FLORIDA LIFE SCRIPTED SETS ANSWERS AND
QUESTIONS SET A+
✔✔When does the free look period begin? - ✔✔When the policy is delivered to the
insured
✔✔Who does the secondary notice provision protect? - ✔✔Elderly Insureds
✔✔A person insured under a group life insurance policy can make an assignment of all
or any part of the incidents of ownership conferred on the insured by the policy or by
law, to any of the following EXCEPT - ✔✔the policyholder
✔✔Which two terms are associated directly with the way an annuity is funded? -
✔✔Single payment or periodic payments
✔✔An insurance contract must contain all of the following to be considered legally
binding EXCEPT - ✔✔beneficiary's consent
✔✔A domestic insurer issuing variable contracts must establish one or more -
✔✔separate accounts
✔✔Which of the following best describes fixed-period settlement option? - ✔✔both the
principal and interest will be liquidated over a selected period of time
✔✔Which of the following settlement options in life insurance is known as straight life? -
✔✔life income
✔✔An individual has just borrowed $10,000 from his bank on a 5-year installment loan
requiring monthly payments. What type of life insurance policy would be best suited to
this situation? - ✔✔decreasing term
,✔✔An insurance contract requires that both the insured and the insurer meet certain
conditions in order for the contract to be enforceable. What contract characteristic does
this describe? - ✔✔conditional
✔✔Which life insurance settlement option guarantees payments for the lifetime of the
recipient, but also specifies a guaranteed period, during which, if the original recipient
dies, the payments will continue to a designated beneficiary? - ✔✔life income with
period certain
✔✔Which nonforfeiture option provides coverage for the longest period of time? -
✔✔reduced paid-up
✔✔An employee has group life insurance through her employer. After 5 years, she
decides to leave the company and work independently. How can she obtain an
individual policy? - ✔✔She can convert her group policy to an individual policy without
proof of insurability within 31 days of leaving the group plan.
✔✔What license or licenses are required to sell variable annuities? - ✔✔Both a life
insurance license and a securities license
✔✔What is the benefit of choosing extended term as a nonforfeiture option? - ✔✔it has
the highest amount of insurance protection
✔✔An insurer neglects to pay a legitimate claim that is covered under the terms of the
policy. Which of the following insurance principles has the insurer violated? -
✔✔consideration
✔✔All of the following entities regulate variable life policies EXCEPT - ✔✔The guaranty
association
✔✔The policyowner wants to make sure that upon his death, the life policy will pay a
portion of the proceeds annually to his spouse, but that the principal will be paid to their
children when they reach a certain age. Which settlement option should the policyowner
choose? - ✔✔Interest only option
✔✔Which of the following is true about the premium on the children's rider in a life
insurance policy? - ✔✔It remains the same no matter how many children are added to
the policy
✔✔In comparison to consumer reports, which of the following describes a unique
characteristic of investigative consumer reports? - ✔✔The customer's associates,
friends, and neighbors provide the report's data.
, ✔✔What happens when a policy is surrendered for its cash value? - ✔✔Coverage ends
and the policy cannot be reinstated
✔✔Twin brothers are starting a new business. They know it will take several years to
build the business to the point that they can pay off the debt incurred in starting the
business. What type of insurance would be the most affordable and still provide a death
benefit should one of them die? - ✔✔Joint life
✔✔A lucky individual won the state lottery, so the state will be sending him a check
each month for the next 25 years. What type of annuity products are they likely to use to
provide these benefits? - ✔✔immediate annuity
✔✔Who is a third-party owner? - ✔✔a policyowner who is not the insured
✔✔Which of the following riders added to a life insurance policy can pay part of the
death benefit to the insured to cover expenses incurred in a nursing or convalescent
home? - ✔✔long-term care
✔✔Which of the following is the basic source of information used by the company in the
risk selection process? - ✔✔application
✔✔Which of the following would describe a legal document which would dictate who
can buy a deceased partner's share of a business and for what amount? - ✔✔buy-sell
agreement
✔✔Why should the producer personally deliver the policy when the first premium has
already been paid? - ✔✔To help the insured understand all aspects of the contract
✔✔An insured has a life insurance policy from a participating company and receives
quarterly dividends. He has instructed the company to apply the policy dividends to
increase the death benefit. The dividend option that the insured has chosen is called -
✔✔paid-up options
✔✔Contracts that are prepared by one party and submitted to the other party on a take-
it-or-leave-it basis are classified as - ✔✔contracts of adhesion
✔✔For how long is an insurance company allowed to defer policy loan requests? - ✔✔6
months
✔✔Children's riders attached to whole life policies are usually issued as what type of
insurance? - ✔✔term
QUESTIONS SET A+
✔✔When does the free look period begin? - ✔✔When the policy is delivered to the
insured
✔✔Who does the secondary notice provision protect? - ✔✔Elderly Insureds
✔✔A person insured under a group life insurance policy can make an assignment of all
or any part of the incidents of ownership conferred on the insured by the policy or by
law, to any of the following EXCEPT - ✔✔the policyholder
✔✔Which two terms are associated directly with the way an annuity is funded? -
✔✔Single payment or periodic payments
✔✔An insurance contract must contain all of the following to be considered legally
binding EXCEPT - ✔✔beneficiary's consent
✔✔A domestic insurer issuing variable contracts must establish one or more -
✔✔separate accounts
✔✔Which of the following best describes fixed-period settlement option? - ✔✔both the
principal and interest will be liquidated over a selected period of time
✔✔Which of the following settlement options in life insurance is known as straight life? -
✔✔life income
✔✔An individual has just borrowed $10,000 from his bank on a 5-year installment loan
requiring monthly payments. What type of life insurance policy would be best suited to
this situation? - ✔✔decreasing term
,✔✔An insurance contract requires that both the insured and the insurer meet certain
conditions in order for the contract to be enforceable. What contract characteristic does
this describe? - ✔✔conditional
✔✔Which life insurance settlement option guarantees payments for the lifetime of the
recipient, but also specifies a guaranteed period, during which, if the original recipient
dies, the payments will continue to a designated beneficiary? - ✔✔life income with
period certain
✔✔Which nonforfeiture option provides coverage for the longest period of time? -
✔✔reduced paid-up
✔✔An employee has group life insurance through her employer. After 5 years, she
decides to leave the company and work independently. How can she obtain an
individual policy? - ✔✔She can convert her group policy to an individual policy without
proof of insurability within 31 days of leaving the group plan.
✔✔What license or licenses are required to sell variable annuities? - ✔✔Both a life
insurance license and a securities license
✔✔What is the benefit of choosing extended term as a nonforfeiture option? - ✔✔it has
the highest amount of insurance protection
✔✔An insurer neglects to pay a legitimate claim that is covered under the terms of the
policy. Which of the following insurance principles has the insurer violated? -
✔✔consideration
✔✔All of the following entities regulate variable life policies EXCEPT - ✔✔The guaranty
association
✔✔The policyowner wants to make sure that upon his death, the life policy will pay a
portion of the proceeds annually to his spouse, but that the principal will be paid to their
children when they reach a certain age. Which settlement option should the policyowner
choose? - ✔✔Interest only option
✔✔Which of the following is true about the premium on the children's rider in a life
insurance policy? - ✔✔It remains the same no matter how many children are added to
the policy
✔✔In comparison to consumer reports, which of the following describes a unique
characteristic of investigative consumer reports? - ✔✔The customer's associates,
friends, and neighbors provide the report's data.
, ✔✔What happens when a policy is surrendered for its cash value? - ✔✔Coverage ends
and the policy cannot be reinstated
✔✔Twin brothers are starting a new business. They know it will take several years to
build the business to the point that they can pay off the debt incurred in starting the
business. What type of insurance would be the most affordable and still provide a death
benefit should one of them die? - ✔✔Joint life
✔✔A lucky individual won the state lottery, so the state will be sending him a check
each month for the next 25 years. What type of annuity products are they likely to use to
provide these benefits? - ✔✔immediate annuity
✔✔Who is a third-party owner? - ✔✔a policyowner who is not the insured
✔✔Which of the following riders added to a life insurance policy can pay part of the
death benefit to the insured to cover expenses incurred in a nursing or convalescent
home? - ✔✔long-term care
✔✔Which of the following is the basic source of information used by the company in the
risk selection process? - ✔✔application
✔✔Which of the following would describe a legal document which would dictate who
can buy a deceased partner's share of a business and for what amount? - ✔✔buy-sell
agreement
✔✔Why should the producer personally deliver the policy when the first premium has
already been paid? - ✔✔To help the insured understand all aspects of the contract
✔✔An insured has a life insurance policy from a participating company and receives
quarterly dividends. He has instructed the company to apply the policy dividends to
increase the death benefit. The dividend option that the insured has chosen is called -
✔✔paid-up options
✔✔Contracts that are prepared by one party and submitted to the other party on a take-
it-or-leave-it basis are classified as - ✔✔contracts of adhesion
✔✔For how long is an insurance company allowed to defer policy loan requests? - ✔✔6
months
✔✔Children's riders attached to whole life policies are usually issued as what type of
insurance? - ✔✔term
