Laws & rules pertinent to life insurance Exam
Questions With Complete Solutions.
which of the following is CORRECT about the replacement rule?
a. the replacement rule only applies to health insurance.
b. the agent has 90 days from the effective date to deliver a buyers guide
c. the agent must leave a copy of all sales proposals used in the presentation with the applicant
d. up to 30 days is allowed for full refund of premium - Answer ✔✔ - c. the agent must leave a copy
of all sales proposals used in the presentation with the applicant
which of the following is not considered to be an element of replacement?
a. the agent knows a new policy will take the place of an existing policy
b.an existing policy is subjected to a loan of 10% of its value
c. an existing policy is allowed to lapse
d. an existing policy is reissued with a reduced cash value - Answer ✔✔ - b.an existing policy is
subjected to a loan of 10% of its value
in which of the following ways is a beneficiary protected from the creditors of the deceased
insured?
a. the proceeds of a policy can always be claimed by the deceased insured's creditors
b. when the policy is made payable to the estate, the proceeds are protected from the creditors
c. if the policy is made payable to a named beneficiary, then the creditors can make no claim on the
proceeds
, d. the cash surrender value of a life insurance policy can be attached by an ordinary creditor -
Answer ✔✔ - c. if the policy is made payable to a named beneficiary, then the creditors can make
no claim on the proceeds
all of the following are correct insurance agent marketing responsibilities EXCEPT
a. an agent must inform a prospect, prior to the presentation, that she is a life insurance agent and
provide the name of her insurer
b. any reference to policy dividends must include a statement that such dividends are not
guaranteed
c. any presentation comparing two or more life policies must recognize the time value of money
using interest adjustments
d. a presentation may not include references to life insurance policy cost indexes - Answer ✔✔ - d.
a presentation may not include references to life insurance policy cost indexes
which of the following applies when an insured wishes to convert industrial insurance policies into
an ordinary policy?
a. this is not permitted under FL law.
b. it is possible to convert $3k or more of industrial insurance
c. any such conversion requires a physical examination
d. the multiple policies can only be reissued as one industrial policy - Answer ✔✔ - b. it is possible
to convert $3k or more of industrial insurance
at the time of an insurance sale, which of the following is not correct?
a. personal info about the client should never be released without prior approval from the client
b. a producer only needs to disclose to a prospect the information that the prospect requests
c. precision and accuracy in completing the application are in the best interest of both the insurer
and the prospective insured
Questions With Complete Solutions.
which of the following is CORRECT about the replacement rule?
a. the replacement rule only applies to health insurance.
b. the agent has 90 days from the effective date to deliver a buyers guide
c. the agent must leave a copy of all sales proposals used in the presentation with the applicant
d. up to 30 days is allowed for full refund of premium - Answer ✔✔ - c. the agent must leave a copy
of all sales proposals used in the presentation with the applicant
which of the following is not considered to be an element of replacement?
a. the agent knows a new policy will take the place of an existing policy
b.an existing policy is subjected to a loan of 10% of its value
c. an existing policy is allowed to lapse
d. an existing policy is reissued with a reduced cash value - Answer ✔✔ - b.an existing policy is
subjected to a loan of 10% of its value
in which of the following ways is a beneficiary protected from the creditors of the deceased
insured?
a. the proceeds of a policy can always be claimed by the deceased insured's creditors
b. when the policy is made payable to the estate, the proceeds are protected from the creditors
c. if the policy is made payable to a named beneficiary, then the creditors can make no claim on the
proceeds
, d. the cash surrender value of a life insurance policy can be attached by an ordinary creditor -
Answer ✔✔ - c. if the policy is made payable to a named beneficiary, then the creditors can make
no claim on the proceeds
all of the following are correct insurance agent marketing responsibilities EXCEPT
a. an agent must inform a prospect, prior to the presentation, that she is a life insurance agent and
provide the name of her insurer
b. any reference to policy dividends must include a statement that such dividends are not
guaranteed
c. any presentation comparing two or more life policies must recognize the time value of money
using interest adjustments
d. a presentation may not include references to life insurance policy cost indexes - Answer ✔✔ - d.
a presentation may not include references to life insurance policy cost indexes
which of the following applies when an insured wishes to convert industrial insurance policies into
an ordinary policy?
a. this is not permitted under FL law.
b. it is possible to convert $3k or more of industrial insurance
c. any such conversion requires a physical examination
d. the multiple policies can only be reissued as one industrial policy - Answer ✔✔ - b. it is possible
to convert $3k or more of industrial insurance
at the time of an insurance sale, which of the following is not correct?
a. personal info about the client should never be released without prior approval from the client
b. a producer only needs to disclose to a prospect the information that the prospect requests
c. precision and accuracy in completing the application are in the best interest of both the insurer
and the prospective insured
