Florida 2-15 Life and Health Insurance
Final Exam Questions and Answers
1. When life insurance proceeds are used to pay inheritance taxes
and federal estate taxes, it is known as
Answer Estate conservation
2. In group insurance, the primary purpose of the Coordination of
Benefits provision is to
Answer Prevent overinsurance
3. 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.
4. The policyowner has an option to pledge the life insurance policy
as collateral for a bank loan. This is called
Answer A collateral assignment
5. A whole life policy is surrendered for a reduced-paid up policy. The
cash value in the new policy will
Answer Continue to increase
6. 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.
7. 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
8. All of the following are consideration in an insurance policy EXCEPT
Answer The cash value in the policy.
9. 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.
10. Which of the following is NOT true regarding a deferred
annuity?
Answer Income payments begin within 1 year from the date of purchase.
11. 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
12. Which federal act defines rules pertaining to protected health
information?-
Answer HIPAA
13. 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.
14. If a business wants to make sure it will be able to cover losses
due to the dis- ability of its top employee, the business should get
which type of insurance?
Answer Key person disability income
15. 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.
16. What is the maximum age that a disabled insured worker
Final Exam Questions and Answers
1. When life insurance proceeds are used to pay inheritance taxes
and federal estate taxes, it is known as
Answer Estate conservation
2. In group insurance, the primary purpose of the Coordination of
Benefits provision is to
Answer Prevent overinsurance
3. 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.
4. The policyowner has an option to pledge the life insurance policy
as collateral for a bank loan. This is called
Answer A collateral assignment
5. A whole life policy is surrendered for a reduced-paid up policy. The
cash value in the new policy will
Answer Continue to increase
6. 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.
7. 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
8. All of the following are consideration in an insurance policy EXCEPT
Answer The cash value in the policy.
9. 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.
10. Which of the following is NOT true regarding a deferred
annuity?
Answer Income payments begin within 1 year from the date of purchase.
11. 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
12. Which federal act defines rules pertaining to protected health
information?-
Answer HIPAA
13. 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.
14. If a business wants to make sure it will be able to cover losses
due to the dis- ability of its top employee, the business should get
which type of insurance?
Answer Key person disability income
15. 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.
16. What is the maximum age that a disabled insured worker
