Exam Simulator: Florida Life and Health State
Exam
A nonforfeiture clause gives the policy owner - correct answer guaranteed values even if the
policy has lapsed
P loses an arm is a farm accident and is paid $10k from his Accidental Death and
Dismemberment policy. This benefit is known as the - correct answer Capital Sum
P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will
then pay P retirement payments after the 15 years. Which type of annuity did P purchase? -
correct answer Deferred
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? - correct answer 20-Pay Life accumulates cash value faster than
Straight Life
Which of these is NOT a source of funding for Social Security benefits?
a. Self employed individuals
b. employees
c. Federal government
d. Employers - correct answer c. Federal government
A disability income policy owner recently submitted a claim for a chronic neck problem that has
now resulted in total liability. The original neck injury occurred before the application was taken
5 years prior. The neck injury was never disclosed to the insurer at the time of application. How
will the insurer handle this claim? - correct answer The claim will be paid and covered will
remain in force
(after a policy has been in force for 2 years, it enter the incontestable period)
,Exam Simulator: Florida Life and Health State
Exam
What does Medicare Part A and B cover? - correct answer Part A covers hospitalization; Part B
covers doctor's services
According in Florida law, a Group Life insurance policy requires a minimum of how many
insureds? - correct answer no minimum
which of the following considered an accurate statement of unfair trade practice ? - correct
answer Twisting involves an agent using misrepresentation to convince a policy owner to cancel
their current policy so that they can purchase a new life insurance policy with another company
Accidental Death coverage is provided to commercial airline passengers in which of the
following types of policies - correct answer Blanket Accident policy
insurers/agent must, in Florida, offer and issue all small employer health plans on a __________
basis: - correct answer guaranteed-issue
K purchased a Life insurance policy in 1986 which paid 10% interest in the early years of the
policy. Twenty years after the purchase, she received a notice from the insurer stating that the
policy will soon terminate unless a much-higher premium is paid because of falling interest
rates. This type of policy is known as a(n) ______life policy - correct answer Universal
Florida's 14-day free-look period for life insurance policies begins a the - correct answer date of
delivery
Which of the following features of a group Term Life policy enables an individual to leave the
group and continue his or her insurance without providing evidence of insurability? - correct
answer Conversion privilege
, Exam Simulator: Florida Life and Health State
Exam
Q is hospitalized for 3 days and receives a bill for $10,100. Q has a Major Medical Policy with a
$100 deductible and 80/20 coinsurance. How much will Q be responsible for paying on this
claim? - correct answer $2,100 ($10,000 x 20% coinsurance + $100 deductible)
Stranger-Owned Life Insurance (STOLI) is when a person purchases life insurance only to sell to
a(n): - correct answer third-party with no insurable interest
Which Federal law allows an insurer to obtain an inspection report on a potential insured? -
correct answer Fair Credit Reporting Act
In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey is
called a(n) - correct answer foreign company
Which of these Nonforfeiture Options continue a build- up of cash value - correct answer
Reduced Paid-up
An agent's license can be suspended or revoked by - correct answer writing primarily controlled
business
The combination of Whole Life and ___ Term insurance is referred to as Family Income Policy -
correct answer Decreasing
T is an employee covered under a Group Life policy. if T's employment is terminated, the
conversion privilege gives T the right to convert - correct answer to an individual policy upon
employment termination
A catastrophic illness would be best covered by which of the following health insurance plans? -
correct answer Major Medical
Exam
A nonforfeiture clause gives the policy owner - correct answer guaranteed values even if the
policy has lapsed
P loses an arm is a farm accident and is paid $10k from his Accidental Death and
Dismemberment policy. This benefit is known as the - correct answer Capital Sum
P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will
then pay P retirement payments after the 15 years. Which type of annuity did P purchase? -
correct answer Deferred
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? - correct answer 20-Pay Life accumulates cash value faster than
Straight Life
Which of these is NOT a source of funding for Social Security benefits?
a. Self employed individuals
b. employees
c. Federal government
d. Employers - correct answer c. Federal government
A disability income policy owner recently submitted a claim for a chronic neck problem that has
now resulted in total liability. The original neck injury occurred before the application was taken
5 years prior. The neck injury was never disclosed to the insurer at the time of application. How
will the insurer handle this claim? - correct answer The claim will be paid and covered will
remain in force
(after a policy has been in force for 2 years, it enter the incontestable period)
,Exam Simulator: Florida Life and Health State
Exam
What does Medicare Part A and B cover? - correct answer Part A covers hospitalization; Part B
covers doctor's services
According in Florida law, a Group Life insurance policy requires a minimum of how many
insureds? - correct answer no minimum
which of the following considered an accurate statement of unfair trade practice ? - correct
answer Twisting involves an agent using misrepresentation to convince a policy owner to cancel
their current policy so that they can purchase a new life insurance policy with another company
Accidental Death coverage is provided to commercial airline passengers in which of the
following types of policies - correct answer Blanket Accident policy
insurers/agent must, in Florida, offer and issue all small employer health plans on a __________
basis: - correct answer guaranteed-issue
K purchased a Life insurance policy in 1986 which paid 10% interest in the early years of the
policy. Twenty years after the purchase, she received a notice from the insurer stating that the
policy will soon terminate unless a much-higher premium is paid because of falling interest
rates. This type of policy is known as a(n) ______life policy - correct answer Universal
Florida's 14-day free-look period for life insurance policies begins a the - correct answer date of
delivery
Which of the following features of a group Term Life policy enables an individual to leave the
group and continue his or her insurance without providing evidence of insurability? - correct
answer Conversion privilege
, Exam Simulator: Florida Life and Health State
Exam
Q is hospitalized for 3 days and receives a bill for $10,100. Q has a Major Medical Policy with a
$100 deductible and 80/20 coinsurance. How much will Q be responsible for paying on this
claim? - correct answer $2,100 ($10,000 x 20% coinsurance + $100 deductible)
Stranger-Owned Life Insurance (STOLI) is when a person purchases life insurance only to sell to
a(n): - correct answer third-party with no insurable interest
Which Federal law allows an insurer to obtain an inspection report on a potential insured? -
correct answer Fair Credit Reporting Act
In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey is
called a(n) - correct answer foreign company
Which of these Nonforfeiture Options continue a build- up of cash value - correct answer
Reduced Paid-up
An agent's license can be suspended or revoked by - correct answer writing primarily controlled
business
The combination of Whole Life and ___ Term insurance is referred to as Family Income Policy -
correct answer Decreasing
T is an employee covered under a Group Life policy. if T's employment is terminated, the
conversion privilege gives T the right to convert - correct answer to an individual policy upon
employment termination
A catastrophic illness would be best covered by which of the following health insurance plans? -
correct answer Major Medical
