Final Practice EXam

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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

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

🗑

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

🗑

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

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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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