FL 2-15
Failure to answer a subpoena or an order of the Chief Financial Officer can result in a __________ fine.
$ 1,000
Deductibles under a group major medical plan usually run from $250 to $500; whereas individual health plans usually run from:
$1,000 plus.
In 2012, for an individual, an HSA qualified high-deductible health plan is one with a minimum deductible of ________. 1) $1,000 2) $1,200 3) $2,000 4) $2,250
$1,200
In 2012, for family coverage, an HSA qualified high-deductible health plan is one with a minimum deductible of ________ . 1) $1,000 2) $1,300 3) $2,000 4) $2,400
$2,400
Social Security provides for a maximum death benefit of:
$255
If an annuitant owns 300 annuity units and receives $1,500 a month, what is the value of each annuity unit?
$5
Audrey, a 34-year old attendant, has a $10,000 IRA with her former employer and wants to roll the funds over into an IRA with her new employer but wants to keep out $5,000 to pay some bills. How much early distribution penalty will she have to pay?
$500
Tom's life policy cash value is $15,000 and he has paid $7,000 in premiums. He now wants to surrender the policy for its cash value. How much is considered nontaxable?
$7,000
Judy becomes eligible for $1,600 a month in her noncontributory group disability income policy. Which of the following is CORRECT?
100% of the premium is tax deductible to the employer and the entire $1,600 a month in benefits are taxable to Judy.
The NAIC Model Provision Law contains _______ mandatory provisions.
12
In Florida, a child must be at least ____ years of age to sign a life insurance application.
15
The Civil Rights Act of 1979 made it mandatory that group insurance provide maternity benefits if an insured group consists of _______ or more participants.
15
COBRA provides health benefit extensions for ____________ after employment is terminated. 1) 6 months 2) one year 3) 18 months 4) two years
18 months
What is the typical period of time specific to the suicide clause in life insurance policies?
2 years
If a life insurance applicant is given a conditional receipt, what is the effective date of coverage? 1) When the initial premium payment is received by the agent 2) The time the insurer accepts the application and issues the policy 3) The time the applicant is given the receipt 4) When the initial premium payment is received by the insurer
2) The time the insurer accepts the application and issues the policy
Disability insurance provides an income stream for an individual who is unable to continue working due to accident or illness. However, if a person is under ______ disabled, he/she does not qualify for benefits.
20%
To remain in compliance and maintain their licensure, all agents are required to fulfill continuing education requirements of _______ every two years in basic or higher-level courses approved by the Department.
24 hours
Insurance agents must keep records for at least _____ years if the transaction pertains to premium payments. 1) 10 2) 7 3) 5 4) 3
3
HMOs are required to hold an open enrollment period of not less than ______ days in every 18-month period.
30
When considering COBRA conversion privileges, the insured typically has ________ days to make the conversion.
30 - 31
According to Florida law, all group life policies must contain a conversion provision which allows the covered individual _______ to convert the group coverage to an individual plan without evidence of insurability if their employment is terminated.
31 days
The Time Payment of Claims provision allows insurers ______ days after receiving notice and proof of loss in which to pay or deny a health insurance claim.
45
Under the Unfair Trade Practices Act, claims must be paid by the insurer within ________ if Proof of Loss was not requested.
45 days
If pre-tax dollars are withdrawn before age _____ on a tax-deferred annuity, a 10% excise tax penalty is imposed by the federal government.
59 1/2
Medicare patients have a lifetime reserve of ________ days of hospital coverage
60
Medicare Part ___ provides hospital coverage.
A
Which is the proper term for a company owned by its policyowners? 1) A legal reserve insurance company 2) A mutual insurance company 3) A stock insurance company 4) A fraternal insurance company
A mutual insurance company
Where do the figures showing the amount of a life insurance company's legal reserves appear on its balance sheet?
As a liability
Which of the following best defines "First Dollar Insurance?"
Basic medical expense insurance
In what way is an equity-indexed annuity different from other fixed annuities?
Because of the way it credits interest to the annuity's value.
Which of the following life policies do NOT allow partial surrenders? 1) Whole Life only 2) Variable Life only 3) Both Whole Life and Variable Life 4) Universal Life and Variable Universal Life
Both Whole Life and Variable Life
An agreement that provides that upon a business owner's death, surviving owners will purchase the deceased's interest, often with funds from life insurance policies owned by each principal on the lives of all other principals is the:
Buy-Sell plan.
Rose wants an annuity to provide guaranteed income for life, but if she dies before the funds are depleted, she wants her daughter, as beneficiary, to receive the balance in a lump sum payment. Which type of payout option should she select?
Cash Refund Option Annuity
What specific word is used to refer to the "money" used to purchase insurance coverage?
Consideration
_______________ policies are usually purchased to cover debts whose balances decrease over time, such as credit accounts and mortgages. 1) Increasing term 2) Decreasing term 3) Level term
Decreasing term
The two categories of retirement contribution plans are _________________ Plans and Defined Contribution Plans.
Defined Benefit
The ____________ insurer is licensed and practicing in the same state in which they are incorporated.
Domestic
All of the following employed persons who have no employer-sponsored retirement plan would be eligible to set up and contribute to a traditional IRA EXCEPT:
Edna, age 72, nurse.
"ACC" refers to the type of disability that prevents someone from performing the job he was performing prior to the disability.
FALSE
A life insurance policy's cash value belongs to the insured.
FALSE
In order for a 1035 Exchange to take place, the exchange must be with the same company that issued the original policy.
FALSE
Morbidity Tables indicate the average number of individuals from a given group who will die in a given year.
FALSE
Social Security provides welfare benefits to all citizens.
FALSE
Under Florida law, employers must offer coverage for mental and nervous disorders to their employees under their group health plan.
FALSE
When a life insurance policy is reinstated after lapse, a new suicide clause automatically goes into effect.
FALSE
When a life insurance policy is reinstated after lapse, any outstanding loans must ALWAYS be repaid before reinstatement is effective.
FALSE
The Social Security payroll tax is known as ____________ tax.
FICA
What does FICA stand for?
Federal Insurance Contributions Act
Employees may be classified for group life insurance in all of the following categories EXCEPT which?
Gender
The period between the time a life insurance premium is due and the time the policy lapses is called the: 1) Cooling Off Period 2) Restitution Clause 3) Renewal Period 4) Grace Period
Grace Period
Which of the following is a standard provision in all life insurance policies? 1) Automatic Premium Loan 2) Guaranteed Renewability 3) Grace Period 4) Waiver of Premium
Grace Period
Group Permanent life insurance is another name for:
Group Whole life insurance.
In a guaranteed renewable health policy, the insurer can raise insurance rates under which of the following conditions?
If the insurer raises rates for the same class of insureds
Which type of life insurance is sold by home service insurers? 1) Group life insurance 2) Industrial life insurance 3) Ordinary life insurance 4) Standard life insurance
Industrial life insurance
A __________ plan is a qualified plan that allows unincorporated business owners to participate in a retirement plan as an employee.
Keogh
Which of the following premium payment modes will result in the highest total out-of-pocket costs?
Monthly
A person's attitude or state of mind can create what type of hazard?
Morale
If an insurance company reimburses the insured for medical expenses, can the insured deduct that amount from their federal income tax?
NO
Taking all of the funds available to a family and planning for their future financial obligations is an example of the ______________ in life insurance.
Needs Approach
Gail names her church as the beneficiary of her $100,000 life insurance policy. When Gail dies, who is responsible for the income taxes payable on the lump sum proceeds received by the church.
No income tax is payable on the death proceeds.
Under which health policy renewability provision can an insurer cancel the contract on a previously designated date and raise rates by class?
Optionally Renewable
Name the three basic categories of coverage upon which the life insurance world revolves.
Ordinary, Industrial, and Group
"Direct access" means that an HMO subscriber does NOT have to obtain a referral from their __________ in order to obtain medical services.
PCP
Henry has a Life with Period Certain annuity (life or ten years) in which is wife, Harriet, is beneficiary. If Henry dies after 5 years, what will Harriet receive?
Payments for the remaining five years
An annuitant selects Life with Period Certain as his annuity option. What will he receive?
Payout for life or a fixed number of years, whichever is longer.
Which of the following would most likely NOT be covered under miscellaneous expenses on Hospital insurance?
Physician services
The _____________________ assigns points to surgical procedures instead of dollar amounts.
Relative Value Scale
Which of the following is an example of "churning?"
Replacing a policy within the same company in a deceptive or misleading manner
Which of the following statements accurately defines Unfair Discrimination? 1) Showing any type of partiality to individuals in regard to their premiums and benefits 2) Giving inaccurate or deliberately false accountings of the nature of somebody or something 3) Providing false or misleading descriptions and/or information 4) Forcing somebody to do something against their will through the use of force or threats
Showing any type of partiality to individuals in regard to their premiums and benefits
Harriet, age 45, suffered an accident while waterskiing on vacation and became paralyzed from the accident. Which of the following would most likely pay her disability benefits? 1) Medicare 2) Social Security 3) Workers' Compensation 4) Medicaid
Social Security
Which of the following is NOT a typical permanent exclusion in life insurance policies?
Suicide
"Partnerships" usually are made up of two or more owners who contribute and share profits.
TRUE
Agents are sometimes referred to as "field underwriters."
TRUE
Agents must secure company approval prior to the use of any advertisement not furnished by the insurer. 1) TRUE 2) FALSE
TRUE
Comprehensive Major Medical plans provide coverage for all major medical expenses under a single policy.
TRUE
Florida law does not regulate retirement plans.
TRUE
Florida law requires health insurance policies and HMO contracts to provide coverage for all medically necessary equipment, supplies and services used to treat diabetes when the patient's physician certifies that they are medically necessary.
TRUE
Group health insurers must either provide or offer chiropractic coverage.
TRUE
HMO contracts may not exclude coverage for HIV infection or limit HIV or AIDS coverage.
TRUE
Hospice services are covered under Medicare Part A. 1) TRUE 2) FALSE
TRUE
If a health insurance policy has been in force for at least one year and the insured is 64 years of age or older, an additional lapse notice must be sent (to a secondary addressee if the policyowner designated one).
TRUE
If an employee pays a percentage of their paycheck every month to a retirement plan and the employer contributes or matches the percentage, the amount the company pays is tax deductible.
TRUE
In the process of selling life insurance and when evaluating the needs of your client, the Human Life Value approach has been largely replaced by the more practical Needs Approach.
TRUE
Medigap pays most Medicare deductibles and copayments.
TRUE
Morbidity Tables indicate the average number of individuals from a given group who will become disabled.
TRUE
Pure risk involves only the chance of loss.
TRUE
SIMPLE plans can be structured as an IRA or a 401(k). 1) TRUE 2) FALSE
TRUE
Term insurance specifies coverage for a limited amount of time.
TRUE
When a policyowner surrenders his whole life policy for its cash value, he can receive an amount equal to the premiums paid into the policy tax-free
TRUE
Which of the following would not be considered a regulatory authority over the insurance industry in Florida?
The Fire Marshall
According to the NAIC Uniform Policy Provision Law, the "Time Limit on Certain Defenses" clause is akin to which of the following in life insurance policies?
The Incontestability clause
What are the two features that have the greatest effect on the amount of additional interest that may be credited to an equity-indexed annuity?
The Indexing Method and the Participation Rate
Why is it important that the agent carefully ask the applicant each question on the application and see that the answers are correctly stated?
The insured or a beneficiary may not have a valid claim.
Who is responsible for notifying the original insurer that a replacement policy may be issued?
The replacing agent
Ron, Ralph, and Ray own equal shares of their business. They have decided to purchase a partnership entity buy-sell plan. How many life insurance policies need to be purchased?
Three
The characteristics of common stock make them a suitable form of investment for what type of annuities?
Variable annuities
When might a Statement of Continued Good Health be required regarding a life insurance policy?
When there is no premium accompanying the application
Not only do ___________ Life policies build cash value, they also mature at age 100 at which time benefits are mandated to be paid.
Whole
Under HMO plans, subscribers pay _____________ in advance of any treatment.
a fixed periodic premium
The Straight Life Income annuity option pays the annuitant:
a guaranteed income for the annuitant's lifetime.
An SEP differs from an IRA in that you can contribute ___________ amount to an SEP in one year.
a larger
Florida's Replacement Rule sets forth the requirements and procedures to be followed by insurance companies and insurance producers when a proposal is being made to a client who plans to replace an existing life insurance contract with:
a proposed new life insurance policy.
Buy-sell agreements can only be drafted by:
an attorney.
The _______________ bears the investment risk in a variable annuity.
annuitant
The Insuring Clause includes all of the following EXCEPT the: 1) face value of the policy. 2) insured's name. 3) insurance company. 4) beneficiary.
beneficiary
Florida does not issue separate licenses for:
brokers
The _______________ is basically a savings account developing within the insurance policy.
cash value
Endowment insurance provides security and creates an asset called:
cash value.
A physical condition that is constant in nature and for which there is no full recovery possible is known as __________ illness.
chronic
Typically, a life insurance policy cannot be:
contested
A Salary Continuation Plan can be used for the _______________ of a disabled employee.
continuance of wages
The _______________ may take cash surrender on an annuity.
contract owner
A group life insurance plan in which the employee and the employer contribute a portion of the premiums is known as a ____________ plan.
contributory
The employees of XYZ Company must each pay a part of the premium for their group health/life insurance plan. They are, therefore, members of a ______________ group plan.
contributory
Which of the following is NOT involved in a product presentation?
credit report
Rachel owns a major medical health policy which requires her to pay the first $300 of covered expenses each year before the policy pays its benefits. The $300 is the policy's: 1) coinsurance amount. 2) stop-loss amount. 3) deductible. 4) annual premium.
deductible
When an agent spreads a false story that damages a competing agent's reputation, the offense is called:
defamation
COBRA stipulates that if an employee's employment is terminated, group coverage must be extended for up to 18 months at the employer's expense.
false
As it pertains to group health insurance, COBRA stipulates that: 1) retiring employees must be allowed to convert their group coverage to individual policies. 2) group coverage must be extended for terminated employees up to a certain period of time at the employee's expense. 3) group coverage must be extended for terminated employees up to a certain period fo time at the employer's expense. 4) terminated employees must be allowed to convert their group coverage to individual policies.
group coverage must be extended for terminated employees up to a certain period of time at the employee's expense.
The miscellaneous expense benefit in a basic hospital expense policy normally will cover:
hospital room and board.
Under the surgical schedule method of a basic medical expense plan, every procedure:
is assigned a dollar amount by the insurer.
The Insurance Code sets forth ___________ penalties for individuals who knowingly make a fraudulent application for a license.
misdemeanor
Knowingly making, issuing, or circulating any estimate, illustration, circular statement, sales presentation, omission, or comparison which incorrectly represents any facet of an insurance policy is called:
misrepresentation
When a stock life insurance company issues both participating and nonparticipating policies, the company is doing business on a:
mixed plan.
Drug addiction is an example of a ____________ hazard.
moral
In health insurance policy underwriting, the three most important factors are:
moral hazards, occupation, and physical condition.
Most individual insurance policies are written on a ________________ basis.
nonparticipating
In a guaranteed renewable health policy, the company may increase premiums:
only for an entire class of insureds.
Only ____________ policies pay dividends.
participating
The Florida Life and Health Guaranty Association's purpose is to:
pay the claims of insolvent or impaired insurers.
Social Security is based on a __________ system.
pay-as-you-go
Most group disability policies use the ___________ method to calculate the amount of the insured's earnings prior to the accident.
percentage
Reserve monies that represent the insurer's liability for losses that have not yet occurred but for which premiums have been paid are called ______________________ reserve funds.
premium
Retirement plans that meet federal government approval and receive tax benefits are known as __________ plans.
qualified
Bill gives Jim a couple of tickets to a Florida Gators game to thank him for purchasing a policy. This is an example of:
rebating
Medical expense insurance is a contract of:
reimbursement
An insured group of doctors and an insured group of pharmacists are typically insured through:
risk retention groups.
Barbara cashed in her 401k to purchase an annuity that will pay her $500 a month beginning right away for the rest of her life. This is a(n) _____________ annuity.
single premium immediate
The face value on industrial insurance policies is usually ___________ than most.
smaller
FICA taxes are applied to employees' incomes up to certain limits, called the:
taxable wage base.
Medicare provides Hospice services for the:
terminally ill.
All of the following are similarities shared by variable annuities and fixed annuities, EXCEPT: 1) the annuitant bears investment risks. 2) retirement income is their primary purpose. 3) the purchase methods are the same. 4) they contain the same types of annuity options.
the annuitant bears investment risks.
The actual number of annuity units is determined by: 1) the number of annuity units. 2) the number of annuity units and the number of accumulation units added together. 3) the number of accumulation units and how long the annuity has been in force. 4) the current value of one unit relative to the amount of premiums paid.
the current value of one unit relative to the amount of premiums paid.
Qualified plans under ERISA cannot sell health insurance to:
the general public.
The Social Security Administration defines disability as:
the inability to engage in any substantial gainful work.
Medigap pays for some healthcare services not covered by Medicare.
true
Replacing existing life insurance with a new life insurance policy based upon incomplete or incorrect representation is referred to as:
twisting
The exclusion ratio is always considered 100% in _________ annuities.
variable
Family Income and Family Maintenance contracts both utilize a ____________ as the base, with a __________ rider.
whole life policy, term insurance
Franchise life insurance is also called:
wholesale insurance.
