Florida Life and Health Insurance License Practice Test

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Prepare for the Florida Life and Health Insurance License Test. Study with flashcards and multiple choice questions, each with hints and explanations. Get ready for your certification exam with ease!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

How will an insurer likely handle a disability income claim for a condition not disclosed at the time of application, after the policy has been in force for 5 years?

By increasing the premium
Through policy cancellation
Claim will be paid and coverage will remain in force
With a refusal to pay the claim due to fraud

The correct answer is: Claim will be paid and coverage will remain in force

An insurer will likely handle a disability income claim for a condition not disclosed at the time of application, after the policy has been in force for 5 years by paying the claim and maintaining coverage. This is because after the initial 2-year contestability period, the insurer is generally bound to the terms of the policy and cannot deny coverage or cancel the policy due to non-disclosure of pre-existing conditions. Option A is incorrect because the insurer cannot increase the premium or change the terms of the policy after it has been in force for 5 years. Option B is incorrect because the policy cannot be cancelled for non-disclosure after the initial contestability period. Option D is incorrect because the insurer cannot refuse to pay the claim after the contestability period unless clear evidence of fraud can be proven.