©THESTAR EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Florida 2-15 Final Exam Questions With
Verified Answers
When life insurance proceeds are used to pay inheritance taxes and federal estate taxes, it is
known as - Answers✔Estate conservation
In group insurance, the primary purpose of the Coordination of Benefits provision is to -
Answers✔Prevent overinsurance
Which of the following statements is NOT true regarding health insurance policy provisions? -
Answers✔All additional provisions written by insurers are cataloged by their respective states.
The policyowner has an option to pledge the life insurance policy as collateral for a bank loan.
This is called - Answers✔A collateral assignment
A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy
will - Answers✔Continue to increase
When filling out an application for insurance, the applicant makes a mistake. If a fresh
application were not available, what could the applicant do to properly correct the mistake? -
Answers✔Cross the incorrect answer out, write the correct one beside it, and initial the answer.
Which of the following riders pays a beneficiary a death benefit that is double or triple the face
amount if the insured's death was caused by an accident as defined in the policy? - Answers✔An
Accidental Death Rider
All of the following are consideration in an insurance policy EXCEPT - Answers✔The cash
value in the policy.
An individual has a $200,000 convertible term life insurance policy. If he chooses, he can -
Answers✔Convert to a whole life policy for the same face amount without proof of insurability.
Which of the following is NOT true regarding a deferred annuity? - Answers✔Income payments
begin within 1 year from the date of purchase.
A retail shop owner is insured under a business overhead expense policy that pays a maximum
monthly benefit of $2,500. His actual monthly expenses are $3,000. If the owner becomes
disabled, the monthly benefit payable under his policy will be - Answers✔$2,500
, ©THESTAR EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Which federal act defines rules pertaining to protected health information? - Answers✔HIPAA
The "stop-loss" feature on a major medical policy is intended to - Answers✔Establish a
maximum amount of out-of-pocket expense that an insured will have to pay for medical expense
in a calendar year.
If a business wants to make sure it will be able to cover losses due to the disability of its top
employee, the business should get which type of insurance? - Answers✔Key person disability
income
Life insurance creates an immediate estate. Which of the following best explains this statement?
- Answers✔The face value of the policy is payable to the beneficiary upon the death of the
insured.
What is the maximum age that a disabled insured worker may receive Social Security disability
benefits? - Answers✔65
Whose responsibility is it to ensure that the application for health insurance is complete and
accurate? - Answers✔The agent's
Which of the following policies would NOT offer a policy loan option? - Answers✔Term Life
Regarding the consideration clause, which of the following is NOT correct? -
Answers✔Consideration of the insurer and insured must be equal.
The guaranteed purchase option is also referred to as the - Answers✔Future increase option.
When an insured terminates membership in the insured group, the insured can convert to -
Answers✔Whole life without proof of insurability.
Which dividend option will increase the death benefit? - Answers✔Paid-up additions
What is the difference between a straight life policy and a 20-pay whole life policy? -
Answers✔Premium payment period
Which of the following policies can be described as a flexible premium adjustable life policy? -
Answers✔Universal Life
All of the following statements are true regarding an Ordinary (Straight) Life policy EXCEPT -
Answers✔It does not have a guaranteed death benefit.
An elimination (waiting) period may NOT have to be satisfied for a disability in which of the
following? - Answers✔An insured suffers a relapse of a prior disability within 6-months of the
initial covered disability
An insured was seriously injured in a skiing accident that required him to be hospitalized for 5
weeks. His medical expense policy covered all of the following EXCEPT - Answers✔Loss of
income while hospitalized. b) Necessary medicine and
ALL RIGHTS RESERVED.
Florida 2-15 Final Exam Questions With
Verified Answers
When life insurance proceeds are used to pay inheritance taxes and federal estate taxes, it is
known as - Answers✔Estate conservation
In group insurance, the primary purpose of the Coordination of Benefits provision is to -
Answers✔Prevent overinsurance
Which of the following statements is NOT true regarding health insurance policy provisions? -
Answers✔All additional provisions written by insurers are cataloged by their respective states.
The policyowner has an option to pledge the life insurance policy as collateral for a bank loan.
This is called - Answers✔A collateral assignment
A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy
will - Answers✔Continue to increase
When filling out an application for insurance, the applicant makes a mistake. If a fresh
application were not available, what could the applicant do to properly correct the mistake? -
Answers✔Cross the incorrect answer out, write the correct one beside it, and initial the answer.
Which of the following riders pays a beneficiary a death benefit that is double or triple the face
amount if the insured's death was caused by an accident as defined in the policy? - Answers✔An
Accidental Death Rider
All of the following are consideration in an insurance policy EXCEPT - Answers✔The cash
value in the policy.
An individual has a $200,000 convertible term life insurance policy. If he chooses, he can -
Answers✔Convert to a whole life policy for the same face amount without proof of insurability.
Which of the following is NOT true regarding a deferred annuity? - Answers✔Income payments
begin within 1 year from the date of purchase.
A retail shop owner is insured under a business overhead expense policy that pays a maximum
monthly benefit of $2,500. His actual monthly expenses are $3,000. If the owner becomes
disabled, the monthly benefit payable under his policy will be - Answers✔$2,500
, ©THESTAR EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Which federal act defines rules pertaining to protected health information? - Answers✔HIPAA
The "stop-loss" feature on a major medical policy is intended to - Answers✔Establish a
maximum amount of out-of-pocket expense that an insured will have to pay for medical expense
in a calendar year.
If a business wants to make sure it will be able to cover losses due to the disability of its top
employee, the business should get which type of insurance? - Answers✔Key person disability
income
Life insurance creates an immediate estate. Which of the following best explains this statement?
- Answers✔The face value of the policy is payable to the beneficiary upon the death of the
insured.
What is the maximum age that a disabled insured worker may receive Social Security disability
benefits? - Answers✔65
Whose responsibility is it to ensure that the application for health insurance is complete and
accurate? - Answers✔The agent's
Which of the following policies would NOT offer a policy loan option? - Answers✔Term Life
Regarding the consideration clause, which of the following is NOT correct? -
Answers✔Consideration of the insurer and insured must be equal.
The guaranteed purchase option is also referred to as the - Answers✔Future increase option.
When an insured terminates membership in the insured group, the insured can convert to -
Answers✔Whole life without proof of insurability.
Which dividend option will increase the death benefit? - Answers✔Paid-up additions
What is the difference between a straight life policy and a 20-pay whole life policy? -
Answers✔Premium payment period
Which of the following policies can be described as a flexible premium adjustable life policy? -
Answers✔Universal Life
All of the following statements are true regarding an Ordinary (Straight) Life policy EXCEPT -
Answers✔It does not have a guaranteed death benefit.
An elimination (waiting) period may NOT have to be satisfied for a disability in which of the
following? - Answers✔An insured suffers a relapse of a prior disability within 6-months of the
initial covered disability
An insured was seriously injured in a skiing accident that required him to be hospitalized for 5
weeks. His medical expense policy covered all of the following EXCEPT - Answers✔Loss of
income while hospitalized. b) Necessary medicine and
