Florida 2-15 Insurance Study Guide Questions And Correct Answers

When a policyowner cannot exercise rights of ownership without the policy beneficiary's consent, the beneficiary is designated A. vested B. contractual C. irrevocable D. primary {Ans: C. If a beneficiary is named irrevocable, the policyowner gives up the right to change that beneficiary, and unless otherwise specified in the policy, the owner cannot take any action that would affect the right of that beneficiary to receive the full amount of the insurance at the insured's death. This includes taking out a policy loan or surrendering the policy.}A life insurance company organized in Illinois, with its home office in Philadelphia, is licensed to conduct business in Wisconsin. In Wisconsin, this company is classified as A. a domestic company B. an alien company C. a foreign company D. a regional company {Ans: C. A foreign company operates within a state in which it is not chartered and in which the home office is not located.}All of the following approaches are used by insurers to determine benefits payable under basic surgical expense insurance EXCEPT A. relative value scale approach B. traditional net cost method C. reasonable and customary approach D. surgical schedule method {Ans: B. The traditional net cost method