FLORIDA 240 HEALTH INSURANCE PRACTICE EXAM
BBX Insurers terminated Henry's appointment as its life insurance agent on December
1. How long will Henry remain eligible to be appointed as a life insurance agent by
another insurer? - Answer -48 months
Agent Holly routinely charges her clients an extra amount in addition to the premium
stated in the life insurance policy to cover her own personal administrative expenses.
What is true about Holly's actions? - Answer -They are unlawful.
Zelda, a producer selling health insurance, assures a prospective applicant that the
insurance company she represents is backed by the protections of the Florida Life and
Health Insurance Guaranty Association. What is true about this kind of assurance? -
Answer -It is prohibited at all times.
Which party makes the only enforceable promise in an insurance contract? - Answer -
insurance company
What type of organization is a non-profit entity that operates on the lodge system, has
no capital stock, and sells insurance mainly to its members? - Answer -fraternal benefit
society
What are the responsibilities of the Office of Insurance Regulation and the Department
of Financial Services? - Answer -issuing rules and regulations to administer the
insurance laws
Jeremy has had an individual health insurance policy for many years because of his
family's history of cancer. The tendency of someone like Jeremy to buy and maintain
insurance is known as: - Answer -adverse selection
An insurer must notify its current customers of its privacy policies or practices at least
once every how often? - Answer -12 months
Which of the following statements about health savings accounts (HSAs) is correct? -
Answer -Contributions to an HSA grow on a tax-deferred basis.
Long Life Insurance Company is incorporated in Georgia but transacts insurance in
Florida. Which type of insurer is Long Life considered in Florida? - Answer -foreign
In which case is the amount payable for a covered service based on the amount that is
typical for the area in which the service is performed? - Answer -when coverage is paid
on a usual and customary or usual, customary, and reasonable (UCR) basis
Which of the following is NOT required in order to operate as an HMO in Florida? -
Answer -license of certification
, Which statement about flexible spending accounts (FSAs) is NOT correct? - Answer -
Employees can use the FSA funds to pay qualified medical costs as well as costs their
employer's health plan covers.
Eric fails to pay the annual premium on his major medical insurance policy. The grace
period provision allows him to pay the premium within how many days after the due
date? - Answer -31 days
Which expenses are NOT eligible for reimbursement from a flexible spending account
(FSA)? - Answer -elective cosmetic surgery and visits to non-licensed medical
practitioners
If the insured suffers a disabling injury five days after buying a disability income policy
with a 15-day probationary period, which of the following statements is correct? -
Answer -The policy will cover the loss.
Ed is totally disabled from an accident and is now eligible for Social Security disability
benefits. When will benefit payments begin? - Answer -after five months
After an injury, Larry files a claim under his disability income insurance policy. When
does Larry's elimination period end? - Answer -The elimination period ends on the date
the insurer begins paying benefits.
Which statement about business overhead expense policies is correct? - Answer -
Benefits are taxable income to the business.
Acme Insurance Company wants to employ Anthony as an agent. To do so, what must
Acme must do? - Answer -file an appointment application with the Department of
Financial Services
An insurable risk is not: - Answer -catastrophic
Conrad obtained a life insurance agent's license primarily to write insurance for his
family members and friends. Which unfair trade practice has Conrad engaged in? -
Answer -controlled business
Warren filed a claim on his health insurance policy that he bought four years ago. In
investigating the claim, however, the insurer discovered that Warren had misstated
information about preexisting conditions on the original application. What can the
insurer do? - Answer -The insurer cannot contest the policy and must pay the claim.
Larry has health insurance coverage with Company A and Company B. He has not
notified either insurer of the duplicate coverage. If Larry has a claim, what recourse do
these insurers have under the Other Insurance with Other Insurer provision? - Answer -
One of the insurers can prorate the amount of benefit it will pay for an expense-covered
BBX Insurers terminated Henry's appointment as its life insurance agent on December
1. How long will Henry remain eligible to be appointed as a life insurance agent by
another insurer? - Answer -48 months
Agent Holly routinely charges her clients an extra amount in addition to the premium
stated in the life insurance policy to cover her own personal administrative expenses.
What is true about Holly's actions? - Answer -They are unlawful.
Zelda, a producer selling health insurance, assures a prospective applicant that the
insurance company she represents is backed by the protections of the Florida Life and
Health Insurance Guaranty Association. What is true about this kind of assurance? -
Answer -It is prohibited at all times.
Which party makes the only enforceable promise in an insurance contract? - Answer -
insurance company
What type of organization is a non-profit entity that operates on the lodge system, has
no capital stock, and sells insurance mainly to its members? - Answer -fraternal benefit
society
What are the responsibilities of the Office of Insurance Regulation and the Department
of Financial Services? - Answer -issuing rules and regulations to administer the
insurance laws
Jeremy has had an individual health insurance policy for many years because of his
family's history of cancer. The tendency of someone like Jeremy to buy and maintain
insurance is known as: - Answer -adverse selection
An insurer must notify its current customers of its privacy policies or practices at least
once every how often? - Answer -12 months
Which of the following statements about health savings accounts (HSAs) is correct? -
Answer -Contributions to an HSA grow on a tax-deferred basis.
Long Life Insurance Company is incorporated in Georgia but transacts insurance in
Florida. Which type of insurer is Long Life considered in Florida? - Answer -foreign
In which case is the amount payable for a covered service based on the amount that is
typical for the area in which the service is performed? - Answer -when coverage is paid
on a usual and customary or usual, customary, and reasonable (UCR) basis
Which of the following is NOT required in order to operate as an HMO in Florida? -
Answer -license of certification
, Which statement about flexible spending accounts (FSAs) is NOT correct? - Answer -
Employees can use the FSA funds to pay qualified medical costs as well as costs their
employer's health plan covers.
Eric fails to pay the annual premium on his major medical insurance policy. The grace
period provision allows him to pay the premium within how many days after the due
date? - Answer -31 days
Which expenses are NOT eligible for reimbursement from a flexible spending account
(FSA)? - Answer -elective cosmetic surgery and visits to non-licensed medical
practitioners
If the insured suffers a disabling injury five days after buying a disability income policy
with a 15-day probationary period, which of the following statements is correct? -
Answer -The policy will cover the loss.
Ed is totally disabled from an accident and is now eligible for Social Security disability
benefits. When will benefit payments begin? - Answer -after five months
After an injury, Larry files a claim under his disability income insurance policy. When
does Larry's elimination period end? - Answer -The elimination period ends on the date
the insurer begins paying benefits.
Which statement about business overhead expense policies is correct? - Answer -
Benefits are taxable income to the business.
Acme Insurance Company wants to employ Anthony as an agent. To do so, what must
Acme must do? - Answer -file an appointment application with the Department of
Financial Services
An insurable risk is not: - Answer -catastrophic
Conrad obtained a life insurance agent's license primarily to write insurance for his
family members and friends. Which unfair trade practice has Conrad engaged in? -
Answer -controlled business
Warren filed a claim on his health insurance policy that he bought four years ago. In
investigating the claim, however, the insurer discovered that Warren had misstated
information about preexisting conditions on the original application. What can the
insurer do? - Answer -The insurer cannot contest the policy and must pay the claim.
Larry has health insurance coverage with Company A and Company B. He has not
notified either insurer of the duplicate coverage. If Larry has a claim, what recourse do
these insurers have under the Other Insurance with Other Insurer provision? - Answer -
One of the insurers can prorate the amount of benefit it will pay for an expense-covered
