Exam Simulator - Florida Life Insurance State Exam
Simulator questions with verified answers
A 55 year old recently received a $30,000 distribution from a previous employer's
401k plan, minus $6,000 withholding. Which federal taxes apply if none of the
funds were rolled over? Ans✓✓✓ Income taxes plus a 10% penalty tax on
$30,000
A family Income Policy is a combination of Whole Life and Ans✓✓✓ Decreasing
term insurance
A policy loan is made possible by which of these life insurance policy features?
Ans✓✓✓ Cash value provision
A policy of Adhesion can only be modified by Ans✓✓✓ the insurance company
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of
these statements made by the producer would be correct? Ans✓✓✓ 20 pay life
accumulates cash value faster
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of
these statements made by the producer would be correct? Ans✓✓✓ 20 pay life
accumulates cash value faster than Straight Life
A provision in a life insurance policy that pays the policyowner an amount that
does not surpass the guaranteed cash value is called the: Ans✓✓✓ Policy Loan
provision
, A Renewable Term Policy is renewable at the option of the Ans✓✓✓ insured
A whole life insurance policyowner does not wish to continue making premium
payments. Which of the following enables the policyowner to sell the policy for
more than its cash value? Ans✓✓✓ Life settlement contract
According to Florida law, group life insurance conversion privileges must NOT
Ans✓✓✓ require evidence of insurability
According to Florida's rules on disclosure, a life insurance applicant is expected to
be provided with Ans✓✓✓ a Buyer's Guide and Policy Summary
Additional coverage can be added to a Whole Life policy by adding a(n) Ans✓✓✓
decreasing term rider
All of the following are Nonforfeiture Options EXCEPT Ans✓✓✓ Automatic
Premium Loan Option
All of these statements concerning Settlement Options are true, EXCEPT:
Ans✓✓✓ Only the beneficiary may select
An employee requested that the balance of her 401(k) account be sent directly to
her in one lump sum. Upon receipt of the distribution, she immediately has the
funds rolled over into an IRA. What is the tax consequence of the distribution sent
to this employee? Ans✓✓✓ Distribution is subject to federal income tax
withholding
Simulator questions with verified answers
A 55 year old recently received a $30,000 distribution from a previous employer's
401k plan, minus $6,000 withholding. Which federal taxes apply if none of the
funds were rolled over? Ans✓✓✓ Income taxes plus a 10% penalty tax on
$30,000
A family Income Policy is a combination of Whole Life and Ans✓✓✓ Decreasing
term insurance
A policy loan is made possible by which of these life insurance policy features?
Ans✓✓✓ Cash value provision
A policy of Adhesion can only be modified by Ans✓✓✓ the insurance company
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of
these statements made by the producer would be correct? Ans✓✓✓ 20 pay life
accumulates cash value faster
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of
these statements made by the producer would be correct? Ans✓✓✓ 20 pay life
accumulates cash value faster than Straight Life
A provision in a life insurance policy that pays the policyowner an amount that
does not surpass the guaranteed cash value is called the: Ans✓✓✓ Policy Loan
provision
, A Renewable Term Policy is renewable at the option of the Ans✓✓✓ insured
A whole life insurance policyowner does not wish to continue making premium
payments. Which of the following enables the policyowner to sell the policy for
more than its cash value? Ans✓✓✓ Life settlement contract
According to Florida law, group life insurance conversion privileges must NOT
Ans✓✓✓ require evidence of insurability
According to Florida's rules on disclosure, a life insurance applicant is expected to
be provided with Ans✓✓✓ a Buyer's Guide and Policy Summary
Additional coverage can be added to a Whole Life policy by adding a(n) Ans✓✓✓
decreasing term rider
All of the following are Nonforfeiture Options EXCEPT Ans✓✓✓ Automatic
Premium Loan Option
All of these statements concerning Settlement Options are true, EXCEPT:
Ans✓✓✓ Only the beneficiary may select
An employee requested that the balance of her 401(k) account be sent directly to
her in one lump sum. Upon receipt of the distribution, she immediately has the
funds rolled over into an IRA. What is the tax consequence of the distribution sent
to this employee? Ans✓✓✓ Distribution is subject to federal income tax
withholding
