FLORIDA 2-15 INSURANCE LICENSE EXAM REAL
QUESTIONS AND ANSWERS -
SOLVED
QN. Accumulation units are converted into annuity units:
Ans. at the time of annuity payout.
QN. A group life insurance plan in which the employer pays the entire premium is known as a plan.
Ans. noncontributory
QN. If a disabled worker covered under Social Security disability benefits recovers and then is
disabled again within five years, a new waiting period is required before benefits begin again. –
Ans. FALSE
QN. Robert had an accident and qualified for Social Security disability. Given the waiting period,
when will Robert begin to receive benefits? Ans. After 5 months
QN. The Insuring Clause includes all of the following EXCEPT the
Ans. beneficiary
QN. Mutualization occurs when a stock company turns to a company.
Ans . mutual
QN. To provide a safeguard for insureds, most major medical policies contain a
feature that limits the insured's out-of-pocket expenses.
Ans. stop-loss
QN. Tom is a newly appointed life, health and variable annuity agent with Acme Insurance Agency. He
is writing his first insurance policy on his brother-in-law's life. Who does Tom legally represent in
this transaction?
Ans. Acme Insurance Agency
QN. An insurance clause is a distinct article in a formal document that establishes the rules in the
contract that must adhere to.
Ans. both the insurer and the insured
QN. "ACC" refers to the type of disability that prevents someone from performing the job he was
performing prior to the disability.
Ans. FALSE
, QN. Which statement is CORRECT about the Department of Financial Services' right to examine an
agent's records?
Ans. An examination can be conducted at any time to discover any unfair trade practices.
QN. Bill gives Jim a couple of tickets to a Florida Gators game to thank him for purchasing a policy. This
is an example of:
Ans. rebating
QN. ______term insurance provides a level amount of protection for a specified period, after
which the policy expires. Ans. Level
QN. Business overhead expense (B.O.E.) insurance does not provide benefits to cover the business
owner's salary.
Ans. TRUE
QN. Level, decreasing, and increasing insurance are all basic forms of
insurance. Ans. term
QN. Hospice services are covered under Medicare Part A.
Ans . TRUE
QN. Under Florida law, group health insurers must offer mental and nervous disorder insurance to
policyowners. Ans. TRUE
QN. Deductibles under a group major medical plan usually run from $250 to $500; whereas individual
health plans usually run from: Ans. $1,000 plus.
QN. Every HMO subscriber must receive a benefits package that includes a copy of the HMO contract
and certificate, and: Ans. a member's handbook.
QN. A life insurance policy will not be reinstated if it has been: Ans. surrendered for its cash value.
QN. Which of the following is NOT a type of permanent life insurance? - Ans - Term Life
QN. In Florida, a must sign for and on behalf of a minor purchasing life
insurance. - Ans - parent or legal guardian
QN. When an agent spreads a false story that damages a competing agent's reputation, the offense is
called: - Ans - defamation
QN. is when policy values of an insurance policy are used to purchase another policy
with the same insurer for the sole purpose of earning additional premiums or commissions. -
Ans - Churning
QN. Once an organization has filed an application to conduct insurance business, the Office of
Insurance Regulation will begin its review for issuing a(n): - Ans - Certificate of Authority
QN. Florida law requires health insurance policies and HMO contracts to provide coverage for all
QUESTIONS AND ANSWERS -
SOLVED
QN. Accumulation units are converted into annuity units:
Ans. at the time of annuity payout.
QN. A group life insurance plan in which the employer pays the entire premium is known as a plan.
Ans. noncontributory
QN. If a disabled worker covered under Social Security disability benefits recovers and then is
disabled again within five years, a new waiting period is required before benefits begin again. –
Ans. FALSE
QN. Robert had an accident and qualified for Social Security disability. Given the waiting period,
when will Robert begin to receive benefits? Ans. After 5 months
QN. The Insuring Clause includes all of the following EXCEPT the
Ans. beneficiary
QN. Mutualization occurs when a stock company turns to a company.
Ans . mutual
QN. To provide a safeguard for insureds, most major medical policies contain a
feature that limits the insured's out-of-pocket expenses.
Ans. stop-loss
QN. Tom is a newly appointed life, health and variable annuity agent with Acme Insurance Agency. He
is writing his first insurance policy on his brother-in-law's life. Who does Tom legally represent in
this transaction?
Ans. Acme Insurance Agency
QN. An insurance clause is a distinct article in a formal document that establishes the rules in the
contract that must adhere to.
Ans. both the insurer and the insured
QN. "ACC" refers to the type of disability that prevents someone from performing the job he was
performing prior to the disability.
Ans. FALSE
, QN. Which statement is CORRECT about the Department of Financial Services' right to examine an
agent's records?
Ans. An examination can be conducted at any time to discover any unfair trade practices.
QN. Bill gives Jim a couple of tickets to a Florida Gators game to thank him for purchasing a policy. This
is an example of:
Ans. rebating
QN. ______term insurance provides a level amount of protection for a specified period, after
which the policy expires. Ans. Level
QN. Business overhead expense (B.O.E.) insurance does not provide benefits to cover the business
owner's salary.
Ans. TRUE
QN. Level, decreasing, and increasing insurance are all basic forms of
insurance. Ans. term
QN. Hospice services are covered under Medicare Part A.
Ans . TRUE
QN. Under Florida law, group health insurers must offer mental and nervous disorder insurance to
policyowners. Ans. TRUE
QN. Deductibles under a group major medical plan usually run from $250 to $500; whereas individual
health plans usually run from: Ans. $1,000 plus.
QN. Every HMO subscriber must receive a benefits package that includes a copy of the HMO contract
and certificate, and: Ans. a member's handbook.
QN. A life insurance policy will not be reinstated if it has been: Ans. surrendered for its cash value.
QN. Which of the following is NOT a type of permanent life insurance? - Ans - Term Life
QN. In Florida, a must sign for and on behalf of a minor purchasing life
insurance. - Ans - parent or legal guardian
QN. When an agent spreads a false story that damages a competing agent's reputation, the offense is
called: - Ans - defamation
QN. is when policy values of an insurance policy are used to purchase another policy
with the same insurer for the sole purpose of earning additional premiums or commissions. -
Ans - Churning
QN. Once an organization has filed an application to conduct insurance business, the Office of
Insurance Regulation will begin its review for issuing a(n): - Ans - Certificate of Authority
QN. Florida law requires health insurance policies and HMO contracts to provide coverage for all
