INSURANCE TEST CHEAT SHEET

PDF Download

INSURANCE TEST CHEAT SHEET

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Eligibility for coverage under the Florida Healthy Kids Corporation requires a family to be within what percent of the federal poverty level?

Answer:

200% Question 2: A term coverage that allows the continuation of coverage after expiration of the

initial policy period is a:

Answer:

Renewable (term coverage) Question 3: An employee with $25,000 group term life coverage was recently fired. This

employee's group coverage may be converted to a:

Answer:

$25,000 individual whole life policy Question 4: Major Medical Policies typically:

Answer:

Contain a deductible and coinsurance

Question 5: Adjustable Rates for Life policy loans in Florida are based on:

Answer:

MOODY'S Corporate Index Question 6: Under a Basic hospital/surgical expense policy the amount of the patients claim

payment will be based on:

Answer:

The terms of the policy Question 7: This percent of personal life insurance premiums are usually deductible for federal income tax purposes.

Answer:

0%

Question 8: Major Medical policies have a _____ day grace period

Answer:

10 Question 9: If an employee injures him/herself while not on the work premises and is covered under a group health plan what Insurance plan would be considered the primary?

Answer:

Her group health plan, if the employer has more than 20 employees, the group health plan generally pays first.Question 10: Additional coverage can be added to a Whole Life policy by adding a(n):

Answer:

Decreasing Term Rider (coverage decreases over time)

Question 11: What BEST describes a Hospital Indemnity policy?

Answer:

Coverage that [ays a stated amount per day of a covered hospitalization Question 12: The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 after the policy's effective date is referred to as the:

Answer:

Waiting Period

Question 13: A pension deficiency if the key employee dies is NOT a reason for a business to

buy:

Answer:

Key Person Life Insurance Question 14: Churning can be defined as:

Answer:

Using the contract values of an existing policy to purchase a new policy with an existing insurer.Question 15: A Medicare Supplement policy would provide the subscriber the best coverage for:

Answer:

Excess Charges (and hospital stays)

Question 16: Under a MASTER Group Health policy who is eligible for coverage?

Answer:

ALL employees, REGARDLESS of their individual health history.Question 17: An employer that offers a qualified retirement plan to its employees is eligible to:

Answer:

Make tax-deductible contributions to the plan Question 18: If both the insured and primary beneficiary are killed in the same accident and there is insufficient evidence to show who died first, policy proceeds will be paid as if:

Answer:

The insured died LAST; the proceeds will be paid to the secondary (contingent) beneficiary.Question 19: The Health Insurance Portability and Accountability Act (HIPAA) provides

PRIVACY protection for:

Answer:

Health Information Question 20: Whole life insurance is sometimes referred to as "Straight Life". What does the word "Straight" indicate when using this phrase?

Answer:

The duration of premium payments

Question 21: The premium schedule that results in the lowest cost to the policyowner is:

Answer:

Annual Question 22: A TRUE statement regarding a Variable Whole Life policy is:

Answer:

A minimum guaranteed Death benefit is provided

Question 23: Qualified profit-sharing plan

Answer:

Allows employees to participate in the profits of the company. (Designed to distribute a portion of company warnings to its employees) Question 24: Florida's 14-day free-look period for life insurance policies begins at the:

Answer:

Date of DELIVERY

Question 25: Which BEST describes a Hospital Indemnity policy?

Answer:

Coverage that pays a stated amount er day of a covered hospitalization Question 26: An Individual who purchases a Life annuity is given protection against:

Answer:

The risk of living longer than expected Question 27: What type of contract liquidates an estate through recurrent payments?

Answer:

Annuity, a contract that provides liquidation for all or part of an estate

Question 28: What is the best description of an insurer?

Answer:

ANY person, corporation, association, or society that writes insurance contracts