Exam Simulator FL-LH - FL Health and
Life and Annuity
A non-contributory plan requires _________ participation of all eligible employees - ANS100%
A characteristic of preferred provider organizations (PPOS) would be: - ANSDiscounted fees for
the patient
Which of the following areas of state regulation is NOT protected by the saving clause in
ERISA? - ANSCommerce
Additional coverage can be added to a whole Life policy by adding a(n): - ANSdecreasing term
rider
What benefit does the payor clause on a Juvenile Life policy provide? - ANSPremiums are
waived if the payor becomes disabled
According to Florida law, when must an agent deliver the outline of Coverage to a Medicare
Supplement applicant? - ANSAt the time of application
N is a student pilot with a large life insurance policy. Which of these features would limit the
insurer's obligation in the event N was killed while flying as a student pilot? - ANSExclusion
Which statement is true regarding a minor beneficiary ? - ANSNormally, a guarding is required
to be appointed in the Beneficiary clause of the contract
A sole proprietor may use this plan ONLY if the employees of this business are included. -
ANSIndividual Retirement Account (IRA)
Which of the following provisions is NOT required in HMO contracts/certificated? -
ANSSeven-day grace period
The Bureau of Unclaimed Property is overseen by the - ANSChief Financial Officer
A life policy that contains a monthly mortality charge as well as self-directed investment choices
is called a(n) - ANSVariable Universal Life policy
An insurance company normally has 2 years to contest information provided on an accident and
health application. This 2 year period begins on the date that the: - ANSinsurer dated the policy
,P is a new employee and will be obtaining non- contributory group Major Medical insurance
from her employer. Which of the following actions must she take during the open enrollment
period? - ANSSign an enrollment card
Which of the following statements is true about most Blue Cross/Blue Shield organizations? -
ANSThey are nonprofit organizations
A "reimbursement policy" pays what amount of covered Long-Term care expenses? -
ANSActual covered expenses up to the daily maximum
An individual covered under a group life insurance policy is considered to be a (n) -
ANScertificate holder
The __________ has the right to change a life insurance policy's beneficiary. - ANSpolicyowner
Which of the following documents must an agent submit to the replacing insurance company
during the replacement of an existing life insurance policy? - ANSNotice to existing and
replacing insurers of intention to replace
Which of these statements concerning an individual Disability income policy is TRUE? -
ANSNormally includes an Elimination period
A statement made by an insured in an insurance application that must be true to the best of
one's knowledge and which becomes a part of the contract is known as - ANSa representation
A foreign insurance company doing business in Florida - ANSis a company that was formed
under the laws of another state
An insurer must provide an insured with claim forms within __ days after receiving notice of a
loss. - ANS15
When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n)
: - ANSexclusion
What is the initial source of underwriting for an insurance policy? - ANSApplication containing
statements from the insured
T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight life Annuity. What
will this transaction provide? - ANSIncome that cannot be outlived by the owner
Tom has a qualified retirement plan with his employer that is currently considered to be 80%
"vested". How can this be interpreted? - ANSIf Tom's employment is terminated, 20% of the
funds would be forfeited
, Which settlement option pays a stated amount to an annuitant, but no residual value to a
beneficiary? - ANSLife Income
K buys a policy where the premium stays fixed for the first 5 years. The premium then increases
in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind
of policy is this? - ANSModified Whole Life
An Insured's inability to perform two or more activities of daily living may trigger which type of
life policy rider? - ANSLong term care
Which of these is an element of a Variable Life policy? - ANSA fixed, level premium
F needs life insurance that provides coverage for only a limited amount of time with a death
benefit that changes regularly to a schedule. What kind of policy is needed? - ANSDecreasing
term policy
Which parts of a life insurance policy are guaranteed to be true? - ANSWarranty
In Major Medical Expense policies, what is the objective of a Stop Loss provision? - ANSLimits
an insured's out-of-pocket medical expenses.
T has an annuity that guarantees an income payment for the rest of his life. The contract also
guaranteed 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? - ANSLife
Annuity with Period Certain
Florida's 14-day free-look period for life insurance policies begins at the - ANSdate of delivery
J would like to maintain the right to change beneficiaries. Which beneficiary designation should
be used? - ANSRevocable
The Notice of Claims provision requires a policyowner to: - ANSnotify an insurer of a claim
within a specified time
What type of life policy cover 2 lives and pays the face amount after the first one dies? -
ANSJoint Life Policy
on August 6, D submitted and 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
take? - ANSCollect initial premium along with a signed health statement
Life and Annuity
A non-contributory plan requires _________ participation of all eligible employees - ANS100%
A characteristic of preferred provider organizations (PPOS) would be: - ANSDiscounted fees for
the patient
Which of the following areas of state regulation is NOT protected by the saving clause in
ERISA? - ANSCommerce
Additional coverage can be added to a whole Life policy by adding a(n): - ANSdecreasing term
rider
What benefit does the payor clause on a Juvenile Life policy provide? - ANSPremiums are
waived if the payor becomes disabled
According to Florida law, when must an agent deliver the outline of Coverage to a Medicare
Supplement applicant? - ANSAt the time of application
N is a student pilot with a large life insurance policy. Which of these features would limit the
insurer's obligation in the event N was killed while flying as a student pilot? - ANSExclusion
Which statement is true regarding a minor beneficiary ? - ANSNormally, a guarding is required
to be appointed in the Beneficiary clause of the contract
A sole proprietor may use this plan ONLY if the employees of this business are included. -
ANSIndividual Retirement Account (IRA)
Which of the following provisions is NOT required in HMO contracts/certificated? -
ANSSeven-day grace period
The Bureau of Unclaimed Property is overseen by the - ANSChief Financial Officer
A life policy that contains a monthly mortality charge as well as self-directed investment choices
is called a(n) - ANSVariable Universal Life policy
An insurance company normally has 2 years to contest information provided on an accident and
health application. This 2 year period begins on the date that the: - ANSinsurer dated the policy
,P is a new employee and will be obtaining non- contributory group Major Medical insurance
from her employer. Which of the following actions must she take during the open enrollment
period? - ANSSign an enrollment card
Which of the following statements is true about most Blue Cross/Blue Shield organizations? -
ANSThey are nonprofit organizations
A "reimbursement policy" pays what amount of covered Long-Term care expenses? -
ANSActual covered expenses up to the daily maximum
An individual covered under a group life insurance policy is considered to be a (n) -
ANScertificate holder
The __________ has the right to change a life insurance policy's beneficiary. - ANSpolicyowner
Which of the following documents must an agent submit to the replacing insurance company
during the replacement of an existing life insurance policy? - ANSNotice to existing and
replacing insurers of intention to replace
Which of these statements concerning an individual Disability income policy is TRUE? -
ANSNormally includes an Elimination period
A statement made by an insured in an insurance application that must be true to the best of
one's knowledge and which becomes a part of the contract is known as - ANSa representation
A foreign insurance company doing business in Florida - ANSis a company that was formed
under the laws of another state
An insurer must provide an insured with claim forms within __ days after receiving notice of a
loss. - ANS15
When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n)
: - ANSexclusion
What is the initial source of underwriting for an insurance policy? - ANSApplication containing
statements from the insured
T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight life Annuity. What
will this transaction provide? - ANSIncome that cannot be outlived by the owner
Tom has a qualified retirement plan with his employer that is currently considered to be 80%
"vested". How can this be interpreted? - ANSIf Tom's employment is terminated, 20% of the
funds would be forfeited
, Which settlement option pays a stated amount to an annuitant, but no residual value to a
beneficiary? - ANSLife Income
K buys a policy where the premium stays fixed for the first 5 years. The premium then increases
in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind
of policy is this? - ANSModified Whole Life
An Insured's inability to perform two or more activities of daily living may trigger which type of
life policy rider? - ANSLong term care
Which of these is an element of a Variable Life policy? - ANSA fixed, level premium
F needs life insurance that provides coverage for only a limited amount of time with a death
benefit that changes regularly to a schedule. What kind of policy is needed? - ANSDecreasing
term policy
Which parts of a life insurance policy are guaranteed to be true? - ANSWarranty
In Major Medical Expense policies, what is the objective of a Stop Loss provision? - ANSLimits
an insured's out-of-pocket medical expenses.
T has an annuity that guarantees an income payment for the rest of his life. The contract also
guaranteed 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? - ANSLife
Annuity with Period Certain
Florida's 14-day free-look period for life insurance policies begins at the - ANSdate of delivery
J would like to maintain the right to change beneficiaries. Which beneficiary designation should
be used? - ANSRevocable
The Notice of Claims provision requires a policyowner to: - ANSnotify an insurer of a claim
within a specified time
What type of life policy cover 2 lives and pays the face amount after the first one dies? -
ANSJoint Life Policy
on August 6, D submitted and 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
take? - ANSCollect initial premium along with a signed health statement
