FL Insurance exam

A retail shop owner is insured under a business overhead expense policy that pays a maximum monthly benefit of $2,500. His actual monthly expenses are $3,000. If the owner becomes disabled, the monthly benefit payable under his policy will be

$2,500

An annuity has accumulated the cash value of $70,000, of which $30,000 is from premium payments. The annuitant dies during the accumulation phase. The beneficiary will receive

$70,000

If an insured is injured while committing an illegal act and the insureds health policy contains the illegal occupation provision, what percentage of the claim will be paid?

0%

An IRA owner who is 57 years old wants to make a withdrawal from her traditional IRA. What penalty will be imposed?

10%

Partial disability usually pays what percent of the total disability benefit?

50%

An individual is approaching retirement age and is concerned about having proper coverage should he have to be placed in a long term care facility. His agent told him that LTC policies would provide necessary coverage at all of the following levels except?

Acute

If an insured dies and it is discovered that the insured misstated his or her age or gender, the insurance company will?

Adjust the death benefits to what the premium would have purchased at the actual age or gender

Which of the following statements is NOT true regarding health insurance policy provisions?

All additional provisions written by insurers are cataloged by their respected states

The corridor deductible applies between?

Basic and major medical coverage

What specific kind of insurance is often written in conjunction with hospital expense policies and includes surgeons and anesthesiologists fees?

Basic surgical expense insurance

Which of the following is guaranteed under a variable whole life insurance policy?

Cash value

Which of the following is true of the taxation of cash values in a business life insurance policy?

Cash values grow tax deferred

Regarding the consideration clause, which of the following is NOT correct?

Consideration of the insurer and insured must be equal

Decreasing term insurance is often used to?

Cover a mortgage

Which of the following losses would likely be covered under the accidental death rider?

Death caused by a head on collision

What would the insurance company do if an insured under a whole life policy with an accidental death rider intentionally kills himself a couple of months after purchasing the policy?

Deny the death benefit, but refund the premium

All of the following are features of a health insurance plan purchased on the health insurance marketplace except?

Dollar limits on essential benefits

The uniform provision law that prevents an insurance company from altering its agreement with a policy holder by referring to documents or other items not contained in the policy is called the?

Entire contract provision

The stop loss feature on a major medical policy is intended to?

Establish a maximum amount of out of pocket expense that an insured will have to pay for medical expense in a calendar year

An applicant may challenge information discovered as a result of an investigative consumer report under which of the following acts?

Fair credit reporting act

All of the following must sign an application for health insurance except the?

Insurer

Which of the following is NOT true regarding a non cancelable policy?

Insurer can increase the premium above what is stated in the policy if claims experience is greater than expected.

Riley reads an agreement on the first page of her policy which includes a list of losses that will be covered by her insurer. What is the name of this agreement?

Insuring clause

The provision that sets forth the basic agreement between the insurer and the insured and states the insurers promise to pay the death benefit upon the insureds death is called the?

Insuring clause

Ed is covered under a health plan provided by his employer. He was told that his insurance would pay the majority of the covered expenses if he would choose to see a provider in his plan's list. If Ed chose to be treated by a provider who was not on the list, his portion of the bill would be greater. Ed is covered under an?

Preferred provider plan

What the difference between a straight life policy and a 20-pay whole life policy?

Premium payment period

How do premiums in variable universal life policies vary from those in variable whole life policies?

Premiums are flexible

Variable insurances and variable annuities are regulated by?

SEC and FINRA only

When an agent delivered an insurance policy to the insured, he collected the initial premium, as well as a document verifying that the insured had not had any injuries or illness since the application date. What is the document called?

Statement of good health

All of the following would be classified as limited insurance coverage except?

Supplement social security coverage

Which of the following is a requirement for replacement of health policies?

The old policy must stay in force until the new policy is issued.

Which of the following would not be eligible for coverage under key person?

The owner of a shop

With Adjustable Life, the owner can change all of the following EXCEPT?

The premium

All of the following statements about indexed whole life insurance are correct except?

The premium is fixed

All of the following are consideration in an insurance policy except?

The statements on the application

What is the purpose of the impairment rider in a health insurance policy?

To exclude coverage for a specific impairment

What is the purpose of a buy-sell agreement?

To protect business employees against loss of income due to the owner's death

What is the purpose of the agents report in the application process?

To provide additional information about the applicant to the underwriters

An aleatory contract is based on what kind of exchange?

Unequal exchange of values

Which of the following services will NOT be provided by an HMO?

Unlimited coverage for treatment for drug rehabilitation

If an insured is not entirely satisfied with a policy issued, the insured may return it to the insurance company and receive a refund of the entire premium payed, at which of the following times?

Within 10 days of when the policy was delivered.

Under the mandatory uniform provision Notice of Claim, Written notice of a claim must be submitted to the insurer within what time parameters?

Within 20 days

Jays retirement plan meets all federal requirements and entitles him to certain tax benefits as the owner of the plan. What term best describes Jays retirement plan?

Qualified

An insured was diagnosed two years ago with kidney cancer. She was treated with surgeries and chemotherapy and is now in remission. She also has a 30 year smoking history. The insured is now healthy enough to work and has just started a full time job. Which describes the health insurance she will most likely receive?

She would be covered under her employers group health insurance plan, without higher premiums

What is the maximum amount of individual life insurance coverage that a person can convert to if the existing group policy has been terminated?

$10,000

On individual health insurance policies, an insurer must furnish the claimant with claim forms within how many days?

15 days

Florida law requires that both individual and group health insurance policies provide coverage for a new born child of a covered family member, other than the insured, for a period of?

18 months

How many hours of continuing education must a newly licensed agent complete every two years?

24 hours

Joe moved last year and forgot to notify the department of his change of address. He was charged a $250 fine. This year Joe moves again, and again forgets to notify the department within the required time. What will Joes penalty be?

A minimum fine of $500 dollar or suspension of revocation of his license

According to the life insurance replacement regulations, which of the following would be an example of policy replacement?

A policy is reissued with a reduction in cash value

All of the following could qualify as a group for the purpose of purchasing group health insurance except?

An association of 35 people

An underwriter is reviewing an applicant with an extensive medical history. Which of the following would give the underwriter a better understanding of how the applicant has been treating for various illnesses?

Attending physicians statement

Which provision may be added to a permanent life policy, at no cost, that insures that the policy will not lapse so long as there is cash value?

Automatic premium loan option

In an employer group health insurance plan, the covered employee receives?

Certificate of insurance

Participants under a group life insurance plan are issued?

Certificates of insurance

Which of the following sources would explain the state policies regarding appropriate agent conduct?

Code of ethics of the Florida association of insurance and financial advisors

If an insurer appoints a customer representative, the appointment needs to be filed with which of the following entities?

Department

A husband and wife both incurred expenses that are attributed to a single major medical insurance deductible. Which type of deductible do they have in their policy?

Family

Premiums collected on behalf of the insurance company by an agent will be held in what capacity?

Fiduciary

Who regulates the minimum standards for coverage in health insurance?

Florida law

What is the maximum age that a disabled insured worker may receive social security disability benefits?

For life with no maximum age limit

An insurer incorporated under the laws of another state but doing business in this state is considered?

Foreign

Under the long term care marketing regulations, Which of the following questions would a producer NOT have to ask the applicant in order to determine if the purchase is suitable?

How much are you able to pay in premiums

What does the guarantee association guard against?

Insurer insolvency

Agents may be found guilty of defamation if they make a false statement that is intended too?

Maliciously criticize another insurance company

A core medicare supplement policy "Plan A" will cover all of the following expenses except?

Part A deductible

A married couple purchased a life insurance policy on their new born baby. They're concerned about what would happen to the policy if either one of them were unable to continue making the premium payments do to death or disability. Which policy rider should their agent recommend?

Payor benefit

In a group life policy with a death benefit of more than $50,000?

Premium costs above $50,000 is taxable as income to the employee

Which of following rules would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new life insurance?

Replacement rule

Which of the following terms relates to disability income insurance?

Residual benefit

If a life insurance policy is purchased by Someone who has no insurable interest in the insured, it is considered?

STOLI

A corporation has 41 members. Which classification would the employer receive?

Small group

The family term rider incorporates?

Spouse term and children's term

Why does Florida have state laws regulating medicare supplement insurance?

States cannot enforce and prosecute federal laws

dividends received on participating life insurance policies are?

Taxable because they are a return of unused premium

An insurer is attempting to determine the insurability of an applicant and decides to obtain medical information from several different sources. Which entity must be notified of the investigation?

The applicant

The policy owners spouse was designated as the primary beneficiary on a life policy issued 3 years ago. Last year, the couple got divorced. Which of the following is true regarding the beneficiary designation of the former spouse?

The designation will be void

What happens to the face amount of a whole life policy if the insured reaches the age of 100?

The face amount is paid to the insured

Life insurance creates an immediate estate. Which of the following best explains this statement?

The face value of the policy is payable to the beneficiary upon the death of the insured

In a life insurance application, all of the following signatures will be required except?

The home office underwriter

Which of the following is legal?

The insurance company does not consider a genetic test as a factor in underwriting a potential insured

What is the only difference between blanket insurance and group health insurance?

The insured members are not named

How long does the law require agents to maintain records of transactions pertaining to premium payments?

3 years

HMO contracts may only be sold by a licensed and appointed health insurance agent or a full-time salaried employee or officer of an HMO who devotes most of his or her services to?

Activities other than soliciting HMO contracts from the public and who receives no commissions or compensation for procuring such contracts

Agent R is charged with committing a crime in another state, and is sentenced to one year in prison. Who is required to report the charges to the Florida department of insurance?

Agent R

All of the following could qualify as a group for the purpose of purchasing group life insurance except?

An association formed 1 year ago

A loss resulting from which of the following would qualify for the accidental death rider coverage?

An automobile accident

The guaranteed purchase option is also referred to as the?

Future increase option

An insured has an individual disability income policy with a 30 day elimination period. He becomes disabled on June 1st for 15 days. When will he collect on his disability income payments?

He won't collect anything

According to the Fair Credit reporting act, all of the following statements are true except?

If an applicant is declined for an insurance policy, he or she has no right to know what was in the report

If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan?

Immediately

In making an annuity recommendation to a consumer the producer must have reasonable grounds to believe that the annuity?

Is suitable

Which of the following is true of level term insurance?

It is temporary protection

Which of the following statements is true regarding an agents report during the policy application process?

It provides the agent's personal observations concerning the proposed insured.

Your client wants to provide a retirement income for his elderly parents in case something happens to him. He wants to make sure that both beneficiaries are guaranteed an income for life. Which settlement option should this policy owner select?

Joint and survivor

An example of an alien insurer doing business in this state is one formed under the laws of?

Mexico

Guaranteeing future dividends is considered to be an unfair or deceptive act known as?

Misrepresentation

In health insurance, length of the grace period varies according to the?

Mode of premium payment

An individual long term care policy can not be issued until the insurer has received from the applicant a written designation of at least?

One person

When may HIV-related test results be provided to the MIB?

Only if the individual is not identified

Insureds have the right to do which of the following if they have NOT received the proper claim forms within 15 days of their notice to the insurer of a covered loss under a major medical policy?

Submit the description in their own words on a plane sheet of paper

What does basic medical expense cover?

Surgery

Which of the following would be an example of an unfair trade practice of sliding?

An agent is being maliciously critical of the financial condition of an insurer

Which of the following statements is incorrect?

Medicare and Medigap policies provide coverage for long term custodial or nursing home care

Which of the following is consideration on the part of an insurer?

Paying a claim

Who is obligated to make sure all questions are answered and all necessary signatures are collected on the application?

The agent

A man is an attorney when he applies for a health policy. He decides to become a professional bungee jumper. He files a claim. What should happen?

The insurance company will pay the claim according to the benefits available if the correct premium had been paid

Policy loan requests, except for loan requests for payment of due premiums, may be deferred for a period of up too?

6 months

According to the metal level classification of health plans, what percentage of health care costs will be covered under a gold plan?

80%

Under the mandatory uniform provision Proof of Loss, the claimant must submit proof of loss within what time period after the loss?

90 days

The entire contract includes all of the following excpet?

A buyers guide

Which of the following describes the relationship between the principle sum and a capital sum?

A capital sum is a percentage of the principal sum

A policy owner who purchases an individual insurance policy and then asks for a refund within two weeks after the policy was delivered will receive?

A full refund of the premium

Which of the following is NOT considered eligible for group life insurance?

A public employer group with 5 members

An agent delivers a life policy. He explains a policy change was made and asks the applicant to sign a statement acknowledging the changes were explained. The agent says the premium has not been paid and must be paid before the policy goes into effect. He collects a Statement of Good Health, relinquishes the policy, and leaves. What did he do wrong?

He left the policy with the insured without collecting the premium.

Which of the following is the primary source of information that and insurer uses to evaluate an insureds risk for insurance?

Insurance application.

Which of the following terms refers to solicitation, negotiation, effectuation, or advising relating to an insurance contract?

Insurance transaction

An insured had a heart attack while jogging, but is expected to return to work in approximately 6 weeks. The insureds disability income policy will?

Replace a percentage of his lost income

Life insurance can provide which of the following?

Survivor protection

When term insurance is added to te main policy to enhance the policy r provide added benefit or coverage, it's called?

Term rider

Once the initial benefit limit in medicare part D is reached, how is the beneficiary affected?

The beneficiary is then responsible for a portion of prescription drug costs

What Florida insurance regulation established an outline of appropriate and inappropriate business behavior for life insurance agents?

The code of ethics of the FL association of insurance and financial advisors

Under the Payment of Claims provision, to whom will the insured's benefits be paid if the insured is deceased?

The insureds primary beneficiary.

If a life policy insured is 64 years of age or older, the insurer must advise him or her of which of the following?

The insureds right to designate a secondary addressee to receive a copy of any policy lapse notices

Failing to acknowledge and act reasonably promptly upon communications with respect to an insurance claim is in violation of what insurance regulation?

Unfair claim settlement

Two individuals of the same age, health status, and life expectancy apply for individual insurance coverage. When policies are issued by the same insurer, the premium rates are different based on the insureds race. What practice does this describe?

Unfair discrimination

How long must an insured wait before filing a law suit against the insurer?

60 days after filing proof of loss

Within how many days from termination of employment must an insured under a group health insurance policy provide notice to an insurer in order to continue coverage under the employers plan?

63 days

Which of the following best defines the probationary period in group health policies?

A specified period of time that a person joining a group has to wait before becoming eligible for coverage.

An insurer who transacts insurance in this state but who's articles of incorporation are registered in Canada is considered what type of insurer?

Alien

Group life policies are usually issued as what type of coverage?

Annually renewable term

What advantage does the recurrent disability provision provide to the insured under a disability income policy?

It eliminates the imposition of a second elimination period for the same disability

What is the most common name for a single policy that is designed to insure two or more lives with a standard premium, and that pays the death benefit upon the first death?

Joint life

An insurance company that is owned by the policy holders is called an?

Mutual insurer

cash value guarantees in a whole life policy are called?

Non forfeiture values

Among the applicants in the same class and life expectancy, which of the following factors can be used to influence premium rates?

Occupation

Which statement best describes as it relates to insurance contracts?

One party accepts the exact terms of the other parties offer

Insurance contracts are unilateral in nature. What does that mean?

Only one party makes a promise

Who can request changes in premium payments, face value, loans, and policy plans?

Policy owner

Policies are written on a third-party ownership basis are usually written to cover which of the following?

Policy owners minor children or business associates.

All of the following are true regarding key person disability income insurance except?

Premiums are tax deductible as a business expense

Which of the following is not mandatory under the uniform provisions law as applied to accident and health policies?

Probationary period

All of the following are true regarding a producers fiduciary responsibilities except?

Producers may commingle personal funds with company funds

An insured wants to cancel her health insurance policy. Which portion of the contract would explain cancelation rights?

Renewability provision

An individual receives a lump sum inheritance. He'd like to use the money to create a lifetime income since he will be retiring soon. He purchases an annuity and wishes to receive payments beginning in two months. What did he buy?

Single premium immediate annuity

In the state of Florida, which of the following government entities is responsible for the administration and regulation of insurance?

The commissioner

When the owner of a participating whole life policy uses the dividend to provide more life insurance coverage, which of the following dividend options is being used?

Paid up additions

An applicant gives her agent a completed application and the initial premium. What can the agent issue her that acknowledges the initial premium payment?

conditional receipt

A limited health insurance policy that will pay a lump sum to an insured diagnosed with a heart attack, stroke, or renal failure is known as?

critical illness insurance

Insurers offering small employer health insurance are prohibited from?

Providing applicants with information on restricted network provisions