FLORIDA 2-15 FINAL EXAM QUESTIONS AND
ANSWERS
When life insurance proceeds are used to pay inheritance taxes and federal estate
taxes, it is known as - Answer -Estate conservation
In group insurance, the primary purpose of the Coordination of Benefits provision is to -
Answer -Prevent overinsurance
Which of the following statements is NOT true regarding health insurance policy
provisions? - Answer -All additional provisions written by insurers are cataloged by their
respective states.
The policyowner has an option to pledge the life insurance policy as collateral for a bank
loan. This is called - Answer -A collateral assignment
A whole life policy is surrendered for a reduced-paid up policy. The cash value in the
new policy will - Answer -Continue to increase
When filling out an application for insurance, the applicant makes a mistake. If a fresh
application were not available, what could the applicant do to properly correct the
mistake? - Answer -Cross the incorrect answer out, write the correct one beside it, and
initial the answer.
Which of the following riders pays a beneficiary a death benefit that is double or triple
the face amount if the insured's death was caused by an accident as defined in the
policy? - Answer -An Accidental Death Rider
All of the following are consideration in an insurance policy EXCEPT - Answer -The
cash value in the policy.
An individual has a $200,000 convertible term life insurance policy. If he chooses, he
can - Answer -Convert to a whole life policy for the same face amount without proof of
insurability.
Which of the following is NOT true regarding a deferred annuity? - Answer -Income
payments begin within 1 year from the date of purchase.
A retail shop owner is insured under a business overhead expense policy that pays a
maximum monthly benefit of $2,500. His actual monthly expenses are $3,000. If the
owner becomes disabled, the monthly benefit payable under his policy will be - Answer
-$2,500
, Which federal act defines rules pertaining to protected health information? - Answer -
HIPAA
The "stop-loss" feature on a major medical policy is intended to - Answer -Establish a
maximum amount of out-of-pocket expense that an insured will have to pay for medical
expense in a calendar year.
If a business wants to make sure it will be able to cover losses due to the disability of its
top employee, the business should get which type of insurance? - Answer -Key person
disability income
Life insurance creates an immediate estate. Which of the following best explains this
statement? - Answer -The face value of the policy is payable to the beneficiary upon
the death of the insured.
What is the maximum age that a disabled insured worker may receive Social Security
disability benefits? - Answer -65
Whose responsibility is it to ensure that the application for health insurance is complete
and accurate? - Answer -The agent's
Which of the following policies would NOT offer a policy loan option? - Answer -Term
Life
Regarding the consideration clause, which of the following is NOT correct? - Answer -
Consideration of the insurer and insured must be equal.
The guaranteed purchase option is also referred to as the - Answer -Future increase
option.
When an insured terminates membership in the insured group, the insured can convert
to - Answer -Whole life without proof of insurability.
Which dividend option will increase the death benefit? - Answer -Paid-up additions
What is the difference between a straight life policy and a 20-pay whole life policy? -
Answer -Premium payment period
Which of the following policies can be described as a flexible premium adjustable life
policy? - Answer -Universal Life
All of the following statements are true regarding an Ordinary (Straight) Life policy
EXCEPT - Answer -It does not have a guaranteed death benefit.
ANSWERS
When life insurance proceeds are used to pay inheritance taxes and federal estate
taxes, it is known as - Answer -Estate conservation
In group insurance, the primary purpose of the Coordination of Benefits provision is to -
Answer -Prevent overinsurance
Which of the following statements is NOT true regarding health insurance policy
provisions? - Answer -All additional provisions written by insurers are cataloged by their
respective states.
The policyowner has an option to pledge the life insurance policy as collateral for a bank
loan. This is called - Answer -A collateral assignment
A whole life policy is surrendered for a reduced-paid up policy. The cash value in the
new policy will - Answer -Continue to increase
When filling out an application for insurance, the applicant makes a mistake. If a fresh
application were not available, what could the applicant do to properly correct the
mistake? - Answer -Cross the incorrect answer out, write the correct one beside it, and
initial the answer.
Which of the following riders pays a beneficiary a death benefit that is double or triple
the face amount if the insured's death was caused by an accident as defined in the
policy? - Answer -An Accidental Death Rider
All of the following are consideration in an insurance policy EXCEPT - Answer -The
cash value in the policy.
An individual has a $200,000 convertible term life insurance policy. If he chooses, he
can - Answer -Convert to a whole life policy for the same face amount without proof of
insurability.
Which of the following is NOT true regarding a deferred annuity? - Answer -Income
payments begin within 1 year from the date of purchase.
A retail shop owner is insured under a business overhead expense policy that pays a
maximum monthly benefit of $2,500. His actual monthly expenses are $3,000. If the
owner becomes disabled, the monthly benefit payable under his policy will be - Answer
-$2,500
, Which federal act defines rules pertaining to protected health information? - Answer -
HIPAA
The "stop-loss" feature on a major medical policy is intended to - Answer -Establish a
maximum amount of out-of-pocket expense that an insured will have to pay for medical
expense in a calendar year.
If a business wants to make sure it will be able to cover losses due to the disability of its
top employee, the business should get which type of insurance? - Answer -Key person
disability income
Life insurance creates an immediate estate. Which of the following best explains this
statement? - Answer -The face value of the policy is payable to the beneficiary upon
the death of the insured.
What is the maximum age that a disabled insured worker may receive Social Security
disability benefits? - Answer -65
Whose responsibility is it to ensure that the application for health insurance is complete
and accurate? - Answer -The agent's
Which of the following policies would NOT offer a policy loan option? - Answer -Term
Life
Regarding the consideration clause, which of the following is NOT correct? - Answer -
Consideration of the insurer and insured must be equal.
The guaranteed purchase option is also referred to as the - Answer -Future increase
option.
When an insured terminates membership in the insured group, the insured can convert
to - Answer -Whole life without proof of insurability.
Which dividend option will increase the death benefit? - Answer -Paid-up additions
What is the difference between a straight life policy and a 20-pay whole life policy? -
Answer -Premium payment period
Which of the following policies can be described as a flexible premium adjustable life
policy? - Answer -Universal Life
All of the following statements are true regarding an Ordinary (Straight) Life policy
EXCEPT - Answer -It does not have a guaranteed death benefit.
