectus

The Florida HMO consumer assistance plan?

provides coverage for subscribers to HMOS that become insolvent

All of the following factors would affect a health insurance policy premium rate except

residential address of the insured

Marcia has annuity payout option that guarantess for life 10 years, whichever is longer. What type of paymetn option does Marcia have?

straight life income option 11.3.3

Debbie purchases a round trip accident policy at the airpOrt. Her policy would be which type of Insurance

tRAVEL Risk