Florida Health, Life & Annuity End of Course Exam 3

What type of insurer is formed under the laws of Florida? Select one: a. Foreign b. Domestic c. Alien d. Mutual

A domestic insurer is one formed under the laws of this state, Florida. The correct answer is: Domestic

What right of renewability guarantees insurability, but does not guarantee premiums? Select one: a. Noncancelable b. Guaranteed renewable c. Optionally renewable d. Guaranteed insurability

A guaranteed renewable policy does not allow the insurer to cancel the policy, but it allows the insurer to increase the premiums. The correct answer is: Guaranteed renewable

What is the maximum percentage of premiums for policies sold by a licensee in a 12-month period can be from controlled business? Select one: a. 15% b. 25% c. 33% d. 50%

A license will be considered to have been used to write controlled business if during a 12-month period the premiums from controlled business exceed the premiums for life or health insurance contracts to the general public. The correct answer is: 50%

What is the free look period for a Medicare supplement policy? Select one: a. 14 days b. 20 days c. 30 days d. 31 days

A policyholder has the right to return a Medicare supplement policy within 30 days of its delivery. The correct answer is: 30 days

The beneficiary designation that allows the policy to be changed without the beneficiary's consent: Select one: a. Primary b. Revocable c. Contingent d. Irrevocable

A revocable beneficiary means the policy can be changed without the consent. An irrevocable beneficiary means the policy cannot be changed without the beneficiaries consent. The correct answer is: Revocable

Which type of life policy would best suit someone who retires in good health with a large amount of cash, whose investment goals are conservative? Select one: a. Level term insurance b. Limited premium whole life insurance c. Single premium whole life insurance d. Continuous premium straight life insurance

A single premium whole life insurance would best suit this person. Buying insurance with a single premium is less than the policy would cost with continuous payments. It has immediate cash value, and is not front-end-loaded. The correct answer is: Single premium whole life insurance

What must an insurer have to be an authorized insurer? Select one: a. At least two licensed agents b. A certificate of authority c. A "brick and mortar" office d. A sponsoring company for which they are allowed to sell

An authorized insurer is one duly authorized by holding a certificate of authority issued by the Office of Insurance Regulation to transact insurance in Florida. An unauthorized insurer does not have a certificate of authority, and includes excess and surplus lines insurers. The correct answer is: A certificate of authority

How many days does an insurer have to provide claims forms after a notice of claim? Select one: a. 7 days b. 14 days c. 15 days d. 30 days

Claims forms must be provided to the claimant a maximum of 15 days after receiving a notice of claim. The correct answer is: 15 days

How frequently must domestic insurers be examined by the Office of Insurance Regulation? Select one: a. Annually b. At least once every other year c. At least once every 5 years d. Upon the Office's discretion

Domestic insurers must be examined by the Office of Insurance Regulation at least once every 5 years. The correct answer is: At least once every 5 years

Tina has a policy that only covers cancer-related medical expenses. What kind of policy does she have? Select one: a. Stop-loss b. Accident only c. Dread disease d. AD&D

Dread disease policies are limited policies that pay for a specific disease or medical condition. The correct answer is: Dread disease

If an individual has a chronic medical condition, how is the insurer likely to handle this situation when issuing an individual health policy? Select one: a. The insurer will include a Double Indemnity rider. b. The insurer will include a Disability Income rider. c. The insurer will exclude the condition with an Impairment rider. d. The insurer will issue a Waiver of Premium rider.

If an applicant has a chronic medical condition, or existing medical condition, the insurer could exclude the condition with an Impairment rider. The correct answer is: The insurer will exclude the condition with an Impairment rider.

Long-term care plans are written as: Select one: a. Optionally renewable b. Guaranteed renewable c. Conditional renewable d. Cancellable

Long-term care policies are usually not cancellable by the insurance company, but the company does have the right to increase premiums. The correct answer is: Guaranteed renewable

A health policy will usually exclude losses related to all of the following, EXCEPT: Select one: a. Self-inflicted injuries b. Losses incurred while committing a felony c. Losses incurred while engaging in an illegal occupation d. Losses from an auto accident when the insured was at fault

Losses from an accident will not be excluded unless the insured is engaged in the other activities listed. The correct answer is: Losses from an auto accident when the insured was at fault

Who can change the beneficiary on a life policy? Select one: a. Policyowner only b. Policyowner or agent c. Policyowner, agent or insurer d. Policyowner, agent, insurer or a court

Policyowner's have the right at all times to change the beneficiary or beneficiaries unless the policyowner waives this right in writing by stating that the beneficiary is irrevocable. The correct answer is: Policyowner only

When Jason filled out his application his statements had to be ______________ to be considered legal. Select one: a. Contributory b. Representations c. Warranties d. Guaranteed

Representations, made to the best of Jason's knowledge, are considered legal. The correct answer is: Representations

Which of the following must happen before an HIV test is performed on an applicant? Select one: a. A consent form must be signed by the applicant prior to the test. b. The Insurer must inform all non-entitled parties to the upcoming test. c. The insurer must inquire about the applicant's sexual orientation. d. The insurer must inform the state Department of Health of upcoming test.

The applicant must consent to the test and sign a consent form before the test is performed. The correct answer is: A consent form must be signed by the applicant prior to the test.

An insured has returned to work after a disability, but is unable to perform all of his previous duties. Which of the following definitions would cover his permanent partial disability? Select one: a. Residual disability b. Own occupation c. Long-term disability d. Any occupation

The definition of residual disability would cover this type of disability. The correct answer is: Residual disability

The rider that you would pick if you want to be able to add coverage in the future, without having to show proof of insurability: Select one: a. Payor b. Consideration c. Guaranteed insurability d. Waiver of premium

The guaranteed insurability rider allows the insured to add coverage in the future, without having to show proof of insurability. However, the insurer can charge a higher premium due to a higher attained age. The correct answer is: Guaranteed insurability

In Florida, what is the minimum age to become licensed as an insurance producer? Select one: a. 18 b. 19 c. 20 d. 21

The minimum age to become licensed as an insurance producer in Florida is 18. The correct answer is: 18

What is the minimum free look period for life insurance policies in Florida? Select one: a. 14 days b. 21 days c. 30 days d. 31 days

The unconditional refund time (free look period) for life insurance policies in Florida is at least 14 days. The correct answer is: 14 days

Which of the following is not considered "transacting" insurance? Select one: a. Effectuation b. Investigation c. Negotiation d. Solicitation

Transacting insurance includes: solicitation or inducement; preliminary negotiations; effectuation of a contract of insurance, and transaction of matters subsequent to effectuation of a contract of insurance (e.g., collecting premiums). The correct answer is: Investigation

Which of the following is an improper form of policy replacement? Select one: a. Discrimination b. Defamation c. Rebating d. Twisting

Twisting is an improper type of replacement along with churning. Twisting is replacing another companys policy, whereas churning is replacing a policy within the same company. The correct answer is: Twisting

Barbara allows her comprehensive major medical plan to lapse. If her policy is reinstated on March 20th and she contracts mononucleosis on March 29th, what benefits will she receive? Select one: a. Only hospitalization coverage b. Partial c. Full d. None

Upon reinstatement, accident is covered immediately, but sickness reinstatement is not covered until a 10-day waiting period has been fulfilled. The correct answer is: None

What unfair trade practice uses force to compel a person to purchase an insurance policy? Select one: a. Churning b. Twisting c. Sliding d. Coercion

Using force or compelling a person to purchase an insurance policy is an unfair trade practice. The correct answer is: Coercion

A Medicare supplement insurer cannot deny an application for a Medicare supplement policy if the applicant is both 65 and enrolled in: Select one: a. Medicare Part A b. Medicare Part B c. Medicare Part C d. Medicare Part D

A Medicare supplement insurer cannot deny an application for a Medicare supplement policy if the applicant is both 65 and enrolled in Medicare Part B. The correct answer is: Medicare Part B

The definition of "Medicare eligible expense" for a Medicare supplement policy cannot be: Select one: a. Less restrictive than Medicare's b. Less restrictive than or equally restrictive as Medicare's c. Equally restrictive as Medicare's d. More restrictive than Medicare's

A Medicare supplement policy cannot have a definition of "Medicare eligible expense" that is more restrictive than Medicare's. The correct answer is: More restrictive than Medicare's

What is a managed-care arrangement under which a selected group of independent hospitals and medical practitioners in an area agrees to provide a range of services at a prearranged cost? Select one: a. HMO b. POS c. PPO d. EPO

A PPO is a managed-care arrangement under which a selected group of independent hospitals and medical practitioners in an area, such as a state, agrees to provide a range of services at a prearranged cost. The correct answer is: PPO

Nick has a policy that the insurer can cancel when he turns 65. Which type of policy is it? Select one: a. Noncancelable b. Optionally renewable c. Conditionally renewable d. Cancelable

A conditionally renewable policy allows the insurer to cancel the policy if certain stated conditions happen. Examples of conditions are losing a job or reaching a specified age, such as 65. The correct answer is: Conditionally renewable

A decreasing term life policy would be the most appropriate for: Select one: a. A 66 year old retired electrician b. A 41 year old lawyer who wants a policy to pay his mortgage if he dies c. A 35 year old doctor with a lawyer wife and a child d. A 57 year old schoolteacher that doesn't want any risk

A decreasing term life policy would be the most appropriate for a 41 year old lawyer who wants a policy to pay his mortgage if he dies. The correct answer is: A 41 year old lawyer who wants a policy to pay his mortgage if he dies

Under an HMO contract, when does coverage for newborns begin? Select one: a. The moment of birth b. When the newborn leaves the hospital c. One day after the newborn arrives at their home d. 31 days after birth

A newborn child of an HMO subscriber is covered from the moment of birth. The correct answer is: The moment of birth

How many days does an insured have to file a notice of claim? Select one: a. 15 days b. 20 days c. 45 days d. 90 days

A notice of claim must be given to the insurer within 20 days. The correct answer is: 20 days

Life insurance death benefits that can be accessed tax-free when the insured is still alive are called: Select one: a. Accelerated benefits b. Chronically ill benefits c. Viatical settlements d. Life settlements

Accelerated benefits allow policyowners to use a policy's death benefits tax-free while they are still alive, or if they are terminally or chronically ill. The correct answer is: Accelerated benefits

The fact that an insurance agent cannot commingle their insurance funds with their personal funds is referred to in legal terms as: Select one: a. Separation of assets b. Monetary Reconciliation c. Legal liability d. Fiduciary responsibility

All premiums belonging to insurers or others received by an agent are trust funds received by the licensee in a fiduciary capacity. An agent must keep the funds belonging to each insurer for which an agent is not appointed in a separate account so as to allow the department or office to properly audit such funds. Agents must not use such funds for their own purposes. The correct answer is: Fiduciary responsibility

Which of the following is not one of the elements required to make a contract legal? Select one: a. Ambiguities b. Competent parties c. Legal purpose d. Offer and acceptance

Ambiguities are things that are unclear in a contract. The correct answer is: Ambiguities

When must an outline of coverage be given to a prospective applicant for long-term care insurance? Select one: a. Prior to the presentation b. At the time of solicitation c. At the time of application d. When the policy is delivered

An outline of coverage must be given to a prospective applicant for long-term care insurance at the time of initial solicitation. The correct answer is: At the time of solicitation

The Acme Brick Company wants to provide additional benefits to certain classes of employees under a group health plan. They can do this as long as the classes are not based on: Select one: a. The gender of the employee. b. How long the employee has been with the company. c. The category of their job. d. How much money they make.

As long as the additional benefits are not based on the gender of the employee, they may be offered to certain classes of employees in a group health plan. The correct answer is: The gender of the employee

What percentage of the benefits received from a health insurance company after an accident are taxable? Select one: a. None b. 25% c. 50% d. 100%

As long as the benefits paid to the taxpayer do not exceed the actual expenses incurred, the benefits are not taxable. The correct answer is: None

How much time does an appointing entity have to report a termination to the Florida Department of Insurance? Select one: a. 14 days b. 15 days c. 30 days d. 31 days

As soon as possible and at all events within 30 days after terminating the appointment of an appointee, other than for failure to continue or renew it, the appointing entity will file written notice of the termination of appointment with the department, together with a statement that it has given the appointee notice and will file with the department the reasons and facts involved in such termination. The correct answer is: 30 days

What places offer mature adults the ability to _age in place_ without ever needing to move for health reasons? Select one: a. Traditional retirement communities b. Continuing Care Retirement Communities c. Custodial Care Communities d. Hospice Care Communities

Continuing Care Retirement Communities (CCRCs) offer mature adults the ability to _age in place_ without ever needing to move for health reasons. While traditional retirement communities only offer independent living and assisted living, CCRCs provide a continuum of care that includes independent and assisted living to memory care and skilled nursing. The correct answer is: Continuing Care Retirement Communities

How does the IRS treat disability income benefits when the employer pays the policy premiums? Select one: a. The first 6 months are taxable. b. They are fully taxable. c. The first 3 months are taxable. d. The are not taxable

Disability income benefits from an employer-paid group policy are fully taxable. The correct answer is: They are fully taxable.

Eligibility for the payment of long-term care benefits may not be more restrictive than requiring a deficiency in the ability to perform not more than: Select one: a. 1 activity of daily living b. 2 activities of daily living c. 3 activities of daily living d. 4 activities of daily living

Eligibility for the payment of long-term care benefits may not be more restrictive than requiring a deficiency in the ability to perform not more than 3 activities of daily living (ADLs). The correct answer is: 3 activities of daily living

What organization did Florida create to improve access to health insurance for uninsured children in Florida? Select one: a. Florida Insurance for Children's Health (FISH) b. Florida Children's Health Insurance Corporation c. Florida Children's Health Corporation d. Florida Healthy Kids Corporation

Florida created the Florida Healthy Kids Corporation to improve access to health insurance for uninsured children in Florida. The correct answer is: Florida Healthy Kids Corporation

Florida created the Small Employers Access Program to specifically target employers with up to how many employees? Select one: a. 10 b. 15 c. 20 d. 25

Florida created the Small Employers Access Program to specifically target employers with up to 25 employees. The correct answer is: 25

Florida insurance laws are administered by all the following, EXCEPT: Select one: a. The Commissioner of the Office of Insurance Regulation b. The Florida legislature c. The Financial Services Commission d. The Chief Financial Officer

Florida insurance laws are administered by the Chief Financial Officer (CFO), the Commissioner of the Office of Insurance Regulation and the Financial Services Commission. The Florida legislature creates the insurance laws, but is not responsible for administration. The correct answer is: The Florida legislature

Which of the following is NOT a life insurance policy nonforfeiture option in Florida? Select one: a. Reduced paid-up life insurance b. Secondary universal life benefit c. Cash surrender value d. Extended term life insurance

Florida life insurance policies must contain the following nonforfeiture options: reduced paid-up life insurance, cash surrender value, and extended term life insurance. The correct answer is: Secondary universal life benefit

What are nonprofit entities that provide life insurance as a benefit for their members and beneficiaries? Select one: a. Domestic insurers b. Mutual insurers c. Fraternal organizations d. Exclusive organizations

Fraternal organizations are nonprofit entities that provide life insurance as a benefit for their members and beneficiaries. The correct answer is: Fraternal organizations

If a person is covered by 2 health policies, one as an employee and one as a dependent, which policy pays first when there is a claim? Select one: a. The policy as an employee b. The policy as a dependent c. The policy applied for first d. The policy applied for second

If a person is covered by 2 health policies, one as an employee and one as a dependent, the benefits are determined first by the policy as an employee, then the benefits of the plan as a dependent. The correct answer is: The policy as an employee

What is the first action the Office of Insurance Regulation will take for an insurer engaging in an unsound practice? Select one: a. A contempt of court order b. A revocation of license decree c. A cease and desist order d. An arrest warrant

If the Office of Insurance Regulation finds that a state financial institution has engaged in unsound or unsafe practice, it may issue a cease and desist order. The correct answer is: A cease and desist order

An insurance applicant submits an application with a premium. After underwriting, the insurer sends back the policy, rated, with an impairment rider. What should the producer tell the applicant at delivery? Select one: a. Explain that the policy is rated. b. Explain the issue and collect an additional premium. c. Tell the applicant that they were declined. d. Nothing

If the policy is rated, the producer needs to explain the issue and collect an additional premium. The correct answer is: Explain the issue and collect an additional premium.

In a group life policy, an insured's dependent spouse may be covered up to what percentage of the amount of insurance for which the employee is insured? Select one: a. 50% b. 75% c. 100% d. 150%

In a group life policy, an insured's dependent spouse and children may be covered up to an amount not to exceed the amount of insurance for which the employee or member is insured. The correct answer is: 100%

How many hours of continuing education are required every 2 years for Florida life and health agents? Select one: a. 12 hours b. 24 hours c. 36 hours d. 40 hours

Life and health agents must complete 24 hours of continuing education every 2 years. The correct answer is: 24 hours

When an agent or insurer does not truthfully explain the terms of an insurance policy, this is: Select one: a. Defamation b. Misrepresentation c. Twisting d. False financial statements

Misrepresentation is when an agent or an insurer misrepresents the terms, benefits, limitations, or exclusions of a policy. The agent or insurer makes untrue or misleading statements of fact or law, and fails to state material facts or other disclosures as required by law. The correct answer is: Misrepresentation

Which of the following offers the broadest service area and broadest selection of providers? Select one: a. PPO b. POS c. HMO d. FSA

PPO's offer the broadest service area and broadest selection of providers. The correct answer is: PPO

Jamie has a renewable term policy. Which of the following is not an incorrect statement about this type of policy. Select one: a. Renewability is at the insured's option. b. The insured must provide proof of insurability. c. Renewable term policies never have an age limit. d. Renewability is the insurer's option.

Renewability is the insurer's option - is the only correct statement. The correct answer is: Renewability is the insurer's option.

What type of care is nursing care and rehabilitation needed on a daily basis that is performed by a medical professional under a physician's orders? Select one: a. Skilled care b. Intermediate care c. Custodial care d. Hospice care

Skilled care is nursing care and rehabilitation needed on a daily basis, performed by a medical professional under a physician's orders. The correct answer is: Skilled care

What is the main purpose of the MIB? Select one: a. The sharing of medical information and data among its member companies. b. To accumulate and provide data on dread diseases to members. c. Make recommendations on premiums rates for substandard risks. d. To provide data for the purpose of rating large group health plans using experience rating.

The Medical Information Bureau is a trade organization that maintains medical information used by life and health insurers. It shares that information with member companies. The correct answer is: The sharing of medical information and data among its member companies.

Which rider on Diane's life policy will help her out when she is confined to a nursing home with a terminal illness? Select one: a. Accidental death rider b. Consideration c. Accelerated benefit rider d. Return of premium rider

The accelerated benefit allows Diane to receive a portion of the death benefit of her policy, prior to her death. The insured must have been diagnosed as terminally ill in order for this benefit to be paid. The correct answer is: Accelerated benefit rider

What is the minimum grace period for group life insurance policies in Florida? Select one: a. 14 days b. 21 days c. 30 days d. 31 days

The grace period for group life insurance policies in Florida is at least 31 days. The correct answer is: 31 days

What is the minimum grace period for individual life insurance policies in Florida? Select one: a. 14 days b. 21 days c. 30 days d. 31 days

The grace period for individual life insurance policies in Florida is at least 30 days. The correct answer is: 30 days

Which of the following factors does not influence the amount that an individual receives as monthly income under Social Security? Select one: a. Insured status (fully/currently) b. PIA c. Age d. Sex

The insured's sex does not influence the amount. The correct answer is: Sex

An Accident and Health policy contains a Consideration clause which states: Select one: a. Details of certain claims that may be excluded under the policy. b. That insurable interest must exist between the parties of the contract. c. That the entire contract includes any attachments made to the policy. d. That the applicant pays the initial premium.

The statement that the applicant pays the initial premium is contained in the Consideration clause. The correct answer is: That the applicant pays the initial premium.

Jennifer made an additional premium payment on her Adjustable Life policy. Which of the following is not a way that her policy is affected by this payment? Select one: a. The premium paying period may decrease. b. The face amount of her policy may increase. c. The value of nonforfeiture options may decrease. d. The length of her coverage may increase.

The value of her nonforfeiture options may increase - but not decrease. The correct answer is: The value of nonforfeiture options may decrease.

To determine the coverage and benefits to pay for a surgery based on what is considered fair and common for an area is: Select one: a. Usual, reasonable, and customary b. Relative value scale c. Subrogation d. Concurrent review

Under the usual, reasonable, and customary method, an insurer looks at what is considered reasonable and customary for a geographic area. The correct answer is: Usual, reasonable, and customary

If the cash values of an annuity are invested in securities, it is a: Select one: a. Fixed annuity b. Immediate annuity c. Variable annuity d. Deferred annuity

Your answer is correct Variable annuity The correct answer is: Variable annuity

Investment risk is completely taken by the policyowner is what type policy? Select one: a. Adjustable life b. Variable universal life c. Universal life d. Whole life

In a variable universal life policy the policyover has all the investment risk. The correct answer is: Variable universal life

What kind of contract pays an income to an insured until the insured dies? Select one: a. Endowment b. Life annuity c. Variable whole life d. Economatic whole life

A life annuity would pay income until the insured died. The correct answer is: Life annuity

All of the following practices must be used by agents selling annuities to senior citizens, EXCEPT: Select one: a. The agent must make reasonable efforts to obtain information regarding the client's tax and financial status to assure that the purchase is in the client's best interest b. The agent must have reasonable grounds to believe that the sale of an annuity is in the client's best interest c. Suitability standards are utilized d. Cold lead advertising

Agents selling annuities to senior citizens must not use cold lead advertising, high pressure tactics or twisting. The correct answer is: Cold lead advertising

Dylan is looking at buying an equity-indexed life policy; it will likely be tied to: Select one: a. Consumer Price Index b. Inflation c. Dow Jones Industrial Average d. Gross Domestic Product

An Equity - Indexed life policy is tied to and equity index. Examples of an equity index include the S & P 500 or the Dow Jones Industrial Average. The correct answer is: Dow Jones Industrial Average

Sam works for large corporation and is eligible for both his company's health plan and Medicare. Which plan would be primary? Select one: a. Medicare b. Work c. He can pick. d. They will split the cost.

Employer sponsored health plans are always primary, and Medicare is secondary, as long as the company plan has more than 20 employees. The correct answer is: Work

What type of premiums payment can employers deduct as an ordinary business expense? Select one: a. Buy/sell agreements b. Group c. Joint life if part of a business partnership d. Key employee

Employers can deduct premium payments for group insurance. The correct answer is: Group

Comprehensive major medical health policies typically have an Eligible Expenses provision that specifies coverage for all but: Select one: a. Services of nurses. b. Services of doctors. c. Experimental services. d. Semi-private room and board.

Experimental and investigative services are not normally considered eligible expenses. The correct answer is: Experimental services.

Florida's Long-term Care Partnership Program is a partnership between Medicaid and: Select one: a. Medicare b. The state of Florida c. Private long-term care insurers d. Public long-term care insurers

Florida's Long-term Care Partnership Program is a partnership between Medicaid and private long-term care insurers designed to encourage individuals to purchase private LTC insurance. The correct answer is: Private long-term care insurers

The services are provided on a prepaid per person basis called capitation in: Select one: a. PPOs b. HMOs c. POSs d. HSAs

HMOs pay for services on a prepaid per person basis, which is called capitation. The correct answer is: HMOs

Shane and Casey both have health plans from work that covers their son Cash. Which plan is primary? Select one: a. Casey since she works for a bigger company. b. Shane since he is the father. c. The parent with the earliest birthday in the year is primary. d. The plans split the cost.

In determining the coordination of benefits, the parent's birthday that is the earliest in the year has primary coverage. In a divorce, whichever parent has custody is primary. The correct answer is: The parent with the earliest birthday in the year is primary.

In life insurance, insurable interest must be present at the time of: Select one: a. Delivery b. Death c. Never d. Application

Insurable interest must be present when the application is made. The correct answer is: Application

Appropriately addressing an applicant's financial objectives is known as determining: Select one: a. Objectivity b. Suitability c. Financability d. Convertibility

Insurers must determine the suitability of annuity products for applicants by establishing standards and procedures for making recommendations that appropriately address the applicant's financial objectives. The correct answer is: Suitability

Who sells the Small Business Health Plan insurance? Select one: a. All Florida insurers must offer this type of insurance b. Any Florida insurers can offer this type of insurance c. Only Florida insurers that do not sell personal health insurance policies d. Only Florida insurers chosen by the Office of Insurance Regulation

It is the intent of the Legislature to create the Small Business Health Plan to provide small employers the option and ability to provide health care benefits to their employees at an affordable cost. Insurers transacting this coverage must be chosen by the Office of Insurance Regulation. The correct answer is: Only Florida insurers chosen by the Office of Insurance Regulation

Alex's life policy lapsed, which Nonforfeiture option would the insurer send him the value of the policy? Select one: a. Reduced paid-up b. Cash surrender c. Reduction of premium d. Cash payment

The cash surrender option allows the policyowner to receive the policy's cash value. The correct answer is: Cash surrender

In Florida, what is the maximum percentage rate that may be charged on a fixed rate policy loan? Select one: a. 5% b. 7% c. 8% d. 10%

Maximum percentage rate that may be charged by an insurance company on a fixed rate policy loan is 10%. The correct answer is: 10%

What is a type of Medicare health plan that provides all the Part A and Part B benefits? Select one: a. Medicare Advantage b. Medicare Enhanced c. Medicare Combination d. Medicare Extended

Medicare Advantage plans are a type of Medicare health plan offered by a private company that contracts with Medicare to provide all the Part A and Part B benefits. The correct answer is: Medicare Advantage

The manner in which the proceeds of a life policy are handled are specified in what provision? Select one: a. Dividend options b. Settlement options c. Payment options d. Insuring clause

Payment of claims is specified in the settlement options. The correct answer is: Settlement options

Sally is a self-employed software programmer that works from home. If she becomes unable to work due to a disability, which type of policy would pay her rent? Select one: a. Workers' Compensation b. Individual disability income policy c. Group disability income policy d. Business overhead expense policy

Since she is self-employed, an individual disability income policy would cover her. The correct answer is: Individual disability income policy

The Insurance Department may place on probation, suspend, revoke or refuse to issue or renew an insurance producer license for which of the following reasons? Select one: a. Failing to pay child support b. Failing to pay alimony c. Failing to pay property tax d. Failing to pay union dues

The Insurance Department may place on probation, suspend, revoke or refuse to issue or renew an insurance producer license for failing to pay child support. The correct answer is: Failing to pay child support

If an applicant misstates their age on an insurance application, what does the insurer do when it is discovered at claim time? Select one: a. Cancel the policy. b. Adjust the claim benefits to reflect what he would have been entitled to if his real age had been given. c. Pay the claim in full because it is no longer contestable. d. Deny the claim because he fraudulently misrepresented his age on the application.

The insurer would pay the claim but adjust the benefits (downward) to reflect what he would have been entitled to if his real age had been given. The correct answer is: Adjust the claim benefits to reflect what he would have been entitled to if his real age had been given.

Who must sign the Notice Regarding Replacement of Accident and Sickness or Long-term Care Coverage? Select one: a. The applicant only b. The replacing agent only c. The applicant and the replacing agent d. The applicant, the replacing agent and the insurer

A Notice Regarding Replacement of Accident and Sickness or Long-term Care Coverage must be signed by the applicant. The correct answer is: The applicant only

Who must sign the Notice Regarding Replacement of Medicare Supplement Coverage? Select one: a. The applicant only b. The replacing agent only c. The applicant and the replacing agent d. The applicant, the replacing agent and the insurer

A Notice Regarding Replacement of Medicare Supplement Coverage must be signed by the applicant and the replacing agent. The correct answer is: The applicant and the replacing agent

e cheapest premium payment mode would be on a policy that is paid: Select one: a. Quarterly b. Monthly c. Annually d. Semiannually

A premium that is paid annually would be the cheapest. The more frequent the payments, the more expensive a premium will be. The correct answer is: Annually

Giving a client's child a stuffed animal with a company's logo that is valued at less than $25 would be considered: Select one: a. False advertising b. Rebating c. Advertising d. Coercion

A small gift under $25.00 that is used as advertising is not rebating. For example giving a client's child a stuffed animal with your company's logo. The correct answer is: Advertising

Jeff has limited financial resources, but finds himself in a position where he needs a good deal of protection. A __________would probably best suit his needs at this time. Select one: a. Adjustable life b. AD&D c. Universal life d. Term policy

A term policy would give him the most protection for the least money up front. The correct answer is: Term policy

What contract term means only one party to a contract's promises are legally enforceable? Select one: a. Adhesion b. Aleatory c. Conditional d. Unilateral

A unilateral contract is one in which only one party to the contract's promises are legally enforceable. The correct answer is: Unilateral

In Florida, which of the following is NOT a type of "agent"? Select one: a. General lines agent b. Annuity agent c. Health agent d. Title agent

An agent is a general lines agent, life agent, health agent, or title agent. The correct answer is: Annuity agent

What must an insurance agent provide to the applicant of a life insurance policy that does not contain an unconditional refund provision prior to accepting the applicant's initial premium? Select one: a. Buyer's Guide only b. Policy Summary only c. Buyer's Guide and Policy Summary d. Buyer's Guide, Policy Summary, and benefits list

An insurance agent must provide a Buyer's Guide and a Policy Summary prior to accepting the applicant's initial premium if the policy does not contain an unconditional refund provision. The correct answer is: Buyer's Guide and Policy Summary

How many days does an insured have to provide proof of loss? Select one: a. 15 days b. 20 days c. 60 days d. 90 days

An insured has 90 days from the time of loss to provide the insurer proof of loss. The correct answer is: 90 days

A person insured under a group life insurance policy may make an assignment of all of the following, EXCEPT: Select one: a. Conversion b. Beneficiary c. Policy proceeds d. Insured

Any person insured under a group life insurance policy may make an assignment of all or any part of his incidents of ownership under such policy including: conversion, the right to name a beneficiary, assign policy proceeds. All incidents of ownership may be assigned, without prejudice to the insurer on account of any payment it may make or individual policy it may issue. The correct answer is: Insured

On April 9, an application is submitted without the initial premium. The insurer requires a medical exam, and it is completed on April 14. On April 18, the insurer issued the policy, and the producer delivers it on April 21. When is coverage effective? Select one: a. April 9 b. April 14 c. April 18 d. April 21, after the statement of good health is signed, and the initial premium is paid.

Coverage begins on April 21, after the statement of good health is signed, and the initial premium is paid. The correct answer is: April 21, after the statement of good health is signed, and the initial premium is paid.

On January 3, an application is submitted without the initial premium. The insurer requires a medical exam, and it is completed on January 15. On January 20, the insurer issued the policy standard, and the producer delivers it on January 22. When is coverage effective? Select one: a. January 15 b. January 20 c. January 3 d. January 22, after the statement of good health is signed, and the initial premium is paid.

Coverage begins on January 22, after the statement of good health is signed, and the initial premium is paid. The correct answer is: January 22, after the statement of good health is signed, and the initial premium is paid.

Which of the following would NOT be considered unfair discrimination? Select one: a. Discrimination based on sex b. Discrimination based on race c. Discrimination based on occupation d. Discrimination based on blindness

Discrimination is a necessary part of insurance, including occupation, hobbies, and expectation of life. It is an unfair trade practice to discriminate against individuals of the same class and equal expectation of life in the rates, terms, conditions, benefits, or any policy provision for insurance. It is illegal to discriminate based on sex, race, national origin, or blindness. The correct answer is: Discrimination based on occupation

Paul has a basic medical policy. It will pay for: Select one: a. Prescription drugs b. Doctor visits c. Hospital visits d. Outpatient care

Doctor visits are covered under basic medical policies. The correct answer is: Doctor visits

Insurance advertisements may not refer to premiums as: Select one: a. Remittances b. Deposits c. Payments d. Amounts

Insurance advertisements may not refer to premiums as deposits. The correct answer is: Deposits

Employee group life insurance is for the benefit of: Select one: a. Employee only b. Employee and employer c. Employer only d. Employee or employer

Employee life insurance insures the lives of a group of individual employees of an employer for the benefit of persons other than the employer, under a group policy issued to the employer. The correct answer is: Employee only

Which of the following is an eligible group for group life insurance? Select one: a. Employer b. Labor union c. Credit union d. All of the above

Group life contracts may be issued to employee groups, debtor groups, labor union groups, trustee groups, association groups, credit union groups, dependent groups and other groups approved by the department. The correct answer is: All of the above

The most common plan used with an HSA is: Select one: a. HMO b. PPO c. POS d. HDHP

HSAs (Health Savings Accounts) are frequently used with HDHPs (high deductible health plans). The correct answer is: HDHP

Tyler owns a major medical policy with 70/30 coinsurance and a $3,000 deductible. If he submits a claim for $20,000, how much will he pay? Select one: a. $3,000 b. $5,100 c. $8,100 d. $20,000

Hell pay $8,100. The math works out $20,000 - $3,000 = $17,000. Then $17,000 x .30 = $5,100. Then add the $3,000 deductible with the $5,100 coinsurance ($3,000 + $5,100= $8,100). The correct answer is: $8,100

What is the advantage of a Waiver of Premium provision in a life policy? Select one: a. Reduce an insured's premiums. b. Increase an insured's coverage. c. Waive an insured's premiums if he/she becomes disabled. d. All of the above.

If an insured becomes totally disabled before a certain age, this provision would waive the premiums. The correct answer is: Waive an insured's premiums if he/she becomes disabled.

In Florida, what is the minimum number of employees to be considered a "small employer?" Select one: a. 1 b. 2 c. 5 d. 7

In Florida, a "small employer" has at least 1 and not more than 50 employees. The correct answer is: 1

In Florida, all small employer health plans must be: Select one: a. Nonguaranteed issue b. Conditionally issue c. Optionally issue d. Guaranteed issue

In Florida, all small employer health plans must be guaranteed issue to every small employer with 2 to 50 employees. The correct answer is: Guaranteed issue

In a group health insurance contract, the individual insureds are each given: Select one: a. A Certificate of Insurance b. A Certificate of Participation c. A master policy d. An individual policy

In a group health insurance contract, the contract for coverage is between the insurance company and the employer, and a master policy is issued to the employer. The individual insureds covered by the policy are not given separate policies; instead, they receive a certificate of insurance and an outline describing the policy benefits. The correct answer is: A Certificate of Insurance

What type of insurance contract is prepared by the insurer and not negotiated? Select one: a. Adhesion b. Conditional c. Aleatory d. Unilateral

Insurance contracts are contracts of adhesion. In a contract of adhesion there is only one author, the insurance company. The correct answer is: Adhesion

Gregory recently purchased a one-year term insurance policy. At the end of the year, he can purchase an identical policy without having to show proof of insurability. Why type of policy did he purchase? Select one: a. Decreasing term b. Increasing term c. Renewable term d. Level premium term

It is a renewable term policy that allows the policyowner to purchase another identical policy at the end of the year without proving insurability. The correct answer is: Renewable term

Which of the following statements is not true about the tax liabilities for individual life insurance policies? Select one: a. If a policy is surrendered for its cash value some of the cash value may be subject to ordinary income tax. b. Policy loans are taxable as income. c. Policy premiums are not deductible for an individual life insurance policy. d. Accelerated benefits are tax free if they are qualified.

Policy loans are not taxable as income because they are regarded as a debt against the policy. The correct answer is: Policy loans are taxable as income.

Which of the following is described as charging insureds additional fees without their consent? Select one: a. Twisting b. Sliding c. Coercion d. Churning

Sliding occurs when agents or insurers charge applicants additional charges without applicants' consent. The correct answer is: Sliding

The Beauty Shop Cosmetic Company purchases a life insurance policy on Anna, the company's leading salesperson. Which business continuation plan does this company have? Select one: a. Section 303 plan b. Split-dollar c. Key person insurance d. Executive bonus plan

The Beauty Shop Cosmetic Company purchased key person insurance. Anna is a key employee, because she is responsible for much of the company's profitability. The correct answer is: Key person insurance

What defines proper business practices expected of agents? Select one: a. The Florida Insurance Responsibility Entity (FIRE) b. The Florida Insurance Code c. The Florida Business Practices Act d. The Florida Code of Ethics

The Code of Ethics defines proper business practices expected of agents. The correct answer is: The Florida Code of Ethics

In most Disability Income policies, the Elimination Period applies: Select one: a. During the first 10 days of the contract. b. To claims for accidents only. c. Only to the first time an insured becomes disabled. d. To each disability separately.

The Elimination Period is applied to each disability separately and is usually 30 days. The correct answer is: To each disability separately.

Who of the following is NOT on the Financial Services Commission? Select one: a. The Florida Commissioner of Insurance b. The Florida Commissioner of Agriculture c. The Florida Attorney General d. The Governor of Florida

The Financial Services Commission includes the governor of Florida, the CFO, the attorney general and the Commissioner of Agriculture. The correct answer is: The Florida Commissioner of Insurance

When can the Office of Insurance Regulation examine the records of an insurer? Select one: a. Anytime b. Only with 48 hours notice c. Only with a court order d. Only when a complaint is filed

The Office of Insurance Regulation and CFO may examine the affairs, transactions, accounts, records, and assets of each authorized insurer and of the attorney in fact of a reciprocal insurer as to its transactions affecting the insurer as often as it deems advisable. The correct answer is: Anytime

What part of the policy directs the insurer on the recipients of benefits? Select one: a. Conditions provision b. Insuring agreement c. Entire contract d. Payment of Claims provision

The Payment of Claims provision stipulates to whom claim payments are made. The correct answer is: Payment of Claims provision

What is the biggest source of information used in underwriting? Select one: a. HIPAA b. MIB c. Representations d. Application

The application is the biggest source of information used in underwriting. The correct answer is: Application

Which of the following could be used to prevent a lapse in the payment of life insurance premiums? Select one: a. Automatic premium loan b. Cash loan c. Partial Surrender d. Waiver of premium

The automatic premium loan allows the insurer to tap into the cash value of a policy to pay an overdue premium. The correct answer is: Automatic premium loan

Sue's hospital bill is $4,500. Her major medical policy has a $500 deductible and then it pays 80% of the remaining bill. The policy also has a maximum out-of-pocket of $2,000. How much of the total bill will the insurance company pay? Select one: a. $3,200 b. $3,600 c. $3,800 d. $4,000

The bill is $4,500. Subtract $500 for the deductible. The company will pay 80% of the balance, which is .80 x $4,000 = $3,200. The correct answer is: $3,200

If James has an increasing term policy, which of the following must increase? Select one: a. The taxes on the benefit b. The death benefit c. The return of premium d. The premium

The death benefit increases. The correct answer is: The death benefit

Becky is a 31 years old and knows she needs to start a retirement plan. She currently works in a bakery and is worried about how inflation would affect her retirement plan. Which annuity would be a good fit for her needs? Select one: a. Flexible premium deferred annuity b. Deferred annuity - single premium c. Immediate annuity - single premium d. Level premium fixed annuity

The flexible premium deferred annuity would probably be the best fit for her needs. The correct answer is: Flexible premium deferred annuity

With a Guaranteed Insurability rider on a Disability Income policy, the: Select one: a. The insurer will not require a medical examination in order to issue the policy. b. Insured is allowed to assign the policy to a family member. c. The insurer is not allowed to cancel the policy. d. The insured can buy additional disability income coverage without proving evidence of insurability.

The guaranteed insurability rider allows the insured to purchase additional disability income coverage at future dates regardless of insurability. The correct answer is: The insured can buy additional disability income coverage without proving evidence of insurability.

If an applicant states their age is 30 on an application for life insurance, when they were actually 37, what is the insurer likely to do? Select one: a. Void the policy for misrepresentation and fraud. b. Refund the premiums paid without interest. c. Pay the death benefit based on the applicant's actual age. d. Pay the full death benefit based on the stated age.

The insurance company will pay the death benefit, but it will be reduced based on what the premium should have been with the applicant's correct age. Take note: even an intentional misstatement of age is not considered material enough to void the policy. The correct answer is: Pay the death benefit based on the applicant's actual age.

The fact that the application is part of the policy is stated in: Select one: a. The ownership clause b. The entire contract c. The insuring clause d. The options

The insurance policy itself (including any riders and endorsements/amendments) and the application, if attached to the policy, comprise the entire contract between all parties. The correct answer is: The entire contract

What approach calculates the amount of money a family needs immediately upon the death of the insured to pay for their expenses and basic necessities? Select one: a. Human life value b. Needs c. Salary d. Social Security blackout

The needs approach calculates the amount of money a family needs immediately upon the death of the insured to pay for their expenses and basic necessities. The correct answer is: Needs

What is the latest that the outline of coverage can be delivered? Select one: a. At least 24 hours before the initial meeting b. At the time of application c. When the policy is delivered d. When the policy is completed

The outline of coverage describes the benefits and features of health insurance policies, and must be provided at the time of application, but no later than at the time of policy delivery. The correct answer is: When the policy is delivered

What is the advantage of a payor benefit rider? Select one: a. It provides a temporary waiver of premium if the person paying the premium dies. b. It provides additional insurance if the death is a result of an accident. c. It provides disability income. d. It cancels the policy without penalty and returns premiums paid.

The payor rider provides a temporary waiver of premium. The correct answer is: It provides a temporary waiver of premium if the person paying the premium dies.

Who has the right to change the beneficiary on a life policy? Select one: a. The insured b. The insurer c. The policyowner d. The beneficiary

The policyowner has the right to change the beneficiary. The correct answer is: The policyowner

If more than one beneficiary is named, who is the first in line? Select one: a. Revocable b. Primary c. Contingent d. Irrevocable

The primary beneficiary is the first in line, and the contingent is the second in line. The correct answer is: Primary

According to the Physical Examination and Autopsy provision, who is responsible for paying the cost of examining the insured? Select one: a. The medical provider b. The policyowner c. The insurer d. The insured

Where not prohibited by law, the insurer may request that a physical examination or autopsy of the insured be performed while a claim is pending. The cost of such procedure is the insurer's responsibility. The correct answer is: The insurer

When an insured completed his health policy application, his producer did not take a premium when he submitted it to the insurer. When the producer delivers the policy to the applicant, he needs to do all of the following EXCEPT: Select one: a. Ask the applicant to complete a statement of continued good health. b. Issue the applicant a conditional receipt. c. Collect the initial premium from the applicant. d. Explain the policy and provisions to the applicant.

The producer does not need to issue the applicant a conditional receipt when he delivers the policy. The correct answer is: Issue the applicant a conditional receipt.

The producer realizes that the prospective client omitted information about a prior illness. What should the producer do? Select one: a. Nothing, because the MIB will catch it b. The producer has no responsibility to report the omitted information. c. Tell the prospective client that a claim might be rejected later due to the omission. d. Assume the client will not make a claim until the incontestability period is over.

The producer has the duty to inform the prospective insured that a claim might be rejected later on with possible repercussions. This is a form of fraud, and a claim might be rejected on this basis. The correct answer is: Tell the prospective client that a claim might be rejected later due to the omission.

All of the following are duties of a producer when delivering a policy to an applicant EXCEPT: Select one: a. Explanation of all riders and exclusions. b. Arranging to keep the policy in his office for safe-keeping. c. Collection of any premiums due. d. Review of the benefits and conditions.

The producer should not keep the policy in his office - the client needs to have possession of the policy. The correct answer is: Arranging to keep the policy in his office for safe-keeping.

What is the purpose of the Florida Life and Health Guaranty Association? Select one: a. To protect insurers from various market conditions b. To protect policy holders and insureds from illegal or unethical insurers c. To protect insurers from fraudulent claims d. To protect policy holders and insureds from insurers who cannot fulfill their financial obligations

The purpose of the Florida Life and Health Guaranty Association is protect policy owners, insureds, beneficiaries, annuitants, payees, and assignees of life and health insurance contracts against the failure of an insurer issuing such policies or contracts to perform its contractual obligations due to its impairment or insolvency. The correct answer is: To protect policy holders and insureds from insurers who cannot fulfill their financial obligations

The benefit that encourages the disabled policy owner to try to return to work is: Select one: a. Residual disability b. Recurrent disability c. Waiver of premium d. COLA

The recurrent disability provision encourages a person with a disability to try and go back to work. It specifies a certain number of days that a recurrence of the disability is considered a continuation, not a new disability. Therefore it does not have a new elimination period. The correct answer is: Recurrent disability

Dylan tells the insurer to keep the dividend and apply it to his next premium. He is using which dividend option? Select one: a. Reduction of premium b. Paid-up addition c. Accumulate at interest d. Reduced paid-up

The reduction of premium dividend option allows the insurer to keep the dividend and apply it to the next premium. Remember dividends are not taxed. The correct answer is: Reduction of premium

The life insurance rider that pays the face amount plus the total premiums paid into the policy is known as: Select one: a. Return of cash value b. Payor rider c. Return of premium d. Waiver of premium

The return of premium rider pays the total amount of premiums paid into the policy as long as the insured dies within a certain time period specified in the policy. The death benefit is comprised of the face amount plus the total premiums paid into the policy. The correct answer is: Return of premium

What is the minimum number of employees that must be insured under contributory employer-sponsored group health insurance plans? Select one: a. 5 b. 50 c. 100 d. There is no minimum

There is no minimum number of employees that must be insured under contributory (employer and employees share in the cost of premiums) employer-sponsored group health insurance plans. The correct answer is: There is no minimum

Jeff and Mike own an architect firm with 20 employees and worry about the company if one of them becomes permanently disabled. What type of policy should they buy? Select one: a. Disability buy-out b. Individual disability c. Business overhead expense d. Key employee

They should buy a disability buy-out policy. The correct answer is: Disability buy-out

How much time does an individual have to convert to a new individual life policy after they are terminated from employment covered by a group life policy? Select one: a. 28 days b. 30 days c. 31 days d. 60 days

Under a group life policy, if a member's coverage is terminated, the member and dependents may convert their group coverage to individual life coverage. The individual must apply for individual coverage within 31 days after the date of their coverage termination. The correct answer is: 31 days

An insured became disabled in February of 2014. She had bought a disability income policy in October of 2012. Her disability was due to a condition that existed prior to October 2012 but was not excluded from her policy. The insurer will: Select one: a. Deny the claim based on fraudulent misrepresentation. b. Pay 50% of the claim. c. Pay the claim in full. d. Deny the claim because it is the result of a pre-existing condition.

Under these circumstances, the insurer will pay the claim in full. The correct answer is: Pay the claim in full.

Upon the death of an insured, life insurance policy proceeds are designated for: Select one: a. The beneficiary only b. Creditors first, then the beneficiary c. The beneficiary first, then the creditors d. The beneficiary and the creditors must split the proceeds evenly

Upon the death of an insured, life insurance policy proceeds are exclusively for the benefit of the person designated as beneficiary. The correct answer is: The beneficiary only

On the death of an insured, settlement of a life insurance policy is made when: Select one: a. Proof of death is received b. Surrender of the policy c. Proof of death and surrender of the policy d. Proof of death, surrender of the policy and a notarized request

When an insured dies and a claim is submitted, settlement must be made upon receipt of proof of death and surrender of the policy. The correct answer is: Proof of death and surrender of the policy

Where replacement is involved, what else must an agent give the insurer with an application for life insurance? Select one: a. Notice to Applicant Regarding Replacement of Life Insurance only b. A copy of all sales proposals only c. Notice to Applicant Regarding Replacement of Life Insurance and a copy of all sales proposals d. Notice to Applicant Regarding Replacement of Life Insurance, a copy of all sales proposals and the Buyer's Guide

Where replacement is involved, an agent must give the insurer with an application for life insurance a copy of the Notice to Applicant Regarding Replacement of Life Insurance and a copy of all sales proposals used for the presentation to the applicant. The correct answer is: Notice to Applicant Regarding Replacement of Life Insurance and a copy of all sales proposals

Where replacement is involved, what must the replacing insurance company provide to the applicant of a policy that does not contain an unconditional refund provision prior to accepting the applicant's initial premium? Select one: a. Buyer's Guide only b. Policy Summary only c. Buyer's Guide and Policy Summary d. Buyer's Guide, Policy Summary, and benefits list

Where replacement is involved, the replacing insurance company must provide a Buyer's Guide and a Policy Summary prior to accepting the applicant's initial premium if the policy does not contain an unconditional refund provision. The correct answer is: Buyer's Guide and Policy Summary

What type group plan requires 75% participation? Select one: a. Noncontributory b. Contributing c. Contributory d. Consideration

With a contributory plan, the group members share the cost of the coverage with the employer, and must have at least 75% participation. The correct answer is: Contributory

Which of the following statements regarding a limited payment whole life policy is true? Select one: a. The insured is covered for their entire life and premiums are paid for a restricted period of time. b. The insured is covered for their entire life and premiums are paid continuously. c. The insured is covered for a specific period of time. d. The insured is covered for their entire life and a one-time lump-sum premium payment is made at policy outset.

With a limited payment (LP) whole life policy, the insured is covered for their entire life, but premiums are paid for a limited time. The correct answer is: The insured is covered for their entire life and premiums are paid for a restricted period of time.

Does a loan on the cash value of a life insurance policy accrue interest, and if so, how is the interest handled? Select one: a. No, the loan does not accrue interest, he is borrowing his own money. b. Yes, the interest can be paid annually, or added to the loan. c. Yes, the interest is added to the premium payment. d. None of the above

Yes, the loan does accrue interest. The interest can be paid annually, or added to the loan. The correct answer is: Yes, the interest can be paid annually, or added to the loan.

HSAs are frequently used with: Select one: a. PPOs b. HMOs c. POSs d. HDHPs

Your answer is correct HSAs (Health Savings Accounts) are frequently used with HDHPs (high deductible health plans). The correct answer is: HDHPs