2-40 Health and Accident Insurance State Exam Prep Latest Questions and Correct Answers Graded A+ A CEO's Personal assistant suffered injuries at home and as a result, was unable to work for four months. Which type of policy will pay a monthly benefit to the personal
assistant? - Correct Answer: Disability Income
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 the application. How will the insurer handle this claim? - Correct Answer: Claim will be paid and coverage will remain in force
A Disability Income policyowner suffers a disability which was due to the same cause as a previous disability. Both disabilities occurred within a five-month period. The insurer may cover the second disability without a new elimination period under the -
Correct Answer: Recurrent Disability provision
A license may be denied, suspended, or revoked if the licensee - Correct Answer: is found guilty of misrepresentation
A long-term care lapse notice must be delivered to both the applicant and - Correct
Answer: secondary addressee
A mutual insurance company and a stock insurance company have one main difference between them. What is the Major contrast? - Correct Answer: Stock company is owned by its shareholders.Mutual company is owned by its policyholders.
A prepaid application for individual Disability Income insurance was recently submitted to an insurer. When the insurer received the Medical Information Bureau (MIB) report, the report showed that the applicant had suffered a stroke 18 months ago, something that was not disclosed on the application. Which of the following actions would the
insurance company NOT take? - Correct Answer: Send a notice to the MIB that the
applicant was denied
A stock life insurance company that issues both participating and nonparticipating
policies is doing business on - Correct Answer: a mixed plan
According to Florida Law, in which of the following situations would a dependent handicapped child NOT be covered under a Family Health policy? - Correct Answer: The premiums for the handicapped child are not paid
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According to Florida law, when must an agent deliver the Outline of Coverage to a
Medicare Supplement applicant? - Correct Answer: At the time of application
According to the Time Payment of Claims provision, the insurer must pay Disability Income benefits no less frequently than which of the following options? - Correct
Answer: Monthly
Agents that have been licensed for less than six years must complete __ hours of
continuing education every two years. - Correct Answer: 24
All of the following will result in suspension of an agents' license EXCEPT - Correct
Answer: acting with fiduciary responsibility
All of these are prerequisite for becoming a licensed agent EXCEPT - Correct Answer: Graduate from high school
An agent selling Medicare Supplement policies must provide every applicant with a(n) -
Correct Answer: Suitability form
An assignment of benefits of a Health Policy - Correct Answer: transfers payments to someone other than the policyowner
An individual Disability Income insurance applicant may be required to submit all of the
following information EXCEPT - Correct Answer: spouse's occupation
An insured covered by Accidental Death and Dismemberment (AD&D) insurance has just died. What will happen if the primary beneficiary had already died before the insured and the contingent beneficiary? - Correct Answer: Proceeds will go to the contingent beneficiary
As a condition for a bank loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of? - Correct Answer: Coercion
Deformation occurs when an agent makes a false statement intended to - Correct
Answer: Malign another insurer
Disability policies do NOT normally pay for disabilities arising from which of the
following? - Correct Answer: War
During the course of an insurance transaction, if an agent makes a false or incomplete
statement, he/she could be found guilty of - Correct Answer: Misrepresentation
Employers with less than __ employees are affected by Florida's Health Insurance
Coverage Continuation Act (Mini COBRA). - Correct Answer: 20
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