Florida 2-15 Final Exam - Complete Solutions

Florida 2-15 Final Exam Florida 2-15 Final Exam When life insurance proceeds are used to pay inheritance taxes and federal estate taxes, it is known as Estate conservation In group insurance, the primary purpose of the Coordination of Benefits provision is to Prevent overinsurance Which of the following statements is NOT true regarding health insurance policy provisions? 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 A collateral assignment A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy will 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? 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? An Accidental Death Rider All of the following are consideration in an insurance policy EXCEPT The cash value in the policy. An individual has a $200,000 convertible term life insurance policy. If he chooses, he can 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? 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 $2,500 Which federal act defines rules pertaining to protected health information? HIPAA The "stop-loss" feature on a major medical policy is intended to 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? Key person disability income Life insurance creates an immediate estate. Which of the following best explains this statement? 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? 65 Whose responsibility is it to ensure that the application for health insurance is complete and accurate? The agent's Which of the following policies would NOT offer a policy loan option? Term Life Regarding the consideration clause, which of the following is NOT correct? Consideration of the insurer and insured must be equal. The guaranteed purchase option is also referred to as the Future increase option. When an insured terminates membership in the insured group, the insured can convert to Whole life without proof of insurability. Which dividend option will increase the death benefit?