In a policy summary all of the following must be shown as being guaranteed, except:

Which of the following best defines the probationary period in group health policies?

A specified period of time that a person joining a group has to wait before becoming eligible for coverage

Which of the following statements is INCORRECT?

The insurer does not have the right to conduct an autopsy

All of the following statements are true regarding an ordinary (straight) life policy EXCEPT

It does not have a guaranteed death benefit

What is the purpose of the agents report in the application process?

To provide additional information about the applicant to the underwriters

Which of the following is NOT normally an excluded cause of disability in an individual disability income policy?

Complications from pregnancy

Which provision may be added to a permanent life policy, at no cost, that insurers that the policy will not lapse so long as there is cash value?

Automatic premium loan option

Life insurance creates an immediate estate. Which of the following best explains this statement?

The face value of the policy is payable to the beneficiary upon the death of the insured.

Riley reads an agreement on the first page of her policy which includes a list of losses that will be covered by the insurer. What is the name of this agreement?

An insured’s cancelable health insurance policy is being cancelled. One day before the policy is scheduled to end, he is involved in a major accident and is hospitalized for.a week. Which of the following best describes the coverage that he would receive?

The uniform provision law that prevents an insurance company from altering its agreement with a policyholder by referring to documents or other items not contained in the policy is called the

Entire contract provision

All of the following must sign an application for health insurance EXCEPT the

*** insurer

B) the proposed insured

C) applicant

D) Producer

In health insurance, what is coinsurance?

A percentage of the cost of service that the insured and the insurer share

A whole life policy is surrendered for a reduced paid up policy. The cash value in the new policy will

A Medicare Supplement policy must have a free-look period of at least

The presumptive disability provision assumes that the insured is totally disabled upon loss of all of the following EXCEPT

**Feeling

B) sight

C)Hearing

D)Two Limbs

In addition to participation requirements, how does an insurer guard against adverse selection when underwriting group health?

By requiring that the insurance be incidental to the group

Which of the following are characteristics of term life insurance?

Temporary Protection, renewability, no cash value

Which of the following would NOT be considered a limited coverage policy?

*Major medical expense insurance

B) special risk policy

C) accident-only insurance

D) Travel policy

Which of the following services will NOT be provided by an HMO?

Unlimited coverage for treatment for drug rehabilitation

When a whole life policy is surrendered for its nonforfeiture value. What is the automatic option?

Under the mandatory uniform provision Proof of Loss, the claimant must submit proof of loss within what time period after the loss?

J is receiving fixed amount benefit payments from his late wife’s insurance policy. He was told that if he dies before all of the benefits are paid, the remaining amount will go to the contingent beneficiary. Which settlement option did J choose?

An employee is covered under COBRA. His previous premium payment was $100 per month. His employer now collects $102 each month. Why does the employer collect an extra $2?

To cover the Employers administration cost

On an accidental death and dismemberment (AD&D) policy, the death benefit payable is known as the

An aleatory contract is based on what kind of exchange?

Unequal exchange of values

Key person insurance can provide protection for all of the following economic losses to a business EXCEPT

Pay the death benefit to the estate of the insured.

If an individual willfully violates provisions of the Fair Credit Reporting Act, what is the maximum civil penalty?

An individual purchases a life insurance policy and lists his parents as the beneficiaries. He is able to change beneficiaries at any time. What type of beneficiary designation does the policy have?

The frequency and the amount of the premium payments are known as what?

In a life insurance application, all of the following signatures will be required EXCEPT

The home office underwriter

An insured and his spouse recently had a child. Which of the following riders would allow the couple to insure the child for a limited period of time at a specified amount?

Children’s term rider

(Correct)

The owner of a deferred annuity pays $100 in premium one month, and $130 the next month. Which of the following terms best describes this premium payment arrangement?

Regarding health insurance, all of the following are tax-deductible EXCEPT

**Employee paid group disability income.

B) Employer paid group health insurance

C) employer paid group Long-Term care.

D) Employer paid group accidental Death and Dismemberment

In whole life insurance, when is the policy cash value scheduled to equal the face amount?

When comparing a Joint Life Policy to two individual life policies of the same amount on the same insureds, which condition is true?

Joint life has a lower premium than the total of the two individual policies

According to the metal level classification of health plans, what percentage of health care costs will be covered under a gold plan?

An applicant gives her agent a completed application and the initial premium. What can the agent issue her that acknowledges the initial premium payment?

Which of the following statements concerning the medical information bureau is correct?

The medical information Bureau assists underwriters in evaluating and classifying risks

An insureds hospital policy Staes that it will pay him a flat fee of $75 per day for each day he is hospitalized. The policy pays benefits on what basis?

What is the most common name for a single policy that is designed to insure two or more lives with a standard premium, and that pays the death benefit upon the first death?

All of the following are true regarding the federal Fair Credit Reporting Act EXCEPT

**. Reports may be sent to anyone who requests one

B) insurers are not required to give customers a copy of the report

C) It applies to credit reports ordered in connection with insurance, banking and employment

D) The customer must be notified if adverse action is taken as a result of a report

Which of the following losses would likely be covered under the Accidental Death rider?

Death caused by a head-on collision

Which federal act defines rules pertaining to protected health information?

K set up an individual retirement account that her employer is now contributing to. Her employers contributions are not included in her gross income. What kind of RETIREMENT PLAN does K have?

Simplified Employee Pension

What is the purpose of the impairment rider in a health Insurance policy?

To exclude coverage for a specific impairment

An insured purchased a health insurance policy with a renewability clause that states the policy is “Guaranteed Renewable.” This means that as long as the required premiums are paid, the policy will continue until the insured

If an insured is injured while committing an illegal act and his health policy contains the illegal occupation provision, what percentage of the claim will be paid?

All of the following are excluded from coverage in an individual health insurance policy EXCEPT

When life insurance proceeds are used to pay inheritance taxes and federal estate taxes, it is known as

Once the initial benefit limited in Medicare Part D is reached, how is the beneficiary affected?

The beneficiary is then responsible for a portion of prescription drug costs.

Which of the following types of insurance is investment based, has a level fixed premium, and a nonguaranteed cash value?

If an insurance company issues a policy even though some questions on the application were unanswered, when can the insurer get the answers to those questions?

Never, the insurer has waived its right to those answers by issuing the policy

Which of the following policies can be described as a flexible premium adjustable life policy

Which of the following is a permissible reason for an insurance company to contest payment of a claim based on statements in the application?

The application contains material misstatements

Who is obligated to make sure all questions are answers and all necessary signatures are collected on the application?

If an insured is not entirely satisfied with a policy issued, the insured may return it to the insurance company and receive a refund of the entire premium paid, at which of the following times?

Within 10 days of when the policy was delivered

Which of the following is NOT correct concerning taxation of disability income benefits?

If paid by the individual, the premiums are tax deductible

All of the following are true about key-person insurance EXCEPT

The death benefit is taxable to the business

An insured bought an insurance policy that requires him to pay $150 in premiums on the 15th of each month. He then takes an extended vacation and forgets to pay the premium. Ten days later, his policy is still in effect and has not lapsed. Which policy provision allowed for this?

An annuitant pays the annuity premium on the 14th of each month. Which of the following best describes this arrangement?

How long is the grace period for an individual life insurance policy?

Under the mandatory uniform provision “Notice of Claim”, written notice of a claim must be submitted to the insurer within what time parameters?

What happens to the copy of the application for health insurance once the policy is issued?

It becomes part of the entire contract

Which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insureds heath was caused by an accident as defined in the policy?

An accidental Death Rider

A whole life policy that will generate immediate cash value is a

A retail shop owner is insured under a business overhead expense policy that pays a maximum monthly benefit of $2,500. His actual monthly expenses are $3,000. If the owner becomes disabled, the monthly benefit payable under his policy will be

If a life insurance company uses HIV testing as a part of its underwriting, when must an applicant be notified of the procedure?

Prior to performance of the test

Joe, age 63, was disabled and can no longer work. He meets the Social Security definition of total disability. How many work credits must Joe have accumulated to have the status of fully insured?

All of the following are consideration in an insurance policy EXCEPT

The cash value in the policy

All of the following statements about indexed whole life insurance are correct EXCEPT

The death benefit is not guaranteed

An insured has an individual disability income policy with a 30-day elimination period. He becomes disabled on June 1st for 15 days. When will he collect on his disability income payments?

He won’t collect anything

Cash value guarantees in a whole life policy are called

An employee that becomes ineligibile for group coverage because of termination of employment or change in status, must exercise extensions of benefits under COBRA

All of the following would be classified as “limited insurance coverage” EXCEPT

Supplement Social Security coverage

Insureds have the right to do which of the following if they have NOT received the proper claim forms within 15 days of their notice to the insurer of a covered loss under a major medical policy?

Submit the description in their own words on a plain sheet of paper

Which of the following would NOT be eligible for coverage under key person?

If a basic medical insurance plans benefits are exhausted, what type of plan will then begin covering those losses?

Supplementary major medical

Dividends received on participating life insurance policies are

Not taxable because they are a return of unused premiums.

Which of the following statements is NOT true regarding health insurance policy provisions?

All additional provisions written by insurers are cataloged by their respective states

Under the mandatory uniform provision Legal Actions, an insured is prevented from bringing a suit against the insurer to recover on a health policy prior to

Which statement best describes agreement as it relates to Insurance contracts?

One party accepts the exact terms of the other party’s offer

An applicant may challenge information discovered as a result of an investigative consumer report under which of the following acts?

Fair credit Reporting Act

The ‘Stop-loss’ feature on a major medical policy Is intended to

Establish a maximum amount of out-of-pocket expense that an insured will have to pay for medical expenses in a calendar year

Whose responsibility is it to ensure that the application for health insurance is complete and accurate

The Guaranteed Insurability Rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXCEPT

Which of the following is NOT a standard exclusion in life Insurance policies?

Which of the following statements describes one of the reasons individuals purchase life insurance?

It creates an immediate estate

If an insured pays a health insurance premium each month, how long would the grace period be under the policy?

Which of the following is consideration on the part of an insurer?

Which of the following best describes a Major Medical Expense Policy?

It provides catastrophic medical coverage beyond basic benefits on a usual customary and reasonable basis

A Married couple purchases a life insurance policy on their newborn baby. They are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability. Which policy rider should their agent recommend?

Ed is covered under a health plan provided by his employer. He was told that his insurance would pay the majority of the covered expenses if he would choose to see a provider in his plans list. If Ed chose to be treated by a provider who was not on the list, his portion of the bill would be greater. Ed is covered under a/an

The renewable provision allows the policy owner to renew the coverage at the expiration date

Without evidence of insurability

All other factors being equal, which of the following premium modes would result in the lowest overall premium?

When filling out an application for insurance, the applicant makes a mistake. If a fresh application were not available. What could the applicant do to properly correct the mistake?

Cross the incorrect answer out, write the correct one beside it, and initial the answer.

If a soliciting producer suspects that there could be misrepresentation on the part of the applicant for insurance, what must the producer do?

Inform the insurance company

A loss resulting from which of the following would qualify for the accidental death rider coverage?

Which of the following is NOT mandatory under the Uniform Provisions Law as applies to accident and health policies?

Considering the principles of liquidity, how would the Policyowner use todays cash values in a life insurance policy?

Use it for emergency expenses

An insurer is attempting to determine the insurability of an applicant and decides to obtain medical information from several different sources. Which of the following must be notified of the investigation?

A man is an attorney when he applies for a health policy. He decides to become a professional bungee jumper. He files a claim. What should happen?

Which of the following is legal?

The insurance company does not consider a genetic test as a factor in underwriting a potential insured?

All of the following could qualify as a group for the purpose of purchasing group life insurance EXCEPT

*** An association formed 1 year ago

A) a single employer within 14 employees

C) A labor union

D) A multiple employer trust

An insurance company that is owned by the policyholders is called a

If a life policy insured is 64 years of age or older, the insurer must advice him or her of which of the following?

The insureds right to designate a secondary address to receive a copy of any policy lapse notices

According to the terms of the policy or an agreement between the insured, the group policyholder, and the insurer, the insured person may not do which of the following?

Assign an appropriate premium based on preference

Joe moved last year and forgot to notify the Department of is change of address. He was charged a $250 fine. This year Joe moves again, and again forgets to notify the department within the required time. What will Joe’s penalty be?

A minimum fine of $500 or suspension or relocation of his license.

In the state of Florida, which of the following government entities responsible for the administration and regulations of insurance?

The Department of Financial Services

Agents in this state are required to promptly report all of the following to the Department EXCEPT

** Change in marital status

A) Use of assumed names

C) Change of address

D) Administrative actions

In an employer group health insurance plan, the covered employee receives

A policy owner who purchases an individual insurance policy and then asks for a refund within 2 weeks after the policy was delivered will receive

A full refund of the premium

Which of the following types of policies would be NOT be subject to Florida regulations on life insurance solicitation?

Which statement is an accurate. Description of life insurance policy dividends?

They are not taxable and are not guaranteed

On individual health insurance policies, an insurer must furnish the claimant with claim forms within how many days?

Which of the following statements about HMOs in Florida is FALSE?

HMOs can engage in selling insurance contracts

Agent R is charged with committing a crime in another state, and is sentenced to 1 year in prison. Who is required to report the charges to the Florida Department of Insurance?

Two individuals of the same age, health status, and life expectancy apply for Individual insurance coverage. When policies are issued by the same insurer, the premium rates are different based on the insureds race. What practice does this describe?

A fraternal benefit society

Is operated for the benefit of its members

Which of the following is NOT considered eligible for group life insurance?

A credit union that needs coverage only for its top 10 employees.

All of the following statements regarding the life insurance policy summary are correct EXCEPT

It must illustrate guaranteed policy dividend values

How long does the law require agents to maintain records of transactions pertaining to premium payments?

An insurance agent visits a potential client and explains various types of policies. The customer displays a lack of interest, so the agent guarantees higher dividends that he knows would be possible. Which term describes what the agent has done?

Why does Florida have state laws regulating Medicare Supplement Insurance?

States cannot enforce and prosecute federal laws

What does the guaranty association guard against?

An insurer recently collected information from a senior consumer, and used that is information to make recommendations regarding insurance transactions. For how many years must this information be maintained after the transaction has been completed?

Which of the following best describes a rebate?

A producer returning part of her commission to her client, as an inducement to buy

A licensee may have their license suspended, terminated or revoked for all of the following EXCEPT

Unknowingly over insuring any property insurance risk

When an individual obtains an insurance license for the primary purpose of writing insurance on him or herself, or for members of his or her immediate family or business, this is called

A stock insurer is defined as an insurer

Owned by its stockholders

What is the latest point at which an outline of coverage may be presented?

At the time of policy delivery

Which of the following rules would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new life insurance?

Which of the following would make a child over the age of 5 INELIGIBLE for Florida Healthy Kids coverage?

How long must an insured wait before filing a lawsuit against the insurer?

60 days after filing proof of loss

Under the long-term care marketing regulations, which of the following questions would a producer NOT have to ask the applicant in order to determine if the purchase is suitable?

How much are you able to pay in premiums?

What is the maximum value of an item an insurer may gift a prospective insured as an advertisement?

Maternity benefits include all of the following EXCEPT

Coverage without cost sharing.

Failing to acknowledge and act reasonably promptly upon communications with respect to an insurance claim is in violation of what insurance regulation?

The policy owners spouse was designated as the primary beneficiary on a life policy issued 3 years ago. Last year, the couple got divorced. Which of the following is true regarding the beneficiary designation of the former spouse

The designation will be void/

An agent tells an insured that if he replaces his current insurance policy with a newer one, his dividends will be higher and his premium will be slightly lower. The policy, however, would not offer either one of these things. What type of misrepresentation is being committed?

An agent who knowingly misrepresents material information for the purpose of inducing an insured to lapse, forfeit, change or surrender a life insurance policy or annuity has committed an illegal practice known as

An individual Long-term care policy cannot be issued until the insurer has received from the applicant a written designation of at least

A Medicare Supplement plan must have at least which of the following renewal provisions?

Which of the following terms refers to soliciation, negotiation, effectuation or advising related to an insurance contract?

If a licensee changes his/her address, within how many days must the department be notified?

In individual health policies, proof of loss must be provided by the insured to the insurer within how many days of a loss?

How long is the required grace period in life insurance policies issued in this state?

Group life policies are usually issued as what type of coverage?

Every Medicare Supplement policy must have a Notice to Buyer on the front page that states which of the following?

This policy may not cover all of your medical expenses

During what period is a new life insurance policyholder entitles to review a policy and return it for a full refund?

Wishing 14 days after delivery of the policy

Which of the following represents non guaranteed elements of an insurance policy?

Which of the following will be included in a policy summary quizlet?

When must the policy summary be given to the policy owner?

Which of the following is not required information in a life insurance illustration?