Florida 2-15 Insurance License Exam Study Questions And Answers Verified 100% Correct

Florida 2-15 Insurance License Exam Study Questions And Answers Verified 100% Correct According to Florida's Standard Valuation Law, the __________________ is mandatory. - ANSWER legal reserve Equity indexed annuities are a form of: - ANSWER fixed rate annuity. Of the following, who would most likely pay a lower premium amount? - ANSWER A preferred risk client The Statute of Limitations states that if a lawsuit is to be filed, it must be brought within ______ years after Proof of Loss is furnished to the insurance company. - ANSWER five Which type of life insurance is sold by home service insurers? - ANSWER Industrial life insurance Social Security provides welfare benefits to all citizens. - ANSWER FALSE In general, the standard life insurance Incontestable Clause means that a policy is incontestable after: - ANSWER two years. A medical expense policy states that it will pay a flat $200 a day for each day of hospitalization. The policy pays benefits on what basis? - ANSWER Indemnity Basic Medical Expense insurance limits coverage to specific types of medical care. - ANSWER TRUE A _____________ group involves combining several parties into a group for the purpose of obtaining insurance. - ANSWER fictitious The ____________________ Act mandated once and for all that insurance would be regulated by the states. - ANSWER McCarran-Ferguson The type of annuity that provides a guaranteed rate of return is called a variable annuity. - ANSWER FALSE Mathew purchased an annuity naming his wife, Cher, beneficiary. Upon Mathew's death, Cher will receive the proceeds: - ANSWER taxed as ordinary income above Mathew's cost basis. Policy reserves are the intangible amounts set aside by the _____________ out of the insurer's assets at the beginning of the policy period. - ANSWER insurer SIMPLE plans can be structured as an IRA or a 401(k). - ANSWER TRUE A complete examination of an HMO's affairs is conducted at least: - ANSWER once every five years. A portion of a mutual insurer's premiums are paid out as policy dividends and are considered: - ANSWER refunds COBRA provides health benefit extensions for ____________ after employment is terminated. - ANSWER 18 months Which of the following expenses would NOT be covered under a Business Overhead Expense policy? - ANSWER Owner's salary Complete this sentence: "Typically, the shorter the premium-paying period, the _________________." - ANSWER higher the premium. Florida statutes require licensees to notify the Department in writing within _____ days after a change of name, residence address, principal business street address, or mailing address. - ANSWER 60 Which of the following best describes the basic principal of group insurance? - ANSWER It provides coverage for a number of people under a single contract. Under the surgical schedule method of a basic medical expense plan, every procedure: - ANSWER is assigned a dollar amount by the insurer. Which of the following is an example of "churning?" - ANSWER Replacing a policy within the same company in a deceptive or misleading manner What is the Free Look Period for annuity contracts? - ANSWER 14 days Using preprinted material in a sales presentation is recommended because: - ANSWER such material generally has been reviewed for compliance. The Social Security payroll tax is known as ____________ tax. - ANSWER FICA What is the operating objective of a stock insurance company? - ANSWER To make a profit for its owners, the stockholders Most adjustable life policies are more expensive than conventional term policies or whole life policies. - ANSWER TRUE HMOs reimburse their insureds for covered medical expenses. - ANSWER FALSE An agreement that provides that upon a business owner's death, surviving owners will purchase the deceased's interest, often with funds from life insurance policies owned by each principal on the lives of all other principals is the: - ANSWER Buy-Sell plan. In Florida, which of the following groups are eligible for group life insurance? - ANSWER Typically, any type of legitimate group is eligible to purchase a group life insurance policy. In a guaranteed renewable health policy, the company may increase premiums: - ANSWER only for an entire class of insureds. Under the Uniform Provisions Law, which of the following provisions are optional for a health policy? - ANSWER Change of Occupation The person who has a health maintenance contract is referred to as the: - ANSWER subscriber In order to qualify for Medicaid benefits, applicants must be at least age ____, blind or disabled, and meet other eligibility requirements. - ANSWER 65 Under the Unfair Trade Practices Act, claim forms must be sent to the insured within _______ from the date a claim is reported. - ANSWER 15 DAYS A life insurance policy's cash value belongs to the insured. - ANSWER FALSE Agents should check with _________________ to determine if the insurer they are representing is a properly authorized insurer. - ANSWER the Department of Financial Services Supplemental Medical Insurance, Medicaid, and U.S. Armed Services and Veterans Insurance are all examples of what type of insurer? - ANSWER Government Insurers Section 1035 Exchanges are a way to move annuity funds: - ANSWER income tax free.