Florida 2-15 Insurance License Exam
Study online at https://quizlet.com/_h6usx4
In the insurance business, risk can be
Uncertainty regarding financial loss
defined as
Which of the following risks is insurable? Pure risks
Buying insurance is one of the most ef-
transferring risk
fective ways of
It spreads financial risk over a large
Which of the following best describes the
group to minimize the loss to any one
function of insurance?
individual.
All of the following are elements of an
the loss must be catastrophic
insurable risk EXCEPT
The amount of money an insurer sets
a reserve
aside to pay future claims is called
The policyowner must expect to suffer a
Which of the following constitutes an in-
loss when the insured dies or become
surable interest?
disabled.
Which of the following statements de- A written contract cannot be changed by
scribes the parol evidence rule? oral evidence.
Which of the following factors deter-
mines whether policy dividends will be Expenses and claims costs
paid on a participating policy?
A licensed agent legally represents the insurer
premiums for replacement policies are
All of the following statements regarding
generally lower than premiums for the
policy replacement are correct EXCEPT
existing policies they replace
With regard to insurable risks, which of An insurable risk must involve loss that is
the following statements is NOT correct? within the insured's control.
On August 9, Albert made an application
for life insurance that his agent submitted
a day later without a premium payment.
On August 21, the insurer issued the pol-
August 21
icy as applied for and on August 24, the
agent delivered the policy and collected
the initial premium. On what day was the
contract offer made?
, Florida 2-15 Insurance License Exam
Study online at https://quizlet.com/_h6usx4
All statements made by an applicant in
an application for life insurance are con- representations
sidered to be
Which of the following legal terms indi-
cates that a life insurance contract con-
Unilateral
tains the enforceable promises of only
one party?
Which of the following types of agent
authority is specifically set forth in writing Express
in the agent's contract?
Assume a home catches fire after it is
struck by lightning and the fire destroys
the peril
its structure and contents. By insurance
definition, the fire is
What constitutes "consideration" for a life
Application and initial premium
insurance policy?
Statements made by an applicant for life
insurance that are guaranteed to be true warranties
are
Which of the following insurance compa-
Mutual Insurer
nies is owned by its policyholders?
With regard to life insurance, all of the fol- insurable interest must be maintained
lowing statements are correct EXCEPT throughout the life of the contract
A life insurance company is organized in
Orlando, FL, where it maintains its home
a domestic company
office. In Florida, the company is classi-
fied as
A life insurance company organized in
Illinois, with its home office in Philadel-
phia, is licensed to conduct business in a foreign company
Florida. In Florida, this company is clas-
sified as
To whom does the cash value of a life
Policyowner
insurance policy belong?
, Florida 2-15 Insurance License Exam
Study online at https://quizlet.com/_h6usx4
Frank is the insured in a $40,000, 5-year
level term policy issued in 2017. He died nothing
in 2023. His beneficiary received
All of the following statements regarding the policyowner must obtain approval
assignment of a life insurance policy are from the insurance company before a
correct EXCEPT policy can be assigned
After a family's breadwinner dies, the that begins when the youngest child
"blackout period" generally can be de- turns 16 and ends when the surviving
fined as the period parent retires
A company with 3 partners is consider-
ing a buy-sell plan. All of the following no benefits will accrue to the partnership
statements pertaining to buy-sell plans from the buy-sell agreement until one of
and this partnership are correct EX- the partners dies
CEPT
Bill names his church as the beneficia-
ry of his $300,000 life insurance policy.
No income tax is payable on the death
When Bill dies, who is responsible for the
proceeds.
income taxes payable on the lump-sum
proceeds received by the church?
Which provision of a life insurance policy
states that the application is part of the Entire Contract Clause
contract?
Ron, the insured, dies during the grace
period for his $100,000 life insurance The amount of the premium is deducted
policy. Considering that the premium on from the policy proceeds paid to the ben-
the policy has not been paid, what hap- eficiary.
pens?
Which of the following is stated in the
Amount and frequency of premium pay-
consideration clause of a life insurance
ments
policy?
John stopped paying premiums on his
permanent life insurance policy 8 years
ago though he never surrendered it. He
3 years or as long as 7 years
is still insurable and has no outstand-
ing loan against the policy. The company
probably will decline to reinstate the pol-
, Florida 2-15 Insurance License Exam
Study online at https://quizlet.com/_h6usx4
icy because the time limit for reinstate-
ment has expired. The limit usually is
All of the following statements pertaining
a suicide exclusion period is renewed
to reinstatement of a life insurance policy
with a reinstated policy
are correct EXCEPT
Leland elects to surrender his whole life
policy for a reduced paid-up policy. The continue to increase
cash value of his new policy will
Kevin, the insured in a $200,000 life in-
surance policy, and his sole beneficiary,
Lynda, are killed instantly in a car ac- The policy proceeds will be paid to
cident. Under the Uniform Simultaneous Kevin's estate.
Death Act, to whose estate will the policy
proceeds be paid?
When a policyowner cannot exercise
rights of ownership without the policy
irrevocable
beneficiary's consent, the beneficiary is
designated
All of the following statements about cash values build during the specified
term insurance are correct EXCEPT period
Bob purchases a $50,000, 5-year lev-
if the insured dies after the specified 5
el term policy. All of the following state-
years, only the policy's cash value will be
ments about Bob's coverage are correct
paid
EXCEPT
Mrs. Williamson purchases a five year,
$50,000 term policy with an option to
the premium for the renewal period will
renew. Which of the following statements
be higher than the initial period
about the policy's renewability is COR-
RECT
Joanna and her husband, Tom, have a
$40,000 annuity that pays them $200
a month. Tom dies and Joanna contin-
ues receiving the $200 monthly check a joint and full survivor annuity
as long as she lives. When Joanna dies,
the company ceases payment. This is an
example of
Each of the following statements about
the incontestable clause in a life insur-
ance policy is correct EXCEPT
Study online at https://quizlet.com/_h6usx4
In the insurance business, risk can be
Uncertainty regarding financial loss
defined as
Which of the following risks is insurable? Pure risks
Buying insurance is one of the most ef-
transferring risk
fective ways of
It spreads financial risk over a large
Which of the following best describes the
group to minimize the loss to any one
function of insurance?
individual.
All of the following are elements of an
the loss must be catastrophic
insurable risk EXCEPT
The amount of money an insurer sets
a reserve
aside to pay future claims is called
The policyowner must expect to suffer a
Which of the following constitutes an in-
loss when the insured dies or become
surable interest?
disabled.
Which of the following statements de- A written contract cannot be changed by
scribes the parol evidence rule? oral evidence.
Which of the following factors deter-
mines whether policy dividends will be Expenses and claims costs
paid on a participating policy?
A licensed agent legally represents the insurer
premiums for replacement policies are
All of the following statements regarding
generally lower than premiums for the
policy replacement are correct EXCEPT
existing policies they replace
With regard to insurable risks, which of An insurable risk must involve loss that is
the following statements is NOT correct? within the insured's control.
On August 9, Albert made an application
for life insurance that his agent submitted
a day later without a premium payment.
On August 21, the insurer issued the pol-
August 21
icy as applied for and on August 24, the
agent delivered the policy and collected
the initial premium. On what day was the
contract offer made?
, Florida 2-15 Insurance License Exam
Study online at https://quizlet.com/_h6usx4
All statements made by an applicant in
an application for life insurance are con- representations
sidered to be
Which of the following legal terms indi-
cates that a life insurance contract con-
Unilateral
tains the enforceable promises of only
one party?
Which of the following types of agent
authority is specifically set forth in writing Express
in the agent's contract?
Assume a home catches fire after it is
struck by lightning and the fire destroys
the peril
its structure and contents. By insurance
definition, the fire is
What constitutes "consideration" for a life
Application and initial premium
insurance policy?
Statements made by an applicant for life
insurance that are guaranteed to be true warranties
are
Which of the following insurance compa-
Mutual Insurer
nies is owned by its policyholders?
With regard to life insurance, all of the fol- insurable interest must be maintained
lowing statements are correct EXCEPT throughout the life of the contract
A life insurance company is organized in
Orlando, FL, where it maintains its home
a domestic company
office. In Florida, the company is classi-
fied as
A life insurance company organized in
Illinois, with its home office in Philadel-
phia, is licensed to conduct business in a foreign company
Florida. In Florida, this company is clas-
sified as
To whom does the cash value of a life
Policyowner
insurance policy belong?
, Florida 2-15 Insurance License Exam
Study online at https://quizlet.com/_h6usx4
Frank is the insured in a $40,000, 5-year
level term policy issued in 2017. He died nothing
in 2023. His beneficiary received
All of the following statements regarding the policyowner must obtain approval
assignment of a life insurance policy are from the insurance company before a
correct EXCEPT policy can be assigned
After a family's breadwinner dies, the that begins when the youngest child
"blackout period" generally can be de- turns 16 and ends when the surviving
fined as the period parent retires
A company with 3 partners is consider-
ing a buy-sell plan. All of the following no benefits will accrue to the partnership
statements pertaining to buy-sell plans from the buy-sell agreement until one of
and this partnership are correct EX- the partners dies
CEPT
Bill names his church as the beneficia-
ry of his $300,000 life insurance policy.
No income tax is payable on the death
When Bill dies, who is responsible for the
proceeds.
income taxes payable on the lump-sum
proceeds received by the church?
Which provision of a life insurance policy
states that the application is part of the Entire Contract Clause
contract?
Ron, the insured, dies during the grace
period for his $100,000 life insurance The amount of the premium is deducted
policy. Considering that the premium on from the policy proceeds paid to the ben-
the policy has not been paid, what hap- eficiary.
pens?
Which of the following is stated in the
Amount and frequency of premium pay-
consideration clause of a life insurance
ments
policy?
John stopped paying premiums on his
permanent life insurance policy 8 years
ago though he never surrendered it. He
3 years or as long as 7 years
is still insurable and has no outstand-
ing loan against the policy. The company
probably will decline to reinstate the pol-
, Florida 2-15 Insurance License Exam
Study online at https://quizlet.com/_h6usx4
icy because the time limit for reinstate-
ment has expired. The limit usually is
All of the following statements pertaining
a suicide exclusion period is renewed
to reinstatement of a life insurance policy
with a reinstated policy
are correct EXCEPT
Leland elects to surrender his whole life
policy for a reduced paid-up policy. The continue to increase
cash value of his new policy will
Kevin, the insured in a $200,000 life in-
surance policy, and his sole beneficiary,
Lynda, are killed instantly in a car ac- The policy proceeds will be paid to
cident. Under the Uniform Simultaneous Kevin's estate.
Death Act, to whose estate will the policy
proceeds be paid?
When a policyowner cannot exercise
rights of ownership without the policy
irrevocable
beneficiary's consent, the beneficiary is
designated
All of the following statements about cash values build during the specified
term insurance are correct EXCEPT period
Bob purchases a $50,000, 5-year lev-
if the insured dies after the specified 5
el term policy. All of the following state-
years, only the policy's cash value will be
ments about Bob's coverage are correct
paid
EXCEPT
Mrs. Williamson purchases a five year,
$50,000 term policy with an option to
the premium for the renewal period will
renew. Which of the following statements
be higher than the initial period
about the policy's renewability is COR-
RECT
Joanna and her husband, Tom, have a
$40,000 annuity that pays them $200
a month. Tom dies and Joanna contin-
ues receiving the $200 monthly check a joint and full survivor annuity
as long as she lives. When Joanna dies,
the company ceases payment. This is an
example of
Each of the following statements about
the incontestable clause in a life insur-
ance policy is correct EXCEPT
