Life and Health Insurance Exam
What is the benefit of choosing extended term as a nonforfeiture option?
It has the highest amount of insurance protection.
What is the purpose of a conditional receipt?
It is intended to provide coverage on a date earlier than the date of the issuance of the policy.
Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?
Insuring clause
Which of the following statements is TRUE concerning irrevocable beneficiaries?
They can be changed only with the written consent of that beneficiary.
An employer offers group life insurance to its employees for the amount of $10,000. Which of the following is true?
The cost of coverage is a deductible expense by the employer.
Which of the following authorities grants and revokes licenses?
Department of Financial Services
A long-term care insurance shopper's guide must be provided in the format developed by which of the following?
NAIC
Which of the following is NOT a feature of a guaranteed renewable provision?
The insurer can increase the policy premium on an individual basis.
What is the purpose of a disclosure statement in life insurance policies?
To explain features and benefits of a proposed policy to the consumer
All of the following are activities of daily living EXCEPT
Speaking.
What is the period of coverage for events such as death or divorce under COBRA?
36 months
A corporation can be considered a "small group employer" if it has at least one and a maximum of how many employees?
50
The Florida Health Insurance Coverage Continuation Act requires insurers that sell health plans to small employers to offer in those plans a right to elect to continue coverage, without providing evidence of insurability, to employees who lose their coverage and are unable to replace it. The premium rate for this coverage may NOT exceed
115% of the regular group rate.
In life policies issued in this state, insurers are permitted to charge interest during the policy grace period for the number of days elapsing before the premium is paid. What is the maximum annual interest rate?
8%
A hospital indemnity policy will pay
A benefit for each day the insured is in a hospital.
Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process?
Buyer's Guide
How are state Insurance Guaranty Associations funded?
By their members - authorized insurers
Which of the following insurance providers must be nonprofit and sell insurance only to its members?
Fraternal
Which is TRUE about the cash surrender nonforfeiture option?
Funds exceeding the premium paid are taxable as ordinary income.
Which of the following entities protects policyowners, insureds, and beneficiaries under insurance contracts when insurers fail to perform contractual obligations due to financial impairment?
Insurance Guaranty Association
A woman's health insurance policy dictates which doctors she is allowed to see. Her health providers share an assumed risk for their patients and encourage preventative care. What best describes the health system that the woman is using?
Managed Care
Which provision concerns the insured's duty to provide the insurer with reasonable notice in the event of a loss?
Notice of Claim
When an insurer terminates an agent's appointment, the insurer must do all of the following EXCEPT
Provide a 30-day advance notice to the Commissioner.
Annually renewable term policies provide a level death benefit for a premium that
Increases annually.
Which of the following is true regarding Medicare supplement policies?
They must be guaranteed renewable.
An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy?
10 days
All other factors being equal, the least expensive first-year premium payment is found in
Annually Renewable Term.
The purpose of managed care health insurance plans is to
Control health insurance claims expenses.
All of the following statements describe a MEWA EXCEPT
MEWAs are groups of at least 3 employers.
Which document helps ensure that full and fair disclosure is provided to the recipient of a policy?
Outline of Coverage
If an employer decides to change its life insurance policy to a similar one with a different insurer, which of the following describes the extent that replacement regulations will be exercised?
Replacement regulations will not apply in this situation.
A person insured under a group life insurance policy can make an assignment of all or any part of the incidents of ownership conferred on the insured by the policy or by law, to any of the following EXCEPT
The policyholder.
Which of the following statements is correct?
HMOs may pay for services not covered by Medicare.
Which of the following is NOT the consideration in a policy?
The application given to a prospective insured
All of the following are requirements for life insurance illustrations EXCEPT
They must be part of the contract.
Under special circumstances, continuing education requirements may be extended beyond the 2-year period for a maximum period of
12 months.
An agent delivers a life insurance policy to the proposed insured. The insured makes a decision not to accept the policy. The insured may return the policy for a full refund of premium within how many days?
14
At what age may an individual make withdrawals from an HSA for nonhealth purposes without being penalized?
65
If a claim is made on a policy during the grace period, an insurer is allowed to deduct the overdue premium and to charge interest. What is the maximum allowed interest rate?
8%
Which of the following long-term care benefits would provide coverage for care for functionally impaired adults on a less than 24-hour basis?
Adult day care
All of the following are examples of third-party ownership of a life insurance policy EXCEPT
An insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan.
At what point must an Outline of Coverage be delivered?
At the time of application or upon delivery of the policy
An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?
Decreasing term
Which of the following types of LTC is NOT provided in an institutional setting?
Home health care
A Return of Premium term life policy is written as what type of term coverage?
Increasing
All of the following are true regarding rebates EXCEPT
Rebates are allowed if it's in the best interest of the client.
All of the following entities regulate variable life policies EXCEPT
The Guaranty Association.
The policyowner of a Universal Life policy may skip paying the premium and the policy will not lapse as long as
The policy contains sufficient cash value to cover the cost of insurance.
Under the Physical Exam and Autopsy provision, how many times can an insurer have the insured examined, at its own expense, while a claim is pending?
Unlimited
In forming an insurance contract, when does acceptance usually occur?
When an insurer's underwriter approves coverage
When a person applies for Medicare supplement insurance, whose responsibility is it to confirm that the applicant does not already have accident or sickness insurance in force?
insurer
All of the following would be legal activities for an HMO to engage in EXCEPT
Health insurance solicitation.
An insured has a primary group health plan and an excess plan, each covering losses up to $10,000. The insured suffered a loss of $15,000. Disregarding any copayments or deductibles, how much will the excess plan pay?
$5000
The minimum age for purchasing life insurance policy in Florida is
15.
A paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default?
60
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
An unfair trade practice.
Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium?
Automatic premium loan
An agent's appointment has been denied. Which of the following is true?
State taxes may be refunded upon a written request.
Which of the following would an accident-only policy NOT cover?
Surgery to repair a wrist damaged by tendonitis.
Which of the following does NOT have to be disclosed in a long-term care (LTC) policy?
The aggregate amount of premiums due
The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true?
The annuitant must be a natural person.
An insured loses her left arm in an accident that is covered by her Accidental Death and Dismemberment policy. What kind of benefit will she most likely receive from this policy?
The capital amount in a lump sum
Which of the following is true regarding the agent's appointments?
A person may hold several appointments at one time.
Under what conditions will proof of insurability NOT be required of an employee wanting to enroll in a group insurance plan?
If the employee enrolls within a certain time period
When does Medicare cover nursing home care?
Only if it is part of treatment for a covered illness or injury
Which of the following best describes fixed-period settlement option?
Both the principal and interest will be liquidated over a selected period of time.
What is the main difference between coinsurance and copayments?
Copayment is a set dollar amount.
An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?
Pay a reduced death benefit
Which of the following insurance products will be subject to the regulation on life insurance solicitation?
Which of the following insurance products will be subject to the regulation on life insurance solicitation?
In order for an employee to be considered eligible for small group insurance, he/she must work at least how many hours per week?
25
Ray has an individual major medical policy that requires a coinsurance payment. Ray very rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arrangement would be best for Ray?
50/50
All of the following statements concerning dividends are true EXCEPT
Dividend amounts are guaranteed in the policy.
Which types of insurance companies marketing long-term care insurance coverage must establish procedures to assure that any comparison of policies by its agents will be fair and accurate?
Every company is required to establish marketing procedures.
A customer with an existing life insurance contract is considering exchanging it for a newer contract. What Florida insurance regulation should the customer's insurance agent consult?
The Florida Replacement Rule
Which of the following is true regarding health insurance underwriting for a person with HIV?
The person may not be declined for medical coverage solely based on HIV status.
If an insured receives accelerated death benefits, what is the least amount of the original death benefit that the beneficiary would receive after the insured's death?
0%
COBRA applies to employers with at least
20 employees.
What do individuals use to transfer their risk of loss to a larger group?
Insurance
All of the following long-term care coverages would allow an insured to receive care at home EXCEPT
Skilled care.
An applicant signs an application for a $25,000 life insurance policy, pays the initial premium, and receives a conditional receipt. If the applicant is killed in an automobile accident the next day,
The beneficiary would receive $25,000 if it was determined that the insured qualified for the policy applied for.