FLORIDA LIFE AND HEALTH FINAL EXAM
Questions and Answers
1. Which Unfair Trade Practice involves making a false statement
on an insur- ance application in order to receive money from an
insurer?: Misrepresentation
2. Who owns a stock company?: A stock insurance company is owned by its
stockholders.
3. In Florida, which of the following is considered an Unfair Trade
Practice?: Co- ercion
4. Which of these options can an individual use their medical flexible
spending account to pay for?: Prescription drugs are an allowable expense when paid for by a
medical flexible spending account.
5. Which of the following features of a group Term Life policy
enables an indi- vidual to leave the group and continue his or her
insurance without providing evidence of insurability?: The conversion privilege allows
an individual to leave the group term plan and continue his or her insurance without providing
evidence of insurability.
6. An example of false advertising would be: An insurer exaggerating its dividends
,in a magazine advertisement
7. Q purchases a $500,000 life insurance policy and pays $900 in
premiums over the first six months. Q dies suddenly and the beneficiary
is paid $500,000. This exchange of unequal values reflects which of the
following insurance contract features?: Aleatory.
Insurance contracts are aleatory in that the amount the insured will pay in premiums is unequal to the
amount that the insurer will pay in the event of a loss.
8. An example of an unfair trade practice is: Making a material misrepresentation to
an insured is
considered to be an unfair trade practice.
9. How would a contingent beneficiary receive the policy proceeds in
an Acci- dental Death and Dismemberment (AD&D) policy?: A contingent
beneficiary will receive the policy proceeds if the primary beneficiary dies before the insured's
death.
10. Which of these terms accurately defines an underwriter's
assessment of information on a life insurance application?: Risk
classification.
Underwriting, another term for risk selection, is the process of reviewing the many characteristics that make
up the risk profile of an applicant to determine if the applicant is insurable and, if so, at standard or
substandard rates.
,11. T applies for a life insurance policy and is told by the producer
that the
insurer is bound to the coverage as of the date of the application or
medical examination, whichever is later. Assuming that T is an
acceptable risk, what
item is given to T?: Conditional receipt.
A conditional receipt binds the insurer to coverage as of the date of the application or medical exam,
provided the proposed insured is determined to be an acceptable risk.
12. What is required in the Florida Employee Health Care Access Act?:
Small group
benefit plans are to be issued on a "guarantee-issue" basis
13. P and Q are married and have three children. P is the primary
beneficiary on Q's Accidental Death and Dismemberment (AD&D)
policy and Q's sister R is the contingent beneficiary. P, Q, and R are
involved in a car accident and Q and R are killed instantly. The
Accidental Death benefits will be paid to: P.
In this situation, benefits will be paid to P because P survived the accident and is the primary beneficiary.
14. The health insurance program which is administered by each
state and funded by both the federal and state governments is called:
Medicaid- is funded by both the federal and state governments and administered by
, individual states.
15. Which of the following BEST describes a short-term medical
expense policy?-
: Nonrenewable.
A typical short-term medical expense policy is best described as nonrenewable.
16. Which of the following statements about noncontributory
employee group life insurance is FALSE?: A minimum number of employees is required
to participate". Noncontributory employee group life insurance plans must cover ALL eligible
employees at all times
17. 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?: 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.
18. S takes out a health insurance policy which contains a provision
that states
that the agent does not have the authority to change the policy or
waive any of its provisions. Which health policy provision is this?: Entire
Contract.
Questions and Answers
1. Which Unfair Trade Practice involves making a false statement
on an insur- ance application in order to receive money from an
insurer?: Misrepresentation
2. Who owns a stock company?: A stock insurance company is owned by its
stockholders.
3. In Florida, which of the following is considered an Unfair Trade
Practice?: Co- ercion
4. Which of these options can an individual use their medical flexible
spending account to pay for?: Prescription drugs are an allowable expense when paid for by a
medical flexible spending account.
5. Which of the following features of a group Term Life policy
enables an indi- vidual to leave the group and continue his or her
insurance without providing evidence of insurability?: The conversion privilege allows
an individual to leave the group term plan and continue his or her insurance without providing
evidence of insurability.
6. An example of false advertising would be: An insurer exaggerating its dividends
,in a magazine advertisement
7. Q purchases a $500,000 life insurance policy and pays $900 in
premiums over the first six months. Q dies suddenly and the beneficiary
is paid $500,000. This exchange of unequal values reflects which of the
following insurance contract features?: Aleatory.
Insurance contracts are aleatory in that the amount the insured will pay in premiums is unequal to the
amount that the insurer will pay in the event of a loss.
8. An example of an unfair trade practice is: Making a material misrepresentation to
an insured is
considered to be an unfair trade practice.
9. How would a contingent beneficiary receive the policy proceeds in
an Acci- dental Death and Dismemberment (AD&D) policy?: A contingent
beneficiary will receive the policy proceeds if the primary beneficiary dies before the insured's
death.
10. Which of these terms accurately defines an underwriter's
assessment of information on a life insurance application?: Risk
classification.
Underwriting, another term for risk selection, is the process of reviewing the many characteristics that make
up the risk profile of an applicant to determine if the applicant is insurable and, if so, at standard or
substandard rates.
,11. T applies for a life insurance policy and is told by the producer
that the
insurer is bound to the coverage as of the date of the application or
medical examination, whichever is later. Assuming that T is an
acceptable risk, what
item is given to T?: Conditional receipt.
A conditional receipt binds the insurer to coverage as of the date of the application or medical exam,
provided the proposed insured is determined to be an acceptable risk.
12. What is required in the Florida Employee Health Care Access Act?:
Small group
benefit plans are to be issued on a "guarantee-issue" basis
13. P and Q are married and have three children. P is the primary
beneficiary on Q's Accidental Death and Dismemberment (AD&D)
policy and Q's sister R is the contingent beneficiary. P, Q, and R are
involved in a car accident and Q and R are killed instantly. The
Accidental Death benefits will be paid to: P.
In this situation, benefits will be paid to P because P survived the accident and is the primary beneficiary.
14. The health insurance program which is administered by each
state and funded by both the federal and state governments is called:
Medicaid- is funded by both the federal and state governments and administered by
, individual states.
15. Which of the following BEST describes a short-term medical
expense policy?-
: Nonrenewable.
A typical short-term medical expense policy is best described as nonrenewable.
16. Which of the following statements about noncontributory
employee group life insurance is FALSE?: A minimum number of employees is required
to participate". Noncontributory employee group life insurance plans must cover ALL eligible
employees at all times
17. 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?: 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.
18. S takes out a health insurance policy which contains a provision
that states
that the agent does not have the authority to change the policy or
waive any of its provisions. Which health policy provision is this?: Entire
Contract.
