Exam Simulator

Q is hospitalized for 3 days and receives a bill for $10,100. Q has a Major Medical policy with a $100 deductible and 80/20 coinsurance. How much will Q be responsible for paying on this claim?

$2,100

An individual working part-time has an annual income of $25,000. If this individual has an IRA, what is the maximum deductible IRA contribution allowable?

$2,500 10 %

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?

20

How many hours of continuing education must a newly licensed agent must complete every 2 years?

24

A life insurance policies grace. Entitles the insured a period of no less than ______ days to make the premium payment

30

In Florida, a health insurance policy that is paid quarterly basis requires a grace period of

31 days

According to Florida Law, an additional lapse notice of must be issued after the standard grace period has expired for policy owners age of

64 years and older

Which statement is true regarding a variable whole life policy?

A minimum guaranteed Death benefit is provided

In health insurance policies, a waiver of premium provision keeps the coverage in force without premium payments

After an insured has become totally disabled as defined in the policy

Under a Long Term Care policy, which benefit would be typically excluded or limited?

Alcohol rehabilitation

Insurance contracts are _______ in the sense that the amount the insured will pay in premiums is unequal to the amount the insurer will pay in the event of a loss

Aleatory

What type of insurance company is domiciled in England, but conducts business in Florida?

Alien

Under which of the following circumstances will the benefits under COBRA continuation coverage end

All group health plans are terminated by the employers

J owns a business and has a Group Life policy covering her employees. J decides to cancel the policy by letting it lapse on the renewal date. What action must be taken?

All of the employees must be notified of the cancellation either by the insurance company or through J

The Department of financial services may order an agent to be monetary restitution to the client if

An agent made an improper sale of an annuity to a client

Which f the following is the best description of insurer

Any person, corporation, association, or society that writes insurance contracts

Disability income premiums

Are tax deductible

Medicare part C is

Available to those who are enrolled in Medicare part a and part B

All of the following are considered to be typical characteristics describing the nature of an insurance contract EXCEPT Bilateral Unilateral Aleatory Adhesion

Bilateral

The difference between group insurance and blanket health policies is:

Blanket health policies do not issue certificates

Which of these is NOT considered to be a cost connected its an individuals death Funeral Expenses Business expenses Tax liability Probate costs

Business Expenses

A _________ policy is to cover certain overhead expenses that continue when the business owner is disabled

Business Overhead expense

Many small businesses owners worry how their business would survive financially if the owner becomes disabled. The policy which Best addresses this concern is

Business overhead expense

P loses an arm in a farm accident and is paid $10,000 from his accidental Death and Dismemberment policy. This benefit is known as the

Capital sum

_______ is the amount payable for the accidental loss of eyesight, or for an accidental dismemberment. It is usually a percentage of the principal sum and varies according to the severity of the injury

Capital sum

N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15. What action will the insurer take?

Claim will be denied

A disability income policy recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the application was taken 5 years prior. The neck injury was never disclosed to the insurer at the time of application. How will the insurer handle this claim?

Claim will be paid and coverage will remain in force

Which of the following features of a group Term Life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability?

Conversion privilege

Common exclusions to continuation of group coverage include

Dental care Dental Care and Other prescription drugs

Agent J takes an application And initial premium from an application and sent the application in premium Check to the insurance company. The insurance company returns the check back to Jay because the check is made out to Jay inside of the insurance company what action should you take?

Get new check

The purpose of the ________ period clause is to avoid unintentional lapse of a life insurance policy

Grace

Insurers / agents must, in Florida, offer and issue small employer health plans on an _____ basis

Guaranteed issue basis

Which type of renewability Best describes a disability income policy that covers an individual until the age of 65, but the insurer has the right to change the premium rate for the overall risk class?

Guaranteed renewable

______ are purchased with a single lump sum payment and will start providing income payments within the first year, but usually starting 30 days from the purchase date.

Immediate annuities

After a policy has been in force for 2 (sometimes 3) years it enters the _____ period

Incontestable

If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first where are the death proceeds to be directed under the uniform simultaneous death act?

Insured's contingent beneficiary

Dividends paid from a life insurance policy are

Issued by the insurer

What is the purpose of a policy summary?

It highlights the critical parts of the policy issued

Which of the following is NOT a limited benefit plan? Dental policy LIfe insurance policy Critical illness policy Cancer policy

Life insurance policy

The individual Health insurance policy that offers the broadest protection is a _________ __________ policy

Major Medical

And employer that offers a qualified retirement plan to its employers is eligible to

Make a tax deductible contributions to the plan

According the Florida Law which of the following does to need to be obtained by an agent recommending an annuity purchase

Marital Status

_____________ Is offered by private insurers and available to those who are enrolled in Medicare part a and Medicare part B

Medicare part C

Every agent soliciting ________ must provide a suitability form

Medicare supplements

J has a disability income policy that does NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this ?

Nonoccupational coverage

K made a fraudulent statement on her health insurance policy application. In the event of a claim on this policy, the insurance company is equipped to pay

Nothing

In Florida, agents are allowed to engage in rebating if

Offered to all insurers in the same actuarial class

Under Florida law, a variable annuity policy owner must be notified of the accumulated value of the contract

Once each year

Upon reaching the limit and Age a disabled child may extend their health insurance coverage as a dependent

Only if the child is in capable of employment and she fully dependent on the policy owner

Under a life insurance policy the _______ has the authority to name the beneficiary

Owner

What is issued to each employee of an employer health plan?

certificate

What is the. Suicide provision designed to do

safeguard the insurer from an applicant who is contemplating suicide

Under a Renewable Term policy,

the renewal premium is calculated on the basis of the insured's attained age

L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of Age provision, the insurer will

adjust the death benefit to a reduced amount

An applicants medical information received from the Medical Information Bureau (MIB) may be furnished to the

applicant's physician

Which of these types of insurance allows the policy owner to hav level regions and to also choose from a selection of investment options

Variable life

Which of these is considered a statement to be true in every aspect?

Warranty

Which statement is true in regards to a policy loan? Past due interest payments not paid after three months will void the policy Past due interest on a policy loan is added to the total debt Insurance companies can send the link with interest accounts to a collection agency Insurance companies can charge an interest rate based on the policy owners credit report

Past due interest on a policy loan is added to the total debt

What benefit does the pay or clause on a juvenile Life policy provide

Premiums are waived if pay or becomes disabled

A major medical Policy

Provides benefits for reasonable and necessary medical expenses, subject to policy limits.

A _________ amount benefit is based of the proportion of income actual lost due to partial disability.

Residual

D is an architect receiving Disability income benefits who is not able to return to work full time, but can work on a part-time basis. Which of these futures would allow D to keep receiving benefits?

Residual Benefit Clause

With a ______ beneficiary the policy owner has the right to change the beneficiary at anytime without notifying to getting permission from the beneficiary

Revocable

_______ insurance policies provide an insured the greatest amount of permanent protection per dollar of annual premium.

Straight Life

K is shopping for a permanent life insurance policy that will offer her the MOST protection per dollar of annual premium. Which of these policies best fits her needs?

Straight life

An agent selling Medicare supplement policies must provide every applicant with a

Suitability form

The common disaster clause provides that if the insured and the sole beneficiary were to die in a common accident, which of the following is true?

The clause provides the payment of proceeds to the insureds estate

What is the elimination period of an individual disability policy

Time period a disabled person must wait before benefits are paid

The cash value in a ________ life policy may fluctuate to reflect changing assumptions regarding mortality cost, interest and expense factors

Universal

When is the face amount paid under a Joint Lie and Survivor policy

Upon death of the last insured

R becomes disabled and owns a Individual disability income policy. When is E eligible to receive disability benefits?

Upon satisfying the elimination period requirment

In order to sell a _____ Life policy, a producer is required to register with the Financial Industry Regulatory Authority (FINRA)

Variable

________ is a life insurance policy that has a level premium but allows the policy owner to choose from a selection of investment options

Variable Life

Which of the following policies is characterized by a flexible premium and death benefit and allows the policy owner control of the investment aspect of the plan?

Variable Universal Life

In a _____ policy death benefit will not go lower than the policies guaranteed minimum.

Variable Whole life

Life insurance immediately creates an estate upon the death of an insured. Which of the following policies is characterized by a guaranteed minimum death benefit

Variable life

An agents license can be suspended or revoked by

Writing primarily controlled business

As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of?

coercion

An agent takes an individual Disability Income application, collects the appropriate premium, and issues the prospective insured a conditional receipt. The next step the insurance company will take is to

determine if the applicant is an acceptable risk by completing standard underwriting procedures

In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey, is called a(n)

foreign company

What type of renewability guarantees premium rates and renewability

noncancellable

An accident policy will most likely pay a benefit for a(n)

off-the-job accident

An example of rebating would be

offering a client something of value not stated in the contract in exchange for their business