Life and Health Insurance- Florida 2-15 Study Questions with
Correct Answers 100% Verified
Which of these arrangements allows one to bypass insurable interest laws? - Correct Answer Investor-Originated Life Insurance
What kind of Accidental Death and Dismemberment (AD&D) insurance beneficiary requires his/her consent when a change of beneficiary is made? - Correct Answer Irrevocable beneficiary
The Florida Employee Health Care Access Act was established to make - Correct Answer group health insurance available to employer with up to 50 employees
Which type of insurance company allows their policyowner's to elect a governing body? - Correct Answer Mutual
The free-look period for all qualified Long-term care policies sold in Florida is __ days. - Correct Answer 30
ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has: - Correct Answer Waived one of its legal rights
A ___day notice to the policyholder is required for any health insurer that wishes to cancel a health insurance policy. - Correct Answer 45
XYZ Company pays the entire premium for its group health plan. The MINIMUM percentage of eligible employees that must be covered is: - Correct Answer 100%
A Universal Life policy is sometimes referred to as an unbundled Life Policy because the owner can see the interest earned, expense charges, and the - Correct Answer cost
of insurance
Which of these actions is taken when a policyowner uses a Life insurance policy as collateral for a bank loan? - Correct Answer collateral assignment
Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy? - Correct Answer Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company
Which of the following types of permanent life insurance policies offers the highest initial
cash value? - Correct Answer Single Premium
What type of life insurance are credit policies issued as? - Correct Answer Term With Optionally Renewable health policies, the insurer may: - Correct Answer review the
policy annually and determine whether or not to renew it
What determines the full amount of Social Security retirement benefits a qualified individual is entitled to receive? - Correct Answer Primary Insurance Amount (PIA)
Under a Renewable Term policy, - Correct Answer the renewal premium is calculated on the basis of the insured's attained age
Which of the following Statements BEST describes that the Legal Actions provision of an Accident and Health policy requires? - Correct Answer An insured must wait 60 days
after Proof of Loss has been submitted before a lawsuit can be filed
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies? - Correct Answer policyowner
Which of the following is NOT considered rebating? - Correct Answer Sharing commissions with an agent in the same line of business
When a life insurance policy exceeds certain IRS table values, the result would create which of the following? - Correct Answer Modified Endowment Contract (MEC)
Any changes made on an insurance application requires the initials of whom? - Correct Answer Applicant
S is employed by a large corporation that provides group health coverage for its employees and their dependents. If S dies, the company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months under COBRA regulations? - Correct Answer 36
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers (and their families) whose employment has been terminated the right to: - Correct Answer continue group health benefits
In Florida, monthly-premium health insurance policies must provide a grace period of at least - Correct Answer 10 days
AN agent that sells _____ life insurance MUST be registered with the Financial Industry Regulatory Authority (FINRA). - Correct Answer Variable
What is the purpose of the Time of Payment of Claims provision? - Correct Answer Prevents delayed claim payments made by the insurer
Which of the following would be a likely candidate for disability income insurance on a key employee? - Correct Answer Company executive When an insured changes to a more hazardous occupation, which disability policy provision allows an insurer to adjust policy benefits and rates? - Correct Answer change
of occupation provision
All of the following are Nonforfeiture Options EXCEPT - Correct Answer Automatic Premium Loan Option
K is an insured under a life insurance policy owned by a third party. Which of these statements is true? - Correct Answer K has no ownership rights
D the agent met with a prospect and ended up selling an insurance policy. While fillining
out the insurance application, D makes a mistake. In this situation, D MUST - Correct Answer correct the information and have the prospect initial the change
K has a life insurance policy where her husband is 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 would the death proceeds be directed? - Correct Answer daughter
Two partners own equal shares in a business worth a total of $1,000,000. If they both commit to the purchase of a life insurance policy that will fund a Buy-Sell Agreement, which of the following is TRUE? - Correct Answer Each partner owns a $500,000 policy on their partner's life
T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert - Correct Answer to an individual policy upon employment termination
Which of the following claims are typically excluded from Medical expense policies? - Correct Answer intentionally self-inflicted injuries
All of these are characteristics of an Adjustable Life policy, Except: - Correct Answer face amount can be adjusted using policy dividends
An insured covered by Accidental Death and Dismemberment (AD&D) insurance has just died. What will happen if the primary beneficiary had already died before the insured and contingent beneficiary? - Correct Answer Proceeds will go to the contingent
beneficiary
An example of an unfair trade practice is - Correct Answer an agent making a material misrepresentation to the insured
An insured owns an individual Disability Income policy with a 30-day Elimination Period for sickness and accidents and a monthly indemnity benefit of $500. If the insured is disabled for 3 ½ months, what is the MAXIMUM amount he would receive for an approved claim? - Correct Answer $1,250
Correct Answers 100% Verified
Which of these arrangements allows one to bypass insurable interest laws? - Correct Answer Investor-Originated Life Insurance
What kind of Accidental Death and Dismemberment (AD&D) insurance beneficiary requires his/her consent when a change of beneficiary is made? - Correct Answer Irrevocable beneficiary
The Florida Employee Health Care Access Act was established to make - Correct Answer group health insurance available to employer with up to 50 employees
Which type of insurance company allows their policyowner's to elect a governing body? - Correct Answer Mutual
The free-look period for all qualified Long-term care policies sold in Florida is __ days. - Correct Answer 30
ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has: - Correct Answer Waived one of its legal rights
A ___day notice to the policyholder is required for any health insurer that wishes to cancel a health insurance policy. - Correct Answer 45
XYZ Company pays the entire premium for its group health plan. The MINIMUM percentage of eligible employees that must be covered is: - Correct Answer 100%
A Universal Life policy is sometimes referred to as an unbundled Life Policy because the owner can see the interest earned, expense charges, and the - Correct Answer cost
of insurance
Which of these actions is taken when a policyowner uses a Life insurance policy as collateral for a bank loan? - Correct Answer collateral assignment
Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy? - Correct Answer Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company
Which of the following types of permanent life insurance policies offers the highest initial
cash value? - Correct Answer Single Premium
What type of life insurance are credit policies issued as? - Correct Answer Term With Optionally Renewable health policies, the insurer may: - Correct Answer review the
policy annually and determine whether or not to renew it
What determines the full amount of Social Security retirement benefits a qualified individual is entitled to receive? - Correct Answer Primary Insurance Amount (PIA)
Under a Renewable Term policy, - Correct Answer the renewal premium is calculated on the basis of the insured's attained age
Which of the following Statements BEST describes that the Legal Actions provision of an Accident and Health policy requires? - Correct Answer An insured must wait 60 days
after Proof of Loss has been submitted before a lawsuit can be filed
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies? - Correct Answer policyowner
Which of the following is NOT considered rebating? - Correct Answer Sharing commissions with an agent in the same line of business
When a life insurance policy exceeds certain IRS table values, the result would create which of the following? - Correct Answer Modified Endowment Contract (MEC)
Any changes made on an insurance application requires the initials of whom? - Correct Answer Applicant
S is employed by a large corporation that provides group health coverage for its employees and their dependents. If S dies, the company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months under COBRA regulations? - Correct Answer 36
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers (and their families) whose employment has been terminated the right to: - Correct Answer continue group health benefits
In Florida, monthly-premium health insurance policies must provide a grace period of at least - Correct Answer 10 days
AN agent that sells _____ life insurance MUST be registered with the Financial Industry Regulatory Authority (FINRA). - Correct Answer Variable
What is the purpose of the Time of Payment of Claims provision? - Correct Answer Prevents delayed claim payments made by the insurer
Which of the following would be a likely candidate for disability income insurance on a key employee? - Correct Answer Company executive When an insured changes to a more hazardous occupation, which disability policy provision allows an insurer to adjust policy benefits and rates? - Correct Answer change
of occupation provision
All of the following are Nonforfeiture Options EXCEPT - Correct Answer Automatic Premium Loan Option
K is an insured under a life insurance policy owned by a third party. Which of these statements is true? - Correct Answer K has no ownership rights
D the agent met with a prospect and ended up selling an insurance policy. While fillining
out the insurance application, D makes a mistake. In this situation, D MUST - Correct Answer correct the information and have the prospect initial the change
K has a life insurance policy where her husband is 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 would the death proceeds be directed? - Correct Answer daughter
Two partners own equal shares in a business worth a total of $1,000,000. If they both commit to the purchase of a life insurance policy that will fund a Buy-Sell Agreement, which of the following is TRUE? - Correct Answer Each partner owns a $500,000 policy on their partner's life
T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert - Correct Answer to an individual policy upon employment termination
Which of the following claims are typically excluded from Medical expense policies? - Correct Answer intentionally self-inflicted injuries
All of these are characteristics of an Adjustable Life policy, Except: - Correct Answer face amount can be adjusted using policy dividends
An insured covered by Accidental Death and Dismemberment (AD&D) insurance has just died. What will happen if the primary beneficiary had already died before the insured and contingent beneficiary? - Correct Answer Proceeds will go to the contingent
beneficiary
An example of an unfair trade practice is - Correct Answer an agent making a material misrepresentation to the insured
An insured owns an individual Disability Income policy with a 30-day Elimination Period for sickness and accidents and a monthly indemnity benefit of $500. If the insured is disabled for 3 ½ months, what is the MAXIMUM amount he would receive for an approved claim? - Correct Answer $1,250
