Life and Health Insurance (Florida) ExamFX
Simulation Questions
Which of the following employees insured under a group life plan would be allowed to convert
to individual insurance of the same coverage once the plan is terminated?
a) Those who have worked in the company for at least 3 years
b) Those who have dependents
c) Those who have no history of claims
d) Those who have been insured under the plan for at least 5 years - correct answer d) Those
who have been insured under the plan for at least 5 years
According to the rights of renewability rider for cancellable policies, all of the following are
correct about the cancellation of an individual insurance policy EXCEPT
a) Unearned premiums are retained by the insurance company.
b) The insurer must provide the insured a written notice of the cancellation.
c) Claims incurred before cancellation must be honored.
d) An insurance company may cancel the policy at any time. - correct answer a) Unearned
premiums are retained by the insurance company.
Another term used to describe "no deductible" is
a) Comprehensive.
b) Total coverage.
c) Immediate cooperative
d) First-dollar basis. - correct answer d) First-dollar basis.
Which of the following is an example of a limited-pay life policy?
a) Level Term Life
b) Straight Life
c) Life Paid-up at Age 65
, Life and Health Insurance (Florida) ExamFX
Simulation Questions
d) Renewable Term to Age 70 - correct answer c) Life Paid-up at Age 65
An insured has a life insurance policy from a participating company and receives quarterly
dividends. He has instructed the company to apply the policy dividends to increase the death
benefit. The dividend option that the insured has chosen is called
a) Reduction of premiums.
b) Paid-up additions.
c) One-year term purchase.
d) Accumulation at interest. - correct answer b) Paid-up additions.
. All of the following are true regarding insurance policy loans EXCEPT
a) The policy will terminate if the loan plus interest equals or exceeds the cash value of the
policy.
b) Policyowners can borrow up to the full amount of their whole life policy's cash value.
c) Policy loans can be made on policies that do not accumulate cash value.
d) The amount of the outstanding loan and interest will be deducted from the policy proceeds
when the insured dies. - correct answer c) Policy loans can be made on policies that do not
accumulate cash value.
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to
the beneficiaries?
a) The beneficiary will receive 2/3 of the lump sum up front, and the remaining 1/3 will be paid
over time.
b) The beneficiary will receive 2/3 of the total benefit, with the final 1/3 payable when the first
beneficiary dies.
c) One of the beneficiaries will receive 1/3 and the other 2/3 of the proceeds when the insured
dies.
Simulation Questions
Which of the following employees insured under a group life plan would be allowed to convert
to individual insurance of the same coverage once the plan is terminated?
a) Those who have worked in the company for at least 3 years
b) Those who have dependents
c) Those who have no history of claims
d) Those who have been insured under the plan for at least 5 years - correct answer d) Those
who have been insured under the plan for at least 5 years
According to the rights of renewability rider for cancellable policies, all of the following are
correct about the cancellation of an individual insurance policy EXCEPT
a) Unearned premiums are retained by the insurance company.
b) The insurer must provide the insured a written notice of the cancellation.
c) Claims incurred before cancellation must be honored.
d) An insurance company may cancel the policy at any time. - correct answer a) Unearned
premiums are retained by the insurance company.
Another term used to describe "no deductible" is
a) Comprehensive.
b) Total coverage.
c) Immediate cooperative
d) First-dollar basis. - correct answer d) First-dollar basis.
Which of the following is an example of a limited-pay life policy?
a) Level Term Life
b) Straight Life
c) Life Paid-up at Age 65
, Life and Health Insurance (Florida) ExamFX
Simulation Questions
d) Renewable Term to Age 70 - correct answer c) Life Paid-up at Age 65
An insured has a life insurance policy from a participating company and receives quarterly
dividends. He has instructed the company to apply the policy dividends to increase the death
benefit. The dividend option that the insured has chosen is called
a) Reduction of premiums.
b) Paid-up additions.
c) One-year term purchase.
d) Accumulation at interest. - correct answer b) Paid-up additions.
. All of the following are true regarding insurance policy loans EXCEPT
a) The policy will terminate if the loan plus interest equals or exceeds the cash value of the
policy.
b) Policyowners can borrow up to the full amount of their whole life policy's cash value.
c) Policy loans can be made on policies that do not accumulate cash value.
d) The amount of the outstanding loan and interest will be deducted from the policy proceeds
when the insured dies. - correct answer c) Policy loans can be made on policies that do not
accumulate cash value.
An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to
the beneficiaries?
a) The beneficiary will receive 2/3 of the lump sum up front, and the remaining 1/3 will be paid
over time.
b) The beneficiary will receive 2/3 of the total benefit, with the final 1/3 payable when the first
beneficiary dies.
c) One of the beneficiaries will receive 1/3 and the other 2/3 of the proceeds when the insured
dies.
