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.

What is the purpose of the Time of Payment of Claims provision?

Prevents delayed claim payments made by the insurer.
Increases the amount of claim payments.
Limits the number of claims one can make.
Determines the valid claims based on policy terms.

The correct answer is: Prevents delayed claim payments made by the insurer.

The Time of Payment of Claims provision exists to prevent insurance companies from delaying claim payments. This is important because delayed payments can cause financial strain on policyholders and leave them without the means to cover necessary expenses. Options B and C are incorrect because they do not accurately explain the purpose of this provision. Increasing the amount of claim payments or limiting the number of claims have nothing to do with preventing delayed payments. Option D may seem like a plausible answer, but it only reflects a small part of the purpose of this provision. While the provision may also help determine valid claims, its main purpose is to ensure timely and efficient payment to policyholders.