EXAM SIMULATOR FLORIDA-LIFE &
HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE /
ALREADY GRADED A+
A non-contributory plan requires _________ participation of all eligible
employees - ANS>> 100%
A characteristic of preferred provider organizations (PPOS) would be: -
ANS>> Discounted fees for the patient
Which of the following areas of state regulation is NOT protected by the
saving clause in ERISA? - ANS>> Commerce
Additional coverage can be added to a whole Life policy by adding a(n): -
ANS>> decreasing term rider
What benefit does the payor clause on a Juvenile Life policy provide? -
ANS>> Premiums are waived if the payor becomes disabled
According to Florida law, when must an agent deliver the outline of
Coverage to a Medicare Supplement applicant? - ANS>> At the time of
application
N is a student pilot with a large life insurance policy. Which of these
features would limit the insurer's obligation in the event N was killed while
flying as a student pilot? - ANS>> Exclusion
Which statement is true regarding a minor beneficiary ? - ANS>> Normally,
a guarding is required to be appointed in the Beneficiary clause of the
contract
A sole proprietor may use this plan ONLY if the employees of this business
are included. - ANS>> Individual Retirement Account (IRA)
,Which of the following provisions is NOT required in HMO
contracts/certificated? - ANS>> Seven-day grace period
The Bureau of Unclaimed Property is overseen by the - ANS>> Chief
Financial Officer
A life policy that contains a monthly mortality charge as well as self-directed
investment choices is called a(n) - ANS>> Variable Universal Life policy
An insurance company normally has 2 years to contest information
provided on an accident and health application. This 2 year period begins
on the date that the: - ANS>> insurer dated the policy
P is a new employee and will be obtaining non- contributory group Major
Medical insurance from her employer. Which of the following actions must
she take during the open enrollment period? - ANS>> Sign an enrollment
card
Which of the following statements is true about most Blue Cross/Blue
Shield organizations? - ANS>> They are nonprofit organizations
A "reimbursement policy" pays what amount of covered Long-Term care
expenses? - ANS>> Actual covered expenses up to the daily maximum
An individual covered under a group life insurance policy is considered to
be a (n) - ANS>> certificate holder
The __________ has the right to change a life insurance policy's
beneficiary. - ANS>> policyowner
Which of the following documents must an agent submit to the replacing
insurance company during the replacement of an existing life insurance
policy? - ANS>> Notice to existing and replacing insurers of intention to
replace
Which of these statements concerning an individual Disability income policy
is TRUE? - ANS>> Normally includes an Elimination period
,What is the initial source of underwriting for an insurance policy? - ANS>>
Application containing statements from the insured
T, age 70, withdraws cash from a profit-sharing plan and purchases a
Straight life Annuity. What will this transaction provide? - ANS>> Income
that cannot be outlived by the owner
Tom has a qualified retirement plan with his employer that is currently
considered to be 80% "vested". How can this be interpreted? - ANS>> If
Tom's employment is terminated, 20% of the funds would be forfeited
Which settlement option pays a stated amount to an annuitant, but no
residual value to a beneficiary? - ANS>> Life Income
K buys a policy where the premium stays fixed for the first 5 years. The
premium then increases in year 6 and stays level thereafter, all the while
the death benefit remains the same. What kind of policy is this? - ANS>>
Modified Whole Life
An Insured's inability to perform two or more activities of daily living may
trigger which type of life policy rider? - ANS>> Long term care
Which of these is an element of a Variable Life policy? - ANS>> A fixed,
level premium
F needs life insurance that provides coverage for only a limited amount of
time with a death benefit that changes regularly to a schedule. What kind of
policy is needed? - ANS>> Decreasing term policy
Which parts of a life insurance policy are guaranteed to be true? - ANS>>
Warranty
In Major Medical Expense policies, what is the objective of a Stop Loss
provision? - ANS>> Limits an insured's out-of-pocket medical expenses.
T has an annuity that guarantees an income payment for the rest of his life.
The contract also guaranteed that if T dies before receiving payments for
20 years, the remaining payments will be paid to his son for the balance of
the 20 years. What type of annuity is this? - ANS>> Life Annuity with Period
Certain
, Florida's 14-day free-look period for life insurance policies begins at the -
ANS>> date of delivery
J would like to maintain the right to change beneficiaries. Which beneficiary
designation should be used? - ANS>> Revocable
The Notice of Claims provision requires a policyowner to: - ANS>> notify an
insurer of a claim within a specified time
What type of life policy cover 2 lives and pays the face amount after the
first one dies? - ANS>> Joint Life Policy
A statement made by an insured in an insurance application that must be
true to the best of one's knowledge and which becomes a part of the
contract is known as - ANS>> a representation
A foreign insurance company doing business in Florida - ANS>> is a
company that was formed under the laws of another state
An insurer must provide an insured with claim forms within __ days after
receiving notice of a loss. - ANS>> 15
When an insurer issues a policy that refuses to cover certain risks, this is
referred to as a(n)
: - ANS>> exclusion
on August 6, D submitted and application for a $50,000 Life Insurance
policy and did not pay the initial premium. On August 18, D went to his
doctor complaining of chest pains and some tests were given by the doctor.
The life policy was delivered by the producer on August 20 and D explains
what had recently taken place with the doctor. What action should the
producer take? - ANS>> Collect initial premium along with a signed health
statement
J owns a business and has a group Life policy covering her employees. J
decides to cancel the policy by letting it lapse on the renewal date. What
action must be taken? - ANS>> All of the employees must be notified of the
cancellation either by the insurance company or through J
HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE /
ALREADY GRADED A+
A non-contributory plan requires _________ participation of all eligible
employees - ANS>> 100%
A characteristic of preferred provider organizations (PPOS) would be: -
ANS>> Discounted fees for the patient
Which of the following areas of state regulation is NOT protected by the
saving clause in ERISA? - ANS>> Commerce
Additional coverage can be added to a whole Life policy by adding a(n): -
ANS>> decreasing term rider
What benefit does the payor clause on a Juvenile Life policy provide? -
ANS>> Premiums are waived if the payor becomes disabled
According to Florida law, when must an agent deliver the outline of
Coverage to a Medicare Supplement applicant? - ANS>> At the time of
application
N is a student pilot with a large life insurance policy. Which of these
features would limit the insurer's obligation in the event N was killed while
flying as a student pilot? - ANS>> Exclusion
Which statement is true regarding a minor beneficiary ? - ANS>> Normally,
a guarding is required to be appointed in the Beneficiary clause of the
contract
A sole proprietor may use this plan ONLY if the employees of this business
are included. - ANS>> Individual Retirement Account (IRA)
,Which of the following provisions is NOT required in HMO
contracts/certificated? - ANS>> Seven-day grace period
The Bureau of Unclaimed Property is overseen by the - ANS>> Chief
Financial Officer
A life policy that contains a monthly mortality charge as well as self-directed
investment choices is called a(n) - ANS>> Variable Universal Life policy
An insurance company normally has 2 years to contest information
provided on an accident and health application. This 2 year period begins
on the date that the: - ANS>> insurer dated the policy
P is a new employee and will be obtaining non- contributory group Major
Medical insurance from her employer. Which of the following actions must
she take during the open enrollment period? - ANS>> Sign an enrollment
card
Which of the following statements is true about most Blue Cross/Blue
Shield organizations? - ANS>> They are nonprofit organizations
A "reimbursement policy" pays what amount of covered Long-Term care
expenses? - ANS>> Actual covered expenses up to the daily maximum
An individual covered under a group life insurance policy is considered to
be a (n) - ANS>> certificate holder
The __________ has the right to change a life insurance policy's
beneficiary. - ANS>> policyowner
Which of the following documents must an agent submit to the replacing
insurance company during the replacement of an existing life insurance
policy? - ANS>> Notice to existing and replacing insurers of intention to
replace
Which of these statements concerning an individual Disability income policy
is TRUE? - ANS>> Normally includes an Elimination period
,What is the initial source of underwriting for an insurance policy? - ANS>>
Application containing statements from the insured
T, age 70, withdraws cash from a profit-sharing plan and purchases a
Straight life Annuity. What will this transaction provide? - ANS>> Income
that cannot be outlived by the owner
Tom has a qualified retirement plan with his employer that is currently
considered to be 80% "vested". How can this be interpreted? - ANS>> If
Tom's employment is terminated, 20% of the funds would be forfeited
Which settlement option pays a stated amount to an annuitant, but no
residual value to a beneficiary? - ANS>> Life Income
K buys a policy where the premium stays fixed for the first 5 years. The
premium then increases in year 6 and stays level thereafter, all the while
the death benefit remains the same. What kind of policy is this? - ANS>>
Modified Whole Life
An Insured's inability to perform two or more activities of daily living may
trigger which type of life policy rider? - ANS>> Long term care
Which of these is an element of a Variable Life policy? - ANS>> A fixed,
level premium
F needs life insurance that provides coverage for only a limited amount of
time with a death benefit that changes regularly to a schedule. What kind of
policy is needed? - ANS>> Decreasing term policy
Which parts of a life insurance policy are guaranteed to be true? - ANS>>
Warranty
In Major Medical Expense policies, what is the objective of a Stop Loss
provision? - ANS>> Limits an insured's out-of-pocket medical expenses.
T has an annuity that guarantees an income payment for the rest of his life.
The contract also guaranteed that if T dies before receiving payments for
20 years, the remaining payments will be paid to his son for the balance of
the 20 years. What type of annuity is this? - ANS>> Life Annuity with Period
Certain
, Florida's 14-day free-look period for life insurance policies begins at the -
ANS>> date of delivery
J would like to maintain the right to change beneficiaries. Which beneficiary
designation should be used? - ANS>> Revocable
The Notice of Claims provision requires a policyowner to: - ANS>> notify an
insurer of a claim within a specified time
What type of life policy cover 2 lives and pays the face amount after the
first one dies? - ANS>> Joint Life Policy
A statement made by an insured in an insurance application that must be
true to the best of one's knowledge and which becomes a part of the
contract is known as - ANS>> a representation
A foreign insurance company doing business in Florida - ANS>> is a
company that was formed under the laws of another state
An insurer must provide an insured with claim forms within __ days after
receiving notice of a loss. - ANS>> 15
When an insurer issues a policy that refuses to cover certain risks, this is
referred to as a(n)
: - ANS>> exclusion
on August 6, D submitted and application for a $50,000 Life Insurance
policy and did not pay the initial premium. On August 18, D went to his
doctor complaining of chest pains and some tests were given by the doctor.
The life policy was delivered by the producer on August 20 and D explains
what had recently taken place with the doctor. What action should the
producer take? - ANS>> Collect initial premium along with a signed health
statement
J owns a business and has a group Life policy covering her employees. J
decides to cancel the policy by letting it lapse on the renewal date. What
action must be taken? - ANS>> All of the employees must be notified of the
cancellation either by the insurance company or through J
