Exam Simulator - Florida Life Insurance State Exam Simulator Questions and Answers Rated A+

Exam Simulator - Florida Life Insurance State Exam Simulator Questions and Answers Rated A+ Post-tax dollar contributions are found in Roth IRA investments N purchases an annuity by making payments in an amount no less than $100 quarterly. This describes which of the following annuities? Flexible installment deferred Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation? Policy was returned within the free look period, premium will be fully refunded Traditional individual retirement annuity distributions must start by April 1st of the year following the year the participant attains age 70 1/2 What is the underlying concept regarding level premiums? The early years are charged more than what is needed The fundamental reason for regulation of insurance is to protect consumers A policy of Adhesion can only be modified by the insurance company What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies? Family Maintenance policy A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct? 20 pay life accumulates cash value faster than Straight Life What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time? Decreasing term On delivery of a policy, a signed statement of good health is typically requested if: The application was submitted without the initial premium A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct? 20 pay life accumulates cash value faster K purchased a $10,000 Life Policy that will pay the face amount to her if she lives to age 65, or to her beneficiary if she dies before age 65. K purchased which of the following types of policies? Endowment at age 65 Which department oversees 'Market Conduct Examinations' in Florida? Office of Insurance Regulation An insured's inability to perform two or more activities of daily living may trigger which type of policy rider? Long term care K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable? Level Every resident agent must have and maintain at their place of business the usual and customary records pertaining to transactions under their license for at least how long? 5 years Which of these life insurance riders allows the applicant to have excess coverage? Term rider Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE? It is taxed as ordinary income T has a term policy that allows him to continue the coverage after expiration of the initial policy period. What type of term coverage is this? Renewable What does a Face amount Plus Cash Value Policy supposed to pay at the insured's death? Face amount plus the policy's cash value Which of these would be considered a Limited-Pay Life policy? Life Paid-Up at Age 70 An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction? 20% is withheld for income taxes In what year was the Florida Office of Financial Regulation created? 2003 A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the: Policy Loan provision What is Florida's definition of Life insurance replacement? A transaction in which a new policy is bought and an old policy is terminated The Insurance Guaranty Fund Association is funded by admitted insurance companies through assessments The underwriting process involves all of these EXCEPT for: Policy loan What is the underlying concept regarding level premiums? The early years are charged more than what is needed According to Florida's rules on disclosure, a life insurance applicant is expected to be provided with a Buyer's Guide and Policy Summary An example of Sliding would be charging for an additional product without the applicant's consent Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? Life income In Florida, an element of an insurance transaction would be issuing an insurance contract An employee requested that the balance of her 401(k) account be sent directly to her in one lump sum. Upon receipt of the distribution, she immediately has the funds rolled over into an IRA. What is the tax consequence of the distribution sent to this employee? Distribution is subject to federal income tax withholding What is the purpose of a Policy Summary? It highlights the critical parts of the policy issued A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over? Income taxes plus a 10% penalty tax on $30,000 A whole life insurance policyowner does not wish to continue making premium payments. Which of the following enables the policyowner to sell the policy for more than its cash value? Life settlement contract A family Income Policy is a combination of Whole Life and Decreasing term insurance What is being delivered during a policy delivery? Insurance contract to the proposed insured T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this? Life Annuity with Period Certain What does a 401(k) plan generally provide its participants? Salary-deferral contributions Which statement regarding the Change of beneficiary provision is true? The policyowner can change the beneficiary According to Florida law, group life insurance conversion privileges must NOT require evidence of insurability How long does the coverage normally remain on a Limited-Pay life policy? Age 100 How are policyowner dividends treated in regards to income tax? Interest on accumulations is taxed Additional coverage can be added to a Whole Life policy by adding a(n) decreasing term rider The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called a(n) Accidental Death and Dismemberment rider (AD&D) The investment gains from a Universal Life Policy usually go toward: cash value All of these statements concerning Settlement Options are true, EXCEPT: Only the beneficiary may select A Renewable Term Policy is renewable at the option of the insured What does a Face Amount Plus Cash Value Policy supposed to pay at the Insured's death? Face amount plus the policy's cash value Which of these Nonforfeiture Options continue a buildup of cash value? Reduced Paid-Up Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? Variable Life What percent of personal life insurance premiums is usually deductible for federal income tax purposes? 0% J is an agent who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of? Twisting Which plan is intended to be used by a sole proprietor and the employees of that business? Keogh Plan In life insurance, the needs approach is used mostly to establish: how much life insurance a client should apply for What type of life policy covers two people and pays upon the death of the last insured? Survivorship Which entity approves the insurance policy forms used in Florida? Office of Insurance Regulation (OIR) Which of the following characteristics is CORRECT about Interest Sensitive Whole Life? Premium payments can vary Term insurance has which of the following characteristics? Expires at the end of the policy period How does an indexed annuity differ from a fixed annuity? Indexed annuity owners receive credited interest tied to the fluctuations of the linked index 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? Coercion An example of an unfair trade practice is an agent making a material misrepresentation to the insured All of the following are Nonforfeiture Options EXCEPT Automatic Premium Loan Option A policy loan is made possible by which of these life insurance policy features? Cash value provision What kind of special need would a policyowner require with an Adjustable Life insurance policy? flexible premiums Which of the following is NOT included in an Annuity contract? AD&D rider Under a Renewable Term policy, the renewal premium is calculated on the basis of the insured's attained age What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years? Family Maintenance Policy K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable? Level In Florida, agents are allowed to engage in rebating if offered to all insureds in the same actuarial class Which of the following professional organizations has its code of ethics incorporated into Florida law? NAIFA - National Association of Insurance and Financial Advisors Which of these are NOT an example of a Nonforfeiture option? Life Income 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