1|Page
FL Contractor’s Manual – 300 Questions and
Correct Answers with Rationales/ Florida
Contractor’s Manual Exam Latest Test bank
A conditionally renewable policy allows an insurer to
terminate the coverage, but only in the event of one or
more conditions stated in the contract. These conditions
cannot apply to the insured's health. Most frequently, they
are related to the insured reaching a certain age or losing
gainful employment. - ...ANSWER...✓✓ Beth's health
insurance policy contains a provision that allows her to
renew coverage up to age 65.However, the policy also
states that should Beth lose her job, the insurance
company will cancel the policy, regardless of Beth's age.
In terms of renewability, what type of policy does Beth
have?
A. cancelable
B. optionally renewable
C. guaranteed renewable
D. conditionally renewable
B. Roger's coverage began when he received the
insurability receipt.
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The insurability type of conditional receipt provides that
when an applicant pays the initial premium, coverage is
effective- on the condition that the applicant proves to be
insurable- either on the date the application was signed,
or the date of the medical examination, if one is required.
- ...ANSWER...✓✓ On August 1, Roger completed an
application for a major medical policy, gave his agent a
check for the initial premium, and received an insurability
receipt from the agent. No medical examination was
required. On August 3, the agent submitted Roger's
application and premium to the insurance company. On
August 6, Roger was involved in an accident and admitted
to a hospital. On August 12, the agent received Roger's
policy from the insurance company. Which of the
following statements concerning this situation is
CORRECT?
A. Roger's coverage will begin when he receives the
policy from the agent.
B. Roger's coverage began when he received the
insurability receipt.
C. Roger's coverage began when the insurance company
received the application and premium from the agent.
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D. Roger's coverage began the day the agent sent the
application and premium to the insurance company.
A. preventative care
HMOs stress preventative care to reduce the number of
unnecessary hospital admissions and duplication of
services. - ...ANSWER...✓✓ Health maintenance
Organizations are known for stressing the provision of
A. preventative care
B. health care and services on a fee-for-service rendered
basis
C. health care and services in hospital settings
D. health care and services to government employees
B. PPOs operate on a prepaid basis
Unlike HMOs, preferred provider organizations usually
operatize on a fee-for-service-rendered basis, not on a
prepaid basis. - ...ANSWER...✓✓ All of the following
statements are true of preferred provider organizations
EXCEPT
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A. a PPO is as group of health care providers, such as
doctors, hospitals, and ambulatory health care
organizations, that contract with a group to provide their
services
B. PPOs operate on a prepaid basis
C. PPO members select from among the preferred
providers for needed services
D. groups that contract with PPOs are employers,
insurance companies, or other health insurance benefits
providers
A. welfare benefits
Social Security provides death benefits, old-age or
retirement benefits, and disability benefits to eligible
workers. Social Security is an entitlement program, not a
welfare program. - ...ANSWER...✓✓ All of the following
benefits are available under Social Security EXCEPT
A. welfare benefits
B. death benefits
C. old-age retirement benefits
FL Contractor’s Manual – 300 Questions and
Correct Answers with Rationales/ Florida
Contractor’s Manual Exam Latest Test bank
A conditionally renewable policy allows an insurer to
terminate the coverage, but only in the event of one or
more conditions stated in the contract. These conditions
cannot apply to the insured's health. Most frequently, they
are related to the insured reaching a certain age or losing
gainful employment. - ...ANSWER...✓✓ Beth's health
insurance policy contains a provision that allows her to
renew coverage up to age 65.However, the policy also
states that should Beth lose her job, the insurance
company will cancel the policy, regardless of Beth's age.
In terms of renewability, what type of policy does Beth
have?
A. cancelable
B. optionally renewable
C. guaranteed renewable
D. conditionally renewable
B. Roger's coverage began when he received the
insurability receipt.
,2|Page
The insurability type of conditional receipt provides that
when an applicant pays the initial premium, coverage is
effective- on the condition that the applicant proves to be
insurable- either on the date the application was signed,
or the date of the medical examination, if one is required.
- ...ANSWER...✓✓ On August 1, Roger completed an
application for a major medical policy, gave his agent a
check for the initial premium, and received an insurability
receipt from the agent. No medical examination was
required. On August 3, the agent submitted Roger's
application and premium to the insurance company. On
August 6, Roger was involved in an accident and admitted
to a hospital. On August 12, the agent received Roger's
policy from the insurance company. Which of the
following statements concerning this situation is
CORRECT?
A. Roger's coverage will begin when he receives the
policy from the agent.
B. Roger's coverage began when he received the
insurability receipt.
C. Roger's coverage began when the insurance company
received the application and premium from the agent.
,3|Page
D. Roger's coverage began the day the agent sent the
application and premium to the insurance company.
A. preventative care
HMOs stress preventative care to reduce the number of
unnecessary hospital admissions and duplication of
services. - ...ANSWER...✓✓ Health maintenance
Organizations are known for stressing the provision of
A. preventative care
B. health care and services on a fee-for-service rendered
basis
C. health care and services in hospital settings
D. health care and services to government employees
B. PPOs operate on a prepaid basis
Unlike HMOs, preferred provider organizations usually
operatize on a fee-for-service-rendered basis, not on a
prepaid basis. - ...ANSWER...✓✓ All of the following
statements are true of preferred provider organizations
EXCEPT
, 4|Page
A. a PPO is as group of health care providers, such as
doctors, hospitals, and ambulatory health care
organizations, that contract with a group to provide their
services
B. PPOs operate on a prepaid basis
C. PPO members select from among the preferred
providers for needed services
D. groups that contract with PPOs are employers,
insurance companies, or other health insurance benefits
providers
A. welfare benefits
Social Security provides death benefits, old-age or
retirement benefits, and disability benefits to eligible
workers. Social Security is an entitlement program, not a
welfare program. - ...ANSWER...✓✓ All of the following
benefits are available under Social Security EXCEPT
A. welfare benefits
B. death benefits
C. old-age retirement benefits
