Florida Life & Health Test - Questions With
Efficient Solutions
K applies for a life insurance policy on herself and submits the initial
premium with the application. She is given a receipt by the agent
stating that coverage begins immediately if the application is
approved. What kind of receipt was used? Correct Answer -
Conditional
P is a producer who notices 5 questions on a life application were
not answered. What actions should P take? Correct Answer -
Set up a meeting with the applicant to answer the remaining
questions
T and S are named co-primary beneficiaries on a $500,000
Accidental Death and Dismemberment policy insuring their father.
Their mother was named contingent beneficiary. Five years later, S
dies of natural causes and the father is killed in a scuba accident
shortly afterwards. How much of the death benefit will the mother
receive? Correct Answer - $0
Which statement regarding the Change of Beneficiary provision is
true? Correct Answer - The policyowner can change the
beneficiary
What is the underlying concept regarding level premiums? Correct
Answer - The early years are charged more than what is needed
C is trying to determine whether to convert her convertible term life
policy to whole life insurance using her original age or attained age.
What factor would affect her decision the most? Correct Answer -
The cost
,If the insured and primary beneficiary are both killed in the same
accident and it cannot be determined who died first, where are the
death proceeds to be directed under the Uniform Simultaneous
Death Act? Correct Answer - Insured's contingent beneficiary
On a life insurance policy, who is qualified to change the beneficiary
designation? Correct Answer - Policyowner
A policyowner is allowed to pay premiums more than once a year
under which provision? Correct Answer - Mode of Premium
A life insurance application must be signed by all of these EXCEPT
Correct Answer - Beneficiary
Any changes made on an insurance application requires the initials
of whom? Correct Answer - Applicant
Which Federal law allows an insurer to obtain an inspection report
on a potential insured? Correct Answer - Fair Credit Reporting
Act
All of these are considered sources of underwriting information
about an applicant EXCEPT Correct Answer - Rating Services
An underwriter determines that an applicant's risk should be
recategorized due to a health issue. This life insurance policy may be
issued with a(n) Correct Answer - extra premium
In order for coverage on a non-medical insurance application to take
effect the same day, the producer must collect a signed application
and Correct Answer - the initial premium
When does a life insurance contract become effective if the initial
premium is not collected during the application process? Correct
, Answer - When producer delivers policy and collects initial
premium
Why is an applicant's signature required on a life insurance
application? Correct Answer - To attest that the statements on
the application are accurate to the best of the applicant's knowledge
A Disability Income policyowner suffers a disability which was due
to the same cause as a previous disability. Both disabilities occurred
within a five-month period. The insurer may cover the second
disability without a new elimination period under the Correct
Answer - Recurrent Disability provision
Which of these statements is INCORRECT regarding the federal
income tax treatment of life insurance? Correct Answer -
Entire cash surrender value is taxable
Q would like to purchase $100,000 of permanent protection on his
wife and $50,000 of Term coverage on himself under the same
policy. What kind of policy should Q purchase? Correct Answer -
Whole life policy with other insured rider
What action should a producer take if the initial premium is NOT
submitted with the application? Correct Answer - Forward the
application to the insurer without the initial premium
What is being delivered during a policy delivery? Correct Answer
- Insurance contract to the proposed insured
Which of these actions should a producer take when submitting an
insurance application to an insurer? Correct Answer - Inform
insurer of relevant information not included on the application
Efficient Solutions
K applies for a life insurance policy on herself and submits the initial
premium with the application. She is given a receipt by the agent
stating that coverage begins immediately if the application is
approved. What kind of receipt was used? Correct Answer -
Conditional
P is a producer who notices 5 questions on a life application were
not answered. What actions should P take? Correct Answer -
Set up a meeting with the applicant to answer the remaining
questions
T and S are named co-primary beneficiaries on a $500,000
Accidental Death and Dismemberment policy insuring their father.
Their mother was named contingent beneficiary. Five years later, S
dies of natural causes and the father is killed in a scuba accident
shortly afterwards. How much of the death benefit will the mother
receive? Correct Answer - $0
Which statement regarding the Change of Beneficiary provision is
true? Correct Answer - The policyowner can change the
beneficiary
What is the underlying concept regarding level premiums? Correct
Answer - The early years are charged more than what is needed
C is trying to determine whether to convert her convertible term life
policy to whole life insurance using her original age or attained age.
What factor would affect her decision the most? Correct Answer -
The cost
,If the insured and primary beneficiary are both killed in the same
accident and it cannot be determined who died first, where are the
death proceeds to be directed under the Uniform Simultaneous
Death Act? Correct Answer - Insured's contingent beneficiary
On a life insurance policy, who is qualified to change the beneficiary
designation? Correct Answer - Policyowner
A policyowner is allowed to pay premiums more than once a year
under which provision? Correct Answer - Mode of Premium
A life insurance application must be signed by all of these EXCEPT
Correct Answer - Beneficiary
Any changes made on an insurance application requires the initials
of whom? Correct Answer - Applicant
Which Federal law allows an insurer to obtain an inspection report
on a potential insured? Correct Answer - Fair Credit Reporting
Act
All of these are considered sources of underwriting information
about an applicant EXCEPT Correct Answer - Rating Services
An underwriter determines that an applicant's risk should be
recategorized due to a health issue. This life insurance policy may be
issued with a(n) Correct Answer - extra premium
In order for coverage on a non-medical insurance application to take
effect the same day, the producer must collect a signed application
and Correct Answer - the initial premium
When does a life insurance contract become effective if the initial
premium is not collected during the application process? Correct
, Answer - When producer delivers policy and collects initial
premium
Why is an applicant's signature required on a life insurance
application? Correct Answer - To attest that the statements on
the application are accurate to the best of the applicant's knowledge
A Disability Income policyowner suffers a disability which was due
to the same cause as a previous disability. Both disabilities occurred
within a five-month period. The insurer may cover the second
disability without a new elimination period under the Correct
Answer - Recurrent Disability provision
Which of these statements is INCORRECT regarding the federal
income tax treatment of life insurance? Correct Answer -
Entire cash surrender value is taxable
Q would like to purchase $100,000 of permanent protection on his
wife and $50,000 of Term coverage on himself under the same
policy. What kind of policy should Q purchase? Correct Answer -
Whole life policy with other insured rider
What action should a producer take if the initial premium is NOT
submitted with the application? Correct Answer - Forward the
application to the insurer without the initial premium
What is being delivered during a policy delivery? Correct Answer
- Insurance contract to the proposed insured
Which of these actions should a producer take when submitting an
insurance application to an insurer? Correct Answer - Inform
insurer of relevant information not included on the application
