FL Life and Health Insurance 2-15
Study Guide (165 questions)
N is covered by a Term Life policy and does not make the required premium payment
which was due August 1. N dies September 15. What action will the insurer take? -
ANS-Claim will be denied.
A contract where one party either accepts or rejects the terms of a contract written by
another party is called a contract of - ANS-adhesion
All of the following statements about Major Medical benefits are true, EXCEPT: - ANS-
Benefits have no maximum limit
W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven
years later, the company discovered W's true age at issue had been 59. What would the
normal procedure be under the misstatement of age provision in regard to the payment
of the death claim? - ANS-The proceeds would be reduced based on whatever the
premium would have been if purchased at age 59.
All of these are considered sources of underwriting information about an applicant,
EXCEPT: - ANS-Inspection Report
According to the Mandatory Uniform Policy Provisions, what is the maximum amount of
time after the premium due date during which the policy remains in force even though
the premium has not been paid? - ANS-31 days
Which provision allows the policy owner to change a term life policy to a permanent one
without providing proof of good health? - ANS-Conversion
What do families pay that are covered by the Florida Healthy Kids Corporation? - ANS-
A portion of the premium
Which statement regarding third-party ownership of a life insurance policy is true? -
ANS-It is used extensively in estate planning as well as business circumstances.
Which of the following employees may NOT be excluded from a group life plan? - ANS-
Full-time employees after the probationary period.
Which of the following statements BEST describes what the Legal Actions provision of
an Accident and Health policy requires? - ANS-An insured must wait at least 60 days
after Proof of Loss has been submitted before a lawsuit can be filed.
, What percentage of eligible persons must a policy cover in a noncontributory group? -
ANS-100%
What are adjustable rates for life policy loans in Florida based on? - ANS-Moody's
corporate bond index.
An underwriter determines that a life insurance applicant's risk should be reclassified
due to a health issue. This policy may be issued with a(n): - ANS-exclusion for the
medical condition
What is the initial requirement for an insured to become eligible for benefits under the
Waiver of Premium provision? - ANS-Insured must be under a physician's care
J has a Disability Income policy that does NOT provide benefits for losses occurring as
the result of his employment. What kind of coverage is this? - ANS-Nonoccupational
coverage
K is insured under a Group Life Insurance policy. K is considered to be a(n) - ANS-
certificate holder
According to Florida law, which of the following information does NOT need to be
obtained by an agent recommending an annuity purchase? - ANS-Marital status
Dividends paid from a life insurance policy are - ANS-taxable
S takes out a health insurance policy which contains a provision that states the agent
does not have the authority to change the policy or waive any of its provisions. Which
health policy provision is this? - ANS-Entire Contract
Which policy requires an agent to register with the National Association of Securities
Dealers (NASD) before selling? - ANS-Variable Life
Defamation occurs when an agent makes a false statement intended to - ANS-malign
another insurer
J owns a business and has a Group Life policy covering her employees. J decides to
cancel the policy by letting it lapse on the renewal date. What action must be taken? -
ANS-All of the employees must be notified of the cancellation either by the insurance
company or through J.
V is insured under an individual Disability Income policy with a 30-day Elimination
period. On July 1, he is involved in an accident and temporarily disabled. He returns to
work on December 1. How many months of benefit are payable? - ANS-4 months
Study Guide (165 questions)
N is covered by a Term Life policy and does not make the required premium payment
which was due August 1. N dies September 15. What action will the insurer take? -
ANS-Claim will be denied.
A contract where one party either accepts or rejects the terms of a contract written by
another party is called a contract of - ANS-adhesion
All of the following statements about Major Medical benefits are true, EXCEPT: - ANS-
Benefits have no maximum limit
W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven
years later, the company discovered W's true age at issue had been 59. What would the
normal procedure be under the misstatement of age provision in regard to the payment
of the death claim? - ANS-The proceeds would be reduced based on whatever the
premium would have been if purchased at age 59.
All of these are considered sources of underwriting information about an applicant,
EXCEPT: - ANS-Inspection Report
According to the Mandatory Uniform Policy Provisions, what is the maximum amount of
time after the premium due date during which the policy remains in force even though
the premium has not been paid? - ANS-31 days
Which provision allows the policy owner to change a term life policy to a permanent one
without providing proof of good health? - ANS-Conversion
What do families pay that are covered by the Florida Healthy Kids Corporation? - ANS-
A portion of the premium
Which statement regarding third-party ownership of a life insurance policy is true? -
ANS-It is used extensively in estate planning as well as business circumstances.
Which of the following employees may NOT be excluded from a group life plan? - ANS-
Full-time employees after the probationary period.
Which of the following statements BEST describes what the Legal Actions provision of
an Accident and Health policy requires? - ANS-An insured must wait at least 60 days
after Proof of Loss has been submitted before a lawsuit can be filed.
, What percentage of eligible persons must a policy cover in a noncontributory group? -
ANS-100%
What are adjustable rates for life policy loans in Florida based on? - ANS-Moody's
corporate bond index.
An underwriter determines that a life insurance applicant's risk should be reclassified
due to a health issue. This policy may be issued with a(n): - ANS-exclusion for the
medical condition
What is the initial requirement for an insured to become eligible for benefits under the
Waiver of Premium provision? - ANS-Insured must be under a physician's care
J has a Disability Income policy that does NOT provide benefits for losses occurring as
the result of his employment. What kind of coverage is this? - ANS-Nonoccupational
coverage
K is insured under a Group Life Insurance policy. K is considered to be a(n) - ANS-
certificate holder
According to Florida law, which of the following information does NOT need to be
obtained by an agent recommending an annuity purchase? - ANS-Marital status
Dividends paid from a life insurance policy are - ANS-taxable
S takes out a health insurance policy which contains a provision that states the agent
does not have the authority to change the policy or waive any of its provisions. Which
health policy provision is this? - ANS-Entire Contract
Which policy requires an agent to register with the National Association of Securities
Dealers (NASD) before selling? - ANS-Variable Life
Defamation occurs when an agent makes a false statement intended to - ANS-malign
another insurer
J owns a business and has a Group Life policy covering her employees. J decides to
cancel the policy by letting it lapse on the renewal date. What action must be taken? -
ANS-All of the employees must be notified of the cancellation either by the insurance
company or through J.
V is insured under an individual Disability Income policy with a 30-day Elimination
period. On July 1, he is involved in an accident and temporarily disabled. He returns to
work on December 1. How many months of benefit are payable? - ANS-4 months
