FL HEALTH AND LIFE AND ANNUITY SIMULATOR
EXAM 400 QUESTIONS & CORRECT ANSWERS
LATEST 2025
A non-contributory plan requires _________ participation of all eligible
employees - ANSWER-100%
A characteristic of preferred provider organizations (PPOS) would be: - ANSWER-
Discounted fees for the patient
Which of the following areas of state regulation is NOT protected by the saving
clause in ERISA? - ANSWER-Commerce
Additional coverage can be added to a whole Life policy by adding a(n): -
ANSWER-decreasing term rider
What benefit does the payor clause on a Juvenile Life policy provide? - ANSWER-
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? - ANSWER-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? - ANSWER-Exclusion
,Which statement is true regarding a minor beneficiary ? - ANSWER-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. - ANSWER-Individual Retirement Account (IRA)
Which of the following provisions is NOT required in HMO contracts/certificated?
- ANSWER-Seven-day grace period
The Bureau of Unclaimed Property is overseen by the - ANSWER-Chief Financial
Officer
A life policy that contains a monthly mortality charge as well as self-directed
investment choices is called a(n) - ANSWER-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:
- ANSWER-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? - ANSWER-Sign an enrollment card
Which of the following statements is true about most Blue Cross/Blue Shield
organizations? - ANSWER-They are nonprofit organizations
,A "reimbursement policy" pays what amount of covered Long-Term care
expenses? - ANSWER-Actual covered expenses up to the daily maximum
An individual covered under a group life insurance policy is considered to be a (n)
- ANSWER-certificate holder
The __________ has the right to change a life insurance policy's beneficiary. -
ANSWER-policyowner
Which of the following documents must an agent submit to the replacing
insurance company during the replacement of an existing life insurance policy? -
ANSWER-Notice to existing and replacing insurers of intention to replace
Which of these statements concerning an individual Disability income policy is
TRUE? - ANSWER-Normally includes an Elimination period
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 - ANSWER-a representation
A foreign insurance company doing business in Florida - ANSWER-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. - ANSWER-15
When an insurer issues a policy that refuses to cover certain risks, this is referred
to as a(n)
, : - ANSWER-exclusion
What is the initial source of underwriting for an insurance policy? - ANSWER-
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? - ANSWER-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? - ANSWER-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? - ANSWER-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? - ANSWER-Modified Whole Life
An Insured's inability to perform two or more activities of daily living may trigger
which type of life policy rider? - ANSWER-Long term care
Which of these is an element of a Variable Life policy? - ANSWER-A fixed, level
premium
EXAM 400 QUESTIONS & CORRECT ANSWERS
LATEST 2025
A non-contributory plan requires _________ participation of all eligible
employees - ANSWER-100%
A characteristic of preferred provider organizations (PPOS) would be: - ANSWER-
Discounted fees for the patient
Which of the following areas of state regulation is NOT protected by the saving
clause in ERISA? - ANSWER-Commerce
Additional coverage can be added to a whole Life policy by adding a(n): -
ANSWER-decreasing term rider
What benefit does the payor clause on a Juvenile Life policy provide? - ANSWER-
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? - ANSWER-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? - ANSWER-Exclusion
,Which statement is true regarding a minor beneficiary ? - ANSWER-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. - ANSWER-Individual Retirement Account (IRA)
Which of the following provisions is NOT required in HMO contracts/certificated?
- ANSWER-Seven-day grace period
The Bureau of Unclaimed Property is overseen by the - ANSWER-Chief Financial
Officer
A life policy that contains a monthly mortality charge as well as self-directed
investment choices is called a(n) - ANSWER-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:
- ANSWER-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? - ANSWER-Sign an enrollment card
Which of the following statements is true about most Blue Cross/Blue Shield
organizations? - ANSWER-They are nonprofit organizations
,A "reimbursement policy" pays what amount of covered Long-Term care
expenses? - ANSWER-Actual covered expenses up to the daily maximum
An individual covered under a group life insurance policy is considered to be a (n)
- ANSWER-certificate holder
The __________ has the right to change a life insurance policy's beneficiary. -
ANSWER-policyowner
Which of the following documents must an agent submit to the replacing
insurance company during the replacement of an existing life insurance policy? -
ANSWER-Notice to existing and replacing insurers of intention to replace
Which of these statements concerning an individual Disability income policy is
TRUE? - ANSWER-Normally includes an Elimination period
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 - ANSWER-a representation
A foreign insurance company doing business in Florida - ANSWER-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. - ANSWER-15
When an insurer issues a policy that refuses to cover certain risks, this is referred
to as a(n)
, : - ANSWER-exclusion
What is the initial source of underwriting for an insurance policy? - ANSWER-
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? - ANSWER-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? - ANSWER-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? - ANSWER-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? - ANSWER-Modified Whole Life
An Insured's inability to perform two or more activities of daily living may trigger
which type of life policy rider? - ANSWER-Long term care
Which of these is an element of a Variable Life policy? - ANSWER-A fixed, level
premium
