Certificate Final Exam Prep Flashcards
Insurance agents must maintain records of the information collected from senior consumers used in making annuity recommendations for at least how many years after the insurance transaction is completed?
5 years
Is including nonguaranteed elements in a policy illustration an unfair trade practice?
No
How are disability income benefits taxed if premiums are paid by the employer?
Premiums are tax-deductible
Benefits are taxed as ordinary income
How are disability income benefits taxed if premiums are paid by the employee?
Premiums are paid with after-tax dollars so they are not tax-deductible
Benefits are tax-free
If an insured misstated his age on an application for health insurance, the insurance company has the right to
Adjust the benefit
Anyone who commits an unfair trade practice with regard to HMOs can be fined as much as
$200,000
An insurer that ceases use of a particular policy form must offer policyholders
Assistance in finding alternative coverage
A securities license is required to sell what kinds of annuities?
Variable annuities
Under the Time of Payment of Claims provision, health insurance claims must be paid
Within 60 days
If an insured who is covered by a double indemnity accidental death rider gets injured in an accident but dies 120 days later, what will the beneficiary receive?
Why?
The face amount
Typically the death must occur within 90 days of the accident after which the death benefit reverts to the face amount
In Florida, what is the required free-look period in individual long-term care policies?
30 days
A policyholder can file a lawsuit for nonpayment of claims if it has not been paid within
60 days
If a physician does not accept assignment, the maximum amount the physician can charge a Medicare beneficiary for a covered service is known as the
Limiting charge
In order to sign up for Medicare Part D, Prescription Drug Coverage, the insured must be enrolled in which of the following?
Medicare Part A or in Parts A and B
After being in force for 5 years, a life insurance policy was classified as a Modified Endowment Contract. When will the policy lose this classification?
Never
Withdrawing funds from a traditional IRA prior to age 59 ½/ incurs an additional tax of
10%
Florida’s Department of Financial Services is responsible for all of the following
EXCEPT
A. Depositing fines and penalties in a state insurance fund
B. Issuing cease and desist orders
C. Issuing or revoking licenses
D. Holding hearings regarding insurance matters
A. Depositing fines and penalties in a state insurance fund
It does collect fines and penalties but does not deposit them in a state insurance fund
The replacing insurer must send a Comparative Information Form to applicants who request one within how many days of receiving the application?
10 days
In Florida, written notice of a claim under a health insurance policy must be delivered within how many days of the loss?
20 days
What is a primary difference between an HMO and a traditional insurance company?
The HMO provides both the financing and patient care for its members, while traditional companies provide the financing only
What is the purpose of Medigap policies?
To cover expenses for Medicare deductibles and coinsurance
What mandatory health provision states the specified number of days given to an insured to return the completed claim forms to the insurance company?
Proof of Loss
What are the four factors the ACA allows to determine premium rates?
- Age
- Tobacco use
- Geographic area
- Family composition
Under the waiver of premium provision, how long are premiums waived for a permanent and total disability?
For the duration of the disability
