insurance
According to the life insurance replacement regulations, which of the following would be an example of policy replacement
A policy is reinstated with a reduction in cash value
Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?
replacement rule
Under the Physical Exam and Autopsy provision, how many times can an insurer have the insured examined, at its own expense, while a claim is pending?
unlimited
In a survivorship life policy, when does the insurer pay the death benefit?
upon the last death
The guaranteed insurability rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following except
Purchase of a new home
The family term rider incorporates
Spouse term and children's term
What is the purpose of coinsurance provisions?
To help the insurance company to prevent overutilization of the policy
What is the purpose of a benefit schedule
To state what and how much is covered in the plan
What does "level" refer to in level term insurance?
face amount
How many consecutive months of coverage (other than in an acute care unit of a hospital) must LTC insurance provide in this state?
12
If a parent would like to enroll a child over the age of 5 into the Florida Healthy Kids program, their family income must be under a certain percentage of the federal poverty level. What percentage?
200%
All of the following could qualify as a group for the purpose of purchasing group life insurance excepet
An association formed one year ago
When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?
Equal to the original policy for as long as the cash values will purchase.
Which of the following statements is incorrect
Medicare and medigap policies provide coverage for long term custodial or nursing home care
What is another name for social security benefits?
Old Age, Survivors, and Disability Insurance
A married couple purchase a life insurance policy on their newborn baby. They are concerned about what would happen to the policy if either one of the, were unable to continue making the premium payments due to death or disability. Which policy rider should their agent recommend
Payor benefit
An agent's appointment has been denied. Which of the following is true?
State taxes may be refunded upon a written request.
All of the following are consideration in an insurance policy accept
The cash values in the policy
In which of the following locations would skilled care most likely be provided?
in an institutional setting
Traditional IRA contributions are tax deductible based on which of the following?
owner's income
A domestic insurer issuing variable contracts must establish one or more
seperate accounts
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must
Respond to the consumer's complaint.
A whole life policy is surrendered for a reduced paid up policy. the cash value in the policy will
continue to increase
What is another name for interest-sensitive whole life insurance?
current assumption life
Which of the following is true regarding taxation of dividends in participating policies?
dividends are not tacable
An a=insurance company that is owned by the policy holder is called a
mutual insurer
Most agents try to collect the initial premium for submission with the application. When an agent collects the initial premium from the applicant, the agent should issue the applicant a
premium receipt
Todd has been informed that he has a hernia which requires repair. When Todd researches the cost, he learns that his insurance plan will cover 200 points worth of surgical expenses. Each point represents $10, which means that $2000 of his surgery will be covered by his insurance plan. What system is Todd's insurance company using?
relative value
All of the following must sign an application for health insurance excpet
the insurer
Which of the following entities is considered the principal
the insurer issuing the policy
An insured is covered under 2 group health plans - under his own and his spouse's. He had suffered a loss of $2,000. After the insured paid the total of $500 in deductibles and coinsurance, the primary insurer covered $1,500 of medical expenses. What amount, if any, would be paid by the secondary insurer?
500$
All of the following are true regarding the federal fair credit report act excepet
Reports may be sent to anyone who request one
A hospital indemnity policy will pay
a benefit each day the insured is in the hospital
Which of the following types of policies would not be subject to florida regulations on life insurance solicitation
annuities
Which of the following is not considered eligible for group life insurance
A credit union that needs coverage only for its top ten employees
All of the following could qualify as a group for the purpose of purchasing group health insurance except
An association of 35 people
While a claim is pending, an insurance company may require
An independent examination as often as reasonably required.
Which of the following is NOT a characteristic or a service of an HMO plan?
Contracting with insurance companies
If an insurer appoints a customer representative, the appointment needs to be filed with which of the following entities
Department
In a disability policy, the probationary period refers to the time
During which illness-related disabilities are excluded from coverage.
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.
When replacing life insurance, the duties of the replacing insurance company include all of the following EXCEPT
Maintaining a copy of the Notice Regarding Replacement and all sales proposals used for at least 5 years.
If a person accumulates more continuing education hours than is necessary to fulfill the requirements for a 2-year period, which of the following will occur?
The extra hours may be continued into the next period.
The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the
one year term option
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than
with the policy
What is a penalty tax for nonqualified distributions from a health savings account?
20%
What is reinsurance?
An agreement between a ceding insurer and assuming insurer
Which is true regarding obtaining underwriting sources?
The applicant must be informed of the sources contacted and how the information is being gathered.
All of the following are true regarding a decreasing term policy EXCEPT
The payable premium amount steadily declines throughout the duration of the contract.
The paid-up addition option uses the dividend
To purchase a smaller amount of the same type of insurance as the original policy.
The term "illustration" in a life insurance policy refers to
A presentation of nonguaranteed elements of a policy.
Decreasing term insurance is often used to
Cover a mortgage
Long-term care coverage may be available as any of the following options EXCEPT
Endorsement to a health policy.
What level of authority is given to the Office of Insurance Regulation with respect to examination of insurer's activities to determine compliance Unfair Trade Practice laws?
absolute
Which of the following is NOT covered under a long-term care policy?
acute care in the hospital
Which of the following is true regarding branch agency licensing?
agent in charge must be licensed
When transacting business in this state an insurer formed under the laws of another country is known as a/an
alien insurer
The death protection component of Universal Life Insurance is always
annually renewable term
the corridor deductible applies between
basic and major medical coverage
in addition to participation requirements, how does an insurer guard against adverse selection when underwriting group health
by requiring that the insurance be identical to the group
in a variable life insurance policy, all of the following assets are held in the life insurance company's general account except
cash surrender values
All of the following are true about group disability Income insurance EXCEPT
coverage applies both on and off the job
A husband and wife both incur expenses that are attributed to a single major medical insurance deductible. Which type of deductible do they have in their policy?
family
The agent in charge of an agency must hold which of the following licenses?
general lines
What provision in an insurance policy extends coverage beyond the premium due date?
grace period
Fixed annuities provide all of the following EXCEPT
hedge against inflation
If a soliciting producer suspects that there could be ,misrepresentation on the part of the applicant for insurance, what must the producer do
inform the insurance company
In health insurance, if a doctor charges $50 more than what the insurance company considers usual, customary and reasonable, the extra cost
is not covered
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
option b
What is the major difference between a stock company and a mutual company?
ownership
Who examines the books and records of insurance companies in Florida?
the chief financial advisor
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 clause
Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?
universal life
Which of the following products requires a securities license?
variable annuity
Assuming that all of the following people are covered by a High Deductible Health Plan and are not claimed as dependents on anyone's tax returns, which would NOT be eligible for a Health Savings Account?
Amanda is 67 and is covered by a basic medical expense policy
Which of the following losses would likely be covered under the accidental death rider
Head on collision death
What does the guaranty association guard against
Insurer insolvency
An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?
The insured may renew the policy for another 10 years, but at a higher premium rate.
Which of the following Medicare supplement plans would be available to a reasonably healthy 91-year-old female?
a-n
According to the rights of renewability rider for cancellable policies, all of the following are correct about the cancellation of an individual insurance policy EXCEPT
unearned premiums are retained by the insurance company
Which of the following types of life insurance is investment based, has a level fixed premium, and a nonguarenteed cash value
variable whole life
According to the common disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed
The primary beneficiary died first
The renewable provision allows the policyowner to renew coverage at the expiration date
Without evidence of insurability
Which of the following is the closest term to an authorized insurer?
admitted
The stop loss feature on a major medical policy is intended to
Establish a maximum amount of out of pocket expense than an insured will have to pay for medical expense in a calendar year
An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?
Guaranteed insurability option
Which of the following is INCORRECT concerning taxation of disability income benefits?
If paid by the individual, the premiums are tax deductible.
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?
Life income with period certain
Regarding the free-look provision, the insurance company
Must allow the policyowner to return the policy for a full refund.
A stock insurer is defined as an insurer
Owned by its stockholders
A retail shop owner is insured under a business overhead expense policy that pays a maximum of $2,500. His actual monthly expense are $3,000. If the owner becomes disabled the monthly benefit payable under the policy will be
$2,500
An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?
$50,000
if an insured pays a health insurance premium each month, how long would the grace period be under the policy
10 days
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%
The relation of earnings to insurance provision allows the insurance company to limit the insured's benefits to his/her average income over the last
24 months
How long must an insurer retain an advertisement for its long-term care policies?
3 years
Medicare supplement policies, by law, must provide a free-look provision of
30 days
An applicant for an agent's life only license must complete a minimum of how many hours of pre licensing education
40
Policy loan requests, except for loan requests for payment of due premiums, may be defered for a period of up to
6 months
Under the mandatory uniform provision legal actions, an insured is prevented from bringing a suit against the insurer to recover on a health policy prior to
60 days after written proof of loss has been submitted
In life policies issued in this state, insurers are permitted to charge interest during the policy grace period for the number of days elapsing before the premium is paid. What is the maximum annual interest rate?
8%
Which of the following best describes the probationary period in group health insurance
A specified period of time that a person joining a group has to wait before becoming eligible for coverage
All of the following are dividend options EXCEPT
Fixed-period installments.
In a long-term care policy, pre-existing condition limitations
Must appear as a separate paragraph and be clearly labeled.
All of the following are characteristics of group life insurance EXCEPT
Premiums are determined by the age, sex and occupation of each individual certificate holder.
if a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedure
Prior to performance of the test
When an insurer terminates an agent's appointment, the insurer must do all of the following EXCEPT
Provide a 30-day advance notice to the Commissioner.
An insured purchased a health insurance policy with a renewability clause that states the policy is "guaranteed renewable". This means that as long as the required premiums are paid, the policy will continue unilt the insured
Reaches 65
An employee insured under a group health policy is injured in a car wreck while performing her duties for her employer. This results in a long hospitalization period. Which of the following is true?
The group plan will not pay because the employee was injured at work.
Which of the following statements is true regarding coinsurance?
The larger the percentage that is paid by the insured, the lower the required premium will be.
as it relates to life settlements, the term "owner" means
The owner of the original poliy
What is the purpose of key person insurance
To cover decreased business revenues as a result of the death of a key employee
What is the purpose of a disclosure statement in life insurance policies?
To explain features and benefits of a proposed policy to the consumer
If the policy summary for a life insurance policy is not given when the application is taken, when must the policy summary be given to the policy owner
When the policy is delivered
Which of the following indicates the person upon whose life the annuity income amount is determined
annuitant
When must the Medicare Supplement Buyer's Guide be presented?
at time of application
An individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. What type of annuity is it?
deffered
In this state the owner gets a free look of a specified number of days from
delivery of the policy
Which of the following authorities grants and revokes licenses?
department of financial services
where are premiums from fixed annuities invested
general account
Variable Whole Life insurance is based on what type of premium?
level fixed
Bethany studies in England for a semester. While she is there, she is involved in a train accident that leaves her disabled. If Bethany owns a general disability policy, what will be the extent of benefits that she receives?
none
Whose responsibility is it to ensure that the application for health insurance is complete and accurate
the agent
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
the beneficiary
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
Which of the following is TRUE about nonforfeiture values?
they are required by state law to be included in the policy
Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner?
third-party ownership
An insured submits a proof of loss form within 10 days of a loss. The insurer, however, does not acknowledge the form for 3 months. Which of the following violations has the insurer committed?
unfair claims settlement
What is the maximum elimination period in long-term care policies issued in Florida?
180 days
Which of the following about hmos in florida is false
Hmos cannot engage in selling insurance contracts
what is the purpose of gatekeepers in a hmo
controlling cost
A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?
joint life
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of
misrepresentation
An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?
mutual
Which of the following is not mandatory under the uniform provision law as applied to accident and health policies?
probationary period
What method do insurers use to protect themselves against catastrophic losses?
reinsurance
All of the following are correct about the required provisions of a health insurance policy EXCEPT
A reinstated policy provides immediate coverage for an illness.
Which of the following statements about the reinstatement provision is true?
It requires the policyowner to pay all overdue premiums with interest before the policy is reinstated.
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
Purchase a single premium policy for a reduced face amount.
Which of the following is NOT a feature of a noncancellable policy?
The insurer may terminate the contract only at renewal for certain conditions.
An agent is in the process of replacing the insured's current health insurance policy with a new one. Which of the following would be a proper action?
The old policy should stay in force until the new policy is issued
If a life insurer holds the proceeds of any policy it issues, which of the following is true?
The proceeds may be exempt from any creditor's claims against a beneficiary other than the policy owner.
When an annuity is written, whose life expectancy is taken into account?
annuitant
Which health insurance provision describes the insured's right to cancel coverage?
renewal provision
An insured pays a monthly premium of $100 for her health insurance. What would be the duration of the grace period under her policy?
10 days
On individual health insurance policies, an insurer must furnish the claimant with claim forms within how many days
15 days
In the event a policy lapses due to nonpayment of premium, within how many days would the policy be automatically reinstated once the outstanding premium is paid?
45 days
Under what conditions will proof of insurability NOT be required of an employee wanting to enroll in a group insurance plan?
If the employee enrolls within a certain time period
Medicaid provides all of the following benefits EXCEPT
Income assistance for work-related injury.
A core medicare supplement policy (plan A) will cover all of the following expenses except
Plan A deductible
In a group life policy with a death benefit of more than 50,000$
Premium cost above $50,000 is taxable as income to the employee
Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy?
Premiums are not tax deductible as a business expense.
Which of the following is an example of a producer's fiduciary duty?
The trust that a client places in the producer in regard to handling premiums.
When must an insurance company present an outline of coverage to an applicant for a Medicare supplement policy?
at the time of application
What is the latest point at which an outline of coverage may be presented
at the time of policy delivery
The provision which prevents the insured from bringing any legal action against the company for at least 60 days after proof of loss is known as
legal action
An insured stated on her application for life insurance that she had never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied?
material misrepresentation
All of the following are excluded from coverage in an individual health insurance policy except
mental illness
Any policy of health insurance that provides coverage for maternity care must also cover the services of all of the following EXCEPT
midwives, nursing midwives, and licensed birthcenters
A long-term care insurance shopper's guide must be provided in the format developed by which of the following?
naic
Shortly after a replacement transaction on a Medicare supplement policy, the insured decided to cancel the policy, but is unsure whether the free-look provision applies. The insured could find that information in the
notice regarding replacement
A participating insurance policy may do which of the following?
pay dividends to a policyowner
Which of the following provisions would prevent an insurance company from paying a reimbursement claim to someone other than the policyowner?
payment of claims
Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?
payor benefit
Underwriting is a major consideration when an insured wishes to replace her current policy for all of the following reasons EXCEPT
premiums always stay the same
An insured wants to name her husband as the beneficiary of her health policy. She also wishes to retain all of the rights of ownership. The insured should have her husband named as what type of beneficiary?
revocable
A husband and wife are insured under group health insurance plans at their own places of employment, and as dependents under their spouse's coverage. If one of them incurs hospital expenses, how will those expenses likely be paid?
the benefits will be coordinated
The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?
interest only option
The Office of Insurance Regulation is responsible for all of the following insurer activities EXCEPT
issue of securities
What happens to the copy of the application for the health insurance once the policy is issued
it becomes part of the entire contract
When comparing a joint life policy to two individuals life policies of the same amount on the same insureds, which condition is true
joint life has a lower premium than the total of the two individual policies
Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?
limited pay whole life
Under the uniform required provisions, proof of loss under a health insurance policy normally should be filed within
90 days of a loss
How is emergency care covered for a member of an HMO?
A member of an HMO can receive care in or out of the HMO service area, but care is preferred in the service area.
Under the common accident provision, how many deductibles would be paid if the five family members covered under the same major medical policy are injured in the same accident
1
Under special circumstances, continuing education requirements may be extended beyond the 2-year period for a maximum period of
12 months
The continuation of coverage provision allows terminated employees to continue coverage under a group health insurance plan for up to
18 months
Which of the following would be required to become licensed as a insurance producer
A customer service representative who solicits no more than one policy a year
A policy owner who purchase an individual policy and then asks for a refund within 2 weeks after the policy was delivered will receive
A full refund of premium in Florida
The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?
As of the application date
Ed is covered under a health plan provider by his employer. he was told that his insurance would pay the majority of the covered expenses if he would choose to see a provider in his plans list. If ed chose to be treated by a provider who was not on the list, his portion of the bill would be greater. Ed is covered under a
Preferred provider plan
Which of the following describes taxation of individual disability income insurance premiums and benefits?
Premiums are not tax deductible, and benefits are not taxable.
Which of the following are the main factors taken into account when calculating residual disability benefits?
Present earnings and earnings prior to disability
If an agent is in the military, which of the following is true?
The agent cannot sell a policy to another active military person who is of a lower rank.
Insurers usually do not reimburse claimants for 100% of income lost due to disability. What is the reason for insurer limitations on coverage amounts?
To provide an incentive for the insured to return to work
Which of the following services will not be provided by an hmo
Unlimited coverage for treatment for drug rehabilitation
When are HMOs required to file a report of their activities with the Department of Financial Services?
Within 3 months of the end of each fiscal year
Which of the following would be an example of an unfair claims settlement practice?
failing to acknowledge a claim in 30 days
All small employer group health plans, in order to comply with the requirements of the Florida Employee Health Care Access Act, must be issued on what basis?
guaranteed issue
Which of the following riders added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescent home?
long term care
A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as
survivor protection
The Florida Health Insurance Coverage Continuation Act requires insurers that sell health plans to small employers to offer in those plans a right to elect to continue coverage, without providing evidence of insurability, to employees who lose their coverage and are unable to replace it. The premium rate for this coverage may NOT exceed
115% of the regular group rate.
A Return of Premium term life policy is written as what type of term coverage?
increasing
If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a
settlement option
which of the following is a daily nursing an rehabilitative care that can only be provided by the medical personnel under the direction of the physician
skilled care
When term insurance is added to the main policy to enhance the policy or provide additional coverage it is called
term rider
Under the mandatory uniform provision " notice of claim", Written notice of a claim must be submitted to the insurer within what time parameters
Within 20 days
All of the following qualify for Medicare Part A EXCEPT
anyone who is willing to pay a premium
When an insurer begins underwriting procedures for an applicant, what will be the main source for its underwriting information?
application
The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the
Incontestability clause.
What are the 2 types of Flexible Spending Accounts?
Health Care Accounts and Dependent Care Accounts
Under an extended term nonforfeiture option, the policy cash value is converted to
The same face amount as in the whole life policy.
The LEAST expensive first-year premium is found in which of the following policies?
annually renewable term
When an employee terminates coverage under a group insurance policy, coverage continues in force
31 days
How long must insurers maintain records of the information collected from senior consumers and other information used in making recommendations that were the basis for insurance transactions?
For 5 years after the insurance transaction is completed by the insurer
Regarding the taxation of Business Overhead policies,
Premiums are deductible, and benefits are taxed.
An individual purchased a Medicare supplement policy in March and decided to replace it 2 months later. His history of coronary artery disease is considered a pre-existing condition. Which of the following is true?
The pre-existing condition waiting period fulfilled in the old policy will be transferred to the new policy, the new one picking up where the old one left off.
How must a replacing producer respond to an applicant wishing to replace existing life insurance?
The producer must provide the applicant with a Notice Regarding Replacement.
An employee quits her job where she has a balance of $10,000 in her qualified plan. If she decides to do a direct transfer from her plan to a Traditional IRA, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer?
10,000 no tax consequence
A licensed agent must complete how many hours of continuing education specific to ethics and regulatory updates?
5
A paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default?
60 days
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?
the insurer
Life insurance can provide which of the following
Survivor protection
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
cash option
A major medical expense policy would exclude coverage for all of the following treatments except
drug addiction
what statement best describes agreement as it relates to insurance contracts
one party accepts the exact terms of the other party's offer
All of the following are activities of daily living EXCEPT
speaking
What is the purpose of the buyer's guide?
To allow the consumer to compare the costs of different policies