Chapter 8 (Health)
Insurance
A Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits?
48 months
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?
10%
A life policy loan in Florida cannot charge a fixed rate of interest higher than
Stock company is owned by its shareholders. Mutual company is owned by its policyholders.
A mutual insurance company and a stock insurance company have one main difference between them. What is this major contrast?
broker dealer
A variable life insurance agent must be licensed and appointed as a life and variable contract agent, as well as a(n)
Graduate from High School
All of these are a prerequisite for becoming a licensed agent EXCEPT
Suitability form
An agent selling Medicare Supplement policies must provide every applicant with a(n)
misrepresentation
Convincing a prospective insured to buy an insurance policy based on exaggerations is called
malign another insurer
Defamation occurs when an agent makes a false statement intended to
- Allows small businesses to provide group health insurance coverage for its employees on a guarantee-issue basis regardless of health circumstances, preexisting conditions, or claims history
Florida Employee Health Care Access Act
Pay monetary restitution to the client
K is an agent who made an improper sale of an annuity to a client. Which of the following corrective actions would the Department of Financial Services likely order K to take?
Fraternal life insurance organizations
Nonprofit life insurance providers that are covered by a special section in the Florida insurance code are called
a practice, prohibited in most states, of offering a cash payment or something of value to an applicant as an inducement to buy or maintain insurance
Rebating
Chief Financial Officer
The Bureau of Unclaimed Property is overseen by the
group health insurance available to employers with up to 50 employees
The Florida Employee Health Care Access Act was established to make
15 years
The minimum age at which a person can sign a life insurance application is 15 years
once each year
Under Florida law, a variable annuity policyowner must be notified of the accumulated value of the contract
Limitation on pre-existing conditions for up to 12 months
Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy?
only if the child is incapable of employment and chiefly dependent on the policyowner
Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent
An agent guaranteeing a policy's dividends
Which of the following is considered to be misrepresentation?
National Association of Insurance and Financial Advisors (NAIFA)
Which of the following professional organizations has its code of ethics incorporated into Florida law?
Seven-day grace period
Which of the following provisions is NOT required in HMO contracts/certificates?
An entity that obtains and possesses a license solely for the purpose of writing business on the owner, immediate family, relatives, employer and employees
controlled business
Any inducement offered in the sale of insurance products that is not specified in the policy
rebating
No minimum
According to Florida law, a Group Life insurance policy requires a minimum of how many insureds?
64 years or older
According to Florida law, an additional lapse notice must be issued after the standard grace period has expired for policyowners age
require evidence of insurability
According to Florida law, group life insurance conversion privileges must NOT
Marital status
According to Florida law, which of the following information does NOT need to be obtained by an agent recommending an annuity purchase?
It may solicit insurance business by mail without the assistance of a licensed agent
According to Florida law, which of the following statements accurately describes an admitted mail order insurance company?
the policyowner
According to Florida's life insurance replacement laws, a policyowner must be provided with a written Comparison and Summary Statement when it's requested by
24
Agents that have been licensed for less than six years must complete __ hours of continuing education every two years.
conditional receipt
An applicant who pays the initial premium at the time of application is typically given a(n)
failing to effectuate prompt, fair, and equitable settlements of a claim
An example of an unfair claims practice would be
An insurance company incorporated in a country other than the United States.
alien company
20
A person insured under a health policy is required to give the insurance company a Notice of Claim within how many days after a covered loss?
an agent making a material misrepresentation to the insured
An example of an unfair trade practice is
An insurer exaggerating its dividends in a magazine advertisement
An example of false advertising would be
offering a client something of value not stated in the contract in exchange for their business
An example of rebating would be
misrepresentation
During the course of an insurance transaction, if an agent makes a false or incomplete statement, he/she could be found guilty of
20
Employers with less than __ employees are affected by Florida's Health Insurance Coverage Continuation Act (Mini COBRA).
Sets forth requirements when a proposal is being made in which a prospective insurance buyer will be replacing existing insurance contracts with the proposed new insurance. And providing a written comparison and summary statement.
Florida Replacement Rule
date of delivery
Florida's 14-day free-look period for life insurance policies begins at the
Only if the agent-in-charge is present when insurance activity occurs
How can an agent-in-charge have more than one location?
Life and Variable contracts
If an agent would like to sell Variable annuities, which state examination must the agent pass?
31 DAYS
In Florida, a health policy that is paid on a quarterly basis requires a grace period of
domestic company
In Florida, an insurer domiciled and incorporated in this state is called a(n)
foreign company
In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey, is called a(n)
a form of misrepresentation
In Florida, deceptive advertising is considered to be
50%
In Florida, what is the maximum percentage of controlled business an agent may produce?
The state where they are conducting business
In order for a domestic, foreign, or alien insurance company to conduct business, it must be authorized by whom?
funded by admitted insurance companies through assessments
The Life and Health Insurance Guaranty Association is
Moody's corporate bond index
What are adjustable rates for life policy loans in Florida based on?
A portion of the premium
What do families pay that are covered by the Florida Healthy Kids Corporation?
0%
What is the required minimum percentage of employee participation for a noncontributory group health insurance plan according to Florida Law?
At the moment of birth
When is a Group Health policy required to provide coverage for a newborn child?
Performing insurance transactions without a license
Which action could result in a hearing being ordered by the Department of Financial Services?
Notice to existing and replacing insurers of intention to replace
Which of the following documents must an agent submit to the replacing insurance company during the replacement of an existing life insurance policy?
Needing written documentation of claim details
Which of the following is NOT an unfair claim settlement practice?
Sharing commissions with an agent licensed in the same line of business
Which of the following is NOT considered rebating?
Projection of the policy's future costs
Which of the following is NOT required in the Outline of Coverage for a health insurance policy?
Coercion
Which of the following is an example of an Unfair Trade Practice?
Twisting involves an agent using misrepresentation to convince a policyowner to cancel their current policy so that they can purchase a new life insurance policy with another company
Which of the following is considered an accurate statement of an unfair trade practice?
Insurance companies' day-to-day operations
Which of the following situations are NOT subject to Florida life insurance laws?
Department of Financial Services; and Securities Exchange Commission
Which two entities regulate variable annuities?
Mutual
Which type of insurance company allows their policyowners to elect a governing body?
The insurance company
Who does an agent represent during the solicitation of insurance?
30
Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund?
30
Within how many days must a licensee notify the Department of Financial Services of a change in address?