Exam Simulator: Florida Life And Health State
Exam - Questions With Tailored Solutions
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)
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
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
Exam - Questions With Tailored Solutions
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)
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
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
