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Question 1

What is the grace period required in Florida for life insurance policies?

Answer 1

At least 30 days

Question 2

What must an insurer obtain before performing an HIV test?

Answer 2

Written consent from the applicant

Question 3

What is a nonforfeiture option in a whole life policy?

Answer 3

Extended Term, Reduced Paid-Up, or Cash Surrender

Question 4

What is the purpose of the spendthrift clause?

Answer 4

Protects death benefits from creditors and prevents reckless spending by the beneficiary

Question 5

When must a ‘Notice Regarding Replacement’ be provided?

Answer 5

When replacing an existing life insurance policy

Question 6

What is the penalty for willful violation of Florida insurance laws?

Answer 6

Up to $25,000 per violation

Question 7

How many employees are needed to qualify for a group health policy in Florida?

Answer 7

At least 2 employees

Question 8

Who owns a mutual insurance company?

Answer 8

The policyholders

Question 9

What is a key feature of a guaranteed renewable policy?

Answer 9

Insurer must renew; can increase premiums by class

Question 10

What rider allows purchase of more insurance without proof of insurability?

Answer 10

Guaranteed Insurability Rider

Question 11

What is the free-look period for Medicare Supplement policies?

Answer 11

30 days

Question 12

What type of insurer is owned by its shareholders?

Answer 12

Stock insurer

Question 13

What is the minimum age to qualify for Medicare without a disability?

Answer 13

65 years old

Question 14

What is twisting in insurance?

Answer 14

Misrepresentation that induces replacement of another insurer’s policy

Question 15

What is sliding?

Answer 15

Including additional products or charges without proper disclosure

Question 16

What does the incontestability clause do?

Answer 16

Prevents insurer from voiding policy after 2 years (except fraud)

Question 17

What are the two main parts of a life insurance contract?

Answer 17

The application and the policy

Question 18

What does a waiver of premium rider do?

Answer 18

Waives premium payments if the insured becomes disabled

Question 19

What is the purpose of the consideration clause?

Answer 19

Specifies value exchanged by insurer and policyowner

Question 20

What is the waiting period in disability insurance?

Answer 20

Time before benefits begin (also called elimination period)

Question 21

What does Part A of Medicare cover?

Answer 21

Hospital insurance

Question 22

What does Part B of Medicare cover?

Answer 22

Medical insurance (doctor visits, outpatient care)

Question 23

What type of annuity provides payments for the life of the annuitant only?

Answer 23

Straight life annuity

Question 24

What is the primary purpose of an annuity?

Answer 24

To provide income during retirement

Question 25

What is the reinstatement provision?

Answer 25

Allows a lapsed policy to be reactivated within a certain time frame

Question 26

What law governs federal COBRA continuation coverage?

Answer 26

Federal (COBRA Act)

Question 27

What law governs mini-COBRA continuation coverage?

Answer 27

State laws (varies by state)

Question 28

What law governs HIPAA continuation coverage?

Answer 28

Federal (HIPAA law)

Question 29

What is the minimum employer size for COBRA to apply?

Answer 29

20 or more employees

Question 30

What is the employer size typically covered by mini-COBRA?

Answer 30

Under 20 employees

Question 31

Does HIPAA continuation apply to all employer sizes?

Answer 31

Yes, any size employer

Question 32

Who is eligible for COBRA?

Answer 32

Employees, spouses, and dependents

Question 33

Who qualifies for HIPAA continuation?

Answer 33

Individuals with prior group coverage

Question 34

What type of coverage do COBRA and mini-COBRA provide?

Answer 34

Health insurance only

Question 35

What triggers COBRA continuation?

Answer 35

Termination, reduced hours, divorce, death, aging out

Question 36

How long can COBRA coverage last?

Answer 36

18–36 months (29 if disabled)

Question 37

What is the typical duration of mini-COBRA coverage?

Answer 37

Up to 12 months (varies by state)

Question 38

How much can be charged for COBRA coverage?

Answer 38

102% of the group premium

Question 39

Are preexisting conditions covered under HIPAA continuation?

Answer 39

Yes, with no exclusions

Question 40

Is COBRA coverage identical to the original group plan?

Answer 40

Yes

Question 41

What is the maximum interest rate allowed on life insurance policy loans in Florida?

Answer 41

0.1

Question 42

Who is considered the owner in a third-party life insurance contract?

Answer 42

The person who buys and controls the policy (not the insured)

Question 43

What is an insurable interest?

Answer 43

A financial or emotional relationship that justifies owning insurance on someone else

Question 44

What is the purpose of the insuring clause?

Answer 44

States the insurer’s promise to pay and summarizes the coverage

Question 45

What does the entire contract clause include?

Answer 45

The policy, application, and any attached riders

Question 46

What is rebating?

Answer 46

Offering anything of value to induce the purchase of insurance

Question 47

When must insurable interest exist for a life insurance contract to be valid?

Answer 47

At the time of application

Question 48

What is a key feature of universal life insurance?

Answer 48

Flexible premiums and adjustable death benefit

Question 49

What does the suicide clause do?

Answer 49

Denies death benefit if suicide occurs within the first 2 years

Question 50

What is a renewable term policy?

Answer 50

Term policy that can be renewed without proof of insurability

Question 51

What is the main benefit of group life insurance?

Answer 51

Coverage without medical underwriting for members

Question 52

What is credit life insurance?

Answer 52

Covers a borrower's loan balance if they die

Question 53

What is the primary purpose of disability income insurance?

Answer 53

To replace lost income due to disability

Question 54

What is a conditional receipt?

Answer 54

Temporary coverage begins if applicant is insurable and premium is paid

Question 55

What does COBRA provide?

Answer 55

Continuation of group health coverage after employment ends