214 FLORIDA INSURANCE EXAM PRACTICE SCRIPT Questions
with Correct Answers (Grade A+)
Question 1: 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
Question 2: A life insurance arrangement which circumvents insurable interest statutes is called:
Answer: Investor-Originated Life Insurance
Question 3: Which of the following health policy provisions states that the producer does NOT have the
authority to change the policy or waive any of its provisions?
Answer: Entire Contract
Question 4: Within how many days after policy delivery can a Medicare Supplement policy be returned
for a 100% premium refund?
Answer: 30
Question 5: Which of the following is NOT an unfair claim settlement practice?
Answer: Needing written documentation of claim details
Question 6: Who is NOT required to sign a life insurance application?
Answer: Beneficiary
Question 7: To be eligible for Social Security disability benefits, an employee must be unable to
perform:
Answer: any occupation
Question 8: The type of annuity that can be purchased with one monetary deposit is called a(n):
Answer: Immediate annuity
Question 9: A life insurance application must be signed by all of these, EXCEPT:
Answer: beneficiary
Page 1
,Question 10: Which of the following is considered an accurate statement of an unfair trade practice?
Answer: Twisting involves an agent using misrepresentation to convince a policyowner to cancel their
current policy so that they can purchase a new life insurance policy with another company
Question 11: The Accelerated Death Benefit provision in a life insurance policy is also known as a(n):
Answer: Living Benefit
Question 12: Which of the following policy features allows an insured to defer current health charges to
the following year's deductible instead of the current year's deducitble?
Answer: Carryover provision
Question 13: Insurance policies are considered aleatory contracts because
Answer: performance is conditioned upon a future occurrence
Question 14: Within how many days must a licensee notify the Department of Financial Services of a
change in address?
Answer: 30
Question 15: Which organization was established to provide funds to protect an insured in the event of
an insurer's insolvency?
Answer: Florida Life and Health Insurance Guaranty Association
Question 16: The clause in an Accident and Health policy which defines the benefit amounts the insurer
will pay is called the:
Answer: Insuring clause
Question 17: When a policyowner cash surrenders a Universal Life insurance policy in it's early years,
this may be considered a red flag for a(n):
Answer: Anti-Money Laundering violation
Question 18: According to the Time Payment of Claims provision, the insurer must pay Disability
Income benefits no less frequently than which of the following options?
Answer: Monthly
Question 19: What would the Medical Information Bureau (MIB) identify?
Answer: Testing positive for marijuana use from a previous screening
Page 2
, Question 20: How would a contingent beneficiary receive the policy proceeds in an Accidental Death
and Dismemberment (AD&D) policy?
Answer: If the primary beneficiary dies before the insured
Question 21: Under a Renewable Term policy,
Answer: the renewal premium is calculated on the basis of the insured's attained age
Question 22: Which of the following statements is true about most Blue Cross/Blue Shield
organizations?
Answer: They are nonprofit organizations
Question 23: If a policyowner does not pay the premium by the due date, the
Answer: policyowner can make the premium payment during the grace period
Question 24: According to Florida law, which of the following information does NOT need to be
obtained by an agent recommending an annuity purchase?
Answer: Marital status
Question 25: Which of these characteristics is consistent with a Straight Life policy?
Answer: Premiums are payable for as long as there is insurance coverage in force
Question 26: P completes an application for a $10,000 life policy, but does not give the producer the
initial premium. P's coverage becomes effective when:
Answer: P receives the policy and pays the premium
Question 27: On August 6, D submitted an application for a $50,000 Life Insurance policy and did not
pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests
were given by the doctor. The life policy was delivered by the producer on August 20 and D explains
what had recently taken place with the doctor. What action should the producer then take?
Answer: Collect initial premium along with a signed health statement
Question 28: A life insurance policyowner may sell their policy to a(n) _____ in order to receive a
percentage of the policy's face value.
Answer: viatical settlement provider
Page 3
with Correct Answers (Grade A+)
Question 1: 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
Question 2: A life insurance arrangement which circumvents insurable interest statutes is called:
Answer: Investor-Originated Life Insurance
Question 3: Which of the following health policy provisions states that the producer does NOT have the
authority to change the policy or waive any of its provisions?
Answer: Entire Contract
Question 4: Within how many days after policy delivery can a Medicare Supplement policy be returned
for a 100% premium refund?
Answer: 30
Question 5: Which of the following is NOT an unfair claim settlement practice?
Answer: Needing written documentation of claim details
Question 6: Who is NOT required to sign a life insurance application?
Answer: Beneficiary
Question 7: To be eligible for Social Security disability benefits, an employee must be unable to
perform:
Answer: any occupation
Question 8: The type of annuity that can be purchased with one monetary deposit is called a(n):
Answer: Immediate annuity
Question 9: A life insurance application must be signed by all of these, EXCEPT:
Answer: beneficiary
Page 1
,Question 10: Which of the following is considered an accurate statement of an unfair trade practice?
Answer: Twisting involves an agent using misrepresentation to convince a policyowner to cancel their
current policy so that they can purchase a new life insurance policy with another company
Question 11: The Accelerated Death Benefit provision in a life insurance policy is also known as a(n):
Answer: Living Benefit
Question 12: Which of the following policy features allows an insured to defer current health charges to
the following year's deductible instead of the current year's deducitble?
Answer: Carryover provision
Question 13: Insurance policies are considered aleatory contracts because
Answer: performance is conditioned upon a future occurrence
Question 14: Within how many days must a licensee notify the Department of Financial Services of a
change in address?
Answer: 30
Question 15: Which organization was established to provide funds to protect an insured in the event of
an insurer's insolvency?
Answer: Florida Life and Health Insurance Guaranty Association
Question 16: The clause in an Accident and Health policy which defines the benefit amounts the insurer
will pay is called the:
Answer: Insuring clause
Question 17: When a policyowner cash surrenders a Universal Life insurance policy in it's early years,
this may be considered a red flag for a(n):
Answer: Anti-Money Laundering violation
Question 18: According to the Time Payment of Claims provision, the insurer must pay Disability
Income benefits no less frequently than which of the following options?
Answer: Monthly
Question 19: What would the Medical Information Bureau (MIB) identify?
Answer: Testing positive for marijuana use from a previous screening
Page 2
, Question 20: How would a contingent beneficiary receive the policy proceeds in an Accidental Death
and Dismemberment (AD&D) policy?
Answer: If the primary beneficiary dies before the insured
Question 21: Under a Renewable Term policy,
Answer: the renewal premium is calculated on the basis of the insured's attained age
Question 22: Which of the following statements is true about most Blue Cross/Blue Shield
organizations?
Answer: They are nonprofit organizations
Question 23: If a policyowner does not pay the premium by the due date, the
Answer: policyowner can make the premium payment during the grace period
Question 24: According to Florida law, which of the following information does NOT need to be
obtained by an agent recommending an annuity purchase?
Answer: Marital status
Question 25: Which of these characteristics is consistent with a Straight Life policy?
Answer: Premiums are payable for as long as there is insurance coverage in force
Question 26: P completes an application for a $10,000 life policy, but does not give the producer the
initial premium. P's coverage becomes effective when:
Answer: P receives the policy and pays the premium
Question 27: On August 6, D submitted an application for a $50,000 Life Insurance policy and did not
pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests
were given by the doctor. The life policy was delivered by the producer on August 20 and D explains
what had recently taken place with the doctor. What action should the producer then take?
Answer: Collect initial premium along with a signed health statement
Question 28: A life insurance policyowner may sell their policy to a(n) _____ in order to receive a
percentage of the policy's face value.
Answer: viatical settlement provider
Page 3
