saber killer
S applies for an individual major medical policy and the insurance company issues a standard polity. When S receives the policy, S notices that the application is attached to the policy. Which of the following policy elements makes the application, if attached, part of the contract between S and the insurance company? Entire Contract provision Legal Actions provision Incontestable clause Insuring clause
Entire Contract provision
Which of the following policy features permits an insured to pay premiums MORE than once every year? Consideration clause Payor clause Settlement Options provision Mode of Premium provision
Mode of Premium provision
In a life insurance contract, the consideration given by the applicant in exchange for the promises of the insurance company consists of the insured's statement in the application and which of the following items? a A written promise to pay all premiums when due b Payment of the initial premium c A medical examination report d Permission for the company to check the insured's credit
Payment of the initial premium
Offer, acceptance, and consideration are necessary elements of: a warranty a representation a contract insurable interest
a contract
Able Construction Company wants to take out an insurance policy on its president to offset the cost of replacing the president if the president should die prematurely. The type of policy the company should buy is called: a) Key Employee b) Cross-Purchase Buy-Out c) Stock Redemption d) Credit Life
a) Key Employee
Which of the following sections of a life insurance contract states that the application is part of the contract? a) Nonforfeiture Option b) Insuring agreement c) Entire Contract provision d) Incontestability provision
c) Entire Contract provision
An Accelerated Death benefit of a life insurance policy is also known as: a) Life Income b) Modified Endowment c) Living benefit d) Refund Life
c) Living benefit
Which party has the authority to name the beneficiary of a life insurance contract? a) The payor b) The employer c) The beneficiary d) The owner
d) The owner
END OF PART 1
***** is u ready 4 part 2 : state laws?
The recurrence of a disabling ilness would most likely be defined as a recurrent disability unless the insured had been disabled and then returned to work for a minimum of how many months before suffering the relapse? 3 6 9 12
6
Which of the following parts of a life policy is guaranteed to be CORRECT? An exclusion A waiver A warranty A representation
A warranty
Which of the folowing provisions could double the face amount of insurance if an insured's death occurred as the result of an unintended and unforeseen event? A. Accidental Death and Dismemberment (AD&D) provision. B. Payor provision C. Joint and Survivorship clause D. Consideration clause
Accidental Death and Dismemberment (AD&D) provision.
The premium mode that results in the lowest premium outlay is: a) Monthly b) Quarterly c) Semiannually d) Annually
Annually
Under the Consideration clause in a Major Medical policy, the insurance company's consideration to an insured is the promise to: a) renew the policy annually on payment of premium b) pay benefits as stated in the policy c) retum the premiums paid for up to 6 months after the effective date if the insured is dissatisfied with the policy d) waive the Incontestable clause
b) pay benefits as stated in the policy
A characteristic NOT found in a group disability income policy is: a) cost of living adjustment b) benefits based on an employee's income c) medical underwriting d) elimination period
benefits based on an employee's income
Under the Interal Revenue Code, a portion of the employer-paid premiums of group Term Life insurance is taxable for an employee whose coverage exceeds what minimum amount? a) $10,000 b) $25,000 c) $50,000 d) $100,000
c) $50,000
The Life and Health Insurance Guaranty Association is a) a domestic insurance company that writes insurance policies. b) a domestic insurance company that reinsures risks of other insurance companies. c) an association that protects policyowners against the insolvency of an insurance d) an association that serves as a lobbying group for the insurance industry.
c) an association that protects policyowners against the insolvency of an insurance
The Time of Payment of Claims provision requires that an insurance company pay Disability Income benefits no less frequently than: a) annually b) semiannually c) quarterly d) monthly
monthly
All of the following entities are managed care organizations EXCEPT: a) POS b) HMO c) MIB d) PPO
c) MIB
On May 14, a prospect completes an application for insurance. The producer collects the initial premium and issues a conditional receipt. The insurance company determine that the prospect is insurable and issues a standard policy on May 26. If the producer delivers the policy to the insured on June 1, the effective date of coverage on: May 14 May 24 May 26 June 1
June 1
On Which of the following features is typical of Term insurance? The policy expires at the end of the policy period. The policy is paid up at the end of the policy period. The policy cash value matures at the end of the policy period. The policy endows at the end of the policy period.
The policy expires at the end of the policy period.
Which of the following persons has the right to change the beneficiary designation on a life insurance policy? a) The revocable beneficiary b) The irrevocable beneficiary c) The policyowner d) The premium payer
The policyowner
Which of the following statements about policy delivery is CORRECT? a The producer should deliver the policy before the Free Look period expires. b The producer should deliver the policy in person and advise the insured to call the insurance company's home office if there are any questions. c The producer should mail the policy to the insured to reduce the chance that the insured will reconsider and return the policy. d The producer should explain the policy to the insured to increase the chance that the insured will understand the policy's benefits and keep it.
The producer should deliver the policy before the Free Look period expires.
The applicants signature is required on a life insurance application for which of the following reasons? To guarantee that the statements on the application are true To represent that the statements on the application are true to the best of the applicant's knowedge To represent that the statements on the application are warranties To authorize the producer to add information to the application
To represent that the statements on the application are true to the best of the applicant's knowedge
An insurance company must furnish claims forms to an insured so that the insured can file: a) a request for an endorsement to the policy b) a request for a change in beneficiary c) proof of coverage d) proof of a loss
d) proof of a loss
`An annuity that allows an individual to choose the annual premium payment amount is: a) single premium b) quarterly premium c) level premium d) flexible premium
d) flexible premium
Which of the following items binds the insurer to coverage as of the date of the application or medical examination, whichever is later, provided that the proposed insured is determined to be an acceptable risk? A binding receipt A conditional receipt A collateral assignment An absolute assignment
A conditional receipt
Which of the following sections of an insurance contract limits coverage? a) Waiver of Premium b) Conditions c) Exclusions d) Declarations
Exclusions
On May 8, a prospect fled out an application for a life insurance policy but paid no premium. The insurance company approved the application on May 14 and issued the policy on May 15. The producer delivered the policy on May 26 and collected the first premium. The coverage became effective on: May 8 May 14 May 15 May 26
May 26
The primary purpose of the Coordination of Benefits provision found in most group Major Medical policies is to perform which of the following functions? Providing coverage for insureds who are leaving their employment Preventing a claimant from profiting from an injury or sickness Allowing an insured to receive both Disability Income benefits and Medical Expense benefits if entitled to both Permiting an insurance company to pay benefits directly to providers of medical services
Preventing a claimant from profiting from an injury or sickness
Which of the following policies insures two individuals and is designed to pay a benefit at the second death? Joint Life Survivorship Life Variable Life Adjustable Life
Survivorship Life
Which of the following statements is CORRECT about the amount of the group life death benefit that the beneficiary must report for federal income tax purposes? The beneficiary must report the entire amount. The beneficiary must report only the amount that exceeds the cost basis. An inclusion ratio must be calculated to determine the reportable amount. The beneficiary does not need to report any amount.
The beneficiary does not need to report any amount.
` Which of the following provisions of an individual Accident and Health policy allows for nonpayment of premiums in the event of the insured's total disability? a) Grace Period b) Elimination Period c) Waiver of Premium d) Return of Premium
Waiver of Premium
Insurance companies may use all of the following sources to obtain underwriting information about an applicant EXCEPT: a) The Medical Information Bureau (MIB) b) Inspection report companies c) Actuarial rating bureaus d) A Fair Credit report
c) Actuarial rating bureaus
`A producer collects the initial premium for a health policy and gives the applicant a conditional receipt. In this situation the policy becomes effective at which of the following times? a) When the premium is received in the insurance company's home office b) When the policy is delivered c) When the conditions of the receipt are met d) When the premium check clears the bank
c) When the conditions of the receipt are met
Florida law provides for a grace period of NOT less than how many days for a monthly-premium health insurance policy? a) 7 b) 10 c) 15 d) 31
d) 31
The Office of Insurance Regulation must examine each insurer AT LEAST every: a) A year b) 2 years c) 3 year d) 5 years
d) 5 years
An Adjustable Life policyowner may take all of the following actions without providing proof of insurability EXCEPT: increase the face amount decrease the face amount increase the premium-paying period decrease the premium-paying period
increase the face amount
A Guaranteed Insurability provision is best described as a: provision that allows the issuance of additional coverage provision that allows insurance to be issued on children of the insured guarantee to keep a policy in force if the premium is paid guarantee to exercise a Waiver of Premium benefit
provision that allows the issuance of additional coverage
An architect who has recently opened an office is concerned about not being able to pay employees' salaries or the office rent if the architect becomes disabled. Which of the following types of policies should this individual purchase? A.Disability Income B. Business Overhead Expense C. Major Medical D. Comprehensive Major Medical
Business Overhead Expense
An agent receives an unsolicited call from a prospective client who wants to purchase a large single premium life policy. When advised about early withdrawal penalties, the client does not seem concerned and is evasive when the agent inquires about the source of the funds. In this situation, the agent should take which of the following actions? a) Take an application and submit the funds to the insurance company at once b) Prepare a proposal for the requested single premium policy to submit with the application c) Request a cashier's check for submission to the insurance company with an application d) Contact the insurance company compliance officer to report a red flag concerning possible money laundering
Contact the insurance company compliance officer to report a red flag concerning possible money laundering
Which of the following characteristics is typical of group insurance? Medical examinations are required. Each employee receives an individual contract. All full-ime employees are eligible for coverage. Employees may automatically enroll for coverage at any time
Employees may automatically enroll for coverage at any time
The accelerated death benefit in a life insurance contract can be accessed by which of the following methods? Submitting for access 75% of the contract's death benefit upon diagnosis of a cancerous tumor Surrendering the life insurance contract for the death benefit following admission to a nursing home Surrendering the life insurance contract for a viatical settlement Having an authorized physician diagnose a terminal illness to the carrier with prognosis of less than one-year life expectancy
Having an authorized physician diagnose a terminal illness to the carrier with prognosis of less than one-year life expectancy
Which of the following statements about a Settlement Option provision in a life insurance policy is correct? a) It describes various methods of distributing Death benefits to beneficiaries. b) It permits a beneficiary to settle out of court if a claim is contested by an insurance company. c) It defines procedures for an insurance company to follow in settling disputes among an insured's heirs. d) It defines an insurance company's options in settling legal disputes with a policyowner.
It describes various methods of distributing Death benefits to beneficiaries.
Which of the following statements BEST describes the purpose of a Disability Income policy? a) Itis used to pay for hospital, medical, and surgical expenses if a serious disability b) Itis designed to supplement Medicare Part A benefits. c) It is used to pay for an insured's normal living expenses if the insured becomes disabled. d) It is designed to supplement Workers' Compensation benefits.
It is used to pay for an insured's normal living expenses if the insured becomes disabled.
`When an employer provides noncontributory group Term Life insurance, which of the following statements is CORRECT? The employer pays the entire cost of the plan. Dependents of employees are prohibited from being covered. Coverage for salaried employees must be different from coverage for hourly workers. The Incontestable Period is waived.
The employer pays the entire cost of the plan.
Which of the following persons has the right to change the beneficiary designation on a life insurance policy? The revocable beneficiary The irrevocable beneficiary The policyowner The premium payer
The policyowner
If an insured dies during the Contestable period of a life insurance policy, the insurance company will NOT pay the policy proceeds in which of the following situations? The insured was killed by a burglar. The insured has assigned the policy. There was a material misrepresentation in the application There was a misstatement of age in the application.
There was a material misrepresentation in the application
An applicant for life insurance must be informed of their rights under the Fair Credit Reporting Act at which of the following times? When the producer makes the initial appointment to see the insured When the producer completes the insured's application When the producer delivers the policy When the insurer receives the initial premium
When the producer completes the insured's application
Which of the following is the MINIMUM age at which an individual can sign a life insurance applications a) 15 b) 18 c) 19 d) 21
a) 15
J, a 30-year-old proposed insured, plans to retire at age 60 and wants to purchase life insurance that offers level premiums and life-long protection. If J also wants the policy to be paid up when J retires, J should buy: a) 30-Pay Life b) Ordinary Life c) Modified Whole Life d) Term to Age 60
a) 30-Pay Life
An Insured is employed by a manufacturing company that provides group health coverage for its employees and their dependents. If the insured dies, the company must allow the insured's spouse and children to continue their group health coverage for a maximum of how many months according to COBRA? a) 36 b) 18 c) 12 d) 6
a) 36
A policyowner may change a revocable beneficiary at which of the following times? a) At any time b) Only when the insurance company renews the policy c) Only if the beneficiary dies d) Never
a) At any time
Which of the following statements is CORRECT about beneficiary designations? a) By naming an irrevocable beneficiary, a policyowner forfeits the right to change the beneficiary. b) A primary beneficiary may not be a minor. c) A primary beneficiary and a contingent beneficiary each receive one-half of the proceeds. d) In group insurance, the employer is the beneficiary for each employee.
a) By naming an irrevocable beneficiary, a policyowner forfeits the right to change the beneficiary.
A Long-Term care policy is designed to provide which of the following types of benefits? a) Custodial/residential b) Convalescent c) Hospital d) Disability income
a) Custodial/residential
`In Florida, the free look period for life insurance contracts is 14 days from policy: a) Delivery b) Application c) Submission d) Approval
a) Delivery
If an insured commits suicide when a Suicide Clause is in effect, an insurance company will take which of the following actions with a beneficiary's claim? a) Deny the claim and return the premiums paid b) Deny the claim and retain the premiums paid c) Pay one-half of the Death benefit d) Pay the entire Death benefit
a) Deny the claim and return the premiums paid
Agents marketing variable life insurance MUST be licensed and appointed as a life and variable contract agent, and a a) Financial Industry Regulatory Authority (FINRA) registered representative b) Chartered Financial Consultant c) Managing General Agent d) Certfied Financial Planner
a) Financial Industry Regulatory Authority (FINRA) registered representative
What is the name of the organization created in Florida law to improve access to comprehensive health insurance for Florida's uninsured chidren? a) Florida Healthy Kids Corporation b) Florida Childrens Health Insurance Plan (F-CHIP) c) Florida Prepaid Childrens Health Fund d) Florida Uninsured Childrens Fund
a) Florida Healthy Kids Corporation
If an insured fails to pay the premium when due, the insured's health policy will remain in force for a specified period of time under which of the following provision? a) Grace period b) Waiver of premium c) Guaranteed insurability d) Entire contract
a) Grace period
An Insurance agent would NOT be guilty of misrepresentation if the agent told a client that a) Insurance companies and policies differ in their features. b) the federal government guarantees claim payments. c) the federal government endorses an insurance company. d) the state recommends a particular policy form.
a) Insurance companies and policies differ in their features.
Which of the following statements is CORRECT regarding Variable Whole Life insurance? a) It is insurance and a securities product. b) It is a securities product only. c) It is regulated by the federal government only. d) It is regulated by the state government only.
a) It is insurance and a securities product.
Which of the following statements about the Time Limit on Certain Defenses provision in an Accident and Health policy is CORRECT? a) It specifies the period of time after which an insurance company can deny a claim on basis of the claim having pre-existed before the effective date of coverage b) It specifies the period of time during which the insured must submit Proof of Loss c) It prohibits legal actions againt the insurance company after a specific period of time d) It prevents an insurance company from making any changes to a policy after it is issued
a) It specifies the period of time after which an insurance company can deny a claim on basis of the claim having pre-existed before the effective date of coverage
Which of the following acts is considered to be an "unfair claim settlement practice?" a) Making a material misrepresentation to an insured b) Paying life insurance proceeds to a beneficiary within 10 days after receipt of claim c) Providing a reasonable explanation of nonpayment d) Requiring the insured to complete a proof of loss statement
a) Making a material misrepresentation to an insured
`Long-term care partnership policies provide asset protection if the policyholder needs to apply for assistance from a) Medicaid b) Medicare c) Medicare Advantage d) Medicare Supplement
a) Medicaid
N owns a Disability Income policy that will cover him to age 65, although the insurance company has the right to change the premium rate for the overall risk class to which N is assigned. Which of the following types of renewability best describes this situation? a) Noncancellable b) Cancellable c) Guaranteed Renewable d) Optionally Renewable
a) Noncancellable
Which Florida agency has the authority to investigate violations or potential violations of the Florida financial institutions' code? a) Office of Financial Regulation (OFR) b) Office of Insurance Regulation (OIR) c) Department of Financial Services (DFS) d) Department of Insurance (DOI)
a) Office of Financial Regulation (OFR)
Which of the following provisions can an insured use to put a policy in force that has lapsed as a result of nonpayment of premium? a) Reinstatment b) Legal Actions c) Grace Period d) Time Limit on Certain Defenses
a) Reinstatment
All of the following options are examples of Nonforfeiture options except: a) Renewability b) Extended Term insurance c) Cash Surrender Values d) Reduced Paid-Up Insurance
a) Renewability
Which of the following is NOT eligible for Group Life insurance? a) Multiple employer groups b) Frateral organizations c) Associations specifically formed to secure group insurance d) Creditor/debtor groups
c) Associations specifically formed to secure group insurance
An applicant wants to purchase a $100,000 Accidental Death and Dismemberment (AD&D) policy on her spouse. The applicant is the primary beneficiary and her daughter is the contingent beneficiary. Which of the following persons MUST sign the application? a) The applicant b) The applicant's spouse c) The applicant's daughter d) The spouse and the applicant
a) The applicant
which of the following statements is CORRECT about benefits provided by a Basic Hospital and Surgical policy? a) They are lower than the actual expenses incurred. b) They are subject to large deductibles. c) They are higher than those provided by Major Medical policies. They are unlimited
a) They are lower than the actual expenses incurred.
Which is the purpose of the Florida Employee Health Care Access Act? a) To make group health insurance available to employers with 50 or fewer employees b) To make health insurance available to individual employees 65 or older c) To make health insurance available to individual employees below a certain income level d) To make individual health insurance available to unemployed individuals
a) To make group health insurance available to employers with 50 or fewer employees
A primary beneficiary would be named for which of the following types of Accident and Health policies? a) Travel Accident b) Major Medical c) Nursing Home d) Business Overhead Expense
a) Travel Accident
Each licensee must complete a law and ethics update course of how many hours every two years a) Two b) Three c) Four d) Six
a) Two
Which of the following statements BEST describes the primary difference between a Health Maintanance Organization (HMO) and a Preferred Provider Organization (PPO)? a) Under a PPO the insured may use any medical provider whereas providers are restriched with HMOs. b) Under an HMO the deducibles are higher than are those of PPOs. c) OC. PPOs do not provide preventive care benefits whereas HMOs do. d) HMOs uflize. larger cost sharing than do PPOs.
a) Under a PPO the insured may use any medical provider whereas providers are restriched with HMOs.
Dread Disease policies cover. a) a specific disease or iliness. b) all diseases or linesses caused by epidemics. c) all diseases or ilnesses designated as incurable. d) al diseases or illnesses designated as terminal.
a) a specific disease or iliness.
A beneficiary who must consent to a change in the beneficiary designation in a life insurance policy is referred to as: a) an irrevocable beneficiary b) a contingent beneficiary c) a secondary beneficiary d) a primaly beneficiary
a) an irrevocable beneficiary
The Office of Financial Regulation is primarily responsible for activities relating to regulation of: a) banks, credit unions, and other financial industries b) only the insurance industry c) only the banking industry the real estate industry
a) banks, credit unions, and other financial industries
The Entire Contract provision in a health policy protects the insured by a) defining the documents that are part of an insurance contract. b) defining the terms used in an insurance contract. c) allowing continued coverage under an insurance contract for a specified period after a policy is nonrenewed. d) permitting the insurance company to add provisions to an insurance contract as it sees fit
a) defining the documents that are part of an insurance contract.
An agent must handle funds of a client or insurance company honestly and fairly and NOT use them for the agent's own purposes. This is called a) fiduciary responsibility. b) suitability standard. c) fiscal responsibility. d) due diligence standard.
a) fiduciary responsibility.
Florida law requires an agent who is recommending to a person the purchase of an annuity to obtain information regarding all of the following EXCEPT the person's a) Tax status b) Investment objectives c) marital status. d) financial status.
a) marital status.
Association Plans established to provide health benefits to members are subject to state regulation because they a) must be fully insured by an authorized insurer. b) provide retirement benefits. c) exceed statutory reserve requirements. d) require an employer-employee relationship.
a) must be fully insured by an authorized insurer.
A producer assisted an insured in acquiring insurance from an unlicensed insurer. If the insurer falls to pay a valid claim: a) the producer must pay the claim b) the claim will be paid by Guaranty Association c) a public adjuster will be assigned to the claim d) an unaffilated agent will be assigned to the claim
a) the producer must pay the claim
Substantially true statements made by an applicant on an Accident and Health application are known as: a) warranties b) representations c) concealments d) waivers
a) warranties
Which of the following statements is CORRECT about an individual Disability Income policy? a) Its benefits are taxable. b) I is considered to be a Reimbursement policy. c) It often contains an Elimination period. d) It has a six-month Incontestable clause.
c) It often contains an Elimination period.
An insurance company notifies an insured that $50 of the insured's physician's charge is above the usual, customary, and reasonable limits covered by the Major Medical policy. In this situation, the excess amount would be: applied to the deductible paid at the 80/20 coinsurance rate disallowed as a covered charge charged back to the physician
applied to the deductible
An insured, age 30, wants to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of the following statements would be the producer's most appropriate response? a) "Straight Life will accumulate cash value faster." b) "20- Pay Life will accumulate cash value faster." c) "Straight Life and 20-Pay Life will accumulate cash value at the same rate." d) "The rate of cash value accumulation depends on the profitability of the insurance company."
b) "20- Pay Life will accumulate cash value faster."
`A licensee must notify the Department of Financial Services of any change in residence, business, or email address within a MAXIMUM of how many days? a) 10 b) 30 c) 40 d) 180
b) 30
A producer must deliver an Outline of Coverage to a prospective insured who is eligible for Medicare at which of the following times? a) Before the application is taken b) After the application is signed c) When the policy is delivered d) When the prospect requests it
b) After the application is signed
Which of the following features of a life policy is used to restrict coverage? a) An endorsement b) An exclusion c) An Other Insured rider d) A Consideration clause
b) An exclusion
R's life insurance policy lapsed because R did not pay the premium after 60 days. In order to put the policy back in force, R should take which of the following actions? a) Apply for new insurance and provide new medical evidence. b) Complete an application for reinstatement and submit all back premiums due. c) Take a loan against the policy and pay the back premiums due. d) Sign the proper form for redating the policy and submit the current premium payment.
b) Complete an application for reinstatement and submit all back premiums due.
An insurance agent is permitted to replace an existing policy only if the agent a) Gurantees the dividends on the new policy b) Complies with the replacement regulation c) Acts strictly in the best interest of the insurer d) Replaces a policy that was issued by the agent's own company
b) Complies with the replacement regulation
An insured who is unhappy with the marketing practices of their agent may file a complaint with the a) Office of Insurance Regulation - Market Investigations Section b) Department of Financial Services - Division of Consumer Services c) Office of Financial Regulations - Insurance Consumer Advocate d) Department of Business and Professional Regulation - Agent Regulation
b) Department of Financial Services - Division of Consumer Services
The Chief Financial Officer directly oversees which of the following offices? a) Division of Death Claims Processing b) Division of Unclaimed Property c) Office of Actuarial Calculations d) Office of Premium Regulation
b) Division of Unclaimed Property
` The correlation between a recommended product and the client's needs can be assessed by asking al the following EXCEPT a) What are the client's needs? b) Does the client understand the product? c) What is the client's occupation? d) Does the client have the financial capability to manage the product?
b) Does the client understand the product?
J owns a Disability Income policy. Before purchasing the policy, J suffered a major back injury that is specifically excluded for coverage under the policy. The clause in J's policy that EXCLUDES back injury claims is found in the: a) Guaranteed Insurablity rider b) Impairment rider c) Recurrent Disability clause d) Concurrent Disability clause
b) Impairment rider
Which of the following statements is CORRECT about a policy loan against a life insurance contract a) An insurer may defer making a loan for a maximum of 3 months. b) Interest on a loan which is not paid when due is added to the total debt. c) Interest rates on a loan are determined by the insurance company's loss-ratio experience. d) Failure to repay a loan when it becomes due automatically voids the policy.
b) Interest on a loan which is not paid when due is added to the total debt.
Which of the following statements is CORRECT about the Misstatement of Age provision in a health policy? a) It is not an optional provision. b) It allows an insurance company to adjust the levels of policy benefits for an insured who misstated his age. c) It limits the fire within which an insurance company may contest a claim on the basis of misstatement of age. d) It always voids the contract.
b) It allows an insurance company to adjust the levels of policy benefits for an insured who misstated his age.
`Which of the following statement is correct about Medicare? a) It is a medical assistance program b) It is a hospital and medical expense insurance program c) It provides benefits to totally disabled persons only d) It's Part A provides payment for physicians' bills
b) It is a hospital and medical expense insurance program
Which of the following statements is required by Long-Term care insurers when referring to inflation protection in qualified Long-Term Care policies? a) All policies must include inflation protection. b) It is mandatory for the insurance companies to offer consumers the option of inflation protection. c) The insurance companies have the choice if they want to offer inflation protection. d) The purchaser must request inflation protection after the policy is issued.
b) It is mandatory for the insurance companies to offer consumers the option of inflation protection.
Benefits are payable in a Critical Illness Plan for which of the following situations or illnesses a) Suicide or attempted suicide b) Leukemia c) Drug addiction d) Accidental injury
b) Leukemia
A coinsurance provision may be included in which of the following types of policies? a) Accidental Death and Dismemberment b) Major Medical c) Hospital Indemnity d) Disability Income
b) Major Medical
Which of the following policies combines life and health coverage? a) Hospital Indemnity b) Major Medical c) Accidental Death and Dismembermen d) Dread Disease and Medical Expense
b) Major Medical
A policy that is overtunded, according to I.R.S. tables, is classified as which of the following types of policies? a) Paid-up Whole Life b) Modified Endowment Contract c) Single Premium Life d) Limited Pay Contract
b) Modified Endowment Contract
A policy that is overfunded, according to I.R.S table, is classified as which of the following types of policies? a) Paid up whole life b) Modified endowment contract c) Single premium life d) Limited pay contract
b) Modified endowment contract
Which regulatory body approves insurance contracts for insurers to be sold in Florida? a) Department of financial services (DFS) b) Office of insurance regulation (OIR) c) Office of Financial regulation (OFR) d) Department of business and professional regulation (DBPR)
b) Office of insurance regulation (OIR)
When completing an insurance application, a producer should: a) Complete as much of the application as possible before meeeting with the applicant to save time b) Request that the appicant review the completed application before signing it c) Avoid asking the applicant questions that may be embarassing d) Omit information from the application which may cause the application to be rejected by the insurance company
b) Request that the appicant review the completed application before signing it
Replacement of one insurance policy with another is a) legal and not permitted in the state of Florida. b) Strictly regulated and requires full disclosure. c) permitted only in the first year of the policy. d) guaranteed to return all invested dollars in the replaced policy
b) Strictly regulated and requires full disclosure.
An insured must lake which of the following actions to continue a Renewable Term policy? a) Provide proof of insurability b) Submit a renewal application c) Pay the renewal premium d) Reselect a beneficiary
b) Submit a renewal application
In a third-party ownership arrangement, which of the following individuals is a party to the contract? a) The irrevocable beneficiary b) The applicant c) The revocable beneficiary d) The producer
b) The applicant
Which of the following statements is CORRECT about statements a proposed insured makes on a life insurance application? a) They are warranties and are considered to be literally true. b) They are representations and deemed true to the best of the applicant's knowledge. c) The producer is responsible for determining their truth. d) If untrue, they are deemed an act of concealment and automatically void the policy.
b) They are representations and deemed true to the best of the applicant's knowledge.
`Which of the following statements about unfair trade practices is true? a) A licensed agent may never share commissions with another licensed agent b) Twisting is a misrepresentation made by an agent in order tq induce a policyholder to lapse a policy and switch insurance companies c) Agents are not permitted to transact any controlled business d) Replacing an existing life insurance policy is a fradulent act
b) Twisting is a misrepresentation made by an agent in order tq induce a policyholder to lapse a policy and switch insurance companies
In Florida, Group Life policies must contain a conversion privilege that a) requires employer approval for conversion. b) allows for conversion to an individual policy for a specified period of time. c) must be purchased as a rider. d) requires proof of insurability for conversion.
b) allows for conversion to an individual policy for a specified period of time.
Group health policies that provide coverage for a family member of the insured also provide coverage for a child: a) as soon as the child is five days old b) from the moment of birth c) at the start of the second trimester d) as soon as the insurance company is nolified in writing
b) from the moment of birth
The intent of the Notice of Claim provision in an Accident and Health policy is to: a) protect insurance companies from insureds who file claims while still confined in a hospital b) instruct policyowners that they are responsible for notifying insurance companies of claims c) provide policyowners a maximum of 10 days after a loss in which to file claims allow insurance companies to do post-claim underwriting
b) instruct policyowners that they are responsible for notifying insurance companies of claims
Benefits are payable in a Critical liness Plan for which of the following situations or illnesses? a) Suicide or attempted suicide b) Leukemia c) Drug Addiction d) Drug addiction
b) leukemia
A client should know that the indexed annuity differs from the fixed annuity in that the indexed a) does not ink to any indexes outside the fixed account b) may receive credited interest based on the fluctuations of the linked index c) directly participates in equity investments d) does not have a fixed interest account
b) may receive credited interest based on the fluctuations of the linked index
An Insurance company accepts an application containing several unanswered questions and issues the policy. In this situation, the company: a) must obtain the missing information at a future date b) must honor the policy as issued c) may restrict the producer's commission on the policy d) may restrict the Owner's Rights clause
b) must honor the policy as issued
In life insurance, "Reduced Paid-Up* is an example of a: a) supplemental endorsement b) non-forfeiture option c) prohibited practice d) Guaranteed insurability
b) non-forfeiture option
M understates her age in an application for a life insurance policy. At M's death the company will a) pay all benefits and charge an additional premium for the difference between her true age and the age M gave b) pay an amount based on what M's premium payments would have purchased if M had given her true age c) pay full benefits, less any interest earned d)refuse to pay any benefits
b) pay an amount based on what M's premium payments would have purchased if M had given her true age
Dividends paid on a life insurance policy are: a) warranted by Moody's Bond Index b) projected but not guaranteed c) guaranteed at a stated minimum d) guaranteed at the prime rate
b) projected but not guaranteed
The primary purpose of including a Suicide provision in a life insurance policy is to: a) exclude the risk of suicide from coverage permanently b) protect the insurer against the purchase of a policy in contemplation of suicide c) enable the insurer to distinguish between sane and insane suicides d) place the burden of proof on the beneficiary to show that the insured's death was not the result of suicide
b) protect the insurer against the purchase of a policy in contemplation of suicide
A provision included in group disability income contracts but NOT included in an individual disability income contract is the: a) entire contract provision b) rehabilitation provision c) probationary period d) cost of living adjustment
b) rehabilitation provision
A copayment is a shared medical expense between: a) a parent and child b) the insured and the medical insurance company c) the doctor and the patient. d) the hospital and the doctor
b) the insured and the medical insurance company
In Florida, the insurance company must furnish a claimant with a claim form within how many days after receiving a notice of claim? a) 5 b) 10 c) 15 d) 30
c) 15
In order for a company to make a contributory group life insurance plan available to its employees, what minimum percentage of the eligible employees must participate in the plan? a) 25% b) 50% c) 75% d) 100%
c) 75%
Under Florida law, what percentage of full-ime employees MUST be eligible for participation in a noncontributory group health insurance plan? a) 33% b) 50% c) 75% d) 100%
c) 75%
Which of the following provisions of a life insurance policy will pay a stated amount to an insured if the insured is blinded in an accident? a) Payor clause b) Return of Cash Value rider c) Accidental Death and Dismemberment clause d) Impairment\
c) Accidental Death and Dismemberment clause
An insured becomes disabled on March 1 and submits a claim statement to the insurance company on March 31, while still disabled. The company fails to remit payment promptly and the Insured decides to seek legal advice. The earliest date the attorney may take legal action against the insurance company is: a) April 30 b) May 16 c) May 31 d) June 15
c) May 31
A life insurance company may make policy rate discriminations between which of the following types of insureds? a) Persons with similar health histories b) Persons of different races or creeds c) Persons that smoke or don't d) Persons of differing sexual orientation
c) Persons that smoke or don't
`Under a unilateral life insurance policy, which of the following parties makes the legally enforceable promises? a) The producer b) The insured c) The insurance company d) The applicant
c) The insurance company
A forty-five-year-old individual bought an annuity to provide income for life beginning at age saty-five, the insured did NOT buy: a) a Variable annuity b) a Deferred annuity c) an Immediate annuity d) an Installment Refund annuity
c) an Immediate annuity
An insurance company that is domiciled in Europe is known as a) a domestic company. b) a foreign company. c) an alien company. d) an intercontinental company.
c) an alien company.
an insured purchases an Annuity from which income is received, the insured is the: a) receiver b) beneficiary c) annuitant d) payee
c) annuitant
On January 3, an insured accepts delivery of a Whole Life policy that has an effective date of December 22 of the previous year. The policy contains a six month Waiver of Premium provision. If the insured becomes disabled on January 6 as the result of an accident, and the disability continues beyond July 6, the insurance company will: a) void the policy and refund all the premiums without interest b) вvoid the policy and refund all the premiums with interest, but deduct 1 month premium for issue cost c) continue the coverage and reimburse the insured for wage loss incurred during the period of disability d) continue the coverage and refund the premiums paid during the period of disability
c) continue the coverage and reimburse the insured for wage loss incurred during the period of disability
The Department of Financial Services may open an investigation on an individual for a) being licensed in multiple lines of authority. b) holding a nonresident license lin another state. c) engaging in the business of insurance without a license. d) sharing commissions with a similarly licensed individual.
c) engaging in the business of insurance without a license.
In Florida, upon termination of an employee from a group life plan, the group insurance continues a) until a new group plan is established b) for 90 days. c) for 31 days. d) until a conversion policy is issued.
c) for 31 days.
One of the basic concepts of insurance underwriting is that a life insurance policyowner must be the insured, a blood relative of the insured, or someone who would suffer an economic loss if the insured died. This concept is known as: a) warranty b) fiduciary responsibility c) insurable interest d) incontestability
c) insurable interest
On July 1, a producer accepts an application and the annual premium for a health policy. On July 15, the insurance company issues the policy, but the producer does not deliver it until August 15. If the insured decides not to accept the policy and returns it to the producer on August 24, the company will: a) refund the full premium b) refund the premium minus a prorated amount for the forty days of coverage c) refund six months of the premium d) retain the full premium
c) refund six months of the premium
If a prospect does NOT submit the initial premium with an application, the producer should: a) refuse the application b) submit the application to the insurance company and advance the premium for the prospect from the agency account c) submit the application to the insurance company without the premium d) give the applicant a conditional receipt and send the application to the insurance company without the premium
c) submit the application to the insurance company without the premium
`Florida insurance law requires that if a Medicare Supplement policy is sold, the agent must deliver an Outline of Coverage to the applicant no later than a) when the application is taken. b) ten days after the application is taken. c) when the policy is issued. d) ten days after the policy is delivered.
c) when the policy is issued.
An employer who provides healthcare benefits must offer a Health Maintenance Organization (HMO) option if they employ at least how many employees? a) 5 b) 10 c) 15 d) 25
d) 25
Issued Medicare Supplement policies may be returned for a premium refund within a MAXIMUM of how many days after delivery? a) 5 b) 10 c) 20 d) 30
d) 30
Traditional Individual Retirement Account (IRA) withdrawals are generally subject to a tax penalty if they are made before the insured reaches what minimum age? a) 70 ½ b) 65 c) 62 d) 59 ½
d) 59 ½
Which of the tolowing contracts is purchased with a lump sum and pays a guaranteed income? a) A Variable Annuity b) A Flexible Premium Annuity c) A Level Premium Annuity d) A Single Premium Annuity
d) A Single Premium Annuity
If an agent willfully obstructs the Department of Financial Services (DFS) during any Investigation, the agent would be guilty of which of the following? a) Misrepresentation b) Fraud c) A civil infraction d) A misdemeanor
d) A misdemeanor
Which of the following is the PRIMARY difference between a mutual insurance company and a stock insurance company? a) A stock company is a corporation and a mutual company is not. b) A stock company is regulated by the Insurance Regulation Office and a mutual company is not. c) A stock company is managed by a board of directors and a mutual company is not. d) A stock company is owned by shareholders and a mutual company is not
d) A stock company is owned by shareholders and a mutual company is not.
Because health insurance policies are offered on a "take it or leave it basis, they are referred to as which of the following types of contracts? a) Aleatory Contracts b) Executory Contracts c) Unliteral Contracts d) Contracts of Adhesion
d) Contracts of Adhesion
Which of the following features of a group Term Life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability? a) Owner's Rights clause b) Incontestable Period c) Insuring Agreement d) Conversion privilege
d) Conversion privilege
The period of time at the beginning of a disability during which no benefits are payable is known as the: a) Accumulation Period b) Eligibility Period c) Probationary Period d) Elimination Period
d) Elimination Period
An employee who owns an individual Disability Income policy is injured in an automobile accident and files Proof of Loss with the insurance company. Under the Payment of Claims provision in the policy, the company wil likely pay the policy benefits to the: a) insured's employer b) insured's attending physician c) if the insured has assigned the benefits insureds beneficiary d) Insured
d) Insured
A 30-year-old prospective insured is considering the purchase of a life insurance policy. If all of the following policies have the same face amount, which would require the largest annual premium? a) Straight Life b) 20Pay lie c) 30-Pay Life d) Life Paid-Up at 65
d) Life Paid-Up at 65
Under Florida insurance law, deceptive advertising is considered a form of a) Malfeasance b) Coercion c) Discrimination d) Misrepresentation
d) Misrepresentation
Which of the following actions by an agent is considered an unfair method of competition? a) Advising clients that one insurance company's rates are lower than those of another b) Charging a $100 application fee c) Comparing a competitor's coverages while speaking with insureds d) Offering a $100 gift to an applicant
d) Offering a $100 gift to an applicant
An insurer's underwriting uses medical information obtained on an applicant to determine: a) Conversion privilege b) Cash values c) Dividend scales d) Risk classification
d) Risk classification
The U.S A Patriot Act was signed into law in response to: a) July 4, 1976 United States Bicentennial Celebration b) December 7, 1941 Pearl Harbor attack c) July 20, 1969 Moon Landing d) September 11, 2001 attack
d) September 11, 2001 attack
`Falsely teling an applicant that a product is required by law in conjunction with the purchase of another product is known as a) Churning b) Twisting c) Rebating d) Sliding
d) Sliding
When may a licensed agent represent an unauthorized entity? a) The agent previously advised the Department of Financial Services (DFS) b) The unauthorized entity only provides for miscellaneous medical expenses c) The unauthorized entity only provides medical services in a specific geographic area. d) The agent may never represent an unauthorized entity
d) The agent may never represent an unauthorized entity
Which violation of florida statue could be considered a felony? a) Failure to cooperate with the department during an investigation b) Failure to notify the department of an address change within 30 days c) Transacting insurance without a designated agent in charge of an agency d) Transacting insurance without the proper license.
d) Transacting insurance without the proper license.
Which of the folowing types of policies offers the owner investment in money-market funds, long-term bonds, or equities? a) Increasing Term b) Universal Life c) Adjustable Life d) Variable Life
d) Variable Life
S and W are business partners. Each takes out a $100,000 life insurance policy on the other, naming himself as primary beneficiary. S and W eventually dissolve their business, and two months later S dies. Although S was married at the time of death, the primary beneficiary is still W. However, an insurable interest no longer exists. The proceeds from S's life insurance policy will go to: a) S's spouse b) S's estate c) the partnership d) W.
d) W.
Florida rules on disclosure require an insurance company to provide a purchaser of life insurance with a) an Outline of Coverage. b) a Comparison and Summary Statement. c) a Buyers Guide and a Policy Summary. d) a Buyer's Guide and an Outline of Coverage.
d) a Buyer's Guide and an Outline of Coverage.
All of the following information must be shown on every insurance application in Florida EXCEPT the a) name of the soliciting agent. b) agent's license identification number. c) name of the insurance company. d) agent's office address and telephone number.
d) agent's office address and telephone number.
To enroll in Medicare Part C, an individual must: a) also enroll in Medicare Part D b) have an annual income under $15,000 c) already be enrolled in Medicare Part A only d) already be enrolled in both Medicare Parts A and B
d) already be enrolled in both Medicare Parts A and B
A Medicare Supplement insurer may NOT deny any open enrollment application for a Medicare Supplement policy submitted: a) within six months before the applicant reaches the age of 65 b) within six months after the applicant reaches the age of 65 c) anytime before the applicant reaches the age of 65 d) anytime after the applicant reaches the age of 65
d) anytime after the applicant reaches the age of 65
When replacing or exchanging an annuity contract, the agent must provide on a form all of the following information EXCEPT a) a comparison of the benefits, terms and limitations. b) a comparison of any fees and charges. c) a written basis for the recommended exchange. d) beneficiary designation.
d) beneficiary designation.
If an agent realizes that an applicant has made an error on an insurance application, the agent MusT a) modify the application and have it notarized without obtaining the applicant's consent. b) receive verbal consent from the insurance company prior to submiting the application c) verify the correct information with the applicant and then modify the application without inflaling the changes. d) correct the information and the applicant initial the changes.
d) correct the information and the applicant initial the changes.
HMO contracts /certificates or member handbooks must contain all of the following provisions EXCEPT a) all services provided. b) all limitations provided. c) Enrollment d) five-day grace period
d) five-day grace period
By law, all of the following persons may be excluded from group term life plans EXCEPT a) seasonal employees. b) new employees with less than 3 months of service. c) part-lime employees. d) full-time employees after a probationary period.
d) full-time employees after a probationary period.
Florida's Insurance law that governs group life insurance conversion privileges provides that the a) policy cannot be converted to an individual policy under any circumstances. b) converted policy cannot exceed 50% of the original amount. c) Individual insurance company always reserves the right to require evidence of insurability. d) individual policies do not require evidence of insurability.
d) individual policies do not require evidence of insurability.
Prior to performing the duties of a viatical settlement broker, a person needs to be licensed as a a) life consultant. b) Health agent c) life agent. d) viatical settlement provider.
d) viatical settlement provider.
An Insurance company accepts an application containing several unanswered questions and issues the policy. In this situation, the company: a) must obtain the missing information at a future date b) must honor the policy as issued c) may restrict the producer's commission on the policy d) may restrict the Owner's Rights clause
must honor the policy as issued
An insured is injured while robbing a bank. If the insured's Accident and Health policy contains an Illegal Occupation provision, the policy will pay: a) the total benefits b) one half of the policy benefits c) a premium refund only d) nothing
nothing
One of the primary reasons for using deductibles in health policies is to reduce: a adverse selection b the need for certain exclusions c over-utilization of medical services d the number of covered conditions
over-utilization of medical services
A Disability Buyout Policy is designed to provide benefits to: a) the disabled's spouse b) pay the disabled's salary c) a corporation to obtain stockholders shares* d) the healthy stockholders
pay the disabled's salary
An application for an individual Disabilly Income policy may require all of the following information about the proposed insured EXCEPT for: marital status and occupation medical history other disability policies already in force the spouse's occupation
the spouse's occupation