FLORIDA INSURANCE 2-14 COMPREHENSIVE EXAM 2025
QUESTIONS WITH ANSWERS GUARANTEE A+
✔✔Universal Life - ✔✔- Death Benefit is Adjustable
- Two death benefit options
- Premium is Flexible
- Mortality Rates are current & guaranteed maximum
- Cash Value is current, Guaranteed maximum
- No investment options
- Yes, partial surrenders
✔✔Variable Universal Life - ✔✔- Death Benefit is Variable & Adjustable
- Two death benefit options
- Premium is Flexible
- Mortality Rates are current & guaranteed maximum
- Cash Value is variable, and no Guarantee
- Yes, investment options
- Yes, partial surrenders
✔✔Endowment Policies - ✔✔- To endow is to "furnish with an income"
- A type of life insurance that is payable to the insured if she/he is still living on the
policy's maturity date.
- Can provide a death benefit to the beneficiary or a living benefit to the policyowner.
✔✔Endowment Premiums - ✔✔- Are always the most expensive and build cash values
the fastest.
- Could be considered investment policies rather than insurance
✔✔Modified Endowment Contracts - ✔✔- A Modified Endowment Contract (MEC)
makes different tax considerations to a policy
- It must pass the "7-pay test"
o If the total amount a policyowner pays into the contract during its first seven years
exceeds the sum of the net level premiums that would have been payable to provide
paid-up future benefits.
✔✔Family Income Policies - ✔✔Whole Life + Decreasing Term
• This policy pays the beneficiary a monthly income for the balance of the family income
coverage period.
• The insurer must die prior to the time the selected family income coverage period
ends. Starts when policy is issued.
✔✔Family Maintenance Policies - ✔✔Whole Life + Level Term
• The policy will pay the beneficiary a monthly income for a preselected number of
years.
• Must die prior to a selected date
,• The specified income period begins on the date of death.
✔✔Family Plan Policies - ✔✔o All family members are covered under one plan.
✔✔Multiple Protection Policies - ✔✔Pays a benefit of double or triple the face amount if
death occurs during a specified period.
✔✔Joint Life Policies - ✔✔Covers two or more people. Using some type of permanent
insurance, it pays the death benefit when one of the insured's dies. Premiums are less
than MPP's
✔✔Last Survivor Policy (Second-to-Die) - ✔✔Covers two life's; benefit is paid upon the
death of the last surviving insured
✔✔Juvenile Insurance - ✔✔Permanent insurance written on underage children (usually
from one day to age 14 or 15 years.)
✔✔Jumping Juvenile Policy - ✔✔When the child reaches age 21, coverage increases to
five times the face amount, premiums remain the same and no evidence of insurability
is required.
✔✔Credit Life Insurance - ✔✔Decreasing Term that pays the amounts due on a loan if
the debtor dies before the load is paid off
✔✔Interest Sensitive Whole Life - ✔✔Premiums vary to reflect the insurer's changing
assumptions with regard to death investment and expense factors.
✔✔Adjustable Life - ✔✔Permanent + Term
Combines permanent and term life policies allowing changes to face amount, period
payments, and term during policy lifetime.
✔✔Universal Life - ✔✔UL policies are characterized by considerable flexibility.
UL policies allow premium payments and face amounts to be adjusted up or down
according to the policyowners needs.
✔✔Accidental Death Benefit Rider - ✔✔pays a multiple of the death proceeds if the
cause of death is a covered accidental event.
✔✔Accelerated Benefit Rider - ✔✔Pays a portion of the death benefit if the insured is
diagnosed with a terminal illness.
✔✔No lapse guarantee rider - ✔✔Guarantees a death benefit for life so the insured is
covered even if premium payments lapse.
, ✔✔Additional Insured Rider - ✔✔Provides a death benefit on the lives of family
members
✔✔Childrens Insurance Rider - ✔✔Extends a death benefit to the insureds child
✔✔Rights of Ownership - ✔✔- Decision on choosing and changing the beneficiary
- Decision on just how the death benefits will be disbursed to the beneficiary
- Right to policy loans
- Right to policy dividends and their disbursement method
- Right to Assign ownership of the policy to someone else
- The right to cancel the policy and select a no forfeiture option.
✔✔The Insuring Clause - ✔✔- Outlines the conditions under which the policy will pay.
- If the insured dies, the insurer promises to pay the beneficiary the death benefit as laid
out in the policy.
- It contains the face value of the policy, the insured's name, and the name of the
insurer.
✔✔Free Look Provision - ✔✔- Allows the applicant to look over the policy after they
receive it.
- 14 days and 30 days
✔✔Consideration Clause - ✔✔- Spells out exactly how much premium payments are
and when they are due.
- The legal consideration for a life policy consists of the application and payment of the
initial premium.
✔✔Grace Period - ✔✔- A stated period of time after the premium due date during which
the policy remains in force even though the premium has not been paid.
✔✔The Reinstatement Clause - ✔✔- Stipulates the conditions under which the policy
can be restored.
- All overdue premiums plus interest must be paid if they restore.
- Usually policies may be reinstated three years after lapse.
✔✔Policy Loan Provision - ✔✔- A permanent life insurance may be borrowed against
- If insured dies, the loan amount and any interest due must be repaid from the death
benefit proceeds.
✔✔Automatic Premium Loan Provision - ✔✔- Enables the insurer to withdraw funds
from the policy if any cash value has accumulated within the contract
✔✔Incontestable Clause - ✔✔- A time limit (usually 2 years) in which the insurer can
dispute a policy based on the validity of statements made on the original application.
QUESTIONS WITH ANSWERS GUARANTEE A+
✔✔Universal Life - ✔✔- Death Benefit is Adjustable
- Two death benefit options
- Premium is Flexible
- Mortality Rates are current & guaranteed maximum
- Cash Value is current, Guaranteed maximum
- No investment options
- Yes, partial surrenders
✔✔Variable Universal Life - ✔✔- Death Benefit is Variable & Adjustable
- Two death benefit options
- Premium is Flexible
- Mortality Rates are current & guaranteed maximum
- Cash Value is variable, and no Guarantee
- Yes, investment options
- Yes, partial surrenders
✔✔Endowment Policies - ✔✔- To endow is to "furnish with an income"
- A type of life insurance that is payable to the insured if she/he is still living on the
policy's maturity date.
- Can provide a death benefit to the beneficiary or a living benefit to the policyowner.
✔✔Endowment Premiums - ✔✔- Are always the most expensive and build cash values
the fastest.
- Could be considered investment policies rather than insurance
✔✔Modified Endowment Contracts - ✔✔- A Modified Endowment Contract (MEC)
makes different tax considerations to a policy
- It must pass the "7-pay test"
o If the total amount a policyowner pays into the contract during its first seven years
exceeds the sum of the net level premiums that would have been payable to provide
paid-up future benefits.
✔✔Family Income Policies - ✔✔Whole Life + Decreasing Term
• This policy pays the beneficiary a monthly income for the balance of the family income
coverage period.
• The insurer must die prior to the time the selected family income coverage period
ends. Starts when policy is issued.
✔✔Family Maintenance Policies - ✔✔Whole Life + Level Term
• The policy will pay the beneficiary a monthly income for a preselected number of
years.
• Must die prior to a selected date
,• The specified income period begins on the date of death.
✔✔Family Plan Policies - ✔✔o All family members are covered under one plan.
✔✔Multiple Protection Policies - ✔✔Pays a benefit of double or triple the face amount if
death occurs during a specified period.
✔✔Joint Life Policies - ✔✔Covers two or more people. Using some type of permanent
insurance, it pays the death benefit when one of the insured's dies. Premiums are less
than MPP's
✔✔Last Survivor Policy (Second-to-Die) - ✔✔Covers two life's; benefit is paid upon the
death of the last surviving insured
✔✔Juvenile Insurance - ✔✔Permanent insurance written on underage children (usually
from one day to age 14 or 15 years.)
✔✔Jumping Juvenile Policy - ✔✔When the child reaches age 21, coverage increases to
five times the face amount, premiums remain the same and no evidence of insurability
is required.
✔✔Credit Life Insurance - ✔✔Decreasing Term that pays the amounts due on a loan if
the debtor dies before the load is paid off
✔✔Interest Sensitive Whole Life - ✔✔Premiums vary to reflect the insurer's changing
assumptions with regard to death investment and expense factors.
✔✔Adjustable Life - ✔✔Permanent + Term
Combines permanent and term life policies allowing changes to face amount, period
payments, and term during policy lifetime.
✔✔Universal Life - ✔✔UL policies are characterized by considerable flexibility.
UL policies allow premium payments and face amounts to be adjusted up or down
according to the policyowners needs.
✔✔Accidental Death Benefit Rider - ✔✔pays a multiple of the death proceeds if the
cause of death is a covered accidental event.
✔✔Accelerated Benefit Rider - ✔✔Pays a portion of the death benefit if the insured is
diagnosed with a terminal illness.
✔✔No lapse guarantee rider - ✔✔Guarantees a death benefit for life so the insured is
covered even if premium payments lapse.
, ✔✔Additional Insured Rider - ✔✔Provides a death benefit on the lives of family
members
✔✔Childrens Insurance Rider - ✔✔Extends a death benefit to the insureds child
✔✔Rights of Ownership - ✔✔- Decision on choosing and changing the beneficiary
- Decision on just how the death benefits will be disbursed to the beneficiary
- Right to policy loans
- Right to policy dividends and their disbursement method
- Right to Assign ownership of the policy to someone else
- The right to cancel the policy and select a no forfeiture option.
✔✔The Insuring Clause - ✔✔- Outlines the conditions under which the policy will pay.
- If the insured dies, the insurer promises to pay the beneficiary the death benefit as laid
out in the policy.
- It contains the face value of the policy, the insured's name, and the name of the
insurer.
✔✔Free Look Provision - ✔✔- Allows the applicant to look over the policy after they
receive it.
- 14 days and 30 days
✔✔Consideration Clause - ✔✔- Spells out exactly how much premium payments are
and when they are due.
- The legal consideration for a life policy consists of the application and payment of the
initial premium.
✔✔Grace Period - ✔✔- A stated period of time after the premium due date during which
the policy remains in force even though the premium has not been paid.
✔✔The Reinstatement Clause - ✔✔- Stipulates the conditions under which the policy
can be restored.
- All overdue premiums plus interest must be paid if they restore.
- Usually policies may be reinstated three years after lapse.
✔✔Policy Loan Provision - ✔✔- A permanent life insurance may be borrowed against
- If insured dies, the loan amount and any interest due must be repaid from the death
benefit proceeds.
✔✔Automatic Premium Loan Provision - ✔✔- Enables the insurer to withdraw funds
from the policy if any cash value has accumulated within the contract
✔✔Incontestable Clause - ✔✔- A time limit (usually 2 years) in which the insurer can
dispute a policy based on the validity of statements made on the original application.
