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Lesson 19 Quiz

The following quiz is provided for your information to help you measure your retention level on the material covered within this lesson. It is not graded. Only the final examination is graded.

Answer or complete each question to the best of your knowledge and click on the "Check your answer" button. If your answer is incorrect, you will be instructed where to find the correct answer. It is not necessary to repeat the quiz if you exit this page; however, your answers will not be saved once you exit. This feature is provided for future practice purposes.

1
Florida Insurance Regulation

a) Establishes and maintains the legal framework for state laws relating to insurance (the Insurance Code).
b) Oversees the insurance industry in accordance with the provisions of the Insurance Code.
c) Works in conjunction with the Department of Financial Services to oversee the insurance industry in accordance with the provisions of the Insurance Code.
d) Identifies and makes legal determinations involving cases of conflict between insurance companies and policyowners and enforces criminal penalties for violation of any directive of the Insurance Code.
a) The State Legislature

b) Department of Financial Services

c) Commissioner of the Office of Insurance Regulation

d) State Court System

(Lesson 19.1)
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2

Which of the following terms should not be used in such a way as to imply that the insurance agent is generally engaged in an advisory business in which compensation is unrelated to sales?

a) Financial planner
b) Investment adviser
c) Financial consultant
d) All of the above.
CORRECTTRY AGAIN (Lesson 19.1)
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3

Financial planners, consultants, and counselors are paid for providing , not selling .


Word bank: a specific product, advice

Financial planners, consultants, and counselors are paid for providing advice, not selling a specific product.

Lesson 19.1Check your answer

4

It is unlawful for agents to share commissions with anyone other than with agents who are also duly licensed in the same line.

a) True
b) False
CORRECTTRY AGAIN (Lesson 19.1)
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5

A violation of a cease and desist order by the Chief Financial Officer carries a fine of up to:

a) $50.
b) $500.
c) $5,000.
d) $50,000.
CORRECTTRY AGAIN (Lesson 19.1.2)
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6

The Insurance Code sets forth misdemeanor penalties for any individual who knowingly makes a false or otherwise fraudulent application for any license or who violates any provision of the Code.

a) True
b) False
CORRECTTRY AGAIN (Lesson 19.1.3)
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7

Insurance agents must keep records for at least _________ years if the transaction pertains to premium payments.

a) 10
b) 7
c) 5
d) 3
CORRECTTRY AGAIN (Lesson 19.1.3)
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8
Insurers

Possible consequences for acting as an insurer without proper licensure include which of the following?

a) Conviction on charges up to a first degree felony
b) Liability for all unpaid claims
c) Suspension or revocation of all insurance licenses
d) All of the above.
CORRECTTRY AGAIN (Lesson 19.2)
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9

Match the following with their respective definitions.

a) Spells out the terms that allow domestic insurers the right to invest a certain percentage of their total assets in loans or certain other investments.
b) Provides that a certain amount of money be set aside to fulfill future claims.
a) Leeway or Basket Provision

b) Legal Reserve Requirement

(Lesson 19.2)
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10

The only health benefit plan that preempts the Florida Insurance Code is the truly single-employer ERISA qualified plan that is 100% self-insured; only the employees and their dependents receive the benefits.

a) True
b) False
CORRECTTRY AGAIN (Lesson 19.2.1)
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11
Marketing Practices

Should a subject arise in which the agent is unskilled, the agent should:

a) refuse to deal with the client.
b) refer the client to another source.
c) gather as much information as possible and continue to service the client.
d) fake it.
CORRECTTRY AGAIN (Lesson 19.3.3)
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12

If a new policy is being written to replace an existing policy, the agent must explain why the policy is being replaced and how the replacement will be beneficial to the client.

a) True
b) False
CORRECTTRY AGAIN (Lesson 19.3.4)
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13

Florida law requires agents to ask every person solicited for insurance whether they are currently covered under any other contracts. Before an application is taken, agents are required to obtain a signed form from the applicant acknowledging that this information has been provided.

a) True
b) False
CORRECTTRY AGAIN (Lesson 19.3.4)
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14

Match the following with their respective definitions.

a) The practice by which policy values in an existing life insurance policy are used to purchase another policy with that same insurer without an objectively reasonable basis for believing that the new policy will result in an actual benefit to the policyowner.
b) Practice of inducing a policyowner with one company to lapse, forfeit or surrender a life insurance policy for the purpose of taking out a policy in another company.
a) Churning

b) Twisting

(Lesson 19.3.4)
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15

A soliciting agent must give the applicant a ___________ and disclose the free look allocation.

a) buyer's guide and policy summary
b) policy summary and financial plan
c) cost analysis
d) retirement income spreadsheet
CORRECTTRY AGAIN (Lesson 19.3.4)
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16

Florida law requires a day Free Look Period for life insurance (and annuity) policies. Medicare supplements and long-term care policies contain a day Free Look Period.


Word bank: 14, 30

Florida law requires a 14 day Free Look Period for life insurance (and annuity) policies. Medicare supplements and long-term care policies contain a 30 day Free Look Period.

(Lesson 19.3.4)Check your answer

17
Policy Clauses and Provisions

Under Florida law, group health insurers are required to offer which of the following coverages to the policyowner?

a) Alcoholism and drug dependency
b) Mental and nervous disorders
c) Chiropractic care
d) All of the above.
CORRECTTRY AGAIN (Lesson 19.5)
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18

Group health insurance policies are required to contain certain provisions. Match the following provisions with their corresponding timeframes.

a) Florida law prohibits individual health insurance policies, other than disability income, from excluding coverage for a preexisting condition for longer than _________, following the effective date of coverage for a condition that had manifested _________ prior to coverage.
b) Florida law allows insurance applicants _______ to inspect a policy that is delivered with the intent of issuing insurance coverage for the policyowner and if the policy is not issued, the applicant must be given a full refund.
c) A lapse notice must be sent to the policyowner at the end of a required grace period of _________.
d) If a secondary addressee is sent a lapse notice, the notice must inform the insured that he/she has an additional _______ in which to prevent the policy from lapse because of nonpayment.
e) Coverage for any newborn children of an individual who is covered under a health insurance policy must be provided immediately at birth. Coverage must also be provided for a period of at least ________.
a) 24 months, 24 months

b) 14 days

c) 30 days

d) 21 days

e) 18 months

Lesson 19.5
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19
Group Life Insurance

The conversion privilege under Florida's Mini-COBRA guidelines must take place within after termination of employment. COBRA guarantees the consumer's right to purchase group health insurance for generally up to without proof of insurability. Continuation of group health coverage must be offered to the member at a cost not to exceed of the regular group rate. If the employee is disabled at the time continuation coverage begins, coverage can be extended up to an additional at a cost of for each additional month.


Word bank: 11 months, 115%, 150%, 18 months, 31 days

The conversion privilege under Florida's Mini-COBRA guidelines must take place within 31 days after termination of employment. COBRA guarantees the consumer's right to purchase group health insurance for generally up to 18 months without proof of insurability. Continuation of group health coverage must be offered to the member at a cost not to exceed 115% of the regular group rate. If the employee is disabled at the time continuation coverage begins, coverage can be extended up to an additional 11 months at a cost of 150% for each additional month.

Lesson 19.7.2Check your answer

20

Conversion privileges afforded by COBRA pertain only to health insurance, not to group life insurance.

a) True
b) False
CORRECTTRY AGAIN (Lesson 19.7.2)
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21
Retirement Plans

a) A gradual percentage that increases by 20% each year beginning after 2 years of service until 100% vested after 6 years of service.
b) The employee must have 5 years of service before becoming vested, at which point the employee is 100% vested.
a) Graded Vesting

b) Cliff Vesting

(Lesson 19.9.1)
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22

Qualified retirement plans receive favorable tax treatment. Employer contributions are , the investment earnings are , and employer contributions are to employees until benefits are received.


Word bank: nontaxable, nontaxable, tax deductible

Qualified retirement plans receive favorable tax treatment. Employer contributions are tax deductible, the investment earnings are nontaxable, and employer contributions are nontaxable to employees until benefits are received.

(Lesson 19.9.2)Check your answer

23
Types of Health Plans

Match the following types of health plans with their respective descriptions.

a) Group insurance, stresses preventive medicine and early treatment. Physician services paid in advance, contracted physicians and treatment facilities.
b) Group insurance, discounted health care costs due to volume of participants.
c) Written agreement with providers for certain services for certain insureds.
d) Provider panel, limited health services; no coverage for inpatient, hospital surgical or emergency services.
a) HMO

b) PPO

c) EPO

d) PLHSO

Lesson 19.11
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24
Florida Employee Health Care Access Act

The Florida Employee Health Care Access Act identifies a full-time employee as one who works at least _____ hours per week.

a) 40
b) 35
c) 25
d) 20
CORRECTTRY AGAIN (Lesson 19.12)
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25

Modified Community Rating stipulates renewal cost changes cannot exceed _____ annually for health status.

a) 2%
b) 5%
c) 8%
d) 10%
CORRECT - CONGRATULATIONS on completing Lesson 19. Remember to familiarize yourself with the Key Concepts and take the Questions for Review in the Florida study manual Chapters 4, and 26-30.TRY AGAIN (Lesson 19.12.1)
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