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FLORIDA 240 LICENSE EXAM
QUESTIONS WITH VERIF IED
CORRECT ANSWERS
Question 1: Which of the following laws requires an
insurer to notify an applicant in writing that an investigative consumer report may be made on the applicant?
- Uniform Provisions Law
- Freedom of Information Act
- Medical Information Bureau Disclosure Act
- Fair Credit Reporting Act (Insurance Information and
Privacy Protection Act)
CORRECT ANSWER: Fair Credit Reporting Act
(Insurance Information and Privacy Protection Act)
Question 2: Group health insurance specifies that what
percentage of eligible individuals MUST be offered coverage under a noncontributory plan?
- 25
- 50
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- 75
- 100
CORRECT ANSWER: 100
Question 3: Under an Accidental Death and
Dismemberment (AD&D) policy, insurable interest must exist at which of the following times?
- When a change of beneficiary is requested
- At the inception of the policy
- When a beneficiary other than a relative is named
- At the time a claim is submitted
CORRECT ANSWER: At the inception of the policy
Question 4: When periodic claim payments are required
under a long-term disability income policy, an insurer
MUST make payments to an insured at least once every:
- month
- three months
- six months
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- year
CORRECT ANSWER: month
Question 5: M and N own a small interior design studio
that employs six people. The owners are concerned about the financial continuation of the business if either of them should become permanently disabled. In this situation, a producer would MOST likely recommend which of the following types of contracts?
- Basic Hospital
- Disability Buy-Out
- Comprehensive Major Medical
- Short-Term Disability Income
CORRECT ANSWER: Disability Buy-Out
Question 6: Which of the following health policies
requires a beneficiary designation?
- Travel Accident
- Medicare Supplement
- Blanket
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- Long Term Care
CORRECT ANSWER: Travel Accident
Question 7: Suicide, pre-existing conditions and self-
inflicted injuries are dealt with in which of the following policy features?
- Extensions of coverage
- Benefits clause
- Riders
- Exclusions
CORRECT ANSWER: Exclusions
Question 8: An insured whose Disability Income policy
contains a Change of Occupation clause takes a new job in a more hazardous occupation and fails to notify the insurer of the change. One year later, the insured becomes disabled. The insurer will most likely take which of the following actions?
- Cancel the policy and refund one year's premiums
