II. FL Statues, Rules, Regs pertinent to Life/Annuity Insurance incl Variable Products TEST
Suitability information gathered from consumers must be retained for review by the Department A. for 3 yrs by agents only B. for 4 yrs by insurers only C. by neither agents nor insurers D. by both agents and insurers for 5 years
D. by both agents and insurers for 5 years
In health insurance, proof of loss must be given to the insurer within how many days after a loss? A. Immediately B. 20 days C. 90 days D. 15 days
C. 90 days
An insurer must establish a suitability supervision system including all of the following EXCEPT A. reasonable procedure to inform agents of suitability requirements B. product-specific training for agents explaining all material annuity features C. limiting annuity replacements to agents with 2 or more years' field experience D. reasonable procedures to detect unsuitable recommendations
C. limiting annuity replacements to agents with 2 or more years' field experience
If a health insurance policyowner changes jobs to a more hazardous occupation, which of the following could apply? A. Benefits could be increased if the policy provides B. Premiums would be increased and collected from date of change to more hazardous occupation C. Premiums would be decreased and refunded from date of change to a more hazardous occupation D. Benefits could be reduced if the policy so provides
D. Benefits could be reduced if the policy so provides
Which of the following statements is CORRECT about group life insurance? A. It is written with a master policy for the benefit of qualified groups B. A group member is prohibited from assigning incidents of Ownership C. Group life rates are generally higher than those for individual policies D. Group participants must be individually underwritten
A. It is written with a master policy for the benefit of qualified groups
Which of the following applies to the 10-day free-look privilege in a health insurance contract? A. It permits the insured to reject the policy within 10 days of policy delivery and receive and receive a full refund B. It allows the insured an additional 10 days to pay the initial premium C. It can be waived only by the insurance company D. It is granted only at the option of the agent
A. It permits the insured to reject the policy within 10 days of policy delivery and receive and receive a full refund
which of the following must be given to an insured wen a replacement occurs? A. Notice regarding replacement B. Valued policy provision C. Termination notice D. Notice regarding insurer solvency
A. Notice regarding replacement
FL Long-term Care Partnership Program provides which of the following? A. asset protection B. medicare coverage C. inpatient hospital treatment D. medicaid medical expense coverage
A. asset protection
All of the following statements regarding group health insurance are correct EXCEPT A. coordination of benefits is required between group policies and Medicare supplements B. coordination of benefits helps to reduce costs C. duplication of benefits results in overpayment D. coordination of benefits is permitted so long as the insured is completely reimbursed for covered expenses
A. coordination of benefits is required between group policies and Medicare supplements
All of the following provision are required by the FL Employee Health Care Access Act EXCEPT A. coverage must always be renewed by carriers B. carriers must use a "modified community rating" methodology C. all small group health benefit plans must be issued on a "guarantee-issue basis" D. small employer means an employer with 1-50 employees
A. coverage must always be renewed by carriers
If a health insurance company tests a person for AIDS/HIV which of the following must be signed? A. notice of informed consent B. AIDS/HIV rate disclosure C. AIDS/HIV underwriting disclosure form D. outline of coverage
A. notice of informed consent
how will a beneficiary designation naming a former spouse on a preexisting insurance contract be changed by the divorce? A. the beneficiary designation is voided by the divorce B. there will be no change allowed under FL law C. the beneficiary change requires a court decree D. insurer policy rules will determine the result
A. the beneficiary designation is voided by the divorce
At the time of an insurance sale, which of the following is NOT correct? A. Personal information about the client should never be released without prior approval from the client B. A producer only needs to disclose to a prospect the information that the prospect requests C. Precision and accuracy in completing the application are in the best interest of both the insurer and the prospective insured D. A producer has ethical responsibilities to the client and insurer
B. A producer only needs to disclose to a prospect the information that the prospect requests
Which of the following is NOT considered to be an element of replacement? A. The agent knows a new policy will take the place of an existing policy B. An existing policy is subjected to a loan of 10% of its value C. An existing policy is allowed to lapse D. An existing policy is reissued with a reduced cash value
B. An existing policy is subjected to a loan of 10% of its value
Which of the following statements applies to the rights of a surviving spouse under a group insurance policy? A. Coverage continues at the same rate and premium B. Conversion privileges must be provided for dependents C. Conversion rights extend to the spouse but not to the children D. Conversion rights of the surviving spouse are less than those the deceased employee possessed
B. Conversion privileges must be provided for dependents
Which of the following applies when an insured wishes to convert industrial insurance policies into an ordinary policy? A. This is not permitted under FL law B. It is possible to convert $3,000 or more of industrial insurance C. Any such conversion requires a physical examination D. The multiple policies can only be reissued as one industrial policy
B. It is possible to convert $3,000 or more of industrial insurance
Which of the following is NOT required when a group insurance policy is canceled? A. The insurance company must notify the group policy owner B. The policy owner must notify the Department of the cancellation C. The insurance company must notify the group members (but may request this to be done by the policyowner) D. The policyowner must notify the group members
B. The policyowner must notify the Department of the cancellation
During what period is a new life insurance policy owner entitled to review a policy and return it for a full refund? A. During the 14 days prior to its effective date B. Within 14 days after delivery of the policy C. Within 30 days of purchase D. After receipt, but only with the prior approval of the agent
B. Within 14 days after delivery of the policy
A group credit disability policy may be issued to a creditor if the expected new entrants into the plan A. are more than 25 B. are at least 100 persons yearly C. are about the same each year D. are subject to insurability
B. are at least 100 persons yearly
All of the following statements are correct about group life insurance EXCEPT A. a member may assign her incidents of ownership B. certificate holders need not be notified if the policy expires C. rates are typically more favorable than for individual policies D. it is typically written as a one year renewable term plan
B. certificate holders need not be notified if the policy expires
Which of the following statements is CORRECT about coverage for a handicapped family member who reaches adulthood> A. coverage ceases for the family member at the limiting age of policy B. coverage continues if the member is chiefly dependent on the policyholder C. group health policies must continue coverage, unlike individual policies D. coverage automatically ceases when the family member obtains employment
B. coverage continues if the member is chiefly dependent on the policyholder
All of the following statements referring to the uterine cycle are true except ________. A. it must illustrate all guaranteed cash surrender values B. it must illustrate all guaranteed policy dividend values C. it must present the generic name of the policy as well as the company's name for it D. it must be given to each new policy owner no later than at policy delivery
B. it must illustrate all guaranteed policy dividend values
The notice to the insurance company of health insurance claim must include A. estimated amount of claim B. name of insured C. nature of sickness or injury D. date of loss
B. name of insured
For an individual life contract on an insured 64 years of age or older, the insuer must advise the applicant A. of their right to a large-print copy of the policy if required B. of their right to designate a secondary addressee to receive a copy of any policy lapse notice C. if an extended free-look period D. of their right to name a trustee to exercise ownership rights under the policy
B. of their right to designate a secondary addressee to receive a copy of any policy lapse notice
A health maintenance organization provides which of the following? A. Free health care for Medicare patients B. preventive health care for its members C. A program of "pay as you go" medicine D. An extension of VA hospital treatment for veterans
B. preventive health care for its members
All of the following statements about the Outline of Coverage for health insurance policies are correct EXCEPT A. it must be provided at the time of application or delivery of policy B. principal benefits also shown in the policy need not be included C. it is to include a summary statement of principal exclusions D. it must include any right the insurer reserves to change premiums
B. principal benefits also shown in the policy need not be included
Individual and group health insurance policies and HMO contracts can be canceled for all of the following reasons EXCEPT A. failure to pay premiums B. the insured develops a serious illness C. the insurer ceases to offer coverage in the market D. fraud or intentional misrepresentation of a material fact
B. the insured develops a serious illness
At what point in time can a policy holder file suit against a health insurance company for failure to pay a claim? A. 60 days from date of loss B. 120 days from date of loss C. 60 days after filing proof of loss D. 120 days after filing proof of loss
C. 60 days after filing proof of loss
All of the following are correct about the required provisions of a health insurance policy EXCEPT A. grace period of 31 days is found in an annual pay policy B. the entire contract clause means the policy, endorsements, and attachments constitute the entire contract C. A reinstated policy provides immediate coverage for an illness
C. A reinstated policy provides immediate coverage for an illness
To comply with disclosure requirements, agents must deliver what to all life insurance applicants? A. Policy guidelines and proposal form B. Policy summary and policy receipt C. Buyer's Guide and policy summary D. Proposal form and Buyer's guide
C. Buyer's Guide and policy summary
Which of the following actions accurately portrays the limit FL insurance regulations set for the combining of advertising for insurance policies with an association membership? A. By forbidding these two to be advertised together B. By requiring the insurance solicitation to come at least 30 days after the association membership C. By requiring separate applications and separate signatures D. By requiring a signed statement of understanding by the applicant
C. By requiring separate applications and separate signatures
Legal action may not be taken after how many years from filing a health insurance claim proof of loss? A. One year B. Four years C. Five years D. Two years
C. Five years
In which of the following ways is a beneficiary protected from the creditors of the deceased insured? A. The proceeds of a policy can always be claimed by the deceased insured's creditors B. When the policy is made payable to the estate, the proceeds are protected from the creditors C. If the policy is made payable to a named beneficiary, then the creditors can make no claim on the proceeds D. The cash surrender value of a life insurance policy can be attached by an ordinary creditor
C. If the policy is made payable to a named beneficiary, then the creditors can make no claim on the proceeds
Which of the 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 insurance? A. Conversion rule B. Disclosure rule C. Replacement rule D. Reinstatement rule
C. Replacement rule
Which of the followin is CORRECT about the replacement rule? A. The replacement rule only applies to health insurance B. The agent has 90 days from the effective date to deliver a buyer's guide C. The agent must leave a copy of all sales proposals used in the presentation with applicant D. Up to 30 days is allowed for a full refund of premium
C. The agent must leave a copy of all sales proposals used in the presentation with applicant
All of the following provisions are mandatory in health insurance policies EXCEPT A. time limit on certain defenses B. grace period C. change of occupation D. time of claims payment
C. change of occupation
All of the following provisions are required by FL law for group health insurane policies EXCEPT A. coverage for mental and nervous disorders must be available to the group policyholder B. a newborn child is to be provided coverage from the moment of birth C. coveragee must continue until age 25 for a new handicapped child that is a family member D. a newborn child of a covered family member is to be provided coverage for 18 months
C. coveragee must continue until age 25 for a new handicapped child that is a family member
FL's Long-term Care Partnership Program must provide which of the following coverage? A. medical expense coverage B. diability coverage C. inflation coverage D. outpatient hospital treatment
C. inflation coverage
FL's "mini-Cobra" applies to employers with? A. five or more employees B. 20 or more employees C. less than 20 employees D. less than five employees
C. less than 20 employees
Which of the following statements is CORRECT about a group health insurance policy? A. It cannot exclude coverage from an occupational accident B. It can exclude newborn children from coverage C. It cannot exclude coverage for VA hospital treatment D. It can provide coverage for handicapped children
D. It can provide coverage for handicapped children
A grandfathered health plan means a health plan that was issued on or prior to A. March 23, 2011 B. March 23, 2013 C. March 23, 2012 D. March 23, 2010
D. March 23, 2010
Which of the following is the CORRECT number of lives required in FL for a group insurance policy? A. 3 B. 8 C. 10 D. No minimum
D. No minimum
In which of the following situations is a group health insurance policy NOT required to provide coverage? A. Qualified services performed in an ambulatory surgical center B. Outpatient services that would have been paid if rendered for an impatient C. Specified services by a licensed podiatrist D. Treatment for an occupational illness or injury
D. Treatment for an occupational illness or injury
All of the following are correct insurance agent marketing responsibilities EXCEPT A. an agent must inform a prospect, prior to the presentation, that she is a life insurance agent and provide the name of her insurer B. any reference to policy dividends must include a statement that such dividends are not guaranteed C. any presentation comparing two or more life policies must recognize the time value of money using interest adjustments D. a presentation may not include references to life insurance policy cost indexes
D. a presentation may not include references to life insurance policy cost indexes
Group health insurance policies are required to provide all of the following EXCEPT A. coverage for hospitalization during disability B. coverage for a newborn child of a family member C. coverage for a newborn child from the moment of birth D. coverage for dental expenses
D. coverage for dental expenses
All of the following are duties of a replacing insurer EXCEPT A. maintain copies of every Notice Regarding Replacement, all sales proposals, and a register of cross-indexed by replacing agent and existing insurer for three years B. immediately sent a copy of the Notice Regarding Replacement to the existing insurer C. require a statement, signed by any replacing agent, acknowledging such a replacement D. insure that all appointed agents take a 2-hour course on replacement annually
D. insure that all appointed agents take a 2-hour course on replacement annually
All of the following information and much more must be gathered from an annuity applicant in order to determine the suitability of the sale EXCEPT A. general financial information, including income, assets, and net worth of the applicant B. tax status of the applicant C. personal information, including age and sex of the annuitants and dependents D. membership in any civic clubs or organizations by the applicant
D. membership in any civic clubs or organizations by the applicant
Which of the following practitioners is NOT defined as a "physician" under FL law? A. surgeon in an ambulatory surgical center B. dentist performing surgery in an office C. optometrist rendering services at an eye clinic D. sports therapist performing services in a health club
D. sports therapist performing services in a health club
All of the following are correct about the policy loan interest rate EXCEPT A. an adjsutable rate of interest may be charged B. an insurance company may charge a fixed rate of up to 10% C. adjustable rates are based on a published index D. there are no restrictions or limitations on policy loan rates
D. there are no restrictions or limitations on policy loan rates
