FLORIDA LIFE INSURANCE CORE REVIEWS ANSWERS
AND QUESTIONS SET A+
✔✔Term Life Insurance - ✔✔simplest type of life ins plan. Provides protection for a
specified period (term) & pays a benefit only if the insured dies during that period
✔✔Level Term Ins - ✔✔provides a level amount of protection for a specified period,
after which the policy expires.
✔✔Decreasing Coverage Level Premium - ✔✔characterized by benefit amts that
decrease gradually over the term of protection (cover debt or mortgage)
✔✔Whole Life - ✔✔Ordinary Straight Life - cash values & maturity @ age 100
✔✔Living benefits - ✔✔If loan outstanding at the time the insured dies, the amount of
the loan + interest due will be subtracted from the death benefit before it is paid.
✔✔Basic Forms of Life Insurance - ✔✔Straight whole life, limited pay whole life, single
premium whole life
✔✔Limited Pay whole life - ✔✔Level premiums limited to a certain period (less than
life). ie, a 10-pay life policy is one in which premiums are payable for 20 yrs from policy
inception, after which no more premiums are owed.
✔✔Adjustable life policies - ✔✔distinguished by flexibility that comes from combining
term & permanent ins into a single plan. Policy owner determines how much Face Amt
protection is needed & how much premium the policy owner wants to pay. The insurer
selects the appropriate plan to meet such needs
✔✔Adjustable life - ✔✔1) Face Amt, 2) Premium, 3) Plan type (Policy owner picks 2,
Insurer picks the 3rd.)
✔✔Universal Life - ✔✔-Premiums can be decreased by insured
-Death benefit can be changed
, -Cash Value used to pay the premium
-No new policy needs to be issued for policy changes
✔✔UL Options - ✔✔Level A - Face Amt
Level B - Face Amt & Cash
✔✔Variable - ✔✔2 licenses
✔✔Variable products - ✔✔Separate Accounts
✔✔Variable Life - ✔✔death benefit not fixed or guaranteed
✔✔Policyholder or policyowner - ✔✔the person who pays the premium on insurance
contract
✔✔Policyowner rights - ✔✔1) pay premium
2) choose beneficiary
3) Cash value
✔✔Provisions - ✔✔pizza - Crust, Cheese, Sause
✔✔Entire Contract Provision - ✔✔Riders, Application, Policy
Found at beg of policy states that the policy doc, the application (attached to the policy),
and any attached riders constitute the ENTIRE CONTRACT.
✔✔Insuring Clause - ✔✔Company's promise to pay benefits upon the insured's death
✔✔Free-Look Provision - ✔✔14 days from policy delivery to rescind the contract
✔✔Consideration Clause - ✔✔value given in exchange for a contractual promise.
Specifies the amount and frequency of premium pmts to keep ins in force
✔✔Grace Period Provision - ✔✔If ins dies during grace period & premium has not been
paid, the policy benefit is payable. However, the premium amt is deducted from the
benefits paid to beneficiary
✔✔Reinstatement Provision - ✔✔to the same age. Must Pay premiums, interest, loans,
prove insurability.
✔✔Policy loan provision - ✔✔if policy is surrendered for cash, the cv avail to policy
owner is reduced by amt of outstanding loan plus int
✔✔Incontestable clause - ✔✔Insurer has the right to contest validity of life ins policy (2
years from the issue date & while insured is living)
AND QUESTIONS SET A+
✔✔Term Life Insurance - ✔✔simplest type of life ins plan. Provides protection for a
specified period (term) & pays a benefit only if the insured dies during that period
✔✔Level Term Ins - ✔✔provides a level amount of protection for a specified period,
after which the policy expires.
✔✔Decreasing Coverage Level Premium - ✔✔characterized by benefit amts that
decrease gradually over the term of protection (cover debt or mortgage)
✔✔Whole Life - ✔✔Ordinary Straight Life - cash values & maturity @ age 100
✔✔Living benefits - ✔✔If loan outstanding at the time the insured dies, the amount of
the loan + interest due will be subtracted from the death benefit before it is paid.
✔✔Basic Forms of Life Insurance - ✔✔Straight whole life, limited pay whole life, single
premium whole life
✔✔Limited Pay whole life - ✔✔Level premiums limited to a certain period (less than
life). ie, a 10-pay life policy is one in which premiums are payable for 20 yrs from policy
inception, after which no more premiums are owed.
✔✔Adjustable life policies - ✔✔distinguished by flexibility that comes from combining
term & permanent ins into a single plan. Policy owner determines how much Face Amt
protection is needed & how much premium the policy owner wants to pay. The insurer
selects the appropriate plan to meet such needs
✔✔Adjustable life - ✔✔1) Face Amt, 2) Premium, 3) Plan type (Policy owner picks 2,
Insurer picks the 3rd.)
✔✔Universal Life - ✔✔-Premiums can be decreased by insured
-Death benefit can be changed
, -Cash Value used to pay the premium
-No new policy needs to be issued for policy changes
✔✔UL Options - ✔✔Level A - Face Amt
Level B - Face Amt & Cash
✔✔Variable - ✔✔2 licenses
✔✔Variable products - ✔✔Separate Accounts
✔✔Variable Life - ✔✔death benefit not fixed or guaranteed
✔✔Policyholder or policyowner - ✔✔the person who pays the premium on insurance
contract
✔✔Policyowner rights - ✔✔1) pay premium
2) choose beneficiary
3) Cash value
✔✔Provisions - ✔✔pizza - Crust, Cheese, Sause
✔✔Entire Contract Provision - ✔✔Riders, Application, Policy
Found at beg of policy states that the policy doc, the application (attached to the policy),
and any attached riders constitute the ENTIRE CONTRACT.
✔✔Insuring Clause - ✔✔Company's promise to pay benefits upon the insured's death
✔✔Free-Look Provision - ✔✔14 days from policy delivery to rescind the contract
✔✔Consideration Clause - ✔✔value given in exchange for a contractual promise.
Specifies the amount and frequency of premium pmts to keep ins in force
✔✔Grace Period Provision - ✔✔If ins dies during grace period & premium has not been
paid, the policy benefit is payable. However, the premium amt is deducted from the
benefits paid to beneficiary
✔✔Reinstatement Provision - ✔✔to the same age. Must Pay premiums, interest, loans,
prove insurability.
✔✔Policy loan provision - ✔✔if policy is surrendered for cash, the cv avail to policy
owner is reduced by amt of outstanding loan plus int
✔✔Incontestable clause - ✔✔Insurer has the right to contest validity of life ins policy (2
years from the issue date & while insured is living)
