Clean Life, Health, and Variable Annuity
exam With Answers
Which of the following statements is CORRECT?
A) Only speculative risks are insurable
B) Only pure risks are insurable
C) Both pure risks and speculative risks are insurable
D) Neither pure risks nor speculative risks are insurable - CORRECT ANSWER-B) Only
pure risks are insurable
Buying insurance is one of the most effective ways of
A) avoiding risk
B) transferring risk
C) reducing risk
D) retaining risk - CORRECT ANSWER-B) transferring risk
An insurance company organized and headquartered in Florida can be described as
what type of company in Florida?
A) Alien
B) Home-based
C) Foreign
D) Domestic - CORRECT ANSWER-D) Domestic
The State Guaranty Association guarantees
A) that a policy will be issued
B) that a claim will be paid if an insurer becomes insolvent
C) that dividends will be paid
D) the rate of return on a policy - CORRECT ANSWER-B) that a claim will be paid if an
insurer becomes insolvent
The authority that an insurer gives to its agent by means of the agent's contract is
known as
A) implied authority
B) express authority
C) fiduciary responsibility
D) general authority - CORRECT ANSWER-B) express authority
With life and health contracts, when must an insurable interest exist?
A) After the policy is used
B) Before the beneficiary is named
C) While the policy is in force
, D) At the inception of the policy - CORRECT ANSWER-D) At the inception of the policy
Bob and Tom enter into a contract in which Bob agrees to fraudulently induce sick
people to sell their insurance contracts to Tom's company. Bob and Tom's contract can
best be described as
A) void
B) competitive
C) voidable
D) conditional - CORRECT ANSWER-A) void
Which of the following phrases should agents avoid using when explaining policies to
prospective applicants or clients
A) Cash value
B) Vanishing premium
C) Flexible premium
D) Death benefit - CORRECT ANSWER-B) Vanishing premium
What period would a 14-day free-look provision apply in Florida
A) The first 14 days after the application has been signed by the applicant
B) The first 14 days after the application has been received by the insurer
C) The first 14 days after the policy has been issued by the insurer
D) The first 14 days after the issued policy has been received by the insured -
CORRECT ANSWER-D) The first 14 days after the issued policy has been received by
the insured
The rider that provides for a waiver of premiums on a juvenile policy if the adult payor
dies or becomes disabled is
A) a guaranteed insurability rider
B) a payor rider
C) a waiver of premium rider
D) an automatic premium loan rider - CORRECT ANSWER-B) a payor rider
Which of the following statements pertaining to the Medical Information Bureau (MIB) is
CORRECT?
A) The MIB is operated by a national network of hospitals
B) Information obtained by the MIB is available to all physicians
C) The MIB provides assistance in the underwriting of life insurance
D) Applicants may request that MIB reports be attached to their policies - CORRECT
ANSWER-C) The MIB provides assistance in the underwriting of life insurance
Group Insurance plans that require employees to pay a portion of the premium are
called
A) underwritten
B) contributory
C) participatory
D) shared - CORRECT ANSWER-B) contributory
exam With Answers
Which of the following statements is CORRECT?
A) Only speculative risks are insurable
B) Only pure risks are insurable
C) Both pure risks and speculative risks are insurable
D) Neither pure risks nor speculative risks are insurable - CORRECT ANSWER-B) Only
pure risks are insurable
Buying insurance is one of the most effective ways of
A) avoiding risk
B) transferring risk
C) reducing risk
D) retaining risk - CORRECT ANSWER-B) transferring risk
An insurance company organized and headquartered in Florida can be described as
what type of company in Florida?
A) Alien
B) Home-based
C) Foreign
D) Domestic - CORRECT ANSWER-D) Domestic
The State Guaranty Association guarantees
A) that a policy will be issued
B) that a claim will be paid if an insurer becomes insolvent
C) that dividends will be paid
D) the rate of return on a policy - CORRECT ANSWER-B) that a claim will be paid if an
insurer becomes insolvent
The authority that an insurer gives to its agent by means of the agent's contract is
known as
A) implied authority
B) express authority
C) fiduciary responsibility
D) general authority - CORRECT ANSWER-B) express authority
With life and health contracts, when must an insurable interest exist?
A) After the policy is used
B) Before the beneficiary is named
C) While the policy is in force
, D) At the inception of the policy - CORRECT ANSWER-D) At the inception of the policy
Bob and Tom enter into a contract in which Bob agrees to fraudulently induce sick
people to sell their insurance contracts to Tom's company. Bob and Tom's contract can
best be described as
A) void
B) competitive
C) voidable
D) conditional - CORRECT ANSWER-A) void
Which of the following phrases should agents avoid using when explaining policies to
prospective applicants or clients
A) Cash value
B) Vanishing premium
C) Flexible premium
D) Death benefit - CORRECT ANSWER-B) Vanishing premium
What period would a 14-day free-look provision apply in Florida
A) The first 14 days after the application has been signed by the applicant
B) The first 14 days after the application has been received by the insurer
C) The first 14 days after the policy has been issued by the insurer
D) The first 14 days after the issued policy has been received by the insured -
CORRECT ANSWER-D) The first 14 days after the issued policy has been received by
the insured
The rider that provides for a waiver of premiums on a juvenile policy if the adult payor
dies or becomes disabled is
A) a guaranteed insurability rider
B) a payor rider
C) a waiver of premium rider
D) an automatic premium loan rider - CORRECT ANSWER-B) a payor rider
Which of the following statements pertaining to the Medical Information Bureau (MIB) is
CORRECT?
A) The MIB is operated by a national network of hospitals
B) Information obtained by the MIB is available to all physicians
C) The MIB provides assistance in the underwriting of life insurance
D) Applicants may request that MIB reports be attached to their policies - CORRECT
ANSWER-C) The MIB provides assistance in the underwriting of life insurance
Group Insurance plans that require employees to pay a portion of the premium are
called
A) underwritten
B) contributory
C) participatory
D) shared - CORRECT ANSWER-B) contributory
