Florida 2 To 15 Final Exam with High
Standard Grade
When life insurance proceeds are used to pay inheritance taxes and federal estate
taxes, it is known as - CORRECT ANSWER-Estate conservation
In group insurance, the primary purpose of the Coordination of Benefits provision is to -
CORRECT ANSWER-Prevent overinsurance
Which of the following statements is NOT true regarding health insurance policy
provisions? - CORRECT ANSWER-All additional provisions written by insurers are
cataloged by their respective states.
The policyowner has an option to pledge the life insurance policy as collateral for a bank
loan. This is called - CORRECT ANSWER-A collateral assignment
A whole life policy is surrendered for a reduced-paid up policy. The cash value in the
new policy will - CORRECT ANSWER-Continue to increase
When filling out an application for insurance, the applicant makes a mistake. If a fresh
application were not available, what could the applicant do to properly correct the
mistake? - CORRECT ANSWER-Cross the incorrect answer out, write the correct one
beside it, and initial the answer.
Which of the following riders pays a beneficiary a death benefit that is double or triple
the face amount if the insured's death was caused by an accident as defined in the
policy? - CORRECT ANSWER-An Accidental Death Rider
All of the following are consideration in an insurance policy EXCEPT - CORRECT
ANSWER-The cash value in the policy.
An individual has a $200,000 convertible term life insurance policy. If he chooses, he
can - CORRECT ANSWER-Convert to a whole life policy for the same face amount
without proof of insurability.
Which of the following is NOT true regarding a deferred annuity? - CORRECT
ANSWER-Income payments begin within 1 year from the date of purchase.
A retail shop owner is insured under a business overhead expense policy that pays a
maximum monthly benefit of $2,500. His actual monthly expenses are $3,000. If the
owner becomes disabled, the monthly benefit payable under his policy will be -
CORRECT ANSWER-$2,500
, Which federal act defines rules pertaining to protected health information? - CORRECT
ANSWER-HIPAA
The "stop-loss" feature on a major medical policy is intended to - CORRECT ANSWER-
Establish a maximum amount of out-of-pocket expense that an insured will have to pay
for medical expense in a calendar year.
If a business wants to make sure it will be able to cover losses due to the disability of its
top employee, the business should get which type of insurance? - CORRECT
ANSWER-Key person disability income
Life insurance creates an immediate estate. Which of the following best explains this
statement? - CORRECT ANSWER-The face value of the policy is payable to the
beneficiary upon the death of the insured.
What is the maximum age that a disabled insured worker may receive Social Security
disability benefits? - CORRECT ANSWER-65
Whose responsibility is it to ensure that the application for health insurance is complete
and accurate? - CORRECT ANSWER-The agent's
Which of the following policies would NOT offer a policy loan option? - CORRECT
ANSWER-Term Life
Regarding the consideration clause, which of the following is NOT correct? - CORRECT
ANSWER-Consideration of the insurer and insured must be equal.
The guaranteed purchase option is also referred to as the - CORRECT ANSWER-
Future increase option.
When an insured terminates membership in the insured group, the insured can convert
to - CORRECT ANSWER-Whole life without proof of insurability.
Which dividend option will increase the death benefit? - CORRECT ANSWER-Paid-up
additions
What is the difference between a straight life policy and a 20-pay whole life policy? -
CORRECT ANSWER-Premium payment period
Which of the following policies can be described as a flexible premium adjustable life
policy? - CORRECT ANSWER-Universal Life
All of the following statements are true regarding an Ordinary (Straight) Life policy
EXCEPT - CORRECT ANSWER-It does not have a guaranteed death benefit.
Standard Grade
When life insurance proceeds are used to pay inheritance taxes and federal estate
taxes, it is known as - CORRECT ANSWER-Estate conservation
In group insurance, the primary purpose of the Coordination of Benefits provision is to -
CORRECT ANSWER-Prevent overinsurance
Which of the following statements is NOT true regarding health insurance policy
provisions? - CORRECT ANSWER-All additional provisions written by insurers are
cataloged by their respective states.
The policyowner has an option to pledge the life insurance policy as collateral for a bank
loan. This is called - CORRECT ANSWER-A collateral assignment
A whole life policy is surrendered for a reduced-paid up policy. The cash value in the
new policy will - CORRECT ANSWER-Continue to increase
When filling out an application for insurance, the applicant makes a mistake. If a fresh
application were not available, what could the applicant do to properly correct the
mistake? - CORRECT ANSWER-Cross the incorrect answer out, write the correct one
beside it, and initial the answer.
Which of the following riders pays a beneficiary a death benefit that is double or triple
the face amount if the insured's death was caused by an accident as defined in the
policy? - CORRECT ANSWER-An Accidental Death Rider
All of the following are consideration in an insurance policy EXCEPT - CORRECT
ANSWER-The cash value in the policy.
An individual has a $200,000 convertible term life insurance policy. If he chooses, he
can - CORRECT ANSWER-Convert to a whole life policy for the same face amount
without proof of insurability.
Which of the following is NOT true regarding a deferred annuity? - CORRECT
ANSWER-Income payments begin within 1 year from the date of purchase.
A retail shop owner is insured under a business overhead expense policy that pays a
maximum monthly benefit of $2,500. His actual monthly expenses are $3,000. If the
owner becomes disabled, the monthly benefit payable under his policy will be -
CORRECT ANSWER-$2,500
, Which federal act defines rules pertaining to protected health information? - CORRECT
ANSWER-HIPAA
The "stop-loss" feature on a major medical policy is intended to - CORRECT ANSWER-
Establish a maximum amount of out-of-pocket expense that an insured will have to pay
for medical expense in a calendar year.
If a business wants to make sure it will be able to cover losses due to the disability of its
top employee, the business should get which type of insurance? - CORRECT
ANSWER-Key person disability income
Life insurance creates an immediate estate. Which of the following best explains this
statement? - CORRECT ANSWER-The face value of the policy is payable to the
beneficiary upon the death of the insured.
What is the maximum age that a disabled insured worker may receive Social Security
disability benefits? - CORRECT ANSWER-65
Whose responsibility is it to ensure that the application for health insurance is complete
and accurate? - CORRECT ANSWER-The agent's
Which of the following policies would NOT offer a policy loan option? - CORRECT
ANSWER-Term Life
Regarding the consideration clause, which of the following is NOT correct? - CORRECT
ANSWER-Consideration of the insurer and insured must be equal.
The guaranteed purchase option is also referred to as the - CORRECT ANSWER-
Future increase option.
When an insured terminates membership in the insured group, the insured can convert
to - CORRECT ANSWER-Whole life without proof of insurability.
Which dividend option will increase the death benefit? - CORRECT ANSWER-Paid-up
additions
What is the difference between a straight life policy and a 20-pay whole life policy? -
CORRECT ANSWER-Premium payment period
Which of the following policies can be described as a flexible premium adjustable life
policy? - CORRECT ANSWER-Universal Life
All of the following statements are true regarding an Ordinary (Straight) Life policy
EXCEPT - CORRECT ANSWER-It does not have a guaranteed death benefit.
