FL Exam Study for Health & Life Insurance, Part 1
How long is the free-look period in Florida?
14 days
COBRA applies to employers with at least how many employees?
20
Can a irrevocable beneficiary be changed by the policyowner?
No, not without the written permission of the beneficiary.
What is the taxation of dividends in participating policies?
Not taxable. Dividends are the return of unused premiums so are not considered income for tax purposes.
With the PPACA metal level classification, if a health plan is expected to cover 90% of the cost, what type of plan is that?
Platinum. Levels start at Bronze at 60% and increase by ten for each level.
What are risk classification levels?
Preferred, Standard, Substandard, and Declined Higher the risk, higher the premium!
HMOs primarily deal with what kind of care?
Preventative care
Accidental Death and Dismemberment pays what for the accidental death?
Principal sum
Grace period can't be shorter than how many days for monthly premium policies?
10 days
How many days must pass before the insured can take legal action after a proof of loss?
60 days
Proof of loss must be submitted within how many days?
90 days
Most policies will pay accidental death benefits as long as the death is caused by the accident and occurs within how many days?
90 days. Or 3 months (to help you remember)
A hospital indemnity will pay what?
A benefit for each day the insured is in the hospital.
What are the 4 elements of a contract?
Agreement, Consideration, Competent parties, and Legal Purpose
An exchange of unequal payments or values
Aleatory Contract
In reference to the standard Medicare Supplement benefits plans, what does the term STANDARD mean?
All providers will have the same coverage options and conditions for each plan.
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
Beneficiary
What are the four PPACA metal levels of classification?
Bronze, Silver, Gold and Platinum
Accidental Death and Dismemberment pays what for the accidental dismemberment?
Capital sum
Provision that provides for the sharing expenses between the insured and the insurance company
Coinsurance
What is the main difference between coinsurance and copayments?
Copayment is a set dollar amount.
An agent selling variable annuities must be registered with who?
FINRA
Circulating deceptive sales materials to the public is what type of Unfair Trade Practice?
False advertising
The requirement that agents not commingle insurance monies with their own funds is known as what?
Fiduciary responsibility
Joint Life is paid upon which death?
First death only Sorry :(
What is an eligibility requirement for Social Security disability income benefits?
Fully insured status
Used with juvenile policies, what is the payor benefit?
If the guardian is disabled for 6 months or dies, the premiums are waived until the minor reaches 21
How is the insured able to receive the full face amount from a whole life policy?
If the insured lives to age 100 Yay 100th birthday!
In the event of suicide, when will the death benefits not be fully paid?
If the suicide occurs during a certain period of time
In an annually renewable term policy, what does the premium do?
Increase
What must exist at the time of application?
Insurable interest
Who approves all Medicare supplement advertisements?
Insurance Commissioner or Director
What is the Time of Payment of Claims?
Insurer must paid immediately upon written proof of loss. In Florida, 45 days after receiving.
What is the Insuring Clause?
It is the basic agreement between the insurer and the insured. It states the insurer's promise to pay the death benefit upon the insured's death.
What is the incontestability clause?
It stops the insurer from denying claims due to statements made on the application after 2 years of the policy in force.
Survivorship Life is paid upon which death?
Last death Again, sorry :(
What kind of premium does a Variable Whole Life Policy have?
Level, fixed premium
A policy with annual premium getting higher and it is well suited for people who don't want to pay premiums beyond a certain time
Limited-pay Life
The larger the percentage that is paid by the insurer, the ___________ the premium will be
Lower
Who is meant to be covered by group blanket health insurance policies?
Members of a group or association without evidence of insurability. Example: A summer camp or public school
What is the difference between a provision and a rider?
Provision is a characteristic of an insurance contract. Rider is an addition to a policy to modify provisions that already exist. Think of it as Bugs Bunny is a provision of Loony Tunes. New characters are riders that modify what's always consistent on the show (i.e. Bugs Bunny, Daffy, Elmer Fudd, etc). Hope that helps to remember.
An insured pays $1200 annually for her life insurance premium. The insured applies this year's $300 worth of accumulated dividends to next year's premium, thus reducing it to $900. What option does this describe?
Reduction of Premium
Joint Life is commonly used by what kind of relationships?
Significant others (husband-wife) and Business Partners
A whole life policy with a one time, lump sump premium payment and cash value rises
Single Premium Whole Life
What doesn't have to be disclosed in a long-term care (LTC) policy?
The aggregate amount of premiums due
An individual applied for an insurance policy, paid the initial premium, and was given a conditional receipt. Few days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's EFFECTIVE date?
The date of the medical exam
What date must be contained in a policy summary?
The date the summary was prepared
Entire Contract consists of what?
The policy, copy of the application, and any riders or amendments
What is the purpose of a fixed-period settlement option?
To provide a guaranteed income for a certain amount of time
When an insurer issues an individual health insurance policy that is guaranteed renewable, what does the insurer agree to?
To renew the policy until the insured has reached age 65