215 License Exam
Disability insurance provides an income stream for an individual who is unable to continue
working due to accident or illness. However, if a person is under ______ disabled, he/she does
not qualify for benefits. - ANS-20%
Should a policyowner get into a situation in which he/she cannot continue to make the required
premium payments, _____________ options can be utilized. - ANS-nonforfeiture
Who is not a participating party in an annuity - ANS-the annuitant's spouse
The goals of _________ were to encourage individual employers to establish employee health
plans. - ANS-ERISA (employee Retirement Income Security Act of 1974)
AD&D policies make benefits payable in the form of the principal sum and capital sum. True or
false - ANS-True
In order for the Social Security 40-quarter rule to apply, an individual must have been employed
and paid FICA taxes for at least _____ years. - ANS-10
When it comes to hospital expenses, a Medical Indemnity plan pays: - ANS-1) a fixed amount
per day of hospitalization.
What does FICA stand for? - ANS-Federal Insurance Contributions Act
Adverse Selection is based on what premise? - ANS-The propensity for insuring less favorable
insurance risks.
Reciprocal insurers are owned by: - ANS-policyholders
Insurers are required by law to provide annuity owners with an annual report which states the
units credited to the contract and: - ANS-The dollar value of a unit
In the process of selling life insurance and when evaluating the needs of your client, the Human
Life Value approach has been largely replaced by the more practical Needs Approach. True or
false - ANS-True
Which is the proper term for a company owned by its policyowners? - ANS-A mutual insurance
company
Joan's insurance agent, Tim, has offered her a $100 dinner gift certificate if Joan purchases a
life insurance policy from Tim. Tim has violated ethical sales practices by: - ANS-Rebating
, Florida's Replacement Rule sets forth the requirements and procedures to be followed by
insurance companies and insurance producers when a proposal is being made to a client who
plans to replace an existing life insurance contract with: - ANS-A proposed new life insurance
policy
Family Income and Family Maintenance contracts both utilize a ____________ as the base,
with a __________ rider. - ANS-whole life policy, term insurance
Generally, the more liberal the process is for renewing a health insurance policy, the _______
the premiums are going to be. - ANS-higher
The actual number of annuity units is determined by: - ANS-the current value of one unit relative
to the amount of premiums paid.
A $50,000 fine can be assessed for violation of a Cease and Desist order. True or false -
ANS-true
ERISA overrides any state laws regarding the regulation of retirement plans. true or false -
ANS-true
As it pertains to group health insurance, COBRA stipulates that: - ANS-group coverage must be
extended for terminated employees up to a certain period of time at the employee's expense.
Group health plans that are issued on an experience-rated basis can make both premium
reductions and premium increases retroactive for 12 months. true or false - ANS-false
What type of annuity settlement would best be used to distribute funds from the settlement of
large sums of money (such as with lawsuits and lotteries)? - ANS-A structured settlement
annuity. decreasing level
Only ____________ policies pay dividends. - ANS-participating
Define sliding - ANS-Sliding occurs when an agent tells/implies that it is required for the client to
purchase specific coverages/products in conjunction with a policy being purchased.
The _______________ bears the investment risk in a fixed annuity. - ANS-Insurer
In a variable annuity, the insured bears the risk
Purchasers of life insurance policies are _____________, but are not necessarily
_______________ - ANS-policyowners, policyholders
Disability insurance provides an income stream for an individual who is unable to continue
working due to accident or illness. However, if a person is under ______ disabled, he/she does
not qualify for benefits. - ANS-20%
Should a policyowner get into a situation in which he/she cannot continue to make the required
premium payments, _____________ options can be utilized. - ANS-nonforfeiture
Who is not a participating party in an annuity - ANS-the annuitant's spouse
The goals of _________ were to encourage individual employers to establish employee health
plans. - ANS-ERISA (employee Retirement Income Security Act of 1974)
AD&D policies make benefits payable in the form of the principal sum and capital sum. True or
false - ANS-True
In order for the Social Security 40-quarter rule to apply, an individual must have been employed
and paid FICA taxes for at least _____ years. - ANS-10
When it comes to hospital expenses, a Medical Indemnity plan pays: - ANS-1) a fixed amount
per day of hospitalization.
What does FICA stand for? - ANS-Federal Insurance Contributions Act
Adverse Selection is based on what premise? - ANS-The propensity for insuring less favorable
insurance risks.
Reciprocal insurers are owned by: - ANS-policyholders
Insurers are required by law to provide annuity owners with an annual report which states the
units credited to the contract and: - ANS-The dollar value of a unit
In the process of selling life insurance and when evaluating the needs of your client, the Human
Life Value approach has been largely replaced by the more practical Needs Approach. True or
false - ANS-True
Which is the proper term for a company owned by its policyowners? - ANS-A mutual insurance
company
Joan's insurance agent, Tim, has offered her a $100 dinner gift certificate if Joan purchases a
life insurance policy from Tim. Tim has violated ethical sales practices by: - ANS-Rebating
, Florida's Replacement Rule sets forth the requirements and procedures to be followed by
insurance companies and insurance producers when a proposal is being made to a client who
plans to replace an existing life insurance contract with: - ANS-A proposed new life insurance
policy
Family Income and Family Maintenance contracts both utilize a ____________ as the base,
with a __________ rider. - ANS-whole life policy, term insurance
Generally, the more liberal the process is for renewing a health insurance policy, the _______
the premiums are going to be. - ANS-higher
The actual number of annuity units is determined by: - ANS-the current value of one unit relative
to the amount of premiums paid.
A $50,000 fine can be assessed for violation of a Cease and Desist order. True or false -
ANS-true
ERISA overrides any state laws regarding the regulation of retirement plans. true or false -
ANS-true
As it pertains to group health insurance, COBRA stipulates that: - ANS-group coverage must be
extended for terminated employees up to a certain period of time at the employee's expense.
Group health plans that are issued on an experience-rated basis can make both premium
reductions and premium increases retroactive for 12 months. true or false - ANS-false
What type of annuity settlement would best be used to distribute funds from the settlement of
large sums of money (such as with lawsuits and lotteries)? - ANS-A structured settlement
annuity. decreasing level
Only ____________ policies pay dividends. - ANS-participating
Define sliding - ANS-Sliding occurs when an agent tells/implies that it is required for the client to
purchase specific coverages/products in conjunction with a policy being purchased.
The _______________ bears the investment risk in a fixed annuity. - ANS-Insurer
In a variable annuity, the insured bears the risk
Purchasers of life insurance policies are _____________, but are not necessarily
_______________ - ANS-policyowners, policyholders
