Final Exam - Florida Life and Health Latest
solution 2024-2025 WITH QUESTIONS AND
ANSWERS WITH RATIONALES GRADED
A
Which Unfair Trade Practice involves making a false statement on an
insurance application in order to receive money from an insurer? -
CORRECT ANSWER>>Misrepresentation
Who owns a stock company? - CORRECT ANSWER>>A stock insurance
company is owned by its stockholders.
In Florida, which of the following is considered an Unfair Trade Practice? -
CORRECT ANSWER>>Coercion
Which of these options can an individual use their medical flexible spending
account to pay for? - CORRECT ANSWER>>Prescription drugs are an
allowable expense when paid for by a medical flexible spending account.
Which of the following features of a group Term Life policy enables an
individual to leave the group and continue his or her insurance without
providing evidence of insurability? - CORRECT ANSWER>>The
,conversion privilege allows an individual to leave the group term plan and
continue his or her insurance without providing evidence of insurability.
An example of false advertising would be - CORRECT ANSWER>>An
insurer exaggerating its dividends in a magazine advertisement
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? - CORRECT ANSWER>>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.
An example of an unfair trade practice is - CORRECT ANSWER>>Making
a material misrepresentation to an insured is considered to be an unfair
trade practice.
How would a contingent beneficiary receive the policy proceeds in an
Accidental Death and Dismemberment (AD&D) policy? - CORRECT
ANSWER>>A contingent beneficiary will receive the policy proceeds if the
primary beneficiary dies before the insured's death.
Which of these terms accurately defines an underwriter's assessment of
information on a life insurance application? - CORRECT ANSWER>>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.
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? - CORRECT ANSWER>>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.
What is required in the Florida Employee Health Care Access Act? -
CORRECT ANSWER>>Small group benefit plans are to be issued on a
"guarantee-issue" basis
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 - CORRECT ANSWER>>P.
In this situation, benefits will be paid to P because P survived the accident
and is the primary beneficiary.
The health insurance program which is administered by each state and
funded by both the federal and state governments is called - CORRECT
ANSWER>>Medicaid- is funded by both the federal and state governments
and administered by individual states.
Which of the following BEST describes a short-term medical expense
policy? - CORRECT ANSWER>>Nonrenewable.
A typical short-term medical expense policy is best described as
nonrenewable.
Which of the following statements about noncontributory employee group
life insurance is FALSE? - CORRECT ANSWER>>A minimum number of
employees is required to participate". Noncontributory employee group life
insurance plans must cover ALL eligible employees at all times
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? - CORRECT ANSWER>>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.
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? - CORRECT
ANSWER>>Entire Contract.
The Entire Contract provision states that the agent does NOT have the
authority to change the policy or waive any of its provisions.
What type of life insurance gives the greatest amount of coverage for a
limited period of time? - CORRECT ANSWER>>Term life.
Level Term or Level-Premium: Level term life insurance provides the
insured with coverage for a specified period of time; the term may be one,
five, 10, 20 years or longer. The premium is calculated based on the age
and health of the insured.
Periodic health claim payments MUST be made at least - CORRECT
ANSWER>>monthly.
Under an individual health policy, periodic claim payments must be made at
least monthly.
Many small business owners worry how their business would survive
financially if the owner becomes disabled. The policy which BEST
addresses this concern is - CORRECT ANSWER>>Business Overhead
Expense.
solution 2024-2025 WITH QUESTIONS AND
ANSWERS WITH RATIONALES GRADED
A
Which Unfair Trade Practice involves making a false statement on an
insurance application in order to receive money from an insurer? -
CORRECT ANSWER>>Misrepresentation
Who owns a stock company? - CORRECT ANSWER>>A stock insurance
company is owned by its stockholders.
In Florida, which of the following is considered an Unfair Trade Practice? -
CORRECT ANSWER>>Coercion
Which of these options can an individual use their medical flexible spending
account to pay for? - CORRECT ANSWER>>Prescription drugs are an
allowable expense when paid for by a medical flexible spending account.
Which of the following features of a group Term Life policy enables an
individual to leave the group and continue his or her insurance without
providing evidence of insurability? - CORRECT ANSWER>>The
,conversion privilege allows an individual to leave the group term plan and
continue his or her insurance without providing evidence of insurability.
An example of false advertising would be - CORRECT ANSWER>>An
insurer exaggerating its dividends in a magazine advertisement
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? - CORRECT ANSWER>>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.
An example of an unfair trade practice is - CORRECT ANSWER>>Making
a material misrepresentation to an insured is considered to be an unfair
trade practice.
How would a contingent beneficiary receive the policy proceeds in an
Accidental Death and Dismemberment (AD&D) policy? - CORRECT
ANSWER>>A contingent beneficiary will receive the policy proceeds if the
primary beneficiary dies before the insured's death.
Which of these terms accurately defines an underwriter's assessment of
information on a life insurance application? - CORRECT ANSWER>>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.
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? - CORRECT ANSWER>>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.
What is required in the Florida Employee Health Care Access Act? -
CORRECT ANSWER>>Small group benefit plans are to be issued on a
"guarantee-issue" basis
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 - CORRECT ANSWER>>P.
In this situation, benefits will be paid to P because P survived the accident
and is the primary beneficiary.
The health insurance program which is administered by each state and
funded by both the federal and state governments is called - CORRECT
ANSWER>>Medicaid- is funded by both the federal and state governments
and administered by individual states.
Which of the following BEST describes a short-term medical expense
policy? - CORRECT ANSWER>>Nonrenewable.
A typical short-term medical expense policy is best described as
nonrenewable.
Which of the following statements about noncontributory employee group
life insurance is FALSE? - CORRECT ANSWER>>A minimum number of
employees is required to participate". Noncontributory employee group life
insurance plans must cover ALL eligible employees at all times
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? - CORRECT ANSWER>>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.
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? - CORRECT
ANSWER>>Entire Contract.
The Entire Contract provision states that the agent does NOT have the
authority to change the policy or waive any of its provisions.
What type of life insurance gives the greatest amount of coverage for a
limited period of time? - CORRECT ANSWER>>Term life.
Level Term or Level-Premium: Level term life insurance provides the
insured with coverage for a specified period of time; the term may be one,
five, 10, 20 years or longer. The premium is calculated based on the age
and health of the insured.
Periodic health claim payments MUST be made at least - CORRECT
ANSWER>>monthly.
Under an individual health policy, periodic claim payments must be made at
least monthly.
Many small business owners worry how their business would survive
financially if the owner becomes disabled. The policy which BEST
addresses this concern is - CORRECT ANSWER>>Business Overhead
Expense.
