INSURANCE TEST CHEAT SHEET

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INSURANCE TEST CHEAT SHEET (1)

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

-Format: Multiple-choice / Flashcard

Question 1: Adjustable Rates for Life policy loans in Florida are based on:

Answer:

MOODY'S Corporate Index Question 2: The incontestable period begins when:

Answer:

The insurer dates the policy Question 3: Prescription Drugs are an allowable expense when paid for by:

Answer:

A medical flexible spending account Question 4: In order to qualify for Long Term Care health benefits an individual must be

UNABLE to perform:

Answer:

• activities of Daily Living

Question 5: Within how many days must a licensee notify the Department of Financial Services of a change in address?

Answer:

30 days

Question 6: Extended Term Insurance is often the default nonforfeiture option in the event of:

Answer:

Nonpayment of premiums Question 7: Insurers may request a hearing within 20 days if their policy is:

Answer:

Rejected Question 8: A variable life insurance agent must be licensed and appointed as a life and variable

contract agent as well as a(n):

Answer:

Broker Dealer Question 9: 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 10: Under a Health Reimbursement Arrangement, reimbursements may be:

Answer:

Tax Free Question 11: A Basic Hospital Policy pays:

Answer:

Hospital room and board Question 12: Why is an applicant's signature required on a Life Insurance application?

Answer:

To attest that the statements on the application are accurate. to the best of the applicant's knowledge Question 13: Which department oversees 'Market Conduct Examinations' in Florida?

Answer:

The Office of Insurance Regulation

Question 14: Which BEST describes a Hospital Indemnity policy?

Answer:

Coverage that pays a stated amount er day of a covered hospitalization Question 15: The mode of premium provision permits:

Answer:

An insured to pay premiums more than once every year Question 16: A term coverage that allows the continuation of coverage after expiration of the

initial policy period is a:

Answer:

Renewable (term coverage) Question 17: An agent making a mistake while filling out an insurance application MUST:

Answer:

Correct the information and have the prospect initial the change Question 18: Under a Graded Premium Whole Life Policy:

Answer:

The premium increases each year during the early years of the contract and remains the same after that time.Question 19: According to Florida Law, when must an agent deliver the Outline of Coverage to a Medicare Supplement Applicant?

Answer:

At the time of application

Question 20: Equity Index Insurance

Answer:

Yields greater gains than bonds but will still protect the principal with a minimum of risk Question 21: This percent of personal life insurance premiums are usually deductible for federal income tax purposes.

Answer:

0%

Question 22: Basic Medical Insurance has:

Answer:

Lower limits than Major Medical Insurance Question 23: Which of the following actions is required by an insured who leaves the primary area of medical coverage and seeks medical care?

Answer:

Obtain prior approval from the insurer for the medical service Question 24: Coverage for a NON-MEDICAL insurance to take effect the same day, the producer

MUST collect a signed application and:

Answer:

The initial premium Question 25: Life and Health Insurance Policies are:

Answer:

Unilateral Contracts Question 26: What is the excise tax rate the IRS imposes on individuals aged 70 1/2 or older who do not take the required minimum distributions from their qualified retirement plan?

Answer:

50%

Question 27: What is the elimination period of an individual disability policy?

Answer:

The amount of time a disabled person must WAIT before benefits are paid Question 28: Comprehensive Major Medical policies usually combine:

Answer:

Major Medical with Basic Hospital/Surgical Coverage

Question 29: Under a MASTER Group Health policy who is eligible for coverage?

Answer:

ALL employees, REGARDLESS of their individual health history.