Florida Life & Health Practice Test/ 198
Questions with Verified Ans.
A life insurance application must be signed by all of these EXCEPT - Answer: Beneficiary
Any changes made on an insurance application requires the initials of whom? - Answer:
Applicant
Which Federal law allows an insurer to obtain an inspection report on a potential insured? -
Answer: Fair Credit Reporting Act
All of these are considered sources of underwriting information about an applicant EXCEPT -
Answer: Rating Services
Page 1 of 24
,K applies for a life insurance policy on herself and submits the initial premium with the
application. She is given a receipt by the agent stating that coverage begins immediately if the
application is approved. What kind of receipt was used? - Answer: Conditional
P is a producer who notices 5 questions on a life application were not answered. What actions
should P take? - Answer: Set up a meeting with the applicant to answer the remaining questions
An underwriter determines that an applicant's risk should be recategorized due to a health
issue. This life insurance policy may be issued with a(n) - Answer: extra premium
In order for coverage on a non-medical insurance application to take effect the same day, the
producer must collect a signed application and - Answer: the initial premium
When does a life insurance contract become effective if the initial premium is not collected
during the application process? - Answer: When producer delivers policy and collects initial
premium
Why is an applicant's signature required on a life insurance application? - Answer: To attest that
the statements on the application are accurate to the best of the applicant's knowledge
A Disability Income policyowner suffers a disability which was due to the same cause as a
previous disability. Both disabilities occurred within a five-month period. The insurer may cover
the second disability without a new elimination period under the - Answer: Recurrent Disability
provision
Which of these statements is INCORRECT regarding the federal income tax treatment of life
insurance? - Answer: Entire cash surrender value is taxable
Page 2 of 24
, Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of Term
coverage on himself under the same policy. What kind of policy should Q purchase? - Answer:
Whole life policy with other insured rider
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
Dismemberment policy insuring their father. Their mother was named contingent beneficiary.
Five years later, S dies of natural causes and the father is killed in a scuba accident shortly
afterwards. How much of the death benefit will the mother receive? - Answer: $0
Which statement regarding the Change of Beneficiary provision is true? - Answer: The
policyowner can change the beneficiary
What is the underlying concept regarding level premiums? - Answer: The early years are
charged more than what is needed
C is trying to determine whether to convert her convertible term life policy to whole life
insurance using her original age or attained age. What factor would affect her decision the
most? - Answer: The cost
If the insured and primary beneficiary are both killed in the same accident and it cannot be
determined who died first, where are the death proceeds to be directed under the Uniform
Simultaneous Death Act? - Answer: Insured's contingent beneficiary
On a life insurance policy, who is qualified to change the beneficiary designation? - Answer:
Policyowner
A policyowner is allowed to pay premiums more than once a year under which provision? -
Answer: Mode of Premium
Page 3 of 24
Questions with Verified Ans.
A life insurance application must be signed by all of these EXCEPT - Answer: Beneficiary
Any changes made on an insurance application requires the initials of whom? - Answer:
Applicant
Which Federal law allows an insurer to obtain an inspection report on a potential insured? -
Answer: Fair Credit Reporting Act
All of these are considered sources of underwriting information about an applicant EXCEPT -
Answer: Rating Services
Page 1 of 24
,K applies for a life insurance policy on herself and submits the initial premium with the
application. She is given a receipt by the agent stating that coverage begins immediately if the
application is approved. What kind of receipt was used? - Answer: Conditional
P is a producer who notices 5 questions on a life application were not answered. What actions
should P take? - Answer: Set up a meeting with the applicant to answer the remaining questions
An underwriter determines that an applicant's risk should be recategorized due to a health
issue. This life insurance policy may be issued with a(n) - Answer: extra premium
In order for coverage on a non-medical insurance application to take effect the same day, the
producer must collect a signed application and - Answer: the initial premium
When does a life insurance contract become effective if the initial premium is not collected
during the application process? - Answer: When producer delivers policy and collects initial
premium
Why is an applicant's signature required on a life insurance application? - Answer: To attest that
the statements on the application are accurate to the best of the applicant's knowledge
A Disability Income policyowner suffers a disability which was due to the same cause as a
previous disability. Both disabilities occurred within a five-month period. The insurer may cover
the second disability without a new elimination period under the - Answer: Recurrent Disability
provision
Which of these statements is INCORRECT regarding the federal income tax treatment of life
insurance? - Answer: Entire cash surrender value is taxable
Page 2 of 24
, Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of Term
coverage on himself under the same policy. What kind of policy should Q purchase? - Answer:
Whole life policy with other insured rider
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
Dismemberment policy insuring their father. Their mother was named contingent beneficiary.
Five years later, S dies of natural causes and the father is killed in a scuba accident shortly
afterwards. How much of the death benefit will the mother receive? - Answer: $0
Which statement regarding the Change of Beneficiary provision is true? - Answer: The
policyowner can change the beneficiary
What is the underlying concept regarding level premiums? - Answer: The early years are
charged more than what is needed
C is trying to determine whether to convert her convertible term life policy to whole life
insurance using her original age or attained age. What factor would affect her decision the
most? - Answer: The cost
If the insured and primary beneficiary are both killed in the same accident and it cannot be
determined who died first, where are the death proceeds to be directed under the Uniform
Simultaneous Death Act? - Answer: Insured's contingent beneficiary
On a life insurance policy, who is qualified to change the beneficiary designation? - Answer:
Policyowner
A policyowner is allowed to pay premiums more than once a year under which provision? -
Answer: Mode of Premium
Page 3 of 24
