Under miscellaneous expenses in a basic medical expense plan, all of the following are covered

Operating room, anethesia, and lab fee

A customer may enroll in Medicare supplement insurance under the age of 65 only if which of the following occurs

The customer is eligible for social security benefits

The subscribers pay a set fee each month for medical services

Limited pay whole life does which of the following

Provide level premiums for a certain period of time

The program that provides affordable health care insurance to Florida's uninsured children is the

Florida Healthy Kids Corporation

Agents are compensated by

Commissions received from the insurer

Advertising includes all of the following except

Word of mouth from another customer

The agent must provide the applicant with which of the following when issuing a new Medicare supplement policy

Buyers Guide and Outline of Coverage

When is it acceptable for the insurance agent to be the beneficiary of a life insurance policy?

When there is an insurable interest between the insured and the agent.

The provision that allows the insurer to withdraw from the cash values in order to pay the policy premium is the

Automatic premium loan provision

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Informational packets that are required to be presented to an applicant when certain coverages are being considered, and which explain insurance policies and insurance concepts to an applicant are called

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2-15 FINAL Practice

Final Practice EXam

Question	Answer
Informational packets that are required to be presented to an applicant when certain coverages are being considered, and which explain insurance policies and insurance concepts to an applicant are called	Buyer's guides
The three types of government health insurance programs include all of following	State W.C., Medicaid, and Medicare
Medical expense policies that provide coverage for specific kinds of illnesses such as cancer or hearth disease are	Limited risk policies
All of the following are types of managed care organizations	EPO, PPO, HMO
Under miscellaneous expenses in a basic medical expense plan, all of the following are covered	Operating room, anethesia, and lab fee
The type of risk that involves the chance of loss and no opportunity for gain is a	Pure risk
In a group insurance plan, the insurer must accept all of the individuals in a group if more than how many people will be insured	51
Which type of insurance provide periodic income in the event the insured cannot work due to an accident or illness	Disability income insurance
A customer may enroll in Medicare supplement insurance under the age of 65 only if which of the following occurs	The customer is eligible for social security benefits
In a Medicare policy, which entity requires that the agent obtain a signed acknowledgement from the applicant	DFS
In a prepaid plan	The subscribers pay a set fee each month for medical services
The agent may make changes to the application without the applicant’s permission as long as he/she initials the changes and keep documentation	false
Who may designate or change a beneficiary in a life insurance policy	Policyowner
The longer the elimination period	The lower the premiums
Limited pay whole life does which of the following	Provide level premiums for a certain period of time
Life insurance companies are better at providing guaranteed income for the life of the annuitant rather than other financial institutions	true
The program that provides affordable health care insurance to Florida's uninsured children is the	Florida Healthy Kids Corporation
The provision that restores the policy to its original status after the policy lapses is the	Reinstatement provision
Not writing an insurance policy based on race, age or gender is:	Unfair discrimination
For a retirement plan to be qualified it must be	Funded
Agents are compensated by	Commissions received from the insurer
The McCarran-Ferguson Act confirms that insurance is regulated by the	States
The act of treating certain people unfairly during the sale and purchase of insurance is considered	Discrimination
Playing and winning the lottery is an example of which type of risk	Speculative risk
The type of arrangement where the employer and the employee split the costs of the insurance premiums in a group plan is	Contributory
The type of beneficiary who receives the life insurance proceeds first is the	Primary beneficiary
The type of investment plan that allows a business owner or partner to participate in the plan as an employee is the	Keogh plan
The insured has how many days to submit proof of loss to the health insurer	90 days
The intent to deceive an agent or insurer for purposes of insurance is an example of	Fraud
The type of factor used to calculate life insurance premiums is the	Mortality factor
Grandfathered health insurance plans are eligible for HIPAA protection	True
An HMO contract may not be cancelled	False
Exaggerating a policy's benefits to a customer is a form of	Misrepresentation
Margaret needs assistance with her daily living activities due to an illness. Which type of insurance should Margaret purchase	Long Term Care
Advertising includes all of the following except	Word of mouth from another customer
The agent must provide the applicant with which of the following when issuing a new Medicare supplement policy	Buyers Guide and Outline of Coverage
When is it acceptable for the insurance agent to be the beneficiary of a life insurance policy?	When there is an insurable interest between the insured and the agent.
Double and triple indemnity policies are known as	Valued contracts
The clause which states that the insurer and the insured will share the costs of medical expenses is	Coinsurance
The penalty amount from withdrawing from an annuity before age 59 1/2 is	10%
Rick submitted a claim to the insurer on July 1st. The insurer must provide or supply claim forms by	July 16
John purchased $100,000 of AD&D insurance. After John died, his beneficiary received $300,000. What type of indemnity policy did John purchase	Triple indemnity
Earnings contributions made by an employee into a qualified plan are taxed deferred	True
The method that allows the policyowner to pay more than the policy requires to meet the future rise in premium is the	Level premium funding method
Dan (agent) added an endorsement to his customer's insurance policy without disclosing that the endorsement would generate an additional premium. Dan's act is known as	Sliding
John was injured in an accident and became permanently disabled. John can no longer perform the principal duties of his occupation. John will qualify for disability income benefits based on which classification	Own occupation
Dividends paid to a policyowner under a life insurance policy are taxable as earned income	False
Employers are subject to COBRA compliance if they have at least how many employees	20
The provision that allows the insurer to withdraw from the cash values in order to pay the policy premium is the	Automatic premium loan provision
The type of arrangement where the employer pays for all of the insurance premiums in a group plan is	Non-Contributory
Disability income benefits may be provided by Social Security	True
Premiums may be increased to an individual insured in a guaranteed renewable policy	False
The method of determining how much life insurance protection a person should have is known as the	Needs Approach
The kind of insurance that pays the cost of medical expenses including doctor visits and prescriptions	Health insurance
Reasonable and customary charges must be based on	The geographical part of the country where the surgery was performed
The insurer allowed Sam to purchase additional amounts of disability income insurance without providing proof of insurability. Which type of rider does Sam has attached to his policy	Guaranteed insurability rider
The beneficiary has the right to take out a policy loan	False
In a life insurance policy, the agent must disclose to the applicant the free-look provision. The policy must provide how many days for the free-look period	14 days
When replacing a life insurance policy, what must be submitted by the replacing insurer along with the Buyer’s Guide prior to a policy replacement	Policy summary
All of the following are premium factors in health insurance except	Mortality
How many hours of CE is required for updates related to the license you hold (including ethics, suitability, and legislative updates)?	4 hours
Joe Smith (agent) persuaded his client Paul to drop his existing policy with another agent so that Paul would purchase a policy from him. This is an example of	Twisting
The life insurance rider that waives the insurance premiums if the insured becomes disabled is the	Waiver of premium
The type of assignment that makes the assignee irrevocable and gives them full rights to the policy and benefits is	Absolute assignment
An employer within a group insurance plan is issued which of the following as evidence of insurance	Master contract
If the insurer fails to submit the claim forms to the insured within the respective time frame, the insured may	Submit the claim in any form, explaining the occurrence
John will pay his whole life policy premium for 10 years and then no more premiums will be owed. What type of policy did John purchase?	Limited pay whole life
Which one of the following is not an element of an insurable risk	The loss must be catastrophic
A group insurance plan where the employer and employee share the costs of the insurance premiums is a	Contributory plan
The type of health insurance that provides a benefit due to a loss of sight or a body part is	AD&D
A government program that provides medical insurance to individuals over the age of 65 is	Medicare
The act that limited the ability for employers to exclude individuals with preexisting conditions in a group insurance plan is	HIPAA
Choosing not to go bungee jumping is an example of which type of risk treatments	Risk avoidance
A person that is subject to loss upon the death, illness or disability of the insured is known to have	Insurable interest
The head of the Department of Financial Services is the	Chief Financial Officer
An entity established by a state to support insurers and protect consumers in the event the insurer becomes insolvent is a:	Guaranty association
Group long term plans provide a maximum benefit period of more than	2 years
Jane recently purchased a health insurance policy. Jane's agent delivered the policy to her on January 1. How long does Jane have to review the policy before she can return it	January 11, 10 days
An Outline of Coverage is optional and can be provided at the time of the policy delivery	False
Steve buys a term life policy with an option to renew feature. Steve may do all of the following except	Withdraw funds from the cash values
All of the following are benefits of the USA Patriot Act except:	Set rules and rates for insurance companies
The insurance concept that states the more data you have, the more predictable losses are is	Law of large numbers
In AD&D Insurance, the maximum death benefit amount is known as the	Principal sum
A dread disease policy covers	Illnesses such as cancer or heart disease
The type of insurance company that is owned by its policyholders and usually issues dividends is a	Mutual insurer
The disability rider that stops insurance premiums if the insured becomes completely disabled is the	Waiver of premium rider
The type of whole life policy that gains rapid cash values but have high premiums is a	Endowment policy
The disability income policy provision that specifies a period of time in which a disability is considered the same occurrence if it occurs again on a later date	Recurrent disability
The type of annuity that provides a guaranteed benefit amount that is payable for the life of the annuitant is a	Fixed annuity
In a life insurance policy, the insured's current age is referred to as the	Attained age
Which type of beneficiary may not be changed during the policy period	Irrevocable beneficiary
John has a medical expense claim totaling $2,000. John's deductible is $1,000. The coinsurance provision stipulates 80/20. What expenses are funded by John's policy	$800
If the insured dies during the term with a return of premium rider, the beneficiary will receive	Death benefit plus an amount equal to all premiums paid
Noncancelable provisions are generally found in what types of policies	Disability income
Which insurance act establishes procedures for collecting and disclosing information obtained on customers through investigations and credit reports	Fair Credit Reporting Act (FCRA)
If requested in writing, When will the change of beneficiary become effective	The date the policyowner signs the notice
The agent must disclose which of the following to the customer when selling life insurance	The full name of the insurance company
The life insurance provision which states that the policy documents, application and attached riders constitute the insurance contract, is the	Entire Contract Provision
The type of annuity contract that may be traded for another annuity contract with a different company is a	1035 exchange
It is the customer's responsibility to be aware of the laws and rules when buying life insurance	False
The insurance provision that states the group insurance plan is primary if more than one insurance policy apply to a claim is	Coordination of benefits
All of the following are mandatory provisions in health insurance policy except	Change of occupation
The type of deductible that applies for each separate illness or accident is the	Per cause deductible
An insurance agent is primarily responsible for representing the	Insurer
The statistical principle that allows for predicting the degree or amount of loss that will be incurred in a given period is called	Law of large numbers
All of the following are types of health insurance deductibles except	coinsurance
A rider that covers only children is known as the	Children’s rider
The Office of Financial Regulation is responsible for investigating suspected wrongdoing inside and outside of Florida	true
Long term care coverage may be classified into which of the following conditions	Both acute and chronic illnesses
When selling annuities, the agent must provide which of the following to the applicant	Buyers Guide and Contract Summary
Procedures performed by chiropractors are not covered by health insurance	False
The policy provision that gives policyowners greater control over the payment proceeds in the event the insured and primary beneficiary die at the same time is the	Common disaster provision
Case management is typically associated with	Managed care
Mary wants insurance to protect against loss of income and wages due to a disability. What type of insurance should Mary purchase	Disability Income Insurance
The insurer may require a medical report before issuing a policy if the face amount exceed a certain amount	True
The type of life insurance arrangements where investors persuade seniors to take out a life insurance policy with the investor’s name listed as the beneficiary is	Investor Oriented Life Insurance
The __________ accepts unclaimed checks and other property in the state of Florida. It is part of the __________.	Division of Unclaimed Property; Department of Financial Services (DFS)
All of the following are the different types of premium payment modes except	Weekly
The form of health care coverage that is designed to provide a short rest period for a caregiver is	Respite care
In a cancelable policy, the insurer may	Cancel the policy and/or increase the premium any time
The Medicare marketing provisions are established by the	NAIC
Making a brochure that includes incorrect prices of insurance products and coverages is example of	False advertising
In Social Security insurance, the death benefit payable to a surviving spouse is	$255
John a deceased insured owed $20,000 for his car loan. His daughter Debbie is the beneficiary and received $100,000 for the death benefit. How much will the life insurer pay Debbie	$100,000
The primary purpose of the probationary period is to	Exclude coverage for pre-existing conditions
In instances where the terms of the contract are questionable, the interpretations will be most favorable to the insurer	False
A beneficiary has the rights to make policy changes	False
A provision that is mandated to be in a insurance policy is called a	Required provision
Telling an applicant that an endorsement is required by law when such coverage is not required is an example o	Sliding
The Insurance Commissioner is the head of the	Office of Insurance Regulation
Delaying claim payments intentionally is a form of	Unfair claim practices
The Securities and Exchange Commission (SEC) is responsible for regulating which type of insurance products	Variable contracts
In a family high deductible plan, the minimum deductible is	$2,800
Per Florida Statute, a small employer is one that has no more than	50 employees
The maximum period of time that health insurance coverage in a group plan can be continued with COBRA is	18 months
HMO's and PPO's are examples of which type of insurer	Service providers
The type of insurance that is provided by an employer to its employees is	Group insurance
Policyowner Steve intentionally stated on the application that he was in good health. He actually had heart disease. 3 yrs after written, Steve had a heart attack and died. Which clause mandates that insurer must pay although Steve intentionally lied	Incontestable clause
An agent licensed for less than 6 years must maintain how many hours of continuing education in order to maintain their appointment	24 hours
Continuous around the clock care provided by licensed medical professionals is known as	Skilled care
Applying physical or mental force on an applicant to induce them to purchase insurance is an example of	Coercion
The type of health care plan that allows the insured to receive service from a participating or non-participating provider is a	PPO
The association that protects consumers if an insurer becomes insolvent is the	Insurance Guaranty Association
The type of whole life policy that varies based on the insurer's changing assumptions regarding to the insured's death, investment and expenses factors are	Interest sensitive whole life
Prior to accepting an applicant's initial premium, the agent must provide the applicant with a Buyers Guide and a	Policy summary
Which insurance act requires that the applicant’s information remain confidential and private	Health Insurance Portability and Accountability Act (HIPAA)
When the death benefit is given to a beneficiary and is passed down to the beneficiary's living child or children, this is known as	Per Stirpes
Which type of annuity pays its first payment one month from the date of purchase	Immediate annuity
Variable whole life policies guarantee cash values and the policyowner assumes the investment risk	False
Medicare Advantage is which part of the Medicare supplements	Plan C
Insurance carriers must submit their rates and forms to which entity for approval	OIR
The type of insurer that provides insurance to insurance companies is a	Reinsurer
What is not an option for settlement	Policy exchange option
List three options for settlement	interest-only option, fixed amount option, lump-sum cash option
The life insurance provision that sets forth the company's basic promise to pay benefits upon the insured's death is the	Insuring Clause
Individuals covered under an HMO are referred to as	subscribers
An illness or disease in which the body can fully recover with medical treatment is an	acute illness
Advising an insured to use the values in a existing policy and purchase another policy with the same insurer is known as	churning
In Group insurance, all of the following are eligible groups except	railroad employees
The type of contract that does not have any legal effect is a	void contract
The kind of care that provides daily living care such as bathing, dressing and getting out of bed is	custodial care
The life insurance provision which states how the death benefits will be paid if the insured and the primary beneficiary die at the same time is the	common disaster provision
The annuity funding method that allows the policyowner to surrender the cash values in a whole life policy and invest as a lump sum to fund an annuity is a	Single premium
In agent authority, the principal is usually the	Insurance carrier
A MEWA may consist of a single employer plan	False
Non-grandfathered plans meet the basic requirements for HIPAA	false
The applicant and agent must sign which document when replacing an insurance policy	Notice to Applicant Regarding Replacement of Life Insurance
Service providers provide benefits to its	Subscribers
In Health Insurance, the misstatement of age or sex provision is a mandatory provision	false
The entity responsible for governing variable annuities contracts is the	SEC
The type of arrangement where the employer sets aside pre-tax dollars to pay for the employee's coinsurance or deductible is	Health Reimbursement Accounts (HRAs)
Which entity requires every insurer to establish and maintain a system of control over the content of contract advertisements	DFS
Susan developed heart disease 4 months prior to purchasing a health insurance policy. Susan disclosed her condition in the health insurance application. Assume the policy is not required to comply with PPACA. The insurer will most likely	Issue the policy but exclude coverage for medical expenses related to the heart disease
When increasing the face amount of an adjustable life policy, evidence of insurability is generally not needed	false
Care provided by nurses and licensed practical nurses is known as	Intermediate care
The type of contract that does not allow the applicant to negotiate the terms of the contract is a	Contract of adhesion
The service provider which is primary concerned with stressing preventative care is an	HMO
A company formed in London and doing business in Florida is a	Alien insurer
Janet purchased an insurance rider that covers the costs of nursing home services. Which type of rider did Janet purchase?	Long term care rider
The Office of Insurance Regulation may terminate agent insurance licenses and refer criminal activities of agents to the authorities	false
When replacing an insurance policy, the agent must submit all sales proposals to the replacing insurance company	true
Grandfathering of policies is typical in which type of insurance	health
The health insurance provision that prevents the insurer from revoking a policy after a certain time period is the	time limit on certain defense provision
An insurance company that is owned by its stockholders is a	stock insurer
Which situation best represents constructive delivery of the insurance policy	The insurer mails the policy to the agent who wrote the policy
The policyowner will start building cash values when he/she converts from a term policy to a whole life policy?	true
Jane is hospitalized for 10 days due to being in a car accident. Jane's insurance policy pays $150 each day Jane is in the hospital. Which type of insurance plan does Jane have	Hospital indemnity
Marketing standards in a Medicare supplement policy include all of the following except	Must provide a brochure listing the benefits
Daniel makes specified monthly payments to the insurer in order to keep his policy in-force. Which clause pertains to Daniel actions	Consideration clause
In the common disaster provision, if both the insured and the primary beneficiary die at the same time, it is presumed that the beneficiary died last	false
In a life insurance policy, the insured's age at the time of the application is referred to as the	Original age
The time limit that the insured has to take legal action in reference to a health insurance claim in Florida is	5 years after furnishing proof of loss
The annuity funding method that requires the owner to make a minimum premium payment, and after that, make premium deposits as often as desired is a	Flexible premium
One important function of the entire contract clause is that	It does not allow the insurer to make changes to the policy
HIPAA requires health insurance policies to limit the exclusions of pre-exixting medical conditions to no longer than	12 months
In order to qualify for group health coverage, the group must be a	natural group
The health insurance provision that states if no beneficiary is named, the proceeds will be paid to the insured's estate	Payment of Claims provision
Writing insurance primarily for family members and other personal interest is considered	Controlled business
The guaranteed insurability rider	Allows the insured to buy specified amounts of additional insurance
Variable life and variable annuity agents must be registered with which entity	FINRA
Annuity contracts are most suitable for	Lump sum benefits to be spread over a period of time
How many days must the insured wait in order for a sickness to be covered after the policy is reinstated	10 days
The insured must provide notice of a claim to the insurer within how many days after the loss occurs	20 days
An individual of a group insurance plan may convert his/her group coverage into an individual plan within 45 days after termination of employment	False
The benefit payable for accidental loss of sight or dismemberment in an AD&D policy is the	capital sum
The head of the Office of Insurance Regulation is the	insurance commissioner
The health insurance provision that requires the insurer to make immediate payment of the claim once the notification and proof of loss is received is the	Time of payment of claims
When a party is forbidden by legal action from exercising a right it is known as	estoppel
All of the following are examples of soliciting insurance except	making changes to an insurance policy
The head of the Office of Financial Regulation is the	commissioner of financial regulation
The Office of Insurance Regulation governs unclaimed property	false
John filed claim for disability due to a major accident. John's doctor stated he would be disabled for at least two years. How often must John submit proof of loss to the insurer	every 6 months
The requirements and procedures that agents should follow when replacing a life insurance policy are set forth in the	Florida Replacement Rule
The insurer may or may not allow renewal of a policy when the insured reaches a certain age. Which provision allows the insurer to do so	conditionally renewable
The type of agent authority that is not expressly granted but which the agent is assumed to have in order to transact business on behalf of the insurer is	implied authority
the written authority of the agent as specified in their contract with an insurance company.	Express authority
things not mentioned in the contract between agent and principal, but which are assumed to be part of the agent's authority in order for the agent to get anything done.	Implied authority
authority that appears to be granted because it is the way the principal instructs the agent to do things, or leads them to believe things should be done (based on actions, words, or deeds).	Apparent authority
The grace period for a health insurance policy where premiums are paid on a monthly basis is	10 days
The provision that provide the terms for renewal is the	Renewability provision
The level premium funding method helps to keep premiums level due to the	Mortality charge
The Florida Replacement Rule typically applies to what type of policy	life
In a term policy, the option to renew feature allows the policyowner to continue coverage at renewal even if the insured becomes uninsurable	true
Once the premium mode has been set, the policyowner may not change it until the renewal date	false
Which of the following is an association of individuals and companies that collectively underwrites risks?	Lloyd's of London
Which entity requires every insurer to establish and maintain a system of control over the content of contract advertisements:	DFS
Statements that are made in the application that are used by insurers to evaluate risks are called:	Representations
Jane purchased a new disability insurance policy and had to wait 60 days before the policy would pay benefits due to sickness. The provision on Jane's policy is known as the	Probationary period
The Medicare supplement policy that provides 100% of the hospital coinsurance from the 61st through the 90th day is:	All Medicare Supplement plans
The primary policy when the insured has coverage in group plan as well as an individual plan is the	Group plan
The insurer must provide claim forms to the insured within how many days of been notified of a loss	15 days
The law that requires employers with 20 or more employees to continue group medical expense coverage for terminated workers is known as	COBRA
A joint life policy may cover three people	true
The agency that acts as a source for underwriters in verifying the applicant’s medical history is the	Medical Information Bureau (MIB)
In Health Insurance, an Outline of Coverage is required by	Florida Statutes
In POS plans, POS stands for	Point of Service
The free look provision in a Health insurance policy is	10 days
An insurer who declines coverage to an eligible small employer may be subject to	Suspension from the small group marketplace for 180 days
In a Health Reimbursement Account, the employee sets aside pre-tax dollars to pay for certain medical expenses	False
John lost his sight prior to the policy inception and can no longer see. The insurer placed an impairment waiver into John's insurance contract: The impairment waiver will	Exclude accidents and expenses involving John's loss is sight

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