Exam Simulator: Florida Life and Health State Exam
questions with verified answers
___ of personal life insurance premiums is usually deductible for federal income
tax purposes Ans✓✓✓ 0%
A ____ day notice to the policyholder is required for any health insurer that
wishes to cancel a health insurance policy Ans✓✓✓ 45
A _____ annuity pays benefits based on units rather than stated dollar amount
Ans✓✓✓ Variable
A 55 year old recently received a $30,000 distribution from a previous employer's
401k plan, minus $6,000 withholding. Which federal taxes apply if non of the
funds were rolled over? Ans✓✓✓ Income taxes plus a 10% penalty tax on
$30,000
A catastrophic illness would be best covered by which of the following health
insurance plans? Ans✓✓✓ Major Medical
A contract owner terminates an annuity before the income payment period
begins. The owner will then receive Ans✓✓✓ the current contract surrender
value
A cost of living rider gives the insured Ans✓✓✓ additional death benefits
A Cost of Living rider gives the insured Ans✓✓✓ additional death benefits
,A disability income policy owner recently submitted a claim for a chronic neck
problem that has now resulted in total liability. The original neck injury occurred
before the application was taken 5 years prior. The neck injury was never
disclosed to the insurer at the time of application. How will the insurer handle this
claim? Ans✓✓✓ The claim will be paid and covered will remain in force
(after a policy has been in force for 2 years, it enter the incontestable period)
A Disability Income policy that only the policy owner can terminate and which the
rates will never go up is considered to be Ans✓✓✓ Noncancellable
A life insurance policy's grace period entitles the insured a period of no less than
___ days to make the premium payment Ans✓✓✓ 30
A life insurance policyowner would like to file a complaint against a life insurance
agent. In Florida, the entity that oversees these complaints is called the Ans✓✓✓
Office of Financial Regulation
A long-term care lapse notice must be delivered to both the applicant and
Ans✓✓✓ secondary addressee
A nonforfeiture clause gives the policy owner Ans✓✓✓ guaranteed values even if
the policy has lapsed
A policy owner's rights are limited under which beneficiary designation?
Ans✓✓✓ irrevocable
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of
, these statements made by the producer would be correct? Ans✓✓✓ 20-Pay Life
accumulates cash value faster than Straight Life
A provision in a life insurance policy that pays the policy owner an amount that
doesn't surpass the guaranteed cash value is called the Ans✓✓✓ Policy Loan
provision
A student pilot can pay regular premium costs for her life insurance policy with
the addition of which of the following? Ans✓✓✓ aviation exclusion
A trustee-to-trustee transfer of rollover funds in a qualified plan allows a
participant to avoid: Ans✓✓✓ mandatory income tax withholding on the transfer
amount
A variable life insurance agent must be licensed and appointed as a life and
variable contract agent, as well as a (n) Ans✓✓✓ Broker dealer
A Whole life insurance policyowner does not wish to continue making premium
payments. Which of the following enables the policyowner to sell the policy for
more than its cash value? Ans✓✓✓ Life settlement contract
A(n) ____ Life policy combines investment choices with a form of Term coverage
Ans✓✓✓ Variable Universal
A(n) _____ rider may be used to include coverage for children under their
parent's life insurance policy Ans✓✓✓ Term
questions with verified answers
___ of personal life insurance premiums is usually deductible for federal income
tax purposes Ans✓✓✓ 0%
A ____ day notice to the policyholder is required for any health insurer that
wishes to cancel a health insurance policy Ans✓✓✓ 45
A _____ annuity pays benefits based on units rather than stated dollar amount
Ans✓✓✓ Variable
A 55 year old recently received a $30,000 distribution from a previous employer's
401k plan, minus $6,000 withholding. Which federal taxes apply if non of the
funds were rolled over? Ans✓✓✓ Income taxes plus a 10% penalty tax on
$30,000
A catastrophic illness would be best covered by which of the following health
insurance plans? Ans✓✓✓ Major Medical
A contract owner terminates an annuity before the income payment period
begins. The owner will then receive Ans✓✓✓ the current contract surrender
value
A cost of living rider gives the insured Ans✓✓✓ additional death benefits
A Cost of Living rider gives the insured Ans✓✓✓ additional death benefits
,A disability income policy owner recently submitted a claim for a chronic neck
problem that has now resulted in total liability. The original neck injury occurred
before the application was taken 5 years prior. The neck injury was never
disclosed to the insurer at the time of application. How will the insurer handle this
claim? Ans✓✓✓ The claim will be paid and covered will remain in force
(after a policy has been in force for 2 years, it enter the incontestable period)
A Disability Income policy that only the policy owner can terminate and which the
rates will never go up is considered to be Ans✓✓✓ Noncancellable
A life insurance policy's grace period entitles the insured a period of no less than
___ days to make the premium payment Ans✓✓✓ 30
A life insurance policyowner would like to file a complaint against a life insurance
agent. In Florida, the entity that oversees these complaints is called the Ans✓✓✓
Office of Financial Regulation
A long-term care lapse notice must be delivered to both the applicant and
Ans✓✓✓ secondary addressee
A nonforfeiture clause gives the policy owner Ans✓✓✓ guaranteed values even if
the policy has lapsed
A policy owner's rights are limited under which beneficiary designation?
Ans✓✓✓ irrevocable
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of
, these statements made by the producer would be correct? Ans✓✓✓ 20-Pay Life
accumulates cash value faster than Straight Life
A provision in a life insurance policy that pays the policy owner an amount that
doesn't surpass the guaranteed cash value is called the Ans✓✓✓ Policy Loan
provision
A student pilot can pay regular premium costs for her life insurance policy with
the addition of which of the following? Ans✓✓✓ aviation exclusion
A trustee-to-trustee transfer of rollover funds in a qualified plan allows a
participant to avoid: Ans✓✓✓ mandatory income tax withholding on the transfer
amount
A variable life insurance agent must be licensed and appointed as a life and
variable contract agent, as well as a (n) Ans✓✓✓ Broker dealer
A Whole life insurance policyowner does not wish to continue making premium
payments. Which of the following enables the policyowner to sell the policy for
more than its cash value? Ans✓✓✓ Life settlement contract
A(n) ____ Life policy combines investment choices with a form of Term coverage
Ans✓✓✓ Variable Universal
A(n) _____ rider may be used to include coverage for children under their
parent's life insurance policy Ans✓✓✓ Term
