Florida Life And Health State Simulator -
Questions With Verified Solutions
Which type of renewability best describes a Disability Income policy
that covers an individual until the age of 65, but the insurer has the
right to change the premium rate for the overall risk class? ✔️ -
The correct answer is "Guaranteed Renewable". The renewal
provision in a guaranteed renewable policy specifies that the policy
must be renewed (as long as premiums are paid) until the insured
reaches a specified age. These usually have increasing premiums.
Which of the following is NOT included in the policy face? ✔️ -
The correct answer is "Exclusions". The exclusions section is NOT
included in the policy face (first page of an insurance policy).
The reason for backdating a policy is ✔️ - The correct answer is
"to obtain a premium rate based on an earlier age". The purpose of
backdating a life insurance policy is to use premiums based on an
earlier age.
A Universal Life policy is sometimes referred to as an unbundled
Life Policy because the owner can see the interest earned, expense
charges, and the ✔️ - The correct answer is "cost of insurance".
The Universal Life Policy is called an unbundled Life Policy because
the policyholder can see the expense charges, the interest earned,
and the cost of insurance.
An application for Medicare Supplement coverage may NOT be
denied by the insurer if the application was submitted within ___
month(s) after the applicant reaches the age of 65. ✔️ - The
correct answer is "six". An application for Medicare Supplement
coverage may NOT be denied by the insurer if the application was
,submitted within six month(s) after the applicant reaches the age of
65.
Life insurance immediately creates an estate upon the death of an
insured. Which of the following policies is characterized by a
guaranteed minimum death benefit? ✔️ - The correct answer is
"Variable life." The variable nature of a variable whole life insurance
is its death benefit. However, if investment performance is poor, the
death benefit will not go lower than the policy's guaranteed
minimum.
Variable annuities may invest premiums in each of the following,
EXCEPT: ✔️ - The correct answer is "Insurer's corporate business
account". Variable annuities may invest premiums in each of these
EXCEPT the "Insurer's corporate business account".
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? ✔️ - The correct answer is
"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).
The coordination of benefits (COB) provision exists in order to ✔️
- The correct answer is "avoid duplication of benefit payments".
The purpose of the coordination of benefits (COB) provision, found
only in group health plans, is to avoid duplication of benefit
payments.
Which of the following factors is NOT considered when the
Department of Financial Services determines if an agent's home is
an insurance agency? ✔️ - The correct answer is "The amount of
premium collected at this location". The Department of Financial
Services does not take into consideration the amount of premium
, collected at an agent's home when determining whether or not the
home is an insurance agency.
Basic Hospital and Surgical policy benefits are: ✔️ - The correct
answer is "lower than the actual expenses incurred". Basic Hospital
and Surgical policy benefits are typically lower than the actual
expenses incurred.
N is a 40-year old applicant who would like to retire at age 70. He is
looking to buy a life insurance policy with level premiums,
permanent protection, and be paid-up at retirement. Which of these
should N purchase? ✔️ - Incorrect. The correct answer is "30 Pay
Life". Limited pay whole life policies have level premiums that are
limited to a certain period.
Incorrect. The correct answer is "30 Pay Life". Limited pay whole life
policies have level premiums that are limited to a certain period.
✔️ - The correct answer is "Utilities and office rent". A Business
Overhead Expense policy is designed to cover certain overhead
expenses (rent, taxes, utility bills, employee's salaries etc) that
continue when the business owner is disabled.
What does Medicare Parts A and B cover? ✔️ - The correct
answer is "Part A covers hospitalization; Part B covers doctor's
services". Medicare Part A covers hospital benefits. Part B covers
physician's services.
S wants to open a tax-exempt Health Savings Account. To qualify for
this type of account, Federal law dictates that S must be enrolled in
a: ✔️ - The correct answer is "High-deductible health plan". To be
eligible for a Health Savings Account, an individual must be covered
by a high-deductible health plan (HDHP), must not be covered by
other health insurance (does not apply to accident insurance,
disability, dental care, vision care, long-term care), must not be
Questions With Verified Solutions
Which type of renewability best describes a Disability Income policy
that covers an individual until the age of 65, but the insurer has the
right to change the premium rate for the overall risk class? ✔️ -
The correct answer is "Guaranteed Renewable". The renewal
provision in a guaranteed renewable policy specifies that the policy
must be renewed (as long as premiums are paid) until the insured
reaches a specified age. These usually have increasing premiums.
Which of the following is NOT included in the policy face? ✔️ -
The correct answer is "Exclusions". The exclusions section is NOT
included in the policy face (first page of an insurance policy).
The reason for backdating a policy is ✔️ - The correct answer is
"to obtain a premium rate based on an earlier age". The purpose of
backdating a life insurance policy is to use premiums based on an
earlier age.
A Universal Life policy is sometimes referred to as an unbundled
Life Policy because the owner can see the interest earned, expense
charges, and the ✔️ - The correct answer is "cost of insurance".
The Universal Life Policy is called an unbundled Life Policy because
the policyholder can see the expense charges, the interest earned,
and the cost of insurance.
An application for Medicare Supplement coverage may NOT be
denied by the insurer if the application was submitted within ___
month(s) after the applicant reaches the age of 65. ✔️ - The
correct answer is "six". An application for Medicare Supplement
coverage may NOT be denied by the insurer if the application was
,submitted within six month(s) after the applicant reaches the age of
65.
Life insurance immediately creates an estate upon the death of an
insured. Which of the following policies is characterized by a
guaranteed minimum death benefit? ✔️ - The correct answer is
"Variable life." The variable nature of a variable whole life insurance
is its death benefit. However, if investment performance is poor, the
death benefit will not go lower than the policy's guaranteed
minimum.
Variable annuities may invest premiums in each of the following,
EXCEPT: ✔️ - The correct answer is "Insurer's corporate business
account". Variable annuities may invest premiums in each of these
EXCEPT the "Insurer's corporate business account".
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? ✔️ - The correct answer is
"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).
The coordination of benefits (COB) provision exists in order to ✔️
- The correct answer is "avoid duplication of benefit payments".
The purpose of the coordination of benefits (COB) provision, found
only in group health plans, is to avoid duplication of benefit
payments.
Which of the following factors is NOT considered when the
Department of Financial Services determines if an agent's home is
an insurance agency? ✔️ - The correct answer is "The amount of
premium collected at this location". The Department of Financial
Services does not take into consideration the amount of premium
, collected at an agent's home when determining whether or not the
home is an insurance agency.
Basic Hospital and Surgical policy benefits are: ✔️ - The correct
answer is "lower than the actual expenses incurred". Basic Hospital
and Surgical policy benefits are typically lower than the actual
expenses incurred.
N is a 40-year old applicant who would like to retire at age 70. He is
looking to buy a life insurance policy with level premiums,
permanent protection, and be paid-up at retirement. Which of these
should N purchase? ✔️ - Incorrect. The correct answer is "30 Pay
Life". Limited pay whole life policies have level premiums that are
limited to a certain period.
Incorrect. The correct answer is "30 Pay Life". Limited pay whole life
policies have level premiums that are limited to a certain period.
✔️ - The correct answer is "Utilities and office rent". A Business
Overhead Expense policy is designed to cover certain overhead
expenses (rent, taxes, utility bills, employee's salaries etc) that
continue when the business owner is disabled.
What does Medicare Parts A and B cover? ✔️ - The correct
answer is "Part A covers hospitalization; Part B covers doctor's
services". Medicare Part A covers hospital benefits. Part B covers
physician's services.
S wants to open a tax-exempt Health Savings Account. To qualify for
this type of account, Federal law dictates that S must be enrolled in
a: ✔️ - The correct answer is "High-deductible health plan". To be
eligible for a Health Savings Account, an individual must be covered
by a high-deductible health plan (HDHP), must not be covered by
other health insurance (does not apply to accident insurance,
disability, dental care, vision care, long-term care), must not be
