Florida Insurance Exam (2-15) with
Complete Solutions
A Supplementary Medical Expense policy combines the benefits of what two types of
plans? - ANS-Basic Medical and Major Medical
Which of the following is not correct concerning Health Maintenance Organizations? -
ANS-They mandate enrollment for groups of 25 or more.
Which is not true concerning a Hospital Fixed-Rate plan? - ANS-Benefits are paid
directly to the hospital
When benefits are paid to a policyowner covered under a Hospital Expense policy, the
policy is considered to be which of the following? - ANS-Fixed-Rate plan
Which of the following about Health Reimbursement Accounts HRA's is/are correct? -
ANS-HRA's are established by the employer
Which of the following statements is true about Basic Hospital, Medical, and Surgical
Expense Policies? - ANS-They usually have a stated limit for specific expenses.
Which of the following plans used with High Deductible Health Plans is employee
owned? - ANS-Health Savings Accounts (HSAs)
6. Which of the following service providers allows for a primary care physician as well as
out-of-network care? - ANS-Point of Service Plan (POS)
Which of the following is true about coinsurance? - ANS-It helps control overutilization
of benefits.
In a Basic Surgical policy, which of the following pays per point? - ANS-Relative Value
The type of health care provider that provides both the health care services and the
health care financing is a: - ANS-Health Maintenance Organization
Which of the following non-insurance entities are NOT involved with self-insured plans?
- ANS-Actuaries
Which of the following policies would cover a student pilot taking flying lessons? - ANS-
Special Risk
, An applicant for insurance may pay the initial premium and receive a document from the
agent indicating that if the policy is issued as requested coverage begins on the date of
the documents. What is this document called? - ANS-Conditional receipt
How does a basic medical plan avoid small claims and keep the cost of premiums
down? - ANS-by imposing benefit limits
A limited risk policy will pay for dread diseases
: - ANS-such as cancer
Stagmite purchases a major medical policy with a $100 annual deductible, 80/20 co-
insurance and a maximum out-of-pocket of $5000. If Stagmite were to incur covered
expenses of $10,100, how much would Stag be out of pocket? - ANS-$2100
Which statement most accurately describes a unilateral contract? - ANS-Only one party
is legally bound to the contract.
Which of the following is an example of a Risk Retention Group (RRG)? - ANS-Dentists
A person covered under a service provider is called: - ANS-the client
Which type of authority is given to the agent specifically through a contract with an
insurance company? - ANS-Expressed
The company transferring the risk to another company is called the: - ANS-The ceding
company
Andy the agent was fired by the general agent three months ago for conduct
"unbecoming". Andy's general agent later was known to accept business that Andy had
written after having been fired. - ANS-One of these policy holders died before the policy
was issued but had paid the required premium. Assuming the applicant had been
insurable at standard rates, the company would pay because of:
Apparent authority
All of the following are unique elements of an insurance contract except? - ANS-
Consideration
A company transfers a risk. The company assuming the risk is: - ANS-The re-insurer
All of the following statements describe risk avoidance, EXCEPT: - ANS-Pat pays his
insurance premium.
Another name for a home service company is: - ANS-debit
Complete Solutions
A Supplementary Medical Expense policy combines the benefits of what two types of
plans? - ANS-Basic Medical and Major Medical
Which of the following is not correct concerning Health Maintenance Organizations? -
ANS-They mandate enrollment for groups of 25 or more.
Which is not true concerning a Hospital Fixed-Rate plan? - ANS-Benefits are paid
directly to the hospital
When benefits are paid to a policyowner covered under a Hospital Expense policy, the
policy is considered to be which of the following? - ANS-Fixed-Rate plan
Which of the following about Health Reimbursement Accounts HRA's is/are correct? -
ANS-HRA's are established by the employer
Which of the following statements is true about Basic Hospital, Medical, and Surgical
Expense Policies? - ANS-They usually have a stated limit for specific expenses.
Which of the following plans used with High Deductible Health Plans is employee
owned? - ANS-Health Savings Accounts (HSAs)
6. Which of the following service providers allows for a primary care physician as well as
out-of-network care? - ANS-Point of Service Plan (POS)
Which of the following is true about coinsurance? - ANS-It helps control overutilization
of benefits.
In a Basic Surgical policy, which of the following pays per point? - ANS-Relative Value
The type of health care provider that provides both the health care services and the
health care financing is a: - ANS-Health Maintenance Organization
Which of the following non-insurance entities are NOT involved with self-insured plans?
- ANS-Actuaries
Which of the following policies would cover a student pilot taking flying lessons? - ANS-
Special Risk
, An applicant for insurance may pay the initial premium and receive a document from the
agent indicating that if the policy is issued as requested coverage begins on the date of
the documents. What is this document called? - ANS-Conditional receipt
How does a basic medical plan avoid small claims and keep the cost of premiums
down? - ANS-by imposing benefit limits
A limited risk policy will pay for dread diseases
: - ANS-such as cancer
Stagmite purchases a major medical policy with a $100 annual deductible, 80/20 co-
insurance and a maximum out-of-pocket of $5000. If Stagmite were to incur covered
expenses of $10,100, how much would Stag be out of pocket? - ANS-$2100
Which statement most accurately describes a unilateral contract? - ANS-Only one party
is legally bound to the contract.
Which of the following is an example of a Risk Retention Group (RRG)? - ANS-Dentists
A person covered under a service provider is called: - ANS-the client
Which type of authority is given to the agent specifically through a contract with an
insurance company? - ANS-Expressed
The company transferring the risk to another company is called the: - ANS-The ceding
company
Andy the agent was fired by the general agent three months ago for conduct
"unbecoming". Andy's general agent later was known to accept business that Andy had
written after having been fired. - ANS-One of these policy holders died before the policy
was issued but had paid the required premium. Assuming the applicant had been
insurable at standard rates, the company would pay because of:
Apparent authority
All of the following are unique elements of an insurance contract except? - ANS-
Consideration
A company transfers a risk. The company assuming the risk is: - ANS-The re-insurer
All of the following statements describe risk avoidance, EXCEPT: - ANS-Pat pays his
insurance premium.
Another name for a home service company is: - ANS-debit
