A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of the policy's face value.?
answer
Viatical settlement provider.
(To receive a percentage of the policy face value, an owner of a life policy may sell the policy to a viatical settlement provider.)
question
Agents that have been licensed for less than six years must complete __ hours of continuing education every two years.?
answer
24.
(Florida agents licensed less than six years are required to complete 24 hours of continuing education.)
question
T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert?
answer
To an individual policy upon employment termination.
(When an employee covered on a Group Life policy leaves the group, the conversion privilege gives the employee the right to convert to an individual policy upon termination of employment.
question
Which of the following activities will NOT result in the suspension of an agent's license?
answer
Working for a foreign insurer.
(Working for a foreign insurance company does not result in the revocation or suspension of an agent's license.)
question
In Florida, which of the following practitioners normally do NOT receive payment from health insurance policies?
answer
Naturopaths.
(Health insurance policies in Florida must cover payment to all of these practitioners EXCEPT naturopaths.)
question
An example of sliding would be?
answer
Charging for an additional product without the applicant's consent".
(Sliding involves selling additional coverage to an insurance applicant who doesn't want or need it. An agent will often "slide" this additional coverage in without the customer's knowledge or consent.)
question
Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy?
answer
Limitation on pre-existing conditions for up to 12 months.
(There is only a 6-month limitation on pre-existing conditions for Medicare Supplements.)
question
Which of the following situations are NOT subject to Florida life insurance laws?
answer
Insurance companies' day-to-day operations .
( Florida life insurance laws apply to all of these situations EXCEPT "Insurance companies' day-to-day operations".)
question
The Bureau of Unclaimed Property is overseen by the
Chief Financial Officer
answer
The Chief Financial Officer oversees the Bureau of Unclaimed Property.
question
An example of unfair discrimination would be?
answer
Offering different terms of coverage for different policyowners having the same risk classification.
(Providing different terms of coverage for different policyowners in the same risk classification would be an example of unfair discrimination.)
question
A foreign insurance company doing business in Florida?
answer
Is a company that was formed under the laws of another state.
(In Florida, a foreign insurance company is a company that is formed under the laws of a state other than Florida.)
question
An agent selling Medicare Supplement policies must provide every applicant with a(n)?
answer
Suitability form.
(Every agent soliciting Medicare Supplements must provide a suitability form.)
question
A person insured under a health policy is required to give the insurance company a Notice of Claim within how many days after a covered loss?
answer
Twenty.
(Written notice of a claim must be given to the insurer within 20 days.)
question
What do families pay that are covered by the Florida Healthy Kids Corporation?
answer
A portion of the premium.
(Families with children covered by the Florida Healthy Kids Corporation program pay only a portion of the premium.)
question
How many hours of continuing education must a newly licensed agent complete every two years?
answer
24 HRS
(A newly licensed agent must complete 24 hours of continuing education every 2 years.)
question
An insurance company incorporated under the laws of the state in which its home office is located is called a(n) ____ company.?
answer
Domestic.
(A domestic insurance company is domiciled and incorporated under the laws of the state in which its home office is located.)
question
When is a Group Health policy required to provide coverage for a newborn child?
answer
At the moment of birth.
(A Group Health policy is required to provide coverage for a newborn child at the moment of birth).
question
A Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits?
answer
Insurance.
(A Multiple Employer Welfare Arrangement (MEWA) provides insurance benefits.)
question
What is the required minimum percentage of employee participation for a noncontributory group health insurance plan according to Florida Law?
answer
0%
(Most noncontributory group health plans require 100% participation by eligible members. Under Florida law, there is no specific minimum percentage participation for employees covered by employee group health insurance.)
question
What are adjustable rates for life policy loans in Florida based on?
answer
Moody's corporate bond index.
(Adjustable rates for life insurance policy loans in Florida are based on Moody's corporate bond index.)
question
In Florida, most life insurance policies have a contestability period of?
answer
2 years.
(The maximum contestability period for most life insurance policies is 2 years.)
question
An example of an unfair trade practice is?
answer
An agent making a material misrepresentation to the insured.
(Making a material misrepresentation to an insured is considered to be an unfair trade practice.)
question
K is an agent who made an improper sale of an annuity to a client. Which of the following corrective actions would the Department of Financial Services likely order K to take?
answer
Pay monetary restitution to the client.
(The Department of Financial Services may order the agent to pay monetary restitution to the client.)
question
Which of the following situations does NOT apply to the Florida Replacement Rule?
answer
An existing policyholder purchases an additional policy from the same insurer.
(Florida's Replacement Rule applies to all of these situations EXCEPT "An existing policyholder purchases an additional policy from the same insurer".)
question
Which two entities regulate variable annuities?
answer
Department of Financial Services; and Securities Exchange Commission.
(Variable annuities are regulated by both the Department of Financial Services and the Securities Exchange Commission.)
question
According to Florida's life insurance replacement laws, a policyowner must be provided with a written Comparison and Summary Statement when it's requested by?
answer
The policyowner.
(The replacement of existing life insurance policies with new contracts of life insurance requires a written Comparison and Summary Statement at the policyowner's request.
question
All of the following are Nonforfeiture Options EXCEPT?
answer
Automatic Premium Loan Option.
(An automatic premium loan is not considered a Nonforfeiture Option.)
question
Group Life policies in Florida are required to contain a conversion privilege that allows for conversion?
answer
To an individual policy for a stated period of time.
(In Florida, Group Life policies must contain a conversion privilege that allows for conversion to an individual policy for a specified period of time.)
question
In Florida, monthly-premium health insurance policies must provide a grace period of at least?
answer
10 days.
(In Florida, monthly-premium health insurance policies must provide a grace period of at least 10 days.)
question
T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert?
answer
To an individual policy upon employment Termination.
(When an employee covered on a Group Life policy leaves the group, the conversion privilege gives the employee the right to convert to an individual policy upon termination of employment.)
question
Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy?
answer
Limitation on pre-existing conditions for up to 12 months.
(There is only a 6-month limitation on pre-existing conditions for Medicare Supplements).
question
What do families pay that are covered by the Florida Healthy Kids Corporation?
answer
A portion of the premium.
(Families with children covered by the Florida Healthy Kids Corporation program pay only a portion of the premium.)
question
When replacing or exchanging an annuity, the agent must disclose to the annuitant?
answer
The possible tax ramifications as a result of the transaction.
(An agent must disclose the possible tax consequences of replacing or exchanging an existing annuity or life insurance policy.)
question
What is Florida's definition of Life insurance replacement?
answer
A transaction in which a new policy is bought and an old policy is terminated
( Florida's Replacement Rule defines replacement of Life insurance as a transaction in which a new policy is bought and an old policy is discontinued.)
question
An agent's license can be suspended or revoked by?
answer
"writing primarily controlled business".
An agent's license can be suspended or revoked by writing primarily controlled business.
question
Which two entities regulate variable annuities?
answer
"Department of Financial Services; and Securities Exchange Commission".
Variable annuities are regulated by both the Department of Financial Services and the Securities Exchange Commission.
question
In Florida, a health policy that is paid on a quarterly basis requires a grace period of?
.
answer
31 days
Florida law requires that the minimum grace period on a health insurance policy paid on a quarterly basis is 31 days.
question
W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the company discovered W's true age at issue had been 59. What would the normal procedure be under the misstatement of age provision in regard to the payment of the death claim?
answer
The proceeds would be reduced based on whatever the premium would have been if purchased at age 59.
( In this situation, the proceeds will be reduced based on whatever the premium would have been if purchased at age 59.)
question
Which of the following is NOT required in the Outline of Coverage for a health insurance policy?
answer
Projection of the policy's future costs
A table indicating the policy's projected future costs is not required in an Outline of Coverage.
question
If a policyowner does not pay the premium by the due date, the?
answer
Policyowner can make the premium payment during the grace period.
(If a policyowner does not pay the premium by the due date, the premium may be paid during the grace period.)
question
Which of the following employees may NOT be excluded from a group life plan?
answer
Full-time employees after the probationary period.
(All of these employees may be excluded from a group life plan except for "Full time employees after the probationary period").
question
If a policyowner does not pay the premium by the due date, the?
answer
Policyowner can make the premium payment during the grace period.
(If a policyowner does not pay the premium by the due date, the premium may be paid during the grace period).
question
Which of the following employees may NOT be excluded from a group life plan?
.
answer
Full-time employees after the probationary period.
(All of these employees may be excluded from a group life plan except for "Full time employees after the probationary period")
question
In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey, is called a(n)?
answer
Foreign company.
(An insurance company that is domiciled in New Jersey and licensed to conduct business in Florida is referred to in Florida as a foreign company.
question
Florida's 14-day free-look period for life insurance policies begins at the?.
answer
Date of delivery.
(In Florida, the free-look period for life insurance contracts is 14 days from policy delivery.
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