Test Insurance
Which of the following elements of a contract is necessary before a life policy will be issued? A) A prospect's signature on an application. B) A counteroffer to a policy proposal. C) A beneficiary designation. D) A binding receipt.
A) A prospect's signature on an application.
A joint life policy pays: A) After the first insured dies. B) After the last insured dies. C) After each insured dies. D) One-half of the face amount of after each insured dies.
A) After the first insured dies.
A Probationary Period provision in a group disability insurance contract becomes effective: A) At the inception of the coverage. B) At the end of the contract period. C) for the first 30 days each year. D) after each disability income claim is submitted.
A) At the inception of the coverage.
Which of the following provisions would keep a Whole Life policy in force if a required premium payment is not made and sufficient cash value exists from which the premium can be paid? A) Automatic Policy Loan. B) Free Look. C) Mode of Premium. D) Owner's Rights.
A) Automatic Policy Loan.
if the contract values of an existing policy are used to purchase a new policy with the same insurer, this is known as: A) Churning. B) Twisting. C) Rebating. D) Financial planning.
A) Churning.
Disability income insurance on a key employee would typically insure a(n): A) Company executive. B) Employees supervisor. C) Shift manager. D) Stockholder of the firm.
A) Company executive.
The primary recipients of coverage provided by the Florida Healthy Kids Corporation are school- age children in families with incomes within what percentage of the federal poverty level? A) 200% B) 250% C) 300% D) 500%
A) 200%
All of the following statements are true about noncontributory employee group life insurance EXCEPT: A) A minimum number of participants is required. B) Conversion rights are guaranteed. C) Amounts of coverage may be selected by individual insureds. D) All eligible employees must be covered.
A) A minimum number of participants is required.
Each person insured under a Group Life insurance policy is: A) shareholder. B) beneficiary. C) certificate holder. D) policy holder.
C) certificate holder.
All of the following are possible consequences for placing business with an unauthorized insurer EXCEPT: A) conviction of a third degree felony. B) conviction of a first degree misdemeanor. C) liability for all unpaid claims. D) revocation of all insurance licenses.
A) conviction of a third degree felony.
Which of the following statements about Medicaid is CORRECT? A) it is financed by both the federal and state governments. B) it contains a 2-year Preexisting Condition exclusion. C) it was established to provide insurance for those aged 65 and older. D) it provides an income to the unemployed.
A) it is financed by both the federal and state governments.
The provisions of the Florida Employee Health Care Access Act require that: A) Coverage be renewed by insurers with the only exception being for nonpayment of the premium. B) all small group health benefit plans be issued on a "guaranteed-issue" basis. C) an insurance policy be issued to an employee unless dependents have a preexisting condition. D) insurers use experience rating to determine the premium for each small employer.
A) Coverage be renewed by insurers with the only exception being for nonpayment of the premium.
Under Florida Law, which of the following statements is CORRECT about coverage under a health policy for a disabled child when the child reaches the limiting age specified in the policy? A) Coverage may be extended if the child is incapable of employment and chiefly dependent on the policyowner. B) Coverage is automatically extended only to age thirty-five. C) Coverage is automatically extended for an indefinite period. D) Coverage cannot be extended.
A) Coverage may be extended if the child is incapable of employment and chiefly dependent on the policyowner.
Which of the following expenses are NOT covered by Medicare Part A and Part B? A) Dental services. B) Diagnostic tests. C) Speech therapy. D) Hospital rooms.
A) Dental services.
Which of the following laws requires an insurer to advise an applicant in writing that an investigative consumer report may be conducted? A) Fair Credit Reporting Act B) Consumer Protection Act. C) Uniform Provisions Law. D) Social Security Act.
A) Fair Credit Reporting Act
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) Certified Financial Planner.
A) Financial Industry Regulatory Authority (FINRA) registered representative.
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. B) Chartered Financial Consultant. C) Managing General Agent. D) Certified Financial Planner.
A) Financial Industry Regulatory Authority (FINRA) registered.
Which of the following is a nonprofit provider of life insurance that is covered by a special section of the Florida insurance code? A) Fraternal life insurance organizations. B) Mutual life insurance companies. C) Domestic mail-order insurance companies. D) Stock life insurance companies.
A) Fraternal life insurance organizations.
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.
A fraudulent statement was made in the original application for a health insurance policy. Under Florida law, if the policy is NOT guaranteed renewable, what will the company pay in the event of a claim? A) Nothing. B) 75% of the claim. C) 50% of the claim. D) the full claim.
A) Nothing.
An insurance company will take which of the following actions if a producer submits an incomplete application for life insurance? A) Return the application to the producer. B) Offer to issue the policy with restricted Nonforfeiture Options. C) Issue the policy with an extended Incontestable Period. D) Issue a rated policy.
A) Return the application to the producer.
Which of the following programs pays benefits that are based on a percentage of an individual's Primary Insurance Amount (PIA)? A) Social Security Disability Income B) Medicaid. C) Medicare. D) Aid to Families with Dependent children (AFDC)
A) Social Security Disability Income
Which of the following types of insurance policies would provide the greatest amount of protection for a temporary period? A) Term. B) Whole life. C) Annuity. D) Endowment.
A) Term.
An applicant for an Accident & Health insurance policy must answer all questions on the application & it for which of the following reasons? A) The application statements and representations are part of the consideration for issuing a policy. B) The answers to questions are guarantees of truthful and complete information. C) The application is used to compare signatures on future client forms. D) An unsigned application can cause the policy to become contestable by the insurer after two years.
A) The application statements and representations are part of the consideration for issuing a policy.
Which of the following statements about the reinstatement of an Accident and Health policy is CORRECT? A) The insurance company must act on an application for reinstatement within forty- five days after receiving it. B) Back premiums cannot be charged for more than ninety days prior to the reinstatement date. C) Coverage for accidents is not effective on a reinstated policy until after the probationary period has ended. D) A reinstatement application is not required for a policy that has been lapsed for fewer than sixty days.
A) The insurance company must act on an application for reinstatement within forty- five days after receiving it.
A producer is required to register with the Financial Industry Regulatory Authority (FINRA) in order to sell which of the following policies? A) Variable Life. B) Universal Life. C) Adjustable Life. D) Single Premium Whole Life.
A) Variable Life.
Systematic liquidation of accumulated funds is the basic function of a(n): A) annuity. B) whole life policy. C) decreasing term policy. D) universal variable life policy.
A) annuity.
The purpose of the coordination of benefits (COB) provision, found only in group health plans, is to: A) avoid the duplication of benefit payments and overinsurance. B) ensure that patients receive necessary care. C) determine patient payment responsibility. D) require insurance companies to pay claims in a timely manner.
A) avoid the duplication of benefit payments and overinsurance.
The purpose of the coordination of benefits (COB) provision, found only in group health plans, is to: A) avoid the duplication of benefit payments and overinsurance. B) ensure that patients receive necessary care. C) determine patient payment responsibility. D) require insurance companies to pay claims in a timely manner.
A) avoid the duplication of benefit payments and overinsurance.
A policy becomes a Modified Endowment Contract (MEC) when: A) too much premium is paid in the initial policy's years. B) premium payments are skipped and the policy lapses. C) more than one life is covered by the policy. D) a Settlement option is selected to provide lifetime income.
A) too much premium is paid in the initial policy's years.
To receive a percentage of the policy face value, an owner of a life policy may sell the policy to a(n): A) viatical settlement provider. B) Insurance company. C) viator. D) insured.
A) viatical settlement provider.
What is the MAXIMUM fixed policy loan interest that an insurance company can charge in Florida? A) 6% B) 10% C) 12% D) 14%
B) 10%
The insured has sustained an injury and is no longer able to perform the essential activities of daily living. The insured has been receiving coverage for skilled nursing care through Medicare but also a long-term care (LTC) rider. In order for the insured to maintain 100% coverage, the insured should have selected a LTC rider with an elimination period of how many days? A) 20 B) 30 C) 60 D) 120
B) 30
A free look period is offered by all the qualified Long-term care insurance policies for how many days? A) 20 days. B) 30 days. C) 60 days. D) 90 days.
B) 30 days.
An agent's change of business, residence, or email address must be reported to the Department of Financial Services within: A) 10 days. B) 30 days. C) 45 days. D) 90 days.
B) 30 days.
The grace period for a life insurance policy is never less than: A) 15 days. B) 30 days. C) 45 days. D) 60 days.
B) 30 days.
How many continuing education hours in a law and ethics update course are required for agents every two years? A) 6 B) 5 C) 3 D) 1
B) 5
In a Disability Income policy, a statement that excludes coverage for back injuries is known as: A) A declination. B) An impairment rider. C) A contingency . D) A rating .
B) An impairment rider.
A customer surrenders a recently issued whole life policy and requests proceeds to be made payable to an unrelated third party. This would be a red flag potential violation of the: A) Fair Credit Reporting Act. B) Anti-money laundering rules C) Modified endowment contract rules. D) Point of sale disclosure requirements.
B) Anti-money laundering rules
Which of the following kinds of policies typically contains a limited daily room and board benefit and provides coverage on an in-hospital basis only? A) Basic Surgical. B) Basic Hospital. C) Major Medical. D) Supplemental Major Medical.
B) Basic Hospital.
The agency responsible for rehabilitating or liquidating insurers when necessary is: A) Office of Financial Regulation (OFR). B) Department of Financial Services (DFS). C) Financial Services Commission (FSC). D) Florida Inspector General (FIG).
B) Department of Financial Services (DFS).
During the licensing application process, the Department will NOT request which of the following? A) Prior experience. B) Drug test. C) Fingerprints. D) Proof of prelicensing.
B) Drug test.
In insurance, which of the following statements about warranties or representations is CORRECT? A) Representations are statements that are considered to be literally true. B) False representations will void a policy if they are material to the risk. C) Warranties are best described as statements of limited reliability. D) Warranties guarantee performance of contractual obligations.
B) False representations will void a policy if they are material to the risk.
A Disability Income policy providing coverage to age 65 allows the insurance company to change the premium rate for the overall risk class assigned. Which of the following types of renewability BEST describes this situation? A) Cancellable. B) Guaranteed Renewable. C) Noncancellable. D) Optionally Renewable.
B) Guaranteed Renewable.
Which of the following terms refers to how frequently an insured pays the premium? A) Class. B) Mode. C) Rate. D) Gross.
B) Mode.
Which entity oversees complaints against the life insurance agents and agencies selling universal life insurance products? A) Department of Financial Services. B) Office of Financial Regulation. C) Office of Insurance Regulation. D) Financial Industry Regulatory Authority.
B) Office of Financial Regulation.
Families with children covered by the Florida Healthy Kids Corporation program pay: A) No premium. B) Only a portion of the premium. C) The full premium. D) The full premium only for the first year.
B) Only a portion of the premium.
If an insured's age is understated by 10 years on a life insurance policy and dies after the contestable period, the insurance company will: A) Pay the face amount of the contract. B) Pay the amount that the premium would have purchased at the correct age. C) Deny the claim. D) Refund the premiums paid.
B) Pay the amount that the premium would have purchased at the correct age.
A Medicare Supplement policy's Outline of Coverage MUST include the: A) Policy's loss ratio. B) Policy's exceptions and limitations. C) Producer's Commission schedule. D) Rate table used to calculate the policy's premium.
B) Policy's exceptions and limitations.
Which of the following policy provisions specifies that, if an insured fails to pay a renewal premium within the time granted but the insurer subsequently accepts the premium, coverage may be restored? A) Grace Period. B) Reinstatement. C) Time of Payment of Claim. D) Entire Contract.
B) Reinstatement.
Replacement of one insurance policy with another is: A) illegal 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.
Basic cancer plans pay for which of the following conditions? A) Heart attack B) Surgery for malignant tumors C) Kidney failure D) Hospitalization for aneurysm
B) Surgery for malignant tumors
If an individual annually receives both dividends and interest on dividends from a participating life policy, the individual should include which of the following items in gross income for federal income tax purposes? A) The dividends . B) The interest only. C) Both the interest and the dividends. D) Neither the interest not the dividends.
B) The interest only.
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 to 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 fraudulent act.
B) Twisting is a misrepresentation made by an agent in order to induce a policyholder to lapse a policy and switch insurance companies.
A health insurance policy is an example of which of the following types? A) Bilateral. B) Unilateral. C) Multilateral. D) Nonlateral.
B) Unilateral.
N takes out a loan against a life insurance policy which is equal to one-half of the cash value. Ig N decides not to pay the interest when it is due, the insurance company will automatically: A) refuse any future loan requests. B) add to the loan balance the amount of interest due. C) terminate the policy if the interest is not paid within thirty-one days. D) suspend any future dividend payments until the loan interest is paid.
B) add to the loan balance the amount of interest due.
An important underwriting principal of group life insurance is that: A) the group must be formed for the purpose of acquiring low-cost insurance. B) all or a large percentage of persons in the group must be covered by the insurance. C) each member of the group must be allowed to select the amount of insurance. D) each member of the group must pay for the entire cost of his insurance.
B) all or a large percentage of persons in the group must be covered by the insurance.
If an insured leaves the primary area of medical coverage and seeks medical care, the insured first needs to: A) call the insured's family for the policy number. B) contact the insurer to obtain prior approval for the medical service. C) Call the insured's personal doctor for a referral to a doctor in the immediate area. D) Go to the local hospital and register.
B) contact the insurer to obtain prior approval for the medical service.
During the licensing application process. The Department will NOT request which of the following? A) prior experience. B) drug test. C) fingerprints. D) proof of prelicensing.
B) drug test.
Medical Expense policies usually EXCLUDE coverage for claims resulting from treatment of: A) accidental injuries. B) intentionally self-inflicted injuries. C) alcoholism. D) mental illness.
B) intentionally self-inflicted injuries.
in life insurance, "Reduced Paid-Up" as an example of a: A) supplemental endorsement. B) non-forfeiture option. C) Prohibited practice. D) Guaranteed insurability rider
B) non-forfeiture option.
The purpose of the Medical Information Bureau (MIB) is to: A) Recommend the premium rates that should be charged for health policies issued to substandard risks. B) share medical data among member companies. C) provide background data used to experience-rate large group health plans. D) Provide actuarial information to participating members on dread diseases.
B) share medical data among member companies.
The purpose of the Medical Information Bureau (MIB) is to: A) recommend the premium rates that should be charged for health policies issued to substandard risks. B) share medical data among member companies. C) provide background data used to experience-rate large group health plans. D) provide actuarial information to participating members on dread diseases.
B) share medical data among member companies.
Replacement of one insurance policy with another is: A) illegal 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 agent must disclose when replacing or exchanging an annuity contract: A) the fees and charges of the new policy only. B) that there may be tax consequences as a result of the purchase. C) A comparison of the final solvency of the insurers. D) The amount of the agent's commission.
B) that there may be tax consequences as a result of the purchase.
An insurance company that charges different premiums for persons of the same risk class may be found guilty of: A) twisting. B) unfair discrimination. C) subrogation. D) controlled business.
B) unfair discrimination.
If an insurer wishes to cancel a health insurance policy, it can do so: A) in Florida as long as premiums are returned on a short-rate basis. B) with a 45 day notice to the policyholder. C) with notice to the Department of Financial Services. D) as long as no claim is pending.
B) with a 45 day notice to the policyholder.
A Medicare Supplement insurer may NOT deny any 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.
B) within six months after the applicant reaches the age of 65.
What is the time limit an insurer can contest a life insurance contract due to application fraud? A) 6 months. B) 1 year. C) 2 years. D) No time limit.
C) 2 years.
Agents can help perspective insureds understand and purchase the most appropriate product by delivering: A) A disclosure notice. B) A policy illustration C) A buyer's guide. D) An inspection report.
C) A buyer's guide.
An insurance company that is domiciled in Europe is known as what time of company? A) Domestic. B) Foreign. C) Alien. D) Intercontinental.
C) Alien.
Before an informal agreement becomes a binding contract, which of the following requirements MUST be met? A) The contract must be valid for a minimum of 12 months. B) Each party to the contract must be at least 21 years old. C) Consideration must be provided by one of the parties to the contract. D) One party must make an offer that is accepted by the other party to the contract.
C) Consideration must be provided by one of the parties to the contract.
A prospective insured applies for life insurance and pays an initial premium. The producer gives the prospect an appropriate receipt. Which of the following statements, is CORRECT about the situation? A) Coverage is effective for 30 days. B) Coverage becomes effective when the producer delivers the policy. C) Coverage is conditional, depending on the insurance company's underwriting requirements. D) Coverage is effective after the Free-Look period has expired.
C) Coverage is conditional, depending on the insurance company's underwriting requirements.
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.
C) Department of Financial Services (DFS).
The eligibility requirements under group term life plans may allow all of the following employees to be excluded EXCEPT: A) Employees who work less than 20 hours a week. B) Employees who work less than 4 months per year. C) Employees who work more than 40 hours a week D) Full time employees not actively at work.
C) Employees who work more than 40 hours a week
Which of the health policy provisions states that the producer does NOT have the authority to change the policy or waive any of its provisions? A) Time limit on Certain Defenses. B) Reinstatement. C) Entire Contract. D) Change of the Beneficiary.
C) Entire Contract.
B is the owner and insured of a Single Premium Universal Life insurance contract. B wants to name a charitable entity as beneficiary and make the change permanent. Which is the best type of designation to assure B's wishes? A) Collateral. B) Primary. C) Irrevocable. D) Secondary.
C) Irrevocable.
An insurance company receives a prepaid application for an Individual Disability Income policy. One week later, it receives the Medical Information Bureau (MIB) report indicating that the applicant had a heart attack two years ago, although this was not disclosed on the application. In this situation, the company would most likely take all of the following actions EXCEPT: A) Notify the applicant that coverage is denied. B) Return the initial premium to the applicant. C) Notify the MIB that coverage is denied. D) Notify the producer that coverage is denied.
C) Notify the MIB that coverage is denied.
In Florida, insurers are required to issue an additional lapse notice after the applicable statutory grace period has expired for policyholders at what age? A) Minors who are under the age of 18 B) Early retirees who are 55 years of age or older. C) Persons who are 64 years of age or older. D) Persons in nursing homes of any age.
C) Persons who are 64 years of age or older.
In Florida, insurers are required to issue an additional lapse notice after the applicable statutory grace period has expired for policyholders of what age? A) Minors who are under age 18. B) Early retirees who are 55 years of age or older. C) Persons who are 64 years of age or older. D) Persons in nursing homes of any age.
C) Persons who are 64 years of age or older.
The statement that an insured MUST give an insurance company to show that a loss actually occurred is a: A) Notice of Claim. B) Inspection report. . C) Proof of Loss. D) Loss form.
C) Proof of Loss.
If the primary beneficiary dies before the insured and a contingent beneficiary is also named in the policy, which of the following will occur when the insured dies? A) The state will determine who receives the proceeds. B) The Common Disaster clause will determine who receives the proceeds. C) The contingent beneficiary will receive the proceeds. D) the primary beneficiary's estate will receive the proceeds.
C) The contingent beneficiary will receive the proceeds.
A company wants to purchase a Key Employee Life policy. Which of the following statements is INCORRECT? A) The company is the applicant. B) The employee must sign the application. C) The employee names the beneficiary. D) The company is the owner of the policy.
C) The employee names the beneficiary.
When an insured reinstates a policy, which of the following statements is INCORRECT? A) The insured must provide evidence of insurability. B) The insured must pay back premiums and interest. C) The insured forfeits the right to use the automatic premium loan provision in the future. D) The insured must reinstate within a specified period.
C) The insured forfeits the right to use the automatic premium loan provision in the future.
Under a health policy, an insured must give Notice of Claim to the insurance company within a MAXIMUM of how many days after the occurrence or commencement of a loss? A) Ten. B) Fifteen. C) Twenty. D) Ninety.
C) Twenty.
A policy with cash values that fluctuate in accordance with the investment performance of common stocks is known as: A) Graded Premium Whole Life. B) Modified Whole Life. C) Variable Whole Life. D) Endowment at Age 65.
C) Variable Whole Life.
An insured who wants to guarantee that an Accident and Health policy will remain in force even in the event of being disabled should purchase which of the following riders? A) Accidental Death and Dismemberment (AD&D). B) Double Indemnity. C) Waiver of Premium. D) Guaranteed Insurability.
C) Waiver of Premium.
In life insurance, insurable interest must exist at which of the following times? A) Throughout the lifetime of the insured. B) Only when a claim is filed. C) When the appreciation is taken. D) Only when the policy is surrendered for cash.
C) When the appreciation is taken.
A fifty-five-year-old widow recently sold a home and earned $100,000 profit. If the widow wants to purchase an annuity that will pay $1000 a month beginning at age sixty-four, the widow's producer should recommend: A) a Flexible Premium Deferred annuity. B) a Variable annuity. C) a Deferred Fixed annuity. D) an immediate annuity.
C) a Deferred Fixed annuity.
Agents can help prospective insureds understand and purchase the most appropriate product by delivering: A) a disclosure notice. B) a policy illustration. C) a buyer's guide. D) an inspection report.
C) a buyer's guide.
A long-term care rider may lapse for nonpayment of premium only if he insured and the: A) beneficiary have refused to sign a viatical settlement. B) spouse have failed to purchase a waiver or premium rider. C) designee fail to pay the premium more than 30 days after the lapse date. D) assignee are declared mentally competent at the time the payment was due.
C) designee fail to pay the premium more than 30 days after the lapse date.
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 persons: A) tax status. B) investment objectives. C) marital status. D) financial status.
C) marital status.
When delivering the policy, the producer needs to explain that the free look provision begins upon: A) finalization of the home office underwriting process. B) completion of the application. C) receipt of the policy by the policy owner. D) receipt of the policy by the producer.
C) receipt of the policy by the policy owner.
When soliciting insurance for insurance companies, agents represent: A) their agencies. B) their clients. C) their insurance companies. D) themselves.
C) their insurance companies.
Which of the following statements would be producer's CORRECT response to a client who is purchasing a Guaranteed renewable Accident and Health policy and wishes to have the provision explained? A) "The company cannot cancel the policy and cannot raise the premiums." B) "The company may choose not to renew the policy, provided it notifies you of its intention." C) "The company must continue to renew the policy for at least 5 years." D) "The company cannot refuse to renew the policy if premiums are paid, but it may change the premiums by class."
D) "The company cannot refuse to renew the policy if premiums are paid, but it may change the premiums by class."
According to Florida statutes, all the following provisions must be contained in a Medicare Supplement policy EXCEPT: A) understandable language. B) a 30-day returnability. C) an Outline of Coverage. D) A 12-month limitation on pre-existing conditions.
D) A 12-month limitation on pre-existing conditions.
A method of providing life insurance on the children of a person who is covered by a life insurance policy is by: A) An accelerated benefit rider. B) A cost of living rider. C) An accidental death rider . D) A child term rider.
D) A child term rider.
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) Agents office address and telephone number.
D) Agents office address and telephone number.
Which of the following policies provides Accidental Death benefits to airplane passengers? A) Individual health insurance. B) Accident Reimbursement. C) Major medical. D) Blanket Accident.
D) Blanket Accident.
Which of the following types of group Term Life insurance plans does Z Corporation offer if its employees share the premium cost? A) Nonparticipating. B) Participating. C) Noncontributory. D) Contributory.
D) Contributory.
Which of the following types of group Term Life insurance plans does Z Corporation offer if its employees share the premium cost? A) Nonparticipating. B) Participating. C) Noncontributory. D) Contributory.
D) Contributory.
Which statement about conversion privileges in Group Life policies sold is CORRECT? A) there are usually no conversion privileges. B) Evidence of insurability is a standard conversion requirement. C) An employee usually has up to one year to convert group coverage to an individual plan. D) Conversion at a regular rate on attained-age basis without a medical exam is a standard provision.
D) Conversion at a regular rate on attained-age basis without a medical exam is a standard provision.
K has An Individual Comprehensive Major Medical policy, and the premiums are payable on the first day of each month. K forgets to make the May payment and on June 20, is hospitalized and files a claim. In this situation, the insurance company probably will: A) pay the claim. B) Pay the claim minus the May premium only. C) Pay the claim minus both the May and June premiums. D) Deny the claim.
D) Deny the claim.
An insurance company may lawfully take all of the following actions to provide disability income coverage to a substandard applicant EXCEPT: A) Limit the type of policy. B) Exclude coverage of the substandard condition. C) Charge an extra premium. D) Extend the contestability period.
D) Extend the contestability period.
The renewability feature of a term policy offers what advantage to the insured? A) It is less expensive than other Term insurance. B) It can be exchanged for a different policy. C) It offers the same coverage with no increase in premium. D) It allows the insured to extend the coverage period.
D) It allows the insured to extend the coverage period.
Which of the following statements is CORRECT about third-party ownership of a life insurance policy? A) It cannot be changed once the policy is issued. B) It allows the insured to control the cash values. C) It means that the insured. Owner, and premium payer are all the same person. D) It is widely used in business insurance and estate-planning situations.
D) It is widely used in business insurance and estate-planning situations.
X owns a Disability Income policy with a 30 day Elimination. That provides total disability benefits only. X becomes ill on May 1 and returns to work on May 15. X then becomes disabled from an accident on June 1 and the disability lasts until December 1 of the same year. Under these circumstances, X is eligible to receive benefits beginning on: A) May 1 B) May 15 C) June 1 D) July 1
D) July 1
A hardware store owner has a Group Life policy covering 50 employees. If the owner decides not to renew the policy and stops paying premiums, which statement is CORRECT? A) The insurer must notify the owner of the cancellation . B) The insurer must notify all employees of the policy's cancellation and may do so through the owner. C) The owner must immediately replace the group insurance policy . D) Neither the insurer nor the owner is obligated to do anything.
D) Neither the insurer nor the owner is obligated to do anything.
A corporation offers a $10,000 group life policy to its employees and pays a $5 monthly premium for each employee who accepts the coverage. The corporation is required to report how much additional taxable income for each employee? A) All premiums paid in a year. B) Only premiums that exceed $50 a year. C) Only premiums that exceed $30 a year. D) Nothing.
D) Nothing.
The office of Insurance Regulation is NOT responsible for which of the following? A) Monitoring the financial condition of insurers. B) Policing of unauthorized insurance activities. C) Supervising all state financial institutions. D) Organizing and licensing of companies.
D) Organizing and licensing of companies.
An insured who is covered by an individual Comprehensive Major Medical policy forgets to pay the annual premium, which is due on March 1. If the insured is hospitalized on March 10, and submits a claim, the insurance company will take which of the following actions? A) Deny the claim only. B) Deny the claim and cancel the policy. C) Pay a portion of the claim only. D) Pay the full claim minus premium due.
D) Pay the full claim minus premium due.
In a health policy, which of the following policy features states that the insured and the insurance company will share the cost of covered losses? A) Assignment clause. B) Coinsurance clause. C) Consideration clause. D) Payment of Claims provision.
D) Payment of Claims provision.
Which federal regulation requires insurance companies offering permanent, individual life insurance and individual annuity products to establish and maintain an anti-money laundering compliance program? A) Fair Credit Reporting Act. B) US Patriot Act. C) HIPAA. D) Security and Exchange Act.
D) Security and Exchange Act.
An insured purchases an Annuity with a large sum of money on January 2, and will begin receiving monthly payments February 1, which will continue for as long as he and his spouse lives. The type of Annuity purchased is a: A) Flexible Premium Refund Annuity. B) Flexible Premium Joint Annuity. C) Single Premium Deferred Annuity with Period Certain. D) Single Premium Immediate Joint with Survivor Annuity.
D) Single Premium Immediate Joint with Survivor Annuity.
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 of the statements about Guaranteed Renewable health insurance policies is CORRECT? A) The insurance company may make unilateral reductions in contract benefits. B) Premiums must be payable monthly only. C) If the insured changes his occupation, benefits will change. D) The insurance company may cancel the policy for nonpayment of premium only.
D) The insurance company may cancel the policy for nonpayment of premium only.
Which party has the authority to name the beneficiary of a life insurance contract? A) The payer. B) The employer. C) The beneficiary. D) The owner.
D) The owner.
B has owned a life insurance policy for one year. The insurer has discovered that b falsely answered questions on the application. Can the insurer void the policy? A) No, because the insured does not guarantee the truth of all the information in the application. B) No, because the information in the application is assumed to be true but is not guaranteed. C) Yes, because the policy is issued in consideration of statement of correct age. D) Yes, because the application is part of the insurance contract.
D) Yes, because the application is part of the insurance contract.
The Payor clause of an insurance policy on a juvenile provides which of the following benefits? A) An additional Death benefit to the payor if the juvenile dies before reaching a specified age. B) An additional Death benefit to the juvenile if the payor dies before the juvenile reaches a specified age. C) a waiver of premiums if the juvenile becomes disabled. D) a waiver of premiums if the payor becomes disabled.
D) a waiver of premiums if the payor becomes disabled.
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 or 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 submitting the application. C) verify the correct information with the applicant and then modify the application without initiating changes. D) correct the information and the applicant initial the changes.
D) correct the information and the applicant initial the changes.
A Long-Term Care policy will pay: A) lost income. B) hospitalization. C) accidental death and dismemberment. D) home care.
D) home care.
Under Florida insurance law, deceptive advertising is considered a form of: A) malfeasance. B) coercion. C) discrimination. D) misrepresentation.
D) misrepresentation.
The coverage provided by a Disability income policy that does NOT provide benefits for losses occurring as the result of the insurance employment is called: A) unemployment coverage. B) Occupational coverage. C) Workers' compensation. D) nonoccupational coverage.
D) nonoccupational coverage.
