FLORIDA 2-15 LIFE, HEALTH & VARIABLE ANNUITY
INSURANCE LICENSE NEWEST EXAM – 150 ACTUAL
QUESTIONS WITH ANSWERS AND EXPLANATIONS |
PDF STUDY GUIDE
1. What type of policy provides coverage for the insured’s entire life?
A. Term life
B. Whole life
C. Credit life
D. Industrial life
Whole life provides coverage up to age 100 with a cash value component.
2. Which of the following is NOT a characteristic of term insurance?
A. Renewable
B. Convertible
C. Builds cash value
D. Temporary protection
Term insurance does not build cash value.
3. The process of determining whether an applicant is insurable is called:
A. Underwriting
B. Rating
C. Solicitation
D. Reinsurance
Underwriting evaluates risk to decide coverage eligibility and pricing.
4. What does the “consideration clause” in a life insurance policy state?
,A. Premium payment and statements made by the insured
B. Beneficiary designation
C. Policy exclusion
D. Reinstatement requirements
It shows the value exchanged — the applicant’s premium for the insurer’s promise to pay.
5. A representation in an application must be:
A. Guaranteed
B. Estimated
C. True to the best knowledge of the applicant
D. Not required
Representations are believed true but aren’t absolute warranties.
6. What type of beneficiary cannot be changed without consent?
A. Revocable
B. Irrevocable
C. Contingent
D. Secondary
Irrevocable beneficiaries must approve changes.
7. In Florida, the minimum age to obtain a life insurance license is:
A. 16
B. 18
C. 21
D. 25
Producers must be at least 18 years old.
8. The grace period in a life insurance policy is intended to:
A. Immediately lapse coverage
B. Provide extra time to pay a late premium
C. Increase the death benefit
D. Extend the policy term
It protects from accidental lapses due to late payments.
9. What is the purpose of incontestability clause?
A. Adds cash value
B. Limits the insurer’s ability to contest after 2 years
C. Increases premiums
D. Expands coverage
After 2 years, insurers cannot dispute statements on the application.
, 10. A policy that pays dividends to the policyowner is called:
A. Nonparticipating
B. Participating
C. Term
D. Endowment
Participating policies share insurer profits with owners.
11. Which of the following is a type of whole life policy?
A. Decreasing term
B. Level premium
C. Credit life
D. Adjustable life
Level premium whole life has fixed premiums and death benefit.
12. A key feature of universal life insurance is:
A. No cash value
B. Adjustable premium and death benefit
C. Guaranteed minimum loan interest
D. Only temporary protection
Flexible premiums are a hallmark of universal life insurance.
13. Variable life insurance investments are held in:
A. General account
B. Separate account
C. Treasury bonds
D. Cash value only
Separate accounts hold invested funds and shift investment risk to the policyowner.
14. The free-look period in Florida life insurance is:
A. 7 days
B. 10 days
C. 14 days
D. 30 days
Policyowners have 14 days to review the policy and return it for a full refund if dissatisfied.
15. What is the purpose of a conditional receipt?
A. Guarantees coverage
B. Establishes coverage if premium paid and no insurability issues
C. Cancels the old policy
INSURANCE LICENSE NEWEST EXAM – 150 ACTUAL
QUESTIONS WITH ANSWERS AND EXPLANATIONS |
PDF STUDY GUIDE
1. What type of policy provides coverage for the insured’s entire life?
A. Term life
B. Whole life
C. Credit life
D. Industrial life
Whole life provides coverage up to age 100 with a cash value component.
2. Which of the following is NOT a characteristic of term insurance?
A. Renewable
B. Convertible
C. Builds cash value
D. Temporary protection
Term insurance does not build cash value.
3. The process of determining whether an applicant is insurable is called:
A. Underwriting
B. Rating
C. Solicitation
D. Reinsurance
Underwriting evaluates risk to decide coverage eligibility and pricing.
4. What does the “consideration clause” in a life insurance policy state?
,A. Premium payment and statements made by the insured
B. Beneficiary designation
C. Policy exclusion
D. Reinstatement requirements
It shows the value exchanged — the applicant’s premium for the insurer’s promise to pay.
5. A representation in an application must be:
A. Guaranteed
B. Estimated
C. True to the best knowledge of the applicant
D. Not required
Representations are believed true but aren’t absolute warranties.
6. What type of beneficiary cannot be changed without consent?
A. Revocable
B. Irrevocable
C. Contingent
D. Secondary
Irrevocable beneficiaries must approve changes.
7. In Florida, the minimum age to obtain a life insurance license is:
A. 16
B. 18
C. 21
D. 25
Producers must be at least 18 years old.
8. The grace period in a life insurance policy is intended to:
A. Immediately lapse coverage
B. Provide extra time to pay a late premium
C. Increase the death benefit
D. Extend the policy term
It protects from accidental lapses due to late payments.
9. What is the purpose of incontestability clause?
A. Adds cash value
B. Limits the insurer’s ability to contest after 2 years
C. Increases premiums
D. Expands coverage
After 2 years, insurers cannot dispute statements on the application.
, 10. A policy that pays dividends to the policyowner is called:
A. Nonparticipating
B. Participating
C. Term
D. Endowment
Participating policies share insurer profits with owners.
11. Which of the following is a type of whole life policy?
A. Decreasing term
B. Level premium
C. Credit life
D. Adjustable life
Level premium whole life has fixed premiums and death benefit.
12. A key feature of universal life insurance is:
A. No cash value
B. Adjustable premium and death benefit
C. Guaranteed minimum loan interest
D. Only temporary protection
Flexible premiums are a hallmark of universal life insurance.
13. Variable life insurance investments are held in:
A. General account
B. Separate account
C. Treasury bonds
D. Cash value only
Separate accounts hold invested funds and shift investment risk to the policyowner.
14. The free-look period in Florida life insurance is:
A. 7 days
B. 10 days
C. 14 days
D. 30 days
Policyowners have 14 days to review the policy and return it for a full refund if dissatisfied.
15. What is the purpose of a conditional receipt?
A. Guarantees coverage
B. Establishes coverage if premium paid and no insurability issues
C. Cancels the old policy
