study giude
In a noncontributory group, the policy must cover:
100% of eligible persons
All licenses are required to notify the Department of Financial Service of a change in address within how many days?
30
Florida Insurance Law requires the minimum grace period on a health insurance policy on a quaterly basis:
31 days
The Department of Financial Services requires agents to keep policy records for a MINIMUM of:
5 years
In a life policy, insurable interest MUST exist at which of the following times?
At the time of the application is signed
Which of the following is an example of sliding?
Charging for a companion product without the applicant's consent
Which of the following areas of state regulations is protected by the savings clause in ERISA?
Commerce
Which agent does NOT regulate variable contracts in Florida?
Department of Business and Professional Regulation
Agents can help prospective insureds understand and purchase the most appropriate product by delivering:
a buyer's guide
Upon the death of an insured , a creditor MAY be able to file a claim if the:
beneficiary is the insured's spouse.
Under a Family Health policy issued in Florida, a child with a disability must continue to be covered in all of the following situations EXCEPT when the:
child's premium payments cease to be paid
If the contract values an existing policy are used to purchase a new policy with the same insurer, this is known as:
churning
The underwriting and insurance of a master group health policy in Florida requires that all employees:
or members must be eligible to participate regardless of individual health history
One of the primary reasons for using deductibles in health policies is to reduce:
over-utilization of medical services
a policy becomes a Modified Endowment Contract (MEC) when:
too much premium is paid in the initial policy years
Each licensee must complete a law and ethics update course of how many hours every year?
two
Which of the following annuities ensures level income for the lifetime of two annuitants?
A joint and Survivor Life annuity
An example of a Limited-Pay Life policy is:
Life Paid- Up at Age 65
For which of the following losses would an insurance company MOST likely pay benefits under an Accident and Dismemberment policy?
Loss of eyesight due to an accidental injury
Group vision insurance plans typically provide insurance benefits that cover
eye exams, lenses, frames, and contact lenses.
An institution which has responsibility for financial affairs on the property of others is known as a:
financial institution
All of the following actions by an agent may be considered misrepresentations EXCEPT:
illustrating the dividends on an insurance policy
The Fair Credit Reporting-Act requires that:
insurance companies treat insured fairly and not discriminate
The Waiver of Premium provisions in a life policy guarantee that the:
insurance company will pay premiums for the duration of a disability after a predetermined waiting period
The coinsurance clause in an induvial Medical Expense policy refers to the:
insurance company's right to require the insured to share a certain percentage of the cost of each clause
The primary of a Limited-Pay life policy is to allow an:
insured to pay premiums for a predetermined period of time
The agent's primary responsibility in the application process is to the:
insurer
All of the following are correct about the Life and Health Guaranty Association EXCEPT
is funded by assessments against insurers
Which of the following statements is CORRECT about Medicare?
it is a medical assistance program.
An insurer may require HIV testing IF:
it obtains written informed consent
Which of the following statements is generally CORRECT about a major medical policy?
it provides benefits for reasonable and necessary medical expense, subject to policy limits.
In a life insurance policy, the Consideration clause state that the policyowner's consideration consist of complete the application and :
paying the initial premium
Prior to exchanging an annuity contract, an agent must disclose that there may be potential:
tax consequences
Florida insurance law requires that if a Medicare Supplement policy is sold, the agent must deliver an Outline of Coverage to the applicant no later than:
when the application is taken
A producer must deliver an Outline of Coverage to a prospective insured who is eligible for Medicare at which of the following times?
when the policy is delivered
Which of the following statements is CORRECT about the benefits of a group Short-term Disability income policy
They are payable for accidents covered by Workers' Compensation
Under a health policy, an insured must give Notice of Claim to the insurance company with a MAXIMUM of how many days after the occurrence or commencement of a loss?
Twenty
Which of the following policies allows the policyowner to select where the cash values are invested?
Variable life
An insured who wants to guarantee that an Accident and Health policy will remain in force even in the event of being disable should purchase which of the following riders?
Waiver of Premium
Under Florida Law, what percentage of full-time employees MUST be eligible for participation in a noncontributory group health insurance plan?
75%
In Florida the maximum fixed interest allowed on a policy loan is:
8%
Which of the following situations describes representation?
A prospect's statement on an application that held to be substantially true
A doctor who is receiving Disability Income benefits is not able to return to work full time but continue receiving benefits
A residual Benefit clause
Which of the following annuities pays benefits based on units rather than specific dollar amounts?
A variable aunnity
Which statement about conversion privileges in Group Life policies sold is CORRECT?
An employee usually has up to one year to convert coverage to an individual.
According to Florida law, how often must a variable annuity contract holder be informative the accumulated value of the contract during the premium payment period?
At least once each year
The agency responsible for rehabilitating or liquidating insurers when necessary is:
Department of Financial Services (DFS)
The purpose of the USA PATRIOT Act is to:
Detect criminal activity
A type of health contract that allows the remaining partners in a business to buy out the interests of a disable business partner is known as:
Disability Buy-Sell
Social security provides all of the following type of benefits EXCEPT:
Dismemberment
In a life insurance policy, the promise by the insurer to pay certain benefits is the
Entire Contract provison
Which of the following is required of branch agencies?
Establish an office in the county where the company is based
What is the name of the organization created in Florida law to improve access to comprehensive health insurance for Florida's uninsured children?
Florida children's Health Insurance Plan ( F-CHIP)
Which of the following is NOT true regarding applicants for an insurance license?
Half of the fees must be paid in advance to the department
Which of the following activities may result in the revocation or suspension of an agent license?
Handing premiums in fiduciary capacity
A retirement plan that may be established by an employee, regardless of any other retirement plan is called a
Individual Retirement account (IRA)
An employee who owns an individual Disability Income policy is injured in an automobile accident and files loss with the insurance company. Under the Payment of Claims provisions in the policy, the company will likely pay the policy benefits to the:
Insured
Which of the following statements is CORRECT about the Death benefit of a life insurance policy?
It can be assigned by policyowner
A full time employee who is suffering from chronic kidney failure and requires dialysis is eligible for medical coverage under which of the following plans?
Medicare
In general, what amount of personal life insurance premiums is deductible for federal income tax purposes?
None
An insurance producer who is replacing a policy must submit which of the following items the replacing insurance company?
Notice of intended replacement
Services associated with long term care provided at which of the following locations ?
Outpatient facility care
In Florida, insurers are required to issue an additional lapse notice after the applicable stator grace period has expired for policyholders of what age?
Persons who are 64 years of age or older
Insurers may be insured by:
Service providers
Which of the following annuities provides the highest monthly payout?
Straight life Annuity
Which of the following policy provisions is designed to protect the insurance company from adverse selection by certain high-risk applicants?
Suicide clause
Which of the following type of policies provides permanent protection at the lowest annual premium?
Term
The department of Financial Service may deny issuance of a license application if which of the following statements about applicants is CORRECT?
The applicant is not a United States citizens
if an insured dies during the grace period and the premium has not been paid, which scenario would be correct?
The death benefit will be paid less the premium due
After the expiration of COBRA or state continuation laws, which of the following statements is correct about the employee who quits the job and wants to convert the group accident and health coverage to an individual policy
The employee does NOT need to provide evidence of insurability
A convertible Term policy offers which of the following advantages?
The insured does not have to provide evidence of insurability when requesting a conversion
Which of the following statements about policy delivery is CORRECT?
The producer should deliver the policy before the Free Look period expires
Which of the following statements is CORRECT about the Medicaid program?
The program is administered at the federal level
A producer submits an application to an insurance company without the initial premium. If the company issues a policy, the producer should promptly deliver the policy and collect the initial premium for which of the following reasons?
The prospect does not have coverage until the policy is delivered and the premium paid.
a Policy summary
highlights the critical parts of policy issued and describes the coverages, riders, and exclusions
Who has the responsibility to approve the use of insurance forms?
office of insurance regulation (OIR)
If an initial premium is not collected when a life insurance application is written, the insurance becomes effective
on delivery of the policy to the insured and payment of the initial premium to the producer
The Time of Payment of Claims provision state that the intervals between disability income benefits payments not exceed:
one month
What is considered the owner of a mutual insurance company?
policyholders
Under a disability policy, the elimination period is:
predetermined by the insurance company
The primary purpose of regulation of the insurance industry is to?
promote the public welfare by maintaining the solvency of insurance companies
An insurance agent is permitted to replace an existing policy only if the agent:
replaces a policy that was issued by the agent's own company
An underwriter evaluation of information on a life insurance application is also known as :
risk classification
a producer who discover that answers to a series of questions on a life insurance application were omitted to take which of the following actions?
schedule another appointment with the applicant to complete the unanswered questions
To receive a percentage of the policy face value, an owner of a life policy may sell the to a(n):
viatical settlement provider
The signed document that starts the free look period is the:
delivery receipt
The purpose of the insuring clause in an Accident and Health policy is to:
specify the conditions under which benefits are payable
Which of the following statements is correct about the Coordination Of Benefits provision?
It prevents an insured covered by two health plan from making profits on a covered loss
An insurance company may charge a higher total premium to an insured who pays a policy quarterly rather than annually because the quarterly payment results in:
a reduction in the company 's interest earnings and increase in administrative expenses
To enroll in Medicare part C, an individual must:
already be enrolled in both Medicare part A and B
A life insurance policyholder dies of heart failure shortly after the tenth policy anniversary. The insured failed to disclose the condition and resulting medical consultation on the application. In this situation, the insurer will most likely:
refuse to make any payment.
Most insurance companies use the usual, customary, and reasonable ( UCR) charges to:
reimburse the employee for expenses charges by the medical facilities
A prospect, with limited financial resources, wants to purchase a policy with the highest amount of protection for a temporary period. The producer should advise the prospect to purchase which of the following type of policies?
term life
Y wants to purchase a policy that allows Y to increase or decrease the premium payment, the premium payment period, and the death benefits of the policy. Which of the following policies offers the flexibility that Y wants?
variable universal life
What minimum percentage of eligible employee must participate for a company to offer a Contributory group insurance plan?
75
The Misstatements of Age provision in an Accident and Health policy allows an insurance company to take which of the following actions if an insured has understated the insured's age on the policy application?
Adjust the benfits
Which of the following types of group Term Life insurance plans does a corporation offer, if the employees share premium cost?
Contributory
A major medical policy insured is injured in an auto collision during a police chase. The occupants in the police car are killed. The insured is convicted of reckless driving and manslaughter. if the insured files a claim, the insurance company will MOST likely take which of the following actions?
Deny the claim only
The statement that an insured MUST give an insurance company to show that a loss actually occurred is a
Proof of Loss
Which of the following provisions establishes a procedure for restoring a policy after it has lapsed because of the nonpayment of premium?
Reinstatement
Changing the Beneficiary is a right reserved for the:
contract owner
An individual health insurance policy contains a Change if Occupation provision. If the insured experiences a more hazardous occupation than when the policy was issued, the insurance company may:
increase the deductible to adjust for the occupational difference
Basic cancers plans pay for all of the following EXCEPT:
physical therapy
According to the insurance code, an agent's controlled business may NOT exceed a maximum of:
50%
Because life insurance policies are offered on a "take it or leave it" basis , they are referred to as which of the following type of contracts?
Contracts of Adhesion
What is an example of controlled business?
Insurance contracts covering an agents family members?
The Florida insurance rule establishing procedures for agents recommending changes to existing coverage is the Florida:
Replacement Rule
The Entire Contract provision in a health policy protects the insured by:
defining the documents that are part of an insurance contract.
An insurance company MAY lawfully refuse to issue health coverage based on:
legal occupation
In Florida, claim payments must be made to an insured under an individual Disability provision AT LEAST:
monthly
In addition to the applicant, the person who receives a long term care lapse notice is the:
secondary addresses
A $100,000 group Accident Death and Dismemberment policy will pay double indemnity if the insured dies in a commercial airplane crash. If the insured is killed when flying to a business meeting on a commercial flight, the policy will pay a MAXIMUM of:
$200,000
Under an individual Major Medical policy, a married policyowner has the right to take which of the following.
Add a newborn child to the policy without providing proof of insurability
Which of the following benefits ae usually EXCLUDED or limited under Long Term Care policy?
Addictive behavior rehabilitation
Which of the following characteristics is typical of group insurance?
All full-time employee are eligible for coverage
A student airplane pilot may buy life insurance at a regular price if the policy that purchased contains:
An Aviation Exclusion
Which of the following features of a life policy is used to restrict coverage?
An exclusion
A customer surrenders a recently issued whole life policy and requests proceeds be made payable to an unrelated third party, This would be a red flag potential violation of the :
Ant-money laundering rules
which of the following is true of life settlement?
Any insured is eligible to enter into one.
Which of the following kinds of policies typically contains a limited daily room and board benefits and provides coverage on an in-hospital basis only?
Basic Hospital
An immediate annuity can be recognized by which of the following features?
Payout begins one payment period after purchase
Which of the following Term guarantee s the insured the right to continue term coverage after expiration the initial policy period?
Renewable
Which of the following information is included in the Consideration clause in an Accident and Health policy?
Schedule and amount of premium paymentss
Which of the following statements is CORRECT about a Disability Income policy with a Guaranteed Insurance rider?
The insurance company guarantees the premium rate for the life of the policy
a Life insurance policy owner has paid $1,200 in premiums in six months for a $250,000 policy. The policyowner suddenly and the insurer pays the beneficiary $250,000. This exchange of unequal values reflects which of the following insurance contract features?
Aleatory
What does the term "Affiliated Party " mean?
Any person who directs or participates in the conduct of affairs of a licensee and who is an offer, stockholder, owner or other person who directly controls a company
If the initial premium does not accompany an application for insurance, the producer MUST take which of the following actions when delivering the policy?
Collect the initial premium and verify the applicants continued good health.
A prospect submits an Accident and Health application with the premium and receives a conditional receipt to the insurance company issues a policy and mails it to the insured, but the insured never receives it. Which of the following statements is CORRECT about this situation?
The policy is in force
An insurance company formed under the laws of another state is:
a foreign insurer
All of the following information must be shown on every insurance application in Florida EXCEPT the:
agent's office address and telephone number
An admitted insurance company doing business in this state must operate under:
an advisory board certified by the Department of Financial Services
An insurance company may lawfully take all of the following actions to provide disability income coverage to a subtended Appliant EXCEPT:
exclude coverage of the substandard condiitons
Which of the following statements is CORRECT about federal income tax law in relation to $100,00 worth of group Term insurance coverage through an employer-sponsored plan?
Death benefits are income tax free to name beneficiaries
The policy provision that prevents insurance company from altering its agreement with a policyowner by the documents or other items not contained in the policy is called the:
Entire Contract provison
Which of the following items requires that an insurance application state that an investigative consumer report be obtained on a prospective insured?
Fair credit Reporting Act
a policyowner returned a newly issued policy one week after the policy was delivered by the producer and a refund of all premiums paid. Which of the following policy sections covers the situation described?
Free look provison
Which of the following statement about a five-year-old Whole Life policy is CORRECT?
If a policyowner stops paying premiums, the policyowner may elect a Nonforfeiture option
Which of the following beneficiary designations may limit a policyowner's rights?
Irrevocable
Which of the following conditions of a Major Medical policy?
It contains a deductible and coinsurance.
Which of the following statements is CORRECT about Business Overhead Expense insurance?
It covers eligible expenses for staff, rent, and utilities
Which of the following statement is correct about a renewable term policy?
The renewal premium is calculated on the basis of the insured's attained age
Under an Accidental Death and Dismemberment policy, in which of the following circumstance will an auto NOT be performed?
When it is prohibited by laws
An immediate Annuity will have?
a single premium
Under a Guaranteed Renewable provision in a policy issued to a group of person an insurance company may NOT terminate coverage on a group member if the member:
becomes disable
A life insurer that accepts an incomplete application and issues a policy is obligated to:
charge a lower premium for the initial period of coverage
A Payor Benefit clause is generally added to a life policy that insures the life of a:
child
W applies for life insurance on W's five year old child and submits the initial annual premium. The producer issues W a receipt and says that coverage will be effective immediately if the application is approved, because no meeting examination is required. Which of the following types of receipts did the producer issue?
conditional
Which of the following is a contract in which the performance of one or both parties is contingent upon occurrence of a particular event?
conditions
Under federal law, a tax-exempt Health Savings Account can only be opened for an individual who is:
covered by qualified High Deductible health plan
An insured who owns a Disability Income policy forgot to pay the premium due on July 1. If the insured files a disability claim on July 31, the insurance company will MOSTLY likely:
deny the claim
Which of the following policies provide a specified income benefit when the insure cant work because of illness or accident?
disability income
Which of the following statements is CORRECT about conversion of group term life employment?
if death occurs during the conversion period, the death benefit must be paid.
Which of the following statements about a Dismemberment provision in a health insurance policy is CORRECT?
it provides benefits for the loss of a specific part of the body
Which of the following statement is CORRECT about a Limited-Pay Whole Life policy?
the policy provides insurance protection for a shorter period of time than a straight life policy
An application for an individual Disability Income policy may require all of the following information about the proposed insured EXCEPT for:
the spouse's occupation
