215 Crunch Time
What is the required minimum percentage of employee participation for a noncontributory group health insurance plan according to Florida Law?
0%
__ of personal life insurance premiums is usually deductible for federal income tax purposes
0%
What is the maximum Social Security Disability amount an insured can receive?
100% of the insured's Primary Insurance Amount (PIA)
An insurer must provide an insured with claim forms within __ days after receiving notice of a loss.
15
Insurers may request a hearing within ______ days if their policy is rejected.
20 Days
A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct?
20-Pay Life accumulates cash value faster than Straight Life
Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund?
30
A group plan was recently terminated. In Florida, how many days are covered individuals guaranteed coverage after a group plan's termination?
31 days
S is employed by a large corporation that provides group health coverage for its employees and their dependents. If S dies, the company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months under COBRA regulations?
36
A licensed agent must be appointed by an insurance company to solicit insurance in Florida. The agent's license will terminate if a certain period of time elapses without being appointed. How long is this period of time?
48 months
Which statement is TRUE regarding a Variable Whole Life policy?
A minimum guaranteed Death benefit is provided
A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as
A representation
All are true statements regarding the underwriting process, EXCEPT:
AIDS and HIV virus exams can be conducted in a discriminatory fashion
The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called a(n):
Accidental Death and Dismemberment (AD&D) Rider
Which of the following statements BEST describes what the Legal Actions provision of an Accident and Health policy requires?
An insured must wait at least 60 days after Proof of Loss has been submitted before a lawsuit can be filed
Under a Graded Premium policy, the premiums
Are lower during the policy's early years
P died five years after purchasing a life policy. While investigating the claim, the insurer discovered material misrepresentations made by P during the application process. Which of these actions will the insurer take?
Beneficiary will be paid the Death Benefit
T is receiving $3,000/month from a Disability Income policy in which T's employer had paid the premiums. How are the $3,000 benefit payments taxable?
Benefits are taxable to T
Which type of policy would pay an employee's salary if the employer was injured in a bicycle accident and out of work for six weeks?
Business Overhead Expense
Which of the following policy features allows an insured to defer current health charges to the following year's deductible instead of the current year's deductible?
Carryover provision
A policy loan is made possible by which of these life insurance policy features?
Cash value provision
What type of employee welfare plans are not subject to ERISA regulations?
Church plans
Which of the following reimburses its insureds for covered medical expenses?
Commercial insurers
Insurance contracts are known as ____ because certain future conditions or acts must occur before any claims can be paid.
Conditional
Insurance policies are offered on a "take it or leave it" basis, which make them:
Contracts of Adhesion
The Combination of Whole Life and _____ Term insurance is referred to as a Family Income Policy
Decreasing
Additional coverage can be added to a Whole Life policy by adding a(n)
Decreasing Term Rider
The Department may request all of these during the licensing application process EXCEPT
Drug Test
S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level or risk. Which product would S be advised to purchase?
Equity index insurance
Which of the following is NOT included in the policy face?
Exclusions
D owns a Whole Life policy that was purchased 10 years ago. If the premium payments suddenly stop and D takes no additional action, which Nonforfeiture Option will the insurer likely proceed with?
Extended Term
An underwriter determines that an applicant's risk should be recategorized due to a health issue. This policy may be issued with a(n)
Extra premium
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 Claims provision
Dividends paid from a life insurance policy are
Issued by the insurer
K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable?
Level
D needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policy is needed?
Level Term
Basic Hospital and Surgical policy benefits are
Lower than the actual expenses incurred
Which of these is an element of a Single Premium annuity?
Lump-sum payment
A catastrophic illness would be best covered by which of the following health insurance plans
Major Medical
Rick recently died and left behind an individual IRA account in his name. His widow was forwarded the balance of the IRA. The widow qualifies for the
Marital deduction
J is issued a Life Insurance policy with a death benefit of $100,000. She pays $600 per year in premium for the first 5 years. The premium then increases to $900 per year in the sixth year, and remains level thereafter. The policy's death benefit also remains at $100,000. Which type of Life Insurance policy is this?
Modified Premium Life
K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this?
Modified Whole Life
Which of these life products is NOT considered interest-sensitive?
Modified Whole Life
With a medical discount plan, how often would a person generally pay a fee to get discounts on specific services?
Monthly
Which of the following professional organizations has its code of ethics incorporated into Florida law?
National Association of Insurance and Financial Advisors (NAIFA)
According to Florida law, a Group Life insurance policy requires a minimum of how many insureds?
No minimum
A Disability Income policy that only the policyowner can terminate and which the rates will never go up is considered to be
Noncancellable
Which of the following BEST describes a short-term medical expense policy?
Nonrenewable
In an individual retirement account (IRA), rollover contributions are
Not limited by dollar amount
If a corporation pays the premium on a group life policy for its employees, the corporation is required to report how much additional taxable income for each employee?
Nothing
The Notice of Claims provision requires a policyowner to
Notify an insurer of a claim within a specified time
Which of the following actions is required by an insured who leaves the primary area of medical coverage and seeks medical care?
Obtain prior approval from the insurer for the medical service
An example of rebating would be
Offering a client something of value not stated in the contract in exchange for their business
Which department oversees 'Market Conduct Examinations' in Florida?
Office of Insurance Regulation
Which entity approves the insurance policy forms used in Florida?
Office of Insurance Regulation (OIR)
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
Which of these statements is INCORRECT regarding a Preferred Provider Organization (PPO)?
PPO's are NOT a type of managed care systems
What does Medicare Part A and B cover?
Part A covers hospitalization; Part B covers doctor's services
Which of the following types of insureds are life insurance companies allowed to make policy rate discriminations against?
People that smoke
Which Long Term Care insurance statement is true?
Pre-existing conditions must be covered after the coverage has been in force for six months
A Medical Information Report (MIB) report may disclose which of the following:
Prior use of marijuana
What must the policyowner provide to the insurer for validation that a loss has occurred?
Proof of Loss
All of these are considered sources of underwriting information about an applicant EXCEPT
Rating Services
Which provision allows a portion of any used medical benefits to be restored following a particular amount of benefit has been used, or after the policy has been in effect for a particular period of time?
Restoration of used benefit
Post-tax dollar contributions are found in
Roth IRA Investments
A prepaid application for individual Disability Income insurance was recently submitted to an insurer. When the insurer received the Medical Information Bureau (MIB) report, the report showed that the applicant had suffered a stroke 18 months ago, something that was not disclosed on the application. Which of the following actions would the insurance company NOT take?
Send a notice to the MIB that the applicant was declined
Upon delivery of a rated life insurance policy, the Producer must obtain each of the following EXCEPT
Signed HIPAA disclosure
Which of the following types of permanent life insurance policies offers the highest initial cash value?
Single premium
Which type of plan allows an employer to give money to an employee for buying a life insurance policy and also permits the employee to select the beneficiary?
Split-dollar plan
Which of the following BEST describes a warranty?
Statement guaranteed to be true
Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party?
Subrogation
Which of the following services is NOT included under hospitalization expense coverage?
Surgical fees
The premiums paid by an employer for his employee's group life insurance are usually considered to be
Tax-deductible to the employer
The investment gains from a Universal Life Policy usually go toward
The cash value
A contract owner terminates an annuity before the income payment period begins. The owner will then receive
The current contract surrender value
All of these statements about Equity Indexed Life Insurance are correct EXCEPT
The premiums can be lowered or raised, based on investment performance
The Consideration clause of an insurance contract includes:
The schedule and amount of premium payments
Association Plans that are designed to provide health benefits to their members are regulated by the state because
They are insured by an authorized insurer
The policy provision that entitles the insurer to establish conditions the insured must meet while a claim is pending is
Time Limit on Certain Defenses
Group Life policies in Florida are required to contain a conversion privilege that allows for conversion
To an individual policy for a stated period of time
Why is the applicant's signature required on a life insurance application?
To attest that the statements on the application are accurate to the best of the applicant's knowledge
An agent who makes misleading statements that lead to the termination of an existing insurance policy so that a new policy with another insurer can be taken out has committed
Twisting
K purchased a Life insurance policy in 1986 which paid 10% interest in the early years of the policy. Twenty years after the purchase, she received a notice from the insurer stating that the policy will soon terminate unless a much-higher premium is paid because of falling interest rates. This type of policy is known as a(n) _________ life policy.
Universal
Life insurance immediately creates an estate upon the death of the insured. Which of the following policies is characterized by a guaranteed minimum death benefit?
Variable 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
The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as the
Waiting Period
At what point does an informal agreement become a binding contract?
When consideration is provided by one of the parties to the contract
A Return of Premium life insurance policy is:
Whole life and Increasing term
The payments on Q's annuity are no less than $250 quarterly. Which of the following annuities does Q own?
Flexible Installment Deferred
The Insurance Guaranty Fund Association is
Funded by admitted insurance companies through assessments
Which of the following types of organizations are prepaid group health plans, where members pay in advance for the services of participating physicians and hospitals that have agreements?
HMO
All of these are characteristics of a Health Reimbursement Arrangement (HRA) EXCEPT
HRA is entirely funded by the employee
Basic Medical Expense insurance:
Has lower benefit limits than Major Medical insurance
A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over?
Income taxes plus a 10% penalty tax on $30,000
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
Variable annuities may invest premiums in each of the following, EXCEPT:
Insurer's corporate business account
The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called a(n)
Insuring Agreement
In a Life Insurance contract, an insurance company's promise to pay stated benefits is called the:
Insuring clause
Which of the following claims are typically excluded from Medical expense policies?
Intentionally self-inflicted injuries
How are policyowner dividends treated in regards to income tax?
Interest on accumulations is taxed