Life, Health, and Variable Annuity practice exam || 100%
Verified Answers.
Which of the following statements is CORRECT?
A) Only speculative risks are insurable
B) Only pure risks are insurable
C) Both pure risks and speculative risks are insurable
D) Neither pure risks nor speculative risks are insurable correct answers B) Only pure risks are
insurable
Buying insurance is one of the most effective ways of
A) avoiding risk
B) transferring risk
C) reducing risk
D) retaining risk correct answers B) transferring risk
An insurance company organized and headquartered in Florida can be described as what type of
company in Florida?
A) Alien
B) Home-based
C) Foreign
D) Domestic correct answers D) Domestic
The State Guaranty Association guarantees
A) that a policy will be issued
B) that a claim will be paid if an insurer becomes insolvent
C) that dividends will be paid
D) the rate of return on a policy correct answers B) that a claim will be paid if an insurer
becomes insolvent
The authority that an insurer gives to its agent by means of the agent's contract is known as
A) implied authority
B) express authority
C) fiduciary responsibility
D) general authority correct answers B) express authority
With life and health contracts, when must an insurable interest exist?
A) After the policy is used
B) Before the beneficiary is named
C) While the policy is in force
D) At the inception of the policy correct answers D) At the inception of the policy
Bob and Tom enter into a contract in which Bob agrees to fraudulently induce sick people to sell
their insurance contracts to Tom's company. Bob and Tom's contract can best be described as
A) void
B) competitive
, C) voidable
D) conditional correct answers A) void
Which of the following phrases should agents avoid using when explaining policies to
prospective applicants or clients
A) Cash value
B) Vanishing premium
C) Flexible premium
D) Death benefit correct answers B) Vanishing premium
What period would a 14-day free-look provision apply in Florida
A) The first 14 days after the application has been signed by the applicant
B) The first 14 days after the application has been received by the insurer
C) The first 14 days after the policy has been issued by the insurer
D) The first 14 days after the issued policy has been received by the insured correct answers D)
The first 14 days after the issued policy has been received by the insured
The rider that provides for a waiver of premiums on a juvenile policy if the adult payor dies or
becomes disabled is
A) a guaranteed insurability rider
B) a payor rider
C) a waiver of premium rider
D) an automatic premium loan rider correct answers B) a payor rider
Which of the following statements pertaining to the Medical Information Bureau (MIB) is
CORRECT?
A) The MIB is operated by a national network of hospitals
B) Information obtained by the MIB is available to all physicians
C) The MIB provides assistance in the underwriting of life insurance
D) Applicants may request that MIB reports be attached to their policies correct answers C) The
MIB provides assistance in the underwriting of life insurance
Group Insurance plans that require employees to pay a portion of the premium are called
A) underwritten
B) contributory
C) participatory
D) shared correct answers B) contributory
Albert has purchased an annuity that will pay him a monthly income for the rest of his life. If
Albert dies before the annuity has paid back as much as he put into it, the insurance company has
agreed to pay the difference to Albert's daughter. What annuity payout option did Albert select?
A) A straight-life income
B) A life income with period certain
C) A cash refund
D) A fixed period correct answers C) A cash refund
Verified Answers.
Which of the following statements is CORRECT?
A) Only speculative risks are insurable
B) Only pure risks are insurable
C) Both pure risks and speculative risks are insurable
D) Neither pure risks nor speculative risks are insurable correct answers B) Only pure risks are
insurable
Buying insurance is one of the most effective ways of
A) avoiding risk
B) transferring risk
C) reducing risk
D) retaining risk correct answers B) transferring risk
An insurance company organized and headquartered in Florida can be described as what type of
company in Florida?
A) Alien
B) Home-based
C) Foreign
D) Domestic correct answers D) Domestic
The State Guaranty Association guarantees
A) that a policy will be issued
B) that a claim will be paid if an insurer becomes insolvent
C) that dividends will be paid
D) the rate of return on a policy correct answers B) that a claim will be paid if an insurer
becomes insolvent
The authority that an insurer gives to its agent by means of the agent's contract is known as
A) implied authority
B) express authority
C) fiduciary responsibility
D) general authority correct answers B) express authority
With life and health contracts, when must an insurable interest exist?
A) After the policy is used
B) Before the beneficiary is named
C) While the policy is in force
D) At the inception of the policy correct answers D) At the inception of the policy
Bob and Tom enter into a contract in which Bob agrees to fraudulently induce sick people to sell
their insurance contracts to Tom's company. Bob and Tom's contract can best be described as
A) void
B) competitive
, C) voidable
D) conditional correct answers A) void
Which of the following phrases should agents avoid using when explaining policies to
prospective applicants or clients
A) Cash value
B) Vanishing premium
C) Flexible premium
D) Death benefit correct answers B) Vanishing premium
What period would a 14-day free-look provision apply in Florida
A) The first 14 days after the application has been signed by the applicant
B) The first 14 days after the application has been received by the insurer
C) The first 14 days after the policy has been issued by the insurer
D) The first 14 days after the issued policy has been received by the insured correct answers D)
The first 14 days after the issued policy has been received by the insured
The rider that provides for a waiver of premiums on a juvenile policy if the adult payor dies or
becomes disabled is
A) a guaranteed insurability rider
B) a payor rider
C) a waiver of premium rider
D) an automatic premium loan rider correct answers B) a payor rider
Which of the following statements pertaining to the Medical Information Bureau (MIB) is
CORRECT?
A) The MIB is operated by a national network of hospitals
B) Information obtained by the MIB is available to all physicians
C) The MIB provides assistance in the underwriting of life insurance
D) Applicants may request that MIB reports be attached to their policies correct answers C) The
MIB provides assistance in the underwriting of life insurance
Group Insurance plans that require employees to pay a portion of the premium are called
A) underwritten
B) contributory
C) participatory
D) shared correct answers B) contributory
Albert has purchased an annuity that will pay him a monthly income for the rest of his life. If
Albert dies before the annuity has paid back as much as he put into it, the insurance company has
agreed to pay the difference to Albert's daughter. What annuity payout option did Albert select?
A) A straight-life income
B) A life income with period certain
C) A cash refund
D) A fixed period correct answers C) A cash refund
