Exam Simulator FL-LH - FL Health And Life And
Annuity (Xcelsolutions – Pearson): Questions
With Detailed Solutions
A non-contributory plan requires _________ participation of all eligible
employees Correct Answer - 100%
A characteristic of preferred provider organizations (PPOS) would
be: Correct Answer - Discounted fees for the patient
Which of the following areas of state regulation is NOT protected by
the saving clause in ERISA? Correct Answer - Commerce
Additional coverage can be added to a whole Life policy by adding
a(n): Correct Answer - decreasing term rider
What benefit does the payor clause on a Juvenile Life policy provide?
Correct Answer - Premiums are waived if the payor becomes
disabled
According to Florida law, when must an agent deliver the outline of
Coverage to a Medicare Supplement applicant? Correct Answer -
At the time of application
N is a student pilot with a large life insurance policy. Which of these
features would limit the insurer's obligation in the event N was
killed while flying as a student pilot? Correct Answer -
Exclusion
Which statement is true regarding a minor beneficiary ? Correct
Answer - Normally, a guarding is required to be appointed in the
Beneficiary clause of the contract
,A sole proprietor may use this plan ONLY if the employees of this
business are included. Correct Answer - Individual Retirement
Account (IRA)
Which of the following provisions is NOT required in HMO
contracts/certificated? Correct Answer - Seven-day grace
period
The Bureau of Unclaimed Property is overseen by the Correct
Answer - Chief Financial Officer
A life policy that contains a monthly mortality charge as well as self-
directed investment choices is called a(n) Correct Answer -
Variable Universal Life policy
An insurance company normally has 2 years to contest information
provided on an accident and health application. This 2 year period
begins on the date that the: Correct Answer - insurer dated the
policy
P is a new employee and will be obtaining non- contributory group
Major Medical insurance from her employer. Which of the following
actions must she take during the open enrollment period? Correct
Answer - Sign an enrollment card
Which of the following statements is true about most Blue
Cross/Blue Shield organizations? Correct Answer - They are
nonprofit organizations
A "reimbursement policy" pays what amount of covered Long-Term
care expenses? Correct Answer - Actual covered expenses up
to the daily maximum
,An individual covered under a group life insurance policy is
considered to be a (n) Correct Answer - certificate holder
The __________ has the right to change a life insurance policy's
beneficiary. Correct Answer - policyowner
Which of the following documents must an agent submit to the
replacing insurance company during the replacement of an existing
life insurance policy? Correct Answer - Notice to existing and
replacing insurers of intention to replace
Which of these statements concerning an individual Disability
income policy is TRUE? Correct Answer - Normally includes an
Elimination period
A statement made by an insured in an insurance application that
must be true to the best of one's knowledge and which becomes a
part of the contract is known as Correct Answer - a
representation
A foreign insurance company doing business in Florida Correct
Answer - is a company that was formed under the laws of
another state
An insurer must provide an insured with claim forms within __ days
after receiving notice of a loss. Correct Answer - 15
When an insurer issues a policy that refuses to cover certain risks,
this is referred to as a(n)
: Correct Answer - exclusion
What is the initial source of underwriting for an insurance policy?
Correct Answer - Application containing statements from the
insured
, T, age 70, withdraws cash from a profit-sharing plan and purchases
a Straight life Annuity. What will this transaction provide? Correct
Answer - Income that cannot be outlived by the owner
Tom has a qualified retirement plan with his employer that is
currently considered to be 80% "vested". How can this be
interpreted? Correct Answer - If Tom's employment is
terminated, 20% of the funds would be forfeited
Which settlement option pays a stated amount to an annuitant, but
no residual value to a beneficiary? Correct Answer - Life
Income
K buys a policy where the premium stays fixed for the first 5 years.
The premium then increases in year 6 and stays level thereafter, all
the while the death benefit remains the same. What kind of policy is
this? Correct Answer - Modified Whole Life
An Insured's inability to perform two or more activities of daily
living may trigger which type of life policy rider? Correct Answer
- Long term care
Which of these is an element of a Variable Life policy? Correct
Answer - A fixed, level premium
F needs life insurance that provides coverage for only a limited
amount of time with a death benefit that changes regularly to a
schedule. What kind of policy is needed? Correct Answer -
Decreasing term policy
Which parts of a life insurance policy are guaranteed to be true?
Correct Answer - Warranty
Annuity (Xcelsolutions – Pearson): Questions
With Detailed Solutions
A non-contributory plan requires _________ participation of all eligible
employees Correct Answer - 100%
A characteristic of preferred provider organizations (PPOS) would
be: Correct Answer - Discounted fees for the patient
Which of the following areas of state regulation is NOT protected by
the saving clause in ERISA? Correct Answer - Commerce
Additional coverage can be added to a whole Life policy by adding
a(n): Correct Answer - decreasing term rider
What benefit does the payor clause on a Juvenile Life policy provide?
Correct Answer - Premiums are waived if the payor becomes
disabled
According to Florida law, when must an agent deliver the outline of
Coverage to a Medicare Supplement applicant? Correct Answer -
At the time of application
N is a student pilot with a large life insurance policy. Which of these
features would limit the insurer's obligation in the event N was
killed while flying as a student pilot? Correct Answer -
Exclusion
Which statement is true regarding a minor beneficiary ? Correct
Answer - Normally, a guarding is required to be appointed in the
Beneficiary clause of the contract
,A sole proprietor may use this plan ONLY if the employees of this
business are included. Correct Answer - Individual Retirement
Account (IRA)
Which of the following provisions is NOT required in HMO
contracts/certificated? Correct Answer - Seven-day grace
period
The Bureau of Unclaimed Property is overseen by the Correct
Answer - Chief Financial Officer
A life policy that contains a monthly mortality charge as well as self-
directed investment choices is called a(n) Correct Answer -
Variable Universal Life policy
An insurance company normally has 2 years to contest information
provided on an accident and health application. This 2 year period
begins on the date that the: Correct Answer - insurer dated the
policy
P is a new employee and will be obtaining non- contributory group
Major Medical insurance from her employer. Which of the following
actions must she take during the open enrollment period? Correct
Answer - Sign an enrollment card
Which of the following statements is true about most Blue
Cross/Blue Shield organizations? Correct Answer - They are
nonprofit organizations
A "reimbursement policy" pays what amount of covered Long-Term
care expenses? Correct Answer - Actual covered expenses up
to the daily maximum
,An individual covered under a group life insurance policy is
considered to be a (n) Correct Answer - certificate holder
The __________ has the right to change a life insurance policy's
beneficiary. Correct Answer - policyowner
Which of the following documents must an agent submit to the
replacing insurance company during the replacement of an existing
life insurance policy? Correct Answer - Notice to existing and
replacing insurers of intention to replace
Which of these statements concerning an individual Disability
income policy is TRUE? Correct Answer - Normally includes an
Elimination period
A statement made by an insured in an insurance application that
must be true to the best of one's knowledge and which becomes a
part of the contract is known as Correct Answer - a
representation
A foreign insurance company doing business in Florida Correct
Answer - is a company that was formed under the laws of
another state
An insurer must provide an insured with claim forms within __ days
after receiving notice of a loss. Correct Answer - 15
When an insurer issues a policy that refuses to cover certain risks,
this is referred to as a(n)
: Correct Answer - exclusion
What is the initial source of underwriting for an insurance policy?
Correct Answer - Application containing statements from the
insured
, T, age 70, withdraws cash from a profit-sharing plan and purchases
a Straight life Annuity. What will this transaction provide? Correct
Answer - Income that cannot be outlived by the owner
Tom has a qualified retirement plan with his employer that is
currently considered to be 80% "vested". How can this be
interpreted? Correct Answer - If Tom's employment is
terminated, 20% of the funds would be forfeited
Which settlement option pays a stated amount to an annuitant, but
no residual value to a beneficiary? Correct Answer - Life
Income
K buys a policy where the premium stays fixed for the first 5 years.
The premium then increases in year 6 and stays level thereafter, all
the while the death benefit remains the same. What kind of policy is
this? Correct Answer - Modified Whole Life
An Insured's inability to perform two or more activities of daily
living may trigger which type of life policy rider? Correct Answer
- Long term care
Which of these is an element of a Variable Life policy? Correct
Answer - A fixed, level premium
F needs life insurance that provides coverage for only a limited
amount of time with a death benefit that changes regularly to a
schedule. What kind of policy is needed? Correct Answer -
Decreasing term policy
Which parts of a life insurance policy are guaranteed to be true?
Correct Answer - Warranty
