HEALTH INSURANCE FLORIDA 2-40 PRACTICE EXAM
QUESTIONS 1
Which of the following laws requires an insurer to notify an applicant in writing that an
investigative consumer report may be made on the applicant?
-Uniform Provisions Law.
-Freedom of Information Act.
-Medical Information Bureau Disclosure Act
-Fair Credit Reporting Act (Insurance Information and Privacy Protection Act) - Answer
-Fair Credit Reporting Act (Insurance Information and Privacy Protection Act)
Group health insurance specifies that what percentage of eligible individuals MUST be
offered coverage under a noncontributory plan?
-25
-50
-75
-100 - Answer -100
Under an Accidental Death and Dismemberment (AD&D) policy, insurable interest must
exist at which of the following times?
-When a change of beneficiary is requested
-At the inception of the policy
-When a beneficiary other than a relative is named
-At the time a claim is submitted - Answer -At the inception of the policy
When periodic claim payments are required under a long-term disability income policy,
an insurer MUST make payments to an insured at least once every:
-month
-three months
-six months
-year - Answer -month
M and N own a small interior design studio that employs six people. The owners are
concerned about the financial continuation of the business if either of them should
become permanently disabled. In this situation, a producer would MOST likely
recommend which of the following types of contracts?
-Basic Hospital
-Disability Buy-Out
-Comprehensive Major Medical
-Short-Term Disability Income - Answer -Disability Buy-Out
The Social Security program provides all of the following benefits EXCEPT:
-Retirement
-survivor
-disability
, -workers compensation - Answer -workers compensation
Which of the following definitions MOST accurately describes the Probationary Period?
-The period of time from the date of the loss until the benefits begin
-The period of time from the date of the loss until benefits are actually received by the
policyowner
-The waiting period a new hire must satisfy prior to becoming eligible for group health
coverage
-The period of time once a claim is received by the insurance company before it pays
benefits to the policyowner - Answer -The waiting period a new hire must satisfy prior to
becoming eligible for group health coverage
Under a group health plan, an employer may offer additional benefits to classes of
employees on the basis of all of the following factors EXCEPT:
-length of employment
-gender
-salary grade
-job category - Answer -gender
An insured becomes disabled three years after his Disability Income policy is issued.
The disability is caused by a condition that existed prior to the policy issue date but was
not specifically excluded from coverage. In this situation, the insurer will most likely take
which of the following actions?
-Pay the full claim
-Pay the claim for a maximum of six months only
-Deny the claim on the basis of misrepresentation
-Deny the claim because it involves a pre-existing condition - Answer -Pay the full claim
On June 1, S purchased a Major Medical policy and paid the initial premium to Producer
T. On July 1, Producer T received the policy from the insurance company. The policy
contained a Ten-Day Free Look provision. On July 3, Producer T attempted to deliver
the policy but found that S was not at home. On July 5, Producer T was able to deliver
the policy to S. On July 7, S decided he did not want the policy. S had 10 days from
which of the following dates to return the policy to the company and obtain a full
premium refund?
-July 1
-July 3
-July 5
-July 7 - Answer -July 5
Five years ago, at age forty-five, X stated that he was forty years old on a disability
income insurance application. X now submits a claim and the insurer discovers X's true
age. The insurer will most likely take which of the following actions?
-Deny the claim due to material misrepresentation on the application
-Pay the claim as filed because the policy becomes incontestable after two years
-Pay the claim and cancel the policy
QUESTIONS 1
Which of the following laws requires an insurer to notify an applicant in writing that an
investigative consumer report may be made on the applicant?
-Uniform Provisions Law.
-Freedom of Information Act.
-Medical Information Bureau Disclosure Act
-Fair Credit Reporting Act (Insurance Information and Privacy Protection Act) - Answer
-Fair Credit Reporting Act (Insurance Information and Privacy Protection Act)
Group health insurance specifies that what percentage of eligible individuals MUST be
offered coverage under a noncontributory plan?
-25
-50
-75
-100 - Answer -100
Under an Accidental Death and Dismemberment (AD&D) policy, insurable interest must
exist at which of the following times?
-When a change of beneficiary is requested
-At the inception of the policy
-When a beneficiary other than a relative is named
-At the time a claim is submitted - Answer -At the inception of the policy
When periodic claim payments are required under a long-term disability income policy,
an insurer MUST make payments to an insured at least once every:
-month
-three months
-six months
-year - Answer -month
M and N own a small interior design studio that employs six people. The owners are
concerned about the financial continuation of the business if either of them should
become permanently disabled. In this situation, a producer would MOST likely
recommend which of the following types of contracts?
-Basic Hospital
-Disability Buy-Out
-Comprehensive Major Medical
-Short-Term Disability Income - Answer -Disability Buy-Out
The Social Security program provides all of the following benefits EXCEPT:
-Retirement
-survivor
-disability
, -workers compensation - Answer -workers compensation
Which of the following definitions MOST accurately describes the Probationary Period?
-The period of time from the date of the loss until the benefits begin
-The period of time from the date of the loss until benefits are actually received by the
policyowner
-The waiting period a new hire must satisfy prior to becoming eligible for group health
coverage
-The period of time once a claim is received by the insurance company before it pays
benefits to the policyowner - Answer -The waiting period a new hire must satisfy prior to
becoming eligible for group health coverage
Under a group health plan, an employer may offer additional benefits to classes of
employees on the basis of all of the following factors EXCEPT:
-length of employment
-gender
-salary grade
-job category - Answer -gender
An insured becomes disabled three years after his Disability Income policy is issued.
The disability is caused by a condition that existed prior to the policy issue date but was
not specifically excluded from coverage. In this situation, the insurer will most likely take
which of the following actions?
-Pay the full claim
-Pay the claim for a maximum of six months only
-Deny the claim on the basis of misrepresentation
-Deny the claim because it involves a pre-existing condition - Answer -Pay the full claim
On June 1, S purchased a Major Medical policy and paid the initial premium to Producer
T. On July 1, Producer T received the policy from the insurance company. The policy
contained a Ten-Day Free Look provision. On July 3, Producer T attempted to deliver
the policy but found that S was not at home. On July 5, Producer T was able to deliver
the policy to S. On July 7, S decided he did not want the policy. S had 10 days from
which of the following dates to return the policy to the company and obtain a full
premium refund?
-July 1
-July 3
-July 5
-July 7 - Answer -July 5
Five years ago, at age forty-five, X stated that he was forty years old on a disability
income insurance application. X now submits a claim and the insurer discovers X's true
age. The insurer will most likely take which of the following actions?
-Deny the claim due to material misrepresentation on the application
-Pay the claim as filed because the policy becomes incontestable after two years
-Pay the claim and cancel the policy
