Florida Life & Health Practice Test
A Business Overhead Expense policy would cover which of the following if a business owner
becomes disabled? - ANS -Utilities and office rent
\A characteristic of Preferred Provider Organizations (PPOs) would be: - ANS -Discounted fees
for the patient
\A creditor who requires a debtor to obtain insurance from a particular company or agent as a
condition for a loan is guilty of - ANS -Coercion
\A Disability Income policyowner recently submitted a claim for a chronic neck problem that has
now resulted in total disability. 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? - ANS -Claim will be paid and coverage will remain in force
\A Disability Income policyowner suffers a disability which was due to the same cause as a
previous disability. Both disabilities occurred within a five-month period. The insurer may cover
the second disability without a new elimination period under the - ANS -Recurrent Disability
provision
\A life insurance application must be signed by all of these EXCEPT - ANS -Beneficiary
\A life insurance policy that provides a policyowner with cash value along with a level face
amount is called - ANS -Whole life
\A life insurance policy which ensures that the premium will be paid if the insured becomes
disabled has what kind of rider attached? - ANS -Waiver of Premium
\A medical care provider which typically delivers health services at its own local medical facility
is known as a - ANS -Health Maintenance Organization
\A newly licensed agent MUST satisfy a continuing education requirement of how many hours
every two years? - ANS -24
\A policyowner is allowed to pay premiums more than once a year under which provision? - ANS
-Mode of Premium
\A prepaid application for individual Disability Income insurance was recently submitted to an
insurer. When the insurer received the Medical Information Bureau (MIB) report, the report
showed that the applicant had suffered a stroke 18 months ago, something that was not
disclosed on the application. Which of the following actions would the insurance company NOT
take? - ANS -Send a notice to the MIB that the applicant was declined
\A provision in a life insurance policy that pays the policyowner an amount that does not surpass
the guaranteed cash value is called the - ANS -Policy Loan provision
\A variable insurance policy - ANS -does not guarantee a return on its investment accounts
\According to Florida law, how often must a variable annuity policyholder be informed of the
accumulated value of the contract during the premium payment period? - ANS -At least once
each year
\According to Florida statutes, all of the following provisions must be contained in a Medicare
Supplement policy EXCEPT - ANS -A 12-month limitation on pre-existing conditions
\According to the insurance code, an agent's controlled business may NOT exceed a maximum
of - ANS -50%
, \According to the Time Payment of Claims provision, the insurer must pay Disability Income
benefits no less frequently than which of the following options? - ANS -Monthly
\Additional coverage can be added to a Whole Life policy by adding a(n) - ANS -decreasing
term rider
\Agents can help prospective insureds understand and purchase the most appropriate product
by delivering - ANS -a buyer's guide
\Agents marketing variable life insurance must be licensed and appointed as a life and variable
contract agent, and a - ANS -broker dealer
\All of the following are possible consequences for placing with an unauthorized insurer
EXCEPT - ANS -conviction of a first degree misdemeanor
\All of the following are unfair claim settlement practices EXCEPT - ANS -requiring written
documentation of claim details
\All of these are considered sources of underwriting information about an applicant EXCEPT -
ANS -Rating Services
\An agent takes an individual Disability Income application, collects the appropriate premium,
and issues the prospective insured a conditional receipt. The next step the insurance company
will take is to - ANS -determine if the applicant is an acceptable risk by completing standard
underwriting procedures
\An agent who makes a statement that is maliciously critical of another person's financial
condition is guilty of - ANS -Defamation
\An agent's license will terminate if the agent allows what period of time to elapse without being
appointed for the class or classes of insurance listed on the license? - ANS -48 months
\An immediate annuity consists of a - ANS -single premium
\An individual Disability Income insurance applicant may be required to submit all of the
following information EXCEPT - ANS -spouse's occupation
\An individual has a Major Medical policy with a $5,000 deductible and an 80/20 Coinsurance
clause. How much will the INSURED have to pay if a total of $15,000 in covered medical
expenses are incurred? - ANS -$7,000
\An individual who purchases a Life annuity is given protection against - ANS -the risk of living
longer than expected
\An insurance company licensed in Florida and domiciled in Pennsylvania is known as - ANS -a
foreign company
\An insured covered by life insurance has just died. What will happen if the primary beneficiary
had already died before the insured and contingent beneficiary? - ANS -Proceeds will go to the
contingent beneficiary
\An insured is past due on his life insurance premium, but is still within the Grace Period. What
will the beneficiary receive if the insured dies during this Grace Period? - ANS -Full face amount
minus any past due premiums
\An insured pays premiums on an annual basis for an individual health insurance policy. What is
the MINIMUM number of days for the Grace Period provision? - ANS -31
\An underwriter determines that an applicant's risk should be recategorized due to a health
issue. This life insurance policy may be issued with a(n) - ANS -extra premium
\Any changes made on an insurance application requires the initials of whom? - ANS -Applicant
A Business Overhead Expense policy would cover which of the following if a business owner
becomes disabled? - ANS -Utilities and office rent
\A characteristic of Preferred Provider Organizations (PPOs) would be: - ANS -Discounted fees
for the patient
\A creditor who requires a debtor to obtain insurance from a particular company or agent as a
condition for a loan is guilty of - ANS -Coercion
\A Disability Income policyowner recently submitted a claim for a chronic neck problem that has
now resulted in total disability. 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? - ANS -Claim will be paid and coverage will remain in force
\A Disability Income policyowner suffers a disability which was due to the same cause as a
previous disability. Both disabilities occurred within a five-month period. The insurer may cover
the second disability without a new elimination period under the - ANS -Recurrent Disability
provision
\A life insurance application must be signed by all of these EXCEPT - ANS -Beneficiary
\A life insurance policy that provides a policyowner with cash value along with a level face
amount is called - ANS -Whole life
\A life insurance policy which ensures that the premium will be paid if the insured becomes
disabled has what kind of rider attached? - ANS -Waiver of Premium
\A medical care provider which typically delivers health services at its own local medical facility
is known as a - ANS -Health Maintenance Organization
\A newly licensed agent MUST satisfy a continuing education requirement of how many hours
every two years? - ANS -24
\A policyowner is allowed to pay premiums more than once a year under which provision? - ANS
-Mode of Premium
\A prepaid application for individual Disability Income insurance was recently submitted to an
insurer. When the insurer received the Medical Information Bureau (MIB) report, the report
showed that the applicant had suffered a stroke 18 months ago, something that was not
disclosed on the application. Which of the following actions would the insurance company NOT
take? - ANS -Send a notice to the MIB that the applicant was declined
\A provision in a life insurance policy that pays the policyowner an amount that does not surpass
the guaranteed cash value is called the - ANS -Policy Loan provision
\A variable insurance policy - ANS -does not guarantee a return on its investment accounts
\According to Florida law, how often must a variable annuity policyholder be informed of the
accumulated value of the contract during the premium payment period? - ANS -At least once
each year
\According to Florida statutes, all of the following provisions must be contained in a Medicare
Supplement policy EXCEPT - ANS -A 12-month limitation on pre-existing conditions
\According to the insurance code, an agent's controlled business may NOT exceed a maximum
of - ANS -50%
, \According to the Time Payment of Claims provision, the insurer must pay Disability Income
benefits no less frequently than which of the following options? - ANS -Monthly
\Additional coverage can be added to a Whole Life policy by adding a(n) - ANS -decreasing
term rider
\Agents can help prospective insureds understand and purchase the most appropriate product
by delivering - ANS -a buyer's guide
\Agents marketing variable life insurance must be licensed and appointed as a life and variable
contract agent, and a - ANS -broker dealer
\All of the following are possible consequences for placing with an unauthorized insurer
EXCEPT - ANS -conviction of a first degree misdemeanor
\All of the following are unfair claim settlement practices EXCEPT - ANS -requiring written
documentation of claim details
\All of these are considered sources of underwriting information about an applicant EXCEPT -
ANS -Rating Services
\An agent takes an individual Disability Income application, collects the appropriate premium,
and issues the prospective insured a conditional receipt. The next step the insurance company
will take is to - ANS -determine if the applicant is an acceptable risk by completing standard
underwriting procedures
\An agent who makes a statement that is maliciously critical of another person's financial
condition is guilty of - ANS -Defamation
\An agent's license will terminate if the agent allows what period of time to elapse without being
appointed for the class or classes of insurance listed on the license? - ANS -48 months
\An immediate annuity consists of a - ANS -single premium
\An individual Disability Income insurance applicant may be required to submit all of the
following information EXCEPT - ANS -spouse's occupation
\An individual has a Major Medical policy with a $5,000 deductible and an 80/20 Coinsurance
clause. How much will the INSURED have to pay if a total of $15,000 in covered medical
expenses are incurred? - ANS -$7,000
\An individual who purchases a Life annuity is given protection against - ANS -the risk of living
longer than expected
\An insurance company licensed in Florida and domiciled in Pennsylvania is known as - ANS -a
foreign company
\An insured covered by life insurance has just died. What will happen if the primary beneficiary
had already died before the insured and contingent beneficiary? - ANS -Proceeds will go to the
contingent beneficiary
\An insured is past due on his life insurance premium, but is still within the Grace Period. What
will the beneficiary receive if the insured dies during this Grace Period? - ANS -Full face amount
minus any past due premiums
\An insured pays premiums on an annual basis for an individual health insurance policy. What is
the MINIMUM number of days for the Grace Period provision? - ANS -31
\An underwriter determines that an applicant's risk should be recategorized due to a health
issue. This life insurance policy may be issued with a(n) - ANS -extra premium
\Any changes made on an insurance application requires the initials of whom? - ANS -Applicant
