Final Exam - Florida Life and Health Latest

Final Exam - Florida Life and Health Latest Update - 230 Questions and 100% Correct Answers Guaranteed A+

A 66 year-old is covered under a group health plan while employed with a business that has 40 employees. If she injures herself while walking in the park, what coverage would

be considered primary? - CORRECT ANSWER: Her group health plan.

If the employer has more than 20 employees, the group health plan generally pays first.

A Disability Income policyowner recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the application was taken 5 years prior. The neck injury was never disclosed to the insurer at the time of application. How will the insurer handle this claim? - CORRECT

ANSWER: Claim will be paid and coverage will remain in force.

After a policy has been in force for 2 (sometimes 3) years, it enters the incontestable period, in which the insurer may not deny a claim based on information not disclosed at the time of application.

A Hospital/Surgical Expense policy was purchased for a family of four in March of 2013.The policy was issued with a $500 deductible and a limit of four deductibles per calendar year. Two claims were paid in September 2013, each incurring medical expenses in excess of the deductible. Two additional claims were filed in 2014, each in excess of the deductible amount as well. What would be this family's out-of-pocket

medical expenses for 2013? - CORRECT ANSWER: 1,000.

In this situation, the insured's maximum out-of-pocket expenses for 2013 would be

$1,000.

A life insurance policy that provides a policyowner with cash value along with a level

face amount is called - CORRECT ANSWER: Whole life-

Whole life provides the insured with a cash value as well as a level face amount. 1 / 4

A life insurance policyowner may sell their policy to a(n) _____ in order to receive a

percentage of the policy's face value. - CORRECT ANSWER: viatical settlement

provider.

To receive a percentage of the policy face value, an owner of a life policy may sell the policy to a viatical settlement provider.

A life policy loan in Florida cannot charge a fixed rate of interest higher than - CORRECT ANSWER: The maximum fixed interest rate permitted on a life policy loan is 10%.

A mutual insurance company and a stock insurance company have one main difference

between them. What is this major contrast? - CORRECT ANSWER: Stock company is

owned by its shareholders. Mutual company is owned by its policyholders.

A policyowner's rights are limited under which beneficiary designation? - CORRECT

ANSWER: Irrevocable.

An irrevocable beneficiary designation requires the consent and signature of that named beneficiary before a change of beneficiary occurs.

A prepaid application for individual Disability Income insurance was recently submitted to an insurer. When the insurer received the Medical Information Bureau (MIB) report, the report showed that the applicant had suffered a stroke 18 months ago, something that was not disclosed on the application. Which of the following actions would the

insurance company NOT take? - CORRECT ANSWER: Send a notice to the MIB that

the applicant was declined.

The MIB does not need to be notified that coverage was denied.Submit

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A prospective insured completes and signs an application for health insurance but intentionally conceals information about a pre-existing heart condition. The company issues the policy. Two months later, the insured suffers a heart attack and submits a claim. While processing the claim, the company discovers the pre-existing condition. In this situation, the company will - CORRECT ANSWER: continue coverage but exclude the heart condition.

If the insured did not cite the condition on the application and the insurer did not exclude the conditon, the pre-existing condition provision still applies. Exclusions are subject to the "time limit on certain defenses" provision, however.

A Return of Premium life insurance policy is - CORRECT ANSWER: Whole life and

Increasing term.

A Return of Premium life insurance policy is whole life insurance with a death benefit rider of increasing term insurance equal to the amount of premiums paid. If the insured dies within the period of term, the beneficiary will receive face amount plus the value of all paid premiums.

A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as -

CORRECT ANSWER: A representation is a statement made by an insured in an

insurance application that must be true to the best of one's knowledge and which becomes a part of the contract.

A stock life insurance company that issues both participating and nonparticipating

policies is doing business on - CORRECT ANSWER: a mixed plan.

When a stock life insurance company issues both participating and nonparticipating policies, the company is doing business on a mixed plan.

A term life insurance policy matures - CORRECT ANSWER: upon the insured's death

during the term of the policy.

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Term life policies can only mature (pay out the face amount) if death occurs during the term of the policy.

According to Florida law, when must an agent deliver the Outline of Coverage to a

Medicare Supplement applicant? - CORRECT ANSWER: At the time of application.

Florida insurance law requires that if a Medicare Supplement policy is sold, the agent must deliver an Outline of Coverage to the applicant no later than when the application is taken.

According to Florida law, which of the following information does NOT need to be

obtained by an agent recommending an annuity purchase? - CORRECT ANSWER:

Marital status.

Florida law requires an agent who is recommending the purchase of an annuity to a person to obtain information regarding all of these EXCEPT the person's marital status.

According to Florida law, which of the following statements accurately describes an

admitted mail order insurance company? - CORRECT ANSWER: It may solicit

insurance business by mail without the assistance of a licensed agent

According to Florida's rules on disclosure, a life insurance applicant is expected to be

provided with - CORRECT ANSWER: a Buyer's Guide and Policy Summary

Agents that have been licensed for less than six years must complete __ hours of

continuing education every two years. - CORRECT ANSWER: Florida agents licensed

less than six years are required to complete 24 hours of continuing education.

All of these are considered sources of underwriting information about an applicant

EXCEPT - CORRECT ANSWER: Rating Services.

An agent selling Medicare Supplement policies must provide every applicant with a(n) -

CORRECT ANSWER: Suitability form.

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