Definitions

Question 1

Modified endowment contract (MEC)

Answer 1

excessive first years premiums to pay-up future benefits in seven years.

Question 2

Medicare free look period Length?

Answer 2

30 days

Question 3

Family maintenance

Answer 3

monthly income for set time then lump sum

Question 4

COBRA allows continued coverage for max of ____ months

Answer 4

36

Question 5

Universal Life policy

Answer 5

Flexible premium, renewable TERM INSURANCE and a cash value account PREMIUMS, INTEREST DEPOSITED INTO CASH VALUE ACCOUNT

Question 6

Florida Affordable health care act established to

Answer 6

provide group health insurance to employers with up to 50 employees

Question 7

Medicare Part A

Answer 7

hospitalization

Question 8

Medicare Part B

Answer 8

physician services, medical services, and supplies

Question 9

Medicare Part C

Answer 9

managed care plans

Question 10

Medicare Part D

Answer 10

Drugs

Question 11

Aleatory

Answer 11

The possibility of Unequal value exchange ex: insured pays 500 and dies Insurer pays 50,000

Question 12

Survivorship

Answer 12

both covered die then the beneficiary gets paid

Question 13

Grace period for monthly premium health

Answer 13

10 days

Question 14

Modified whole life

Answer 14

Premiums slightly larger than term insurance for first few years, then goes up

Question 15

maximum number of employees an employer can have to start a SIMPLE retirement plan?

Answer 15

100

Question 16

Automatic Premium Loan Option is not a what

Answer 16

NONFORFEITURE OPTION

Question 17

Entire contract provision

Answer 17

application and policy contain all provision

Question 18

is dismemberment covered by social security

Answer 18

NO

Question 19

What rider has a payable portion of the policies face amount if nsured suffers from a terminal i l l n e s s or injury.

Answer 19

Accelerated benefit rider

Question 20

Adjustable life insurance

Answer 20

Adjustable premiums, amounts and time (term/whole life combo)

Question 21

Risk classification

Answer 21

An underwriters assessment of an applicant

Question 22

Variable annuities are regulated by what 2 entities

Answer 22

DOFS & SEC

Question 23

Are tax sheltered annuities RECEIVED tax free?

Answer 23

(for nonprofit organizations)TSA income is not tax free. Contributions are tax differed

Question 24

Groups of Doctors contract with insurance companies at prearranged cost

Answer 24

Preffered Provider Organization PPO

Question 25

Min grace period for HMO plans

Answer 25

10 days

Question 26

Health Reimbursement Arrangements (HRA) reimbursements are received tax free if the employee

Answer 26

pays for qualified medical expenses

Question 27

Level Premiums ___________ Then level off

Answer 27

Charge more than what is needed in the earlier years

Question 28

A Return of premium life policy is a whole life policy with a _______ term rider

Answer 28

Increasing

Question 29

How is The Life and Health Insurance Guaranty Association that pays claims if an insurance company becomes insolvent funded

Answer 29

By assessments from admitted insurance companies