Florida Health, Life & Annuity End of Course
Exam 1 Questions and Answers(A+ Grade)
Who is employee group life insurance designed to benefit?
Select one:
a. Employer only
b. Employee and employer
c. Employee only
d. Employee or employer - ANSWER-Employee life insurance insures the lives of a
group of individual employees of an employer for the benefit of persons other than the
employer, under a group policy issued to the employer.
The correct answer is: Employee only
All of the following are true about the probationary clause on a health policy, EXCEPT:
Select one:
a. Accidents are covered immediately
b. Sicknesses are not covered until the probationary period has expired
c. The probationary clause is one of the 12 mandatory clauses
d. The probationary clause will be found in the insuring clause - ANSWER-The
probationary clause is usually added to limit or modify a contract to protect against pre-
existing conditions.
The correct answer is: The probationary clause is one of the 12 mandatory clauses
All of the following programs quell the fear that some people have of losing their
investment if they were to die after only receiving a few payments from their annuity,
EXCEPT:
Select one:
a. Life with period certain
b. Installment refund
c. Period certain
d. Deferred annuity - ANSWER-Minimum guaranteed payouts are benefits of the life,
refund and temporary annuities. The deferred annuity postpones benefits until a later,
specified date, such as a retirement date.
The correct answer is: Deferred annuity
The Fair Credit Reporting Act states that generally, consumer reports cannot contain
the following information, EXCEPT:
,Select one:
a. Adverse information about an individual that dates back over seven years
b. Tax liens older than seven years
c. An individual's character
d. An individual's criminal history - ANSWER-Consumer reports are reports about the
characteristics of an individual, including the individual's general character and
reputation, employment history, living arrangements, and credit worthiness.
The correct answer is: An individual's character
Which of the following is not an assignment whereby someone would transfer legal
rights as the policy owner of a life contract?
Select one:
a. Collateral, partial, conditional assignment
b. Total, complete, unconditional assignment
c. Beneficiaries' assignment
d. Absolute, voluntary, complete assignment - ANSWER-A total, complete,
unconditional assignment does not exist in the insurance world.
The correct answer is: Total, complete, unconditional assignment
Medicare Advantage plans are a type of Medicare health plan offered by:
Select one:
a. The state government
b. A private company with no government intervention
c. A private company that contracts with Medicare
d. Medicare that contracts with a private company - ANSWER-Medicare Advantage
plans are a type of Medicare health plan offered by a private company that contracts
with Medicare to provide all the Part A and Part B benefits.
The correct answer is: A private company that contracts with Medicare
Steve bought a 20-year, $200,000 decreasing term policy in 2001 and a $500,000
whole life policy. Steve died in 2006. What were the total benefits payable to his
beneficiary?
Select one:
a. $700,000
b. $650,000
c. $500,000
d. $200,000 - ANSWER-Because he died after 5 years, the policy death benefit was
worth $150,000. His whole life policy paid the full face value of $500,000 upon his
death. The total paid to his beneficiary was $650,000.
,The correct answer is: $650,000
Which of the following is not true about the accelerated benefit rider?
Select one:
a. The insured must have a terminal illness to receive the benefit.
b. Confinement in a nursing home sometimes suffices for payments to be made.
c. The benefit is not subject to tax.
d. Provides a monthly check when you become disabled. - ANSWER-The Accelerated
benefit rider does not provide a monthly check when the insured becomes disabled.
The correct answer is: Provides a monthly check when you become disabled.
What Florida statute ensures coverage for employees of small businesses not covered
by COBRA 1985?
Select one:
a. Flori-COBRA
b. Mini-COBRA
c. Small Business-COBRA
d. VIPER - ANSWER-The purpose of the Florida Health Insurance Coverage
Continuation Act (Mini-COBRA) is to ensure coverage for employees of small
businesses not covered by COBRA 1985.
The correct answer is: Mini-COBRA
Which of the following is not an example of a plausible third party ownership situation?
Select one:
a. A husband who owns a policy on his wife
b. A corporation that owns the policy of an officer of the corporation.
c. A woman that owns a policy on an ex-boyfriend
d. A parent who is the owner of a policy on their child - ANSWER-A woman owning a
policy on an ex-boyfriend would not be allowed, and consequently not be an example of
a third party ownership situation.
The correct answer is: A woman that owns a policy on an ex-boyfriend
HMO contracts must provide coverage for newborn children of a family member from
the moment of birth for at least:
Select one:
a. 1 month
b. 3 months
c. 9 months
d. 18 months - ANSWER-HMO contracts that provide coverage for a family member of
the insured must also provide coverage for the insured's newborn children from the
, moment of birth. Coverage must be also be provided for the newborn child of a covered
family member (such as the newborn of a daughter) for 18 months after the birth.
The correct answer is: 18 months
If a company fails to respond to a request for reinstatement, the policy will automatically
reinstate in how many days?
Select one:
a. 10 days
b. 30 days
c. 45 days
d. 60 days - ANSWER-The uniform code will force a reinstatement if the company fails
to act in 45 days. If the company requests additional information, that extends the
period.
The correct answer is: 45 days
Most group contracts contain which of the following major provisions?
Select one:
a. Coverage amounts and effective date of coverage
b. Beneficiaries and settlement options
c. Conversion privilege and 31 day continuation coverage
d. All of the above - ANSWER-A typical group plan has provisions, selected by the
employer, that specify coverage amounts, effective date of coverage, beneficiaries,
settlement options, conversion privilege and 31 day continuation of coverage options.
The correct answer is: All of the above
Which of the following is required in order for Mr. Johnson to be eligible for Medicaid?
Select one:
a. He must sell his home.
b. He must not have any income.
c. He must not have any personal property.
d. None of the above - ANSWER-In order to qualify for Medicaid, Mr. Johnson does not
need to sell his home. He can have a small amount of income and can have personal
property within certain limits.
The correct answer is: None of the above
Florida Healthy Kids provides health insurance to children who are eligible for
assistance under:
Select one:
a. Florida's poverty definition
