Florida Life & Health Insurance Exam Questions & Answers Graded A+

The clause identifying which losses resulting from an accident or sickness are insured by the policy is called the: - Answer Insuring clause K applies for a life insurance policy on herself and submits the initial premium with the application. She is given a receipt by the agent stating that coverage begins immediately if the application is approved. What kind of receipt was used? - Answer Conditional A life insurance arrangement which circumvents insurable interest statutes is called: - Answer Investor-Originated Life Insurance Which of the following health policy provisions states that the producer does NOT have the authority to change the policy or waive any of its provisions? - Answer Entire Contract Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund? - Answer 30 Which of the following is NOT an unfair claim settlement practice? - Answer Needing written documentation of claim details Who is NOT required to sign a life insurance application? - Answer Beneficiary To be eligible for Social Security disability benefits, an employee must be unable to perform: - Answer any occupation The type of annuity that can be purchased with one monetary deposit is called a(n): - Answer Immediate annuity A life insurance application must be signed by all of these, EXCEPT: - Answer beneficiary Which of the following is considered an accurate statement of an unfair trade practice? - Answer Twisting involves an agent using misrepresentation to convince a policyowner to cancel their current policy so that they can purchase a new life insurance policy with another company The Accelerated Death Benefit provision in a life insurance policy is also known as a(n): - Answer Living Benefit Which of the following policy features allows an insured to defer current health charges to the following year's deductible instead of the current year's deducitble? - Answer Carryover provision Insurance policies are considered aleatory contracts because - Answer performance is conditioned upon a future occurrence Within how many days must a licensee notify the Department of Financial Services of a change in address? - Answer 30 Which organization was established to provide funds to protect an insured in the event of an insurer's insolvency? - Answer Florida Life and Health Insurance Guaranty Association The clause in an Accident and Health policy which defines the benefit amounts the insurer will pay is called the: - Answer Insuring clause When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n): - Answer Anti-Money Laundering violation According to the Time Payment of Claims provision, the insurer must pay Disability Income benefits no less frequently than which of the following options? - Answer Monthly What would the Medical Information Bureau (MIB) identify? - Answer Testing positive for marijuana use from a previous screening How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? - Answer If the primary beneficiary dies before the insured Under a Renewable Term policy, - Answer the renewal premium is calculated on the basis of the insured's attained age Which of the following statements is true about most Blue Cross/Blue Shield organizations? - Answer They are nonprofit organizations If a policyowner does not pay the premium by the due date, the - Answer policyowner can make the premium payment during the grace period According to Florida law, which of the following information does NOT need to be obtained by an agent recommending an annuity purchase? - Answer Marital status Which of these characteristics is consistent with a Straight Life policy? - Answer Premiums are payable for as long as there is insurance coverage in force P completes an application for a $10,000 life policy, but does not give the producer the initial premium. P's coverage becomes effective when: - Answer P receives the policy and pays the premium 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? - Answer Collect initial premium along with a signed health statement A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of the policy's face value. - Answer viatical settlement provider According to Florida law, when must an agent deliver the Outline of Coverage to a Medicare Supplement applicant? - Answer At the time of application Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE? - Answer It is taxed as ordinary income The automatic premium loan provision is designed to: - Answer avoid a policy lapse A term life insurance policy matures: - Answer upon the insured's death during the term of the policy What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies? - Answer Family Maintenance Policy The guarantee of insurability option provides a long-term care policyowner the ability to: - Answer buy additional coverage at a later date When determining the monthly benefit amount for a Disability Income policy, the factor that limits the amount a prospective insured may purchase is: - Answer income Periodic health claim payments MUST be made at least: - Answer monthly Which type of plan allows an employer to give money to an employee for buying a life insurance policy and also permits the employee to select the beneficiary? - Answer Split-dollar plan T is an agent and when hired, is reminded that he has a responsibility to handle clients' funds in an honest and ethical manner. This responsibility is referred to as - Answer fiduciary responsibility J is an agent who recently told a claimant that his rights might be impaired if he does not complete a release form within a specified time. What could this agent be found guilty of? - Answer Coercion An example of unfair discrimination would be - Answer offering different terms of coverage for different policyowners having the same risk classification Which of the following is a characteristic of a variable annuity? - Answer Underlying equity investments A person insured under a health policy is required to give the insurance company a Notice of Claim within how many days after a covered loss? - Answer Twenty How many days does an insurance company have to reject a reinstatement application before it is automatically reinstated? - Answer 45