XCEL 2-15 FLORIDA-LIFE & HEALTH FINAL
EXAM QUESTIONS WITH COMPLETE
SOLUTIONS
Which of these arrangements allows one to bypass insurable
interest laws? - ANSWER ✓ Investor-Originated Life
Insurance
What kind of Accidental Death and Dismemberment (AD&D)
insurance beneficiary requires his/her consent when a change of
beneficiary is made? - ANSWER ✓ Irrevocable beneficiary
The Florida Employee Health Care Access Act was established
to make - ANSWER ✓ group health insurance available to
employer with up to 50 employees
Which type of insurance company allows their policyowner's to
elect a governing body? - ANSWER ✓ Mutual
The free-look period for all qualified Long-term care policies
sold in Florida is __ days. - ANSWER ✓ 30
, ABC Insurance Company has accepted a life insurance
application which contains unanswered questions. The company
then makes the application part of the life contract. In this
situation, the insurer has: - ANSWER ✓ Waived one of its legal
rights
A ___day notice to the policyholder is required for any health
insurer that wishes to cancel a health insurance policy. -
ANSWER ✓ 45
XYZ Company pays the entire premium for its group health
plan. The MINIMUM percentage of eligible employees that
must be covered is: - ANSWER ✓ 100%
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 - ANSWER ✓ cost of
insurance
Which of these actions is taken when a policyowner uses a Life
insurance policy as collateral for a bank loan? - ANSWER ✓
collateral assignment
, Which of the following correctly explains the actions an agent
should take if a customer wants to apply for an insurance
policy? - ANSWER ✓ Complete the application and review the
information with the customer prior to obtaining the customer's
signature, then send the application off to the insurance
company
Which of the following types of permanent life insurance
policies offers the highest initial cash value? - ANSWER ✓
Single Premium
What type of life insurance are credit policies issued as? -
ANSWER ✓ Term
With Optionally Renewable health policies, the insurer may: -
ANSWER ✓ review the policy annually and determine
whether or not to renew it
What determines the full amount of Social Security retirement
benefits a qualified individual is entitled to receive? - ANSWER
✓ Primary Insurance Amount (PIA)
Under a Renewable Term policy, - ANSWER ✓ the renewal
premium is calculated on the basis of the insured's attained age
, Which of the following Statements BEST describes that the
Legal Actions provision of an Accident and Health policy
requires? - ANSWER ✓ An insured must wait 60 days after
Proof of Loss has been submitted before a lawsuit can be filed
Who benefits in Investor-Originated Life Insurance (IOLI)
when the insured dies? - ANSWER ✓ policyowner
Which of the following is NOT considered rebating? -
ANSWER ✓ Sharing commissions with an agent in the same
line of business
When a life insurance policy exceeds certain IRS table values,
the result would create which of the following? - ANSWER ✓
Modified Endowment Contract (MEC)
Any changes made on an insurance application requires the
initials of whom? - ANSWER ✓ Applicant
S is employed by a large corporation that provides group health
coverage for its employees and their dependents. If S dies, the
company must allow his surviving spouse and dependents to
EXAM QUESTIONS WITH COMPLETE
SOLUTIONS
Which of these arrangements allows one to bypass insurable
interest laws? - ANSWER ✓ Investor-Originated Life
Insurance
What kind of Accidental Death and Dismemberment (AD&D)
insurance beneficiary requires his/her consent when a change of
beneficiary is made? - ANSWER ✓ Irrevocable beneficiary
The Florida Employee Health Care Access Act was established
to make - ANSWER ✓ group health insurance available to
employer with up to 50 employees
Which type of insurance company allows their policyowner's to
elect a governing body? - ANSWER ✓ Mutual
The free-look period for all qualified Long-term care policies
sold in Florida is __ days. - ANSWER ✓ 30
, ABC Insurance Company has accepted a life insurance
application which contains unanswered questions. The company
then makes the application part of the life contract. In this
situation, the insurer has: - ANSWER ✓ Waived one of its legal
rights
A ___day notice to the policyholder is required for any health
insurer that wishes to cancel a health insurance policy. -
ANSWER ✓ 45
XYZ Company pays the entire premium for its group health
plan. The MINIMUM percentage of eligible employees that
must be covered is: - ANSWER ✓ 100%
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 - ANSWER ✓ cost of
insurance
Which of these actions is taken when a policyowner uses a Life
insurance policy as collateral for a bank loan? - ANSWER ✓
collateral assignment
, Which of the following correctly explains the actions an agent
should take if a customer wants to apply for an insurance
policy? - ANSWER ✓ Complete the application and review the
information with the customer prior to obtaining the customer's
signature, then send the application off to the insurance
company
Which of the following types of permanent life insurance
policies offers the highest initial cash value? - ANSWER ✓
Single Premium
What type of life insurance are credit policies issued as? -
ANSWER ✓ Term
With Optionally Renewable health policies, the insurer may: -
ANSWER ✓ review the policy annually and determine
whether or not to renew it
What determines the full amount of Social Security retirement
benefits a qualified individual is entitled to receive? - ANSWER
✓ Primary Insurance Amount (PIA)
Under a Renewable Term policy, - ANSWER ✓ the renewal
premium is calculated on the basis of the insured's attained age
, Which of the following Statements BEST describes that the
Legal Actions provision of an Accident and Health policy
requires? - ANSWER ✓ An insured must wait 60 days after
Proof of Loss has been submitted before a lawsuit can be filed
Who benefits in Investor-Originated Life Insurance (IOLI)
when the insured dies? - ANSWER ✓ policyowner
Which of the following is NOT considered rebating? -
ANSWER ✓ Sharing commissions with an agent in the same
line of business
When a life insurance policy exceeds certain IRS table values,
the result would create which of the following? - ANSWER ✓
Modified Endowment Contract (MEC)
Any changes made on an insurance application requires the
initials of whom? - ANSWER ✓ Applicant
S is employed by a large corporation that provides group health
coverage for its employees and their dependents. If S dies, the
company must allow his surviving spouse and dependents to
