Florida Life & Health Practice Test/ 198
Questions with Verified Ans.
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
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,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
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
What action should a producer take if the initial premium is NOT submitted with the
application? - Answer: Forward the application to the insurer without the initial premium
What is being delivered during a policy delivery? - Answer: Insurance contract to the proposed
insured
Which of these actions should a producer take when submitting an insurance application to an
insurer? - Answer: Inform insurer of relevant information not included on the application
Before a life insurance policy is issued, which of these components of the contract is required? -
Answer: Applicant's signature on application
Which requirement must be met for an association to be eligible for a group life plan? - Answer:
Group was formed for a purpose other than acquiring insurance
G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If G were to
die at age 50, how long would G's family receive an income? - Answer: 10 years
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, What group term life feature permits an individual to depart from the group and continue to be
covered without providing evidence of insurability? - Answer: Conversion
S recently received a $500,000 lump sum retirement buyout from her employer. She would like
to buy an annuity that will immediately furnish her with a guaranteed income for life. What type
of annuity is best suited for her situation? - Answer: Single Premium
The annuity that represents the largest possible monthly payment to an individual annuitant is
a(n) - Answer: Straight Life annuity
An individual who purchases a Life annuity is given protection against - Answer: the risk of living
longer than expected
What is considered to be a characteristic of an immediate annuity? - Answer: Benefit payments
start within one payment period of purchase
An immediate annuity consists of a - Answer: single premium
What determines the full amount of Social Security retirement benefits a qualified individual is
entitled to receive? - Answer: Primary Insurance Amount (PIA)
Which of these retirement plans can be started by an employee, even if another plan is in
existence? - Answer: Individual Retirement Account (IRA)
Which of these is NOT a type of agent authority? - Answer: Principal
Which of the following statements is true about most Blue Cross/Blue Shield organizations? -
Answer: They are nonprofit organizations
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Questions with Verified Ans.
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
Page 1 of 24
,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
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
What action should a producer take if the initial premium is NOT submitted with the
application? - Answer: Forward the application to the insurer without the initial premium
What is being delivered during a policy delivery? - Answer: Insurance contract to the proposed
insured
Which of these actions should a producer take when submitting an insurance application to an
insurer? - Answer: Inform insurer of relevant information not included on the application
Before a life insurance policy is issued, which of these components of the contract is required? -
Answer: Applicant's signature on application
Which requirement must be met for an association to be eligible for a group life plan? - Answer:
Group was formed for a purpose other than acquiring insurance
G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If G were to
die at age 50, how long would G's family receive an income? - Answer: 10 years
Page 2 of 24
, What group term life feature permits an individual to depart from the group and continue to be
covered without providing evidence of insurability? - Answer: Conversion
S recently received a $500,000 lump sum retirement buyout from her employer. She would like
to buy an annuity that will immediately furnish her with a guaranteed income for life. What type
of annuity is best suited for her situation? - Answer: Single Premium
The annuity that represents the largest possible monthly payment to an individual annuitant is
a(n) - Answer: Straight Life annuity
An individual who purchases a Life annuity is given protection against - Answer: the risk of living
longer than expected
What is considered to be a characteristic of an immediate annuity? - Answer: Benefit payments
start within one payment period of purchase
An immediate annuity consists of a - Answer: single premium
What determines the full amount of Social Security retirement benefits a qualified individual is
entitled to receive? - Answer: Primary Insurance Amount (PIA)
Which of these retirement plans can be started by an employee, even if another plan is in
existence? - Answer: Individual Retirement Account (IRA)
Which of these is NOT a type of agent authority? - Answer: Principal
Which of the following statements is true about most Blue Cross/Blue Shield organizations? -
Answer: They are nonprofit organizations
Page 3 of 24
