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FLORIDA 240 LICENSE EXAM
QUESTIONS WITH VERIF IED
CORRECT ANSWERS
Question: A medical expense policy that establishes the
amount of benefit paid based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor of similar training and experience in that geographic area is known as
Correct answer: Usual, customary and reasonable
Question: What provision would prevent an insurance
company from paying a reimbursement claim to someone other than the policyowner?
Correct answer: Payment of Claims
Question: All of the following are true about group
disability Income insurance EXCEPT
a) The longer the waiting period, the lower the premium.
b) Coverage applies both on and off the job.
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c) Benefits are usually short term.
d) The waiting period starts at the onset of the injury or
sickness.
Correct answer: Coverage applies both on and off the job.
Question: Which of the following statements regarding
Business Overhead Expense policies is NOT true?
a) Premiums paid for BOE are tax-deductible.
b) Any benefits received are taxable to the business.
c) Leased equipment expenses are covered by the plan.
d) Benefits are usually limited to six months,
Correct answer: Benefits are usually limited to six months
Question: In long-term care insurance, what type of care
is provided with intermediate care?
Correct answer: Occasional nursing or rehabilitative care
Question: After a person's employment is terminated, it is
possible to obtain individual health insurance after losing
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the group health coverage provided by the employer.Which of the following is NOT true?
a) The employee can convert from group to individual
insurance within 31 days of termination.
b) The premium of the individual health insurance policy
can be higher than the original policy.
c) By law, the new, individual policy must provide the
same benefits as the group insurance policy.
d) Continuation of group coverage need not include
dental, vision, or prescription drug benefits.
Correct answer: By law, the new, individual policy must
provide the same benefits as the group insurance policy.
Question: An insured has endured multiple surgeries and
hospitalizations for an illness during the last few months.Her insurer no longer bills her for medical expenses.Which of the following allows for that?
a) Waiver of premium
b) Maximum loss
c) Stop-loss limit
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d) Grace period
Correct answer: Stop-loss limit
Question: L has a major medical policy with a $500
deductible and 80/20 coinsurance. L is hospitalized and sustains a $2,500 loss. What is the maximum amount that L will have to pay?
Correct answer: $900 L would first pay the $500
deductible; out of the remaining $2,000, the insurer will pay 80% ($1,600) and the insured will pay 20% ($400).
Question: Which of the following entities has the
authority to make changes to an insurance policy?