Set 7 - Florida Life, Health & Annuity Exam Prep by YIS

An annuity contract is issued to a senior consumer over age 65. What is the maximum surrender charge for a withdrawal of money allowed on this annuity?

10%

In order for a debtor group to qualify for group life insurance, what should be the minimum number of participants joining the plan every year?

100

What is the statute of limitation on lawsuits for health insurance policies?

5 years

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

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

The term "illustration" in a life insurance policy refers to

A presentation of nonguaranteed elements of a policy.

Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health policy must contain

A statement that is sufficiently clear to identify the insured and the nature of the claim.

What is a foreign insurer?

An insurer with a home office in another state

A group policy used to provide accident and health coverage on a group of persons being transported by a common carrier, without naming the insured persons individually is called

Blanket policy.

An insured pays an annual premium to his insurer. In return, the insurer promises to pay benefits in accordance with the terms of the contract. This is called

Consideration.

All of the following are true about group disability Income insurance EXCEPT

Coverage applies both on and off the job.

Which of the following authorities grants and revokes licenses?

Department of Financial Services

An agent's client needs additional insurance which the agent's own insurer cannot provide. The agent has to solicit additional coverage from another authorized insurer. This coverage is known as

Excess.

Circulating deceptive sales material to the public is what type of Unfair Trade Practice?

False advertising

Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid

For 20 years or until death, whichever occurs first.

Which of the following entities is not an insurer but an organization formed to provide insurance benefits for members of an affiliated lodge or religious organization?

Fraternal benefit society

In long-term care (LTC) policies, as the benefit period lengthens, the premium

Increases.

Which of the following best describes a misrepresentation?

Issuing sales material with exaggerated statements about policy benefits

Which of the following is NOT true regarding a Certificate of Authority?

It is issued to group insurance participants.

Which statement is NOT true regarding a policy summary?

It must be combined with a sales illustration.

If a dental plan is integrated, it is combined with what type of plan?

Medical

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

A participating insurance policy may do which of the following?

Pay dividends to the policyowner

A medical insurance plan in which the health care provider is paid a regular fixed amount for providing care to the insured and does not receive additional amounts of compensation dependent upon the procedure performed is called

Prepaid plan.

Which of the following is among the regulations set forth by the Florida Replacement Rule?

Providing a written comparison and summary statement

Insurers may change which of the following on a guaranteed renewable health insurance policy?

Rates by class

An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of

Rebating.

Which of the following is NOT specifically prohibited by state law as an unfair trade practice?

Reducing the premiums paid by employers for group insurance based on loss experience

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

Replacement rule

An insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband named as what type of beneficiary?

Revocable

Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?

Size of each installment

Your client is planning to retire. She has accumulated $100,000 in a retirement annuity, and now wants to select the benefit option that will pay the largest monthly amount for as long as she lives. As her agent, you should recommend

Straight life.

Which of the following, when attached to a permanent life insurance policy, allows the policyowner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members?

Term rider

All of the following must be presented on a small group health insurance identification card EXCEPT

The insured's address.

All of the following statements are true regarding installments for a fixed amount EXCEPT

The payments will stop when the annuitant dies.

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 regarding the Change of Beneficiaries Provision is false?

The policyowner has the right to change beneficiaries in any case.

Which of the following best defines target premium in a universal life policy?

The recommended amount to keep the policy in force throughout its lifetime

Which of the following is true regarding Medicare supplement policies?

They must be guaranteed renewable.

Which type of misrepresentation persuades an insured, to their detriment, to cancel, lapse, or switch policies from one to another?

Twisting