Florida Life & Health Simulated Exam - Questions
With Proven Solutions
Florida resident insurance agents must complete __ hours of law and
ethics continuing education every two years. Correct Answer -
4
Which of the following is considered an accurate statement of an
unfair trade practice?
A. Rebating occurs when someone intentionally deceives another
with the intent to gain financially
B. No more than 25% of an agent's insurance sales are allowed to
come from controlled business
C. Twisting involves an agent using misrepresentation to convince a
policyowner to cancel their current policy so that they can purchase
a new life insurance policy with another company
D. Coercion involves making a malicious statement about the
financial condition of an insurance company Correct Answer -
C. Twisting involves an agent using misrepresentation to convince a
policyowner to cancel their current policy so that they can purchase
a new life insurance policy with another company
The Florida Employee Health Care Access Act was established to
make Correct Answer - "group health insurance available to
employers with up to 50 employees".
The purpose of the Florida Employee Health Care Access Act is to
make group health insurance available to employers with 50 or
fewer employees.
Which of these statements concerning an individual Disability
Income policy is TRUE? Correct Answer - "Normally includes
,an Elimination period". Disability Income policies typically contain
an Elimination period.
N, age 50, recently bought an annuity that will pay a guaranteed
$2,000/month at age 70 for life. What type of annuity did N
purchase? Correct Answer - Fixed Deferred". A Fixed Deferred
annuity pays out a fixed amount for life starting at a future date.
Taking receipt of premiums and holding them for the insurance
company is an example of: Correct Answer - Fiduciary
responsibility
Long Term Care policies will usually pay for eligible benefits using
which of the following methods? Correct Answer - "Expense
incurred".
Most long-term care policies pay on a reimbursement (or expense-
incurred) basis, up to the policy limits.
P owns a $25,000 Life Policy that pays the face amount to him if he
lives to age 70, or to his beneficiary if he dies before age 70. What
kind of policy does P own?
Straight Life
Modified Life
Endowment at Age 70
Whole Life Paid-Up at Age 70 Correct Answer - "Endowment at
Age 70". An endowment policy is characterized by cash values that
grow at a rapid pace so that the policy matures or endows at a
specified date (before age 100).
Long Term Care policies will usu
, At what point does an informal agreement become a binding
contract?
When an offer is made by one party and the other party rejects the
offer and makes a counteroffer
When one party makes an offer and the other party accepts that
offer
When one party makes an invitation and the other makes an offer
When consideration is provided by one of the parties to the contract
Correct Answer - "When consideration is provided by one of the
parties to the contract".
Consideration must be given in order to make a contract legally
binding.
The agreement in a life insurance contract that states a specific sum
of money will be paid to a designated person upon an insured's
death is called a(n):
Insuring agreement
Consideration clause
Entire Contract provision
Assignment agreement Correct Answer - "Insuring
Agreement". The insuring clause or provision sets forth the
company's basic promise to pay benefits upon the insured's death.
A prospective insured completes and signs an application for health
insurance but intentionally conceals information about a pre-
existing heart condition. The company issues the policy. Two
months later, the insured suffers a heart attack and submits a claim.
While processing the claim, the company discovers the pre-existing
condition. In this situation, the company will:
continue coverage but request a corrected application
rescind the coverage and return the premiums
With Proven Solutions
Florida resident insurance agents must complete __ hours of law and
ethics continuing education every two years. Correct Answer -
4
Which of the following is considered an accurate statement of an
unfair trade practice?
A. Rebating occurs when someone intentionally deceives another
with the intent to gain financially
B. No more than 25% of an agent's insurance sales are allowed to
come from controlled business
C. Twisting involves an agent using misrepresentation to convince a
policyowner to cancel their current policy so that they can purchase
a new life insurance policy with another company
D. Coercion involves making a malicious statement about the
financial condition of an insurance company Correct Answer -
C. Twisting involves an agent using misrepresentation to convince a
policyowner to cancel their current policy so that they can purchase
a new life insurance policy with another company
The Florida Employee Health Care Access Act was established to
make Correct Answer - "group health insurance available to
employers with up to 50 employees".
The purpose of the Florida Employee Health Care Access Act is to
make group health insurance available to employers with 50 or
fewer employees.
Which of these statements concerning an individual Disability
Income policy is TRUE? Correct Answer - "Normally includes
,an Elimination period". Disability Income policies typically contain
an Elimination period.
N, age 50, recently bought an annuity that will pay a guaranteed
$2,000/month at age 70 for life. What type of annuity did N
purchase? Correct Answer - Fixed Deferred". A Fixed Deferred
annuity pays out a fixed amount for life starting at a future date.
Taking receipt of premiums and holding them for the insurance
company is an example of: Correct Answer - Fiduciary
responsibility
Long Term Care policies will usually pay for eligible benefits using
which of the following methods? Correct Answer - "Expense
incurred".
Most long-term care policies pay on a reimbursement (or expense-
incurred) basis, up to the policy limits.
P owns a $25,000 Life Policy that pays the face amount to him if he
lives to age 70, or to his beneficiary if he dies before age 70. What
kind of policy does P own?
Straight Life
Modified Life
Endowment at Age 70
Whole Life Paid-Up at Age 70 Correct Answer - "Endowment at
Age 70". An endowment policy is characterized by cash values that
grow at a rapid pace so that the policy matures or endows at a
specified date (before age 100).
Long Term Care policies will usu
, At what point does an informal agreement become a binding
contract?
When an offer is made by one party and the other party rejects the
offer and makes a counteroffer
When one party makes an offer and the other party accepts that
offer
When one party makes an invitation and the other makes an offer
When consideration is provided by one of the parties to the contract
Correct Answer - "When consideration is provided by one of the
parties to the contract".
Consideration must be given in order to make a contract legally
binding.
The agreement in a life insurance contract that states a specific sum
of money will be paid to a designated person upon an insured's
death is called a(n):
Insuring agreement
Consideration clause
Entire Contract provision
Assignment agreement Correct Answer - "Insuring
Agreement". The insuring clause or provision sets forth the
company's basic promise to pay benefits upon the insured's death.
A prospective insured completes and signs an application for health
insurance but intentionally conceals information about a pre-
existing heart condition. The company issues the policy. Two
months later, the insured suffers a heart attack and submits a claim.
While processing the claim, the company discovers the pre-existing
condition. In this situation, the company will:
continue coverage but request a corrected application
rescind the coverage and return the premiums
