Chapter 8 (Health) – Flashcards
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The Bureau of Unclaimed Property is overseen by the
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Chief Financial Officer
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The Life and Health Insurance Guaranty Association is
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funded by admitted insurance companies through assessments
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Which action could result in a hearing being ordered by the Department of Financial Services?
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Performing insurance transactions without a license
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Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent
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only if the child is incapable of employment and chiefly dependent on the policyowner
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Which of the following is an example of an Unfair Trade Practice?
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Coercion
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An example of rebating would be
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offering a client something of value not stated in the contract in exchange for their business
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An example of an unfair claims practice would be
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failing to effectuate prompt, fair, and equitable settlements of a claim
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Which type of insurance company allows their policyowners to elect a governing body?
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Mutual
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Which of the following is considered to be misrepresentation?
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An agent guaranteeing a policy's dividends
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An example of false advertising would be
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An insurer exaggerating its dividends in a magazine advertisement
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Convincing a prospective insured to buy an insurance policy based on exaggerations is called
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misrepresentation
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How can an agent-in-charge have more than one location?
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Only if the agent-in-charge is present when insurance activity occurs
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In Florida, an insurer domiciled and incorporated in this state is called a(n)
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domestic company
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Agents that have been licensed for less than six years must complete __ hours of continuing education every two years.
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24
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Employers with less than __ employees are affected by Florida's Health Insurance Coverage Continuation Act (Mini COBRA).
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20
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In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey, is called a(n)
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foreign company
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In order for a domestic, foreign, or alien insurance company to conduct business, it must be authorized by whom?
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The state where they are conducting business
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In Florida, deceptive advertising is considered to be
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a form of misrepresentation
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If an agent would like to sell Variable annuities, which state examination must the agent pass?
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Life and Variable contracts
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According to Florida law, an additional lapse notice must be issued after the standard grace period has expired for policyowners age
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64 years or older
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Which of the following provisions is NOT required in HMO contracts/certificates?
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Seven-day grace period
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Who does an agent represent during the solicitation of insurance?
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The insurance company
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Which of the following is considered an accurate statement of an unfair trade practice?
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Twisting involves an agent using misrepresentation to convince a policyowner to cancel their current policy so that they can purchase a new life insurance policy with another company
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Which of the following is NOT an unfair claim settlement practice?
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Needing written documentation of claim details
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According to Florida law, a Group Life insurance policy requires a minimum of how many insureds?
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No minimum
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All of these are a prerequisite for becoming a licensed agent EXCEPT
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Graduate from High School
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An applicant who pays the initial premium at the time of application is typically given a(n)
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conditional receipt
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Which of the following situations are NOT subject to Florida life insurance laws?
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Insurance companies' day-to-day operations
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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?
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Pay monetary restitution to the client
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A licensed agent must be appointed by an insurance company to solicit insurance in Florida. The agent's license will terminate if a certain period of time elapses without being appointed. How long is this period of time?
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48 months
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According to Florida law, which of the following statements accurately describes an admitted mail order insurance company?
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It may solicit insurance business by mail without the assistance of a licensed agent
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The minimum age at which a person can sign a life insurance application is 15 years
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15 years
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According to Florida law, which of the following information does NOT need to be obtained by an agent recommending an annuity purchase?
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Marital status
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What are adjustable rates for life policy loans in Florida based on?
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Moody's corporate bond index
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What is the required minimum percentage of employee participation for a noncontributory group health insurance plan according to Florida Law?
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0%
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A Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits?
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Insurance
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A mutual insurance company and a stock insurance company have one main difference between them. What is this major contrast?
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Stock company is owned by its shareholders. Mutual company is owned by its policyholders.
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An agent selling Medicare Supplement policies must provide every applicant with a(n)
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Suitability form
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A variable life insurance agent must be licensed and appointed as a life and variable contract agent, as well as a(n)
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broker dealer
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Under Florida law, a variable annuity policyowner must be notified of the accumulated value of the contract
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once each year
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Which of the following is NOT required in the Outline of Coverage for a health insurance policy?
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Projection of the policy's future costs
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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?
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20
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When is a Group Health policy required to provide coverage for a newborn child?
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At the moment of birth
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Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund?
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30
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Nonprofit life insurance providers that are covered by a special section in the Florida insurance code are called
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Fraternal life insurance organizations
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According to Florida law, group life insurance conversion privileges must NOT
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require evidence of insurability
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An example of an unfair trade practice is
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an agent making a material misrepresentation to the insured
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Within how many days must a licensee notify the Department of Financial Services of a change in address?
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30
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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
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the policyowner
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In Florida, what is the maximum percentage of controlled business an agent may produce?
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50%
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In Florida, a health policy that is paid on a quarterly basis requires a grace period of
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31 DAYS
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Which of the following documents must an agent submit to the replacing insurance company during the replacement of an existing life insurance policy?
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Notice to existing and replacing insurers of intention to replace
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Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy?
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Limitation on pre-existing conditions for up to 12 months
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What do families pay that are covered by the Florida Healthy Kids Corporation?
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A portion of the premium
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During the course of an insurance transaction, if an agent makes a false or incomplete statement, he/she could be found guilty of
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misrepresentation
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The Florida Employee Health Care Access Act was established to make
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group health insurance available to employers with up to 50 employees
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Florida's 14-day free-look period for life insurance policies begins at the
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date of delivery
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Defamation occurs when an agent makes a false statement intended to
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malign another insurer
