XCEL Exam Simulator FL Questions
and Answers50
S recently received a $500,000 lump sum retirement buyout from her employer. She would like
to buy an annuity that will immediately furnish her with a guaranteed income for life. What type
of annuity is best suited for her situation? - ANSWERS-Single Premium.
Immediate Annuities are purchased with a single lump sum payment and will start providing
income payments within the first year, but usually starting 30 days from the purchase date.
What type of group plan involves employees sharing the cost? - ANSWERS-contributory plan.
Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale
of a business? - ANSWERS-Business owner becoming disabled.
A business Disability Buy-Sell policy is signed to assist in the sale of a business when one of the
owners becomes disabled.
On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the
initial premium. On August 18, D went to his doctor complaining of chest pains and some tests
were given by the doctor. The life policy was delivered by the producer on August 20 and D
explains what had recently taken place with the doctor. What action should the producer then
take? - ANSWERS-Collect initial premium along with a signed health statement.
in this situation, the producer should deliver the policy and obtain the premium payment along
with a signed health statement.
,On a life insurance policy, who is qualified to change the beneficiary designation? - ANSWERS-
Policyowner.
However, consent may be needed by the current beneficiary if designated as irrevocable.
Generally, how long is a benefit period for a major medical expense plan? - ANSWERS-One year.
Which of these life products is NOT considered interest-sensitive?
-Variable universal life
-Modified whole life
-Interest sensitive whole life
-Variable life - ANSWERS-Modified Whole Life.
The following ARE interest sensitive:
-Variable universal life
-Interest sensitive whole life
-Variable life
How does an indexed annuity differ from a fixed annuity? - ANSWERS-indexed annuity owners
receive credited interest tied to the fluctuations of the linked index.
Which mode of payment is NOT used by health insurance policies? - ANSWERS-Single premium
A Disability Income policyowner suffers a disability which was due to the same cause as a
previous disability. Both disabilities occurred within a five-month period. The insurer may cover
the second disability without a new elimination period under the - ANSWERS-Recurrent
Disability provision.
,In this situation, the insurer will provide the same benefits without a new elimination period
under the recurrent disability provision.
In Major Medical Expense policies, what is the intent of a Stop Loss provision? - ANSWERS-limits
an insured's out-of-pocket medical expenses
What must an insurer obtain to conduct an HIV test? - ANSWERS-written consent
All the following are Nonforfeiture options EXCEPT
a) Reduced paid-up
b) Automatic Premium loan option
c) Cash surrender
d) Extended term - ANSWERS-Automatic Premium loan option
Which of these is NOT considered to be a right given to a policyowner?
-Surrendering the policy's cash value
-Modify a provision in the insurance contract
-Assignment of ownership
-Change the beneficiary, if revocable - ANSWERS-Modify a provision in the insurance contract
According to Florida Law, in which of the following situations would a dependent handicapped
child NOT be covered under a Family Health policy?
-The handicapped child has reached the limiting age
, -The premiums for the handicapped child are not paid
-The handicapped child becomes a full-time student
-The family moves outside the provider network - ANSWERS-The premiums for the handicapped
child are not paid
Additional coverage can be added to a Whole Life policy by adding a(n) - ANSWERS-decreasing
term rider
Many small business owners worry how their business would survive financially if the owner
becomes disabled. The policy which BEST addresses this concern is
-Business overhead expense
-disability income
-key employee life
-contributory - ANSWERS-Business overhead expense
Which of these options can an individual use their medical flexible spending account to pay for?
-vitamins and supplements
-prescription drugs
-household expenditures
-cosmetic procedures - ANSWERS-prescription drugs
P died five years after purchasing a Life policy. While investigating the claim, the insurer
discovered material misrepresentations made by P during the application process. Which of
these actions will the insurer take?
-beneficiary will be denied the claim
and Answers50
S recently received a $500,000 lump sum retirement buyout from her employer. She would like
to buy an annuity that will immediately furnish her with a guaranteed income for life. What type
of annuity is best suited for her situation? - ANSWERS-Single Premium.
Immediate Annuities are purchased with a single lump sum payment and will start providing
income payments within the first year, but usually starting 30 days from the purchase date.
What type of group plan involves employees sharing the cost? - ANSWERS-contributory plan.
Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale
of a business? - ANSWERS-Business owner becoming disabled.
A business Disability Buy-Sell policy is signed to assist in the sale of a business when one of the
owners becomes disabled.
On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the
initial premium. On August 18, D went to his doctor complaining of chest pains and some tests
were given by the doctor. The life policy was delivered by the producer on August 20 and D
explains what had recently taken place with the doctor. What action should the producer then
take? - ANSWERS-Collect initial premium along with a signed health statement.
in this situation, the producer should deliver the policy and obtain the premium payment along
with a signed health statement.
,On a life insurance policy, who is qualified to change the beneficiary designation? - ANSWERS-
Policyowner.
However, consent may be needed by the current beneficiary if designated as irrevocable.
Generally, how long is a benefit period for a major medical expense plan? - ANSWERS-One year.
Which of these life products is NOT considered interest-sensitive?
-Variable universal life
-Modified whole life
-Interest sensitive whole life
-Variable life - ANSWERS-Modified Whole Life.
The following ARE interest sensitive:
-Variable universal life
-Interest sensitive whole life
-Variable life
How does an indexed annuity differ from a fixed annuity? - ANSWERS-indexed annuity owners
receive credited interest tied to the fluctuations of the linked index.
Which mode of payment is NOT used by health insurance policies? - ANSWERS-Single premium
A Disability Income policyowner suffers a disability which was due to the same cause as a
previous disability. Both disabilities occurred within a five-month period. The insurer may cover
the second disability without a new elimination period under the - ANSWERS-Recurrent
Disability provision.
,In this situation, the insurer will provide the same benefits without a new elimination period
under the recurrent disability provision.
In Major Medical Expense policies, what is the intent of a Stop Loss provision? - ANSWERS-limits
an insured's out-of-pocket medical expenses
What must an insurer obtain to conduct an HIV test? - ANSWERS-written consent
All the following are Nonforfeiture options EXCEPT
a) Reduced paid-up
b) Automatic Premium loan option
c) Cash surrender
d) Extended term - ANSWERS-Automatic Premium loan option
Which of these is NOT considered to be a right given to a policyowner?
-Surrendering the policy's cash value
-Modify a provision in the insurance contract
-Assignment of ownership
-Change the beneficiary, if revocable - ANSWERS-Modify a provision in the insurance contract
According to Florida Law, in which of the following situations would a dependent handicapped
child NOT be covered under a Family Health policy?
-The handicapped child has reached the limiting age
, -The premiums for the handicapped child are not paid
-The handicapped child becomes a full-time student
-The family moves outside the provider network - ANSWERS-The premiums for the handicapped
child are not paid
Additional coverage can be added to a Whole Life policy by adding a(n) - ANSWERS-decreasing
term rider
Many small business owners worry how their business would survive financially if the owner
becomes disabled. The policy which BEST addresses this concern is
-Business overhead expense
-disability income
-key employee life
-contributory - ANSWERS-Business overhead expense
Which of these options can an individual use their medical flexible spending account to pay for?
-vitamins and supplements
-prescription drugs
-household expenditures
-cosmetic procedures - ANSWERS-prescription drugs
P died five years after purchasing a Life policy. While investigating the claim, the insurer
discovered material misrepresentations made by P during the application process. Which of
these actions will the insurer take?
-beneficiary will be denied the claim
