Florida Life Insurance Test Questions and Answers 100% Pass

Florida Life Insurance Test Questions and Answers 100% Pass S buys $100,000 whole life policy in 2003 and pays an annual premium of $100. S dies five years later in 2008 and the insured pays the beneficiary $10,500. What kind of writer did S include on the policy? A Return of permium rider All of these statements about the Waiver of Premium provision are correct EXCEPT Insured must be eligible for Social Security disability for claim to be excepted Which of these provisions require proof of insurability after a policy has lapsed? Reinstatement S would like to use dividends from her life insurance policy to purchase paid-up additions. All of these would be factors that determine how much coverage can be purchased EXCEPT Beneficiary's age What action can a policyholder take if an application for a bank loan requires collateral? Assign policy ownership to the bank How do life insurance companies handle cases where the insured commit suicide with in the contract's stated Contestable period? Claims are denied under the Suicide clause of the policy P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount? Accidental Death and Dismemberment provision B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of Additional Whole Life coverage at specified times How are surrender charges deducted in a life policy with a rear-end loaded provision? Deducted when the policy is discontinued What does the ownership clause in a life insurance policy state? Who the policy owner is and what rights the policy owner is entitled to A life insurance policy which ensures that the premiums will be paid if the insured becomes disabled has what kind of rider attached? Waiver of premium A provision in a life insurance policy that pays the policyholder an amount that does not surpass the guaranteed cash value is called the Policy Loan provision P died five years after purchasing a life policy. While investigating the claim, the insurer discovered material misrepresentation made by P during the application process. Which of these actions will be in sure take? Beneficiary will be paid the death benefit All of the statement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPT Interest Only Which statement is true in the regards to a policy loan? Past-due interest on a policy loan is added to the total debt K has a life insurance policy where her husband is the beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where will the death proceeds be directed? Daughter T and S are named co-primary beneficiary on a $500,000 Accidental Death and Dismemberment policy ensuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive? $0 K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true? Proceeds will be paid to P's estate How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? If the primary beneficiary dies before the insured Which statement regarding the Change of Beneficiary provision is true? The policy owner can change the beneficiary C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most? The cost A level premium indicates The premium is fixed for the entire duration of the contract A policy owner is able to choose the frequency of premium payments through what policy feature? Premium Mode An insured covered by life insurance has just died. What will happen if the primary beneficiary had already died before the insured and contingent beneficiary? Proceeds will go to the contingency beneficiary Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance? Entire cash surrender value is taxable All of these are considered sources of underwriting information about an applicant EXCEPT Rating Services When does the life insurance contract become affective of the initial premium is not collected during the application process? When producer delivers policy and collects initial premium Why is an applicant signature required on the life insurance application? To attest that the statements on the application are accurate to the best of the applicants knowledge T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage as of the date of the application or medical examination, whichever is later. Assuming that he is an acceptable risk, what item is given to T? Binding receipt M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT Free-look period has expired What action should a producer take if the initial premium is NOT submitted with the application? Forward the application to the end sure without the initial premium What is the purpose of the U.S.A. Patriot Act? Detect and deter terrorism On January 8, an applicant filled out an application for life insurance policy but did not include the initial premium. The insurance company approved the application on January 14 and issued the policy January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective? January 26 K is an agent who takes an application for individual life insurance and except the check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective? The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured Information obtained from a phone conversation to the proposed insured can be found in which of these reports? Inspection report Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine Probability of making timely premium payments P is a producer who notices five questions on a life application were not answered. What action should P take? Set up a meeting with the applicant to answer the remaining questions When an insurance application is taken by a producer, which of these statements is true? Any changes made on the application require the applicants initials Before a life insurance policy is issued, which of these components of the contract is required? Applicants signature on application From what authority derives the requirement that an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant? Fair Credit Reporting Act Which of these do NOT constitute policy delivery Policy issued with a rating What does the Medical Information Bureau (MIB) identify? Existing life insurance coverage with other carriers Agent J takes an application and initial premium from an applicant and send the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take? Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company