Insurance Exam Part 2

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%

A licensed agent must complete how many hours of continuing education specific to ethics and regulatory updates?

5

An applicant for a life agent's license may obtain a temporary license for a maximum period of

6 months

Which statement best defines a Multiple Employer Welfare Arrangement (MEWA)?

A joining together by employers to provide health benefits for employee

Which of the following is true regarding the agent's appointments?

A person may hold several appointments at one time

Which of the following groups would probably be covered by blanket insurance?

A university's sports team

Licensed life insurance agents are expected to be familiar with which of the following laws?

All of the insurance laws and regulations

The minimum interest rate on an equity indexed annuity is often based on

An index like Standard & Poor's 500

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be

Authorized

If an employee is accepted into a group insurance plan, which status will the employee have?

Certificate holder

Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called?

Discrimination

Failure of a licensee to maintain an appointment with an insurance company within 48 months after the date the license became effective will result in

Expiration of the license

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

False advertising

Which of the following government health programs provides health insurance coverage to children who do not have access to adequate health care services?

Florida Healthy Kids

When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?

Foreign

What kind of policy does NOT typically require proof of insurability?

Group insurance

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

Which of the following best describes a misrepresentation?

Issuing sales material with exaggerated statements about policy benefits

Every insurer marketing Long-Term Care insurance must establish marketing procedures to ensure all of the following EXCEPT

LTC policies are marketed effectively to prospective insureds

Which of the following best describes the unfair trade practice of defamation?

Making derogatory oral statements about another insurer's financial condition

All of the following are required provisions in all individual health insurance policies delivered in this state EXCEPT

Misstatement of age

Which term describes the benefits of a life insurance policy that the policyowner does not automatically relinquish even if the policy lapses?

Nonforfeiture values

Which of the following documents must be provided to the policyowner or applicant during policy replacement?

Notice Regarding Replacement

When does Medicare cover nursing home care?

Only if it is part of treatment for a covered illness or injury

Which document helps ensure that full and fair disclosure is provided to the recipient of a policy?

Outline of Coverage

What is the major difference between a stock company and a mutual company?

Ownership

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

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

What are the 2 offices of the Financial Services Commission?

The Office of Financial Regulation and the Office of Insurance Regulation

What type of information is NOT included in a certificate of insurance?

The cost the company is paying for monthly premiums

Who does the secondary addressee provision protect?

The insured over the age of 64

Under a group plan, Certificates of Insurance must include all of the following EXCEPT

The name of the writing agent

In terms of parties to a contract, which of the following does NOT describe a competent party?

The person must have at least completed secondary education

An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later. What will probably happen?

The policy will not be affected

In accordance with the Code of Ethics, agents must provide a completed application to

The prospective insured and the insurer

Agents who persuade insureds to cancel a policy in favor of another one when it might not be in the insured's best interest are guilty of

Twisting

When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered

Twisting

All of the following are basic types of health insurance plans EXCEPT

Worker's Compensation

Which of the following is an agreement between an insured and an insurer, where the insurer agrees to indemnify the insured for specific losses in exchange for a premium?

the insurance contract