LIFE AND HEALTH INSURANCE (FLORIDA) EXAMFX
SIMULATION QUESTIONS QUESTIONS AND
ANSWERS GRADED A+ GUARANTEED PASS
Which of the following employees insured under a group life plan would be allowed to
convert to individual insurance of the same coverage once the plan is terminated?
a) Those who have worked in the company for at least 3 years
b) Those who have dependents
c) Those who have no history of claims
d) Those who have been insured under the plan for at least 5 years - ANS>> d) Those
who have been insured under the plan for at least 5 years
According to the rights of renewability rider for cancellable policies, all of the following
are correct about the cancellation of an individual insurance policy EXCEPT
a) Unearned premiums are retained by the insurance company.
b) The insurer must provide the insured a written notice of the cancellation.
c) Claims incurred before cancellation must be honored.
d) An insurance company may cancel the policy at any time. - ANS>> a) Unearned
premiums are retained by the insurance company.
Another term used to describe "no deductible" is
a) Comprehensive.
b) Total coverage.
c) Immediate cooperative
d) First-dollar basis. - ANS>> d) First-dollar basis.
Which of the following is an example of a limited-pay life policy?
, a) Level Term Life
b) Straight Life
c) Life Paid-up at Age 65
d) Renewable Term to Age 70 - ANS>> c) Life Paid-up at Age 65
An insured has a life insurance policy from a participating company and receives
quarterly dividends. He has instructed the company to apply the policy dividends to
increase the death benefit. The dividend option that the insured has chosen is called
a) Reduction of premiums.
b) Paid-up additions.
c) One-year term purchase.
d) Accumulation at interest. - ANS>> b) Paid-up additions.
. All of the following are true regarding insurance policy loans EXCEPT
a) The policy will terminate if the loan plus interest equals or exceeds the cash value of
the policy.
b) Policyowners can borrow up to the full amount of their whole life policy's cash value.
c) Policy loans can be made on policies that do not accumulate cash value.
d) The amount of the outstanding loan and interest will be deducted from the policy
proceeds when the insured dies. - ANS>> c) Policy loans can be made on policies that
do not accumulate cash value.
An insured has chosen joint and 2/3 survivor as the settlement option. What does this
mean to the beneficiaries?
a) The beneficiary will receive 2/3 of the lump sum up front, and the remaining 1/3 will
be paid over time.
b) The beneficiary will receive 2/3 of the total benefit, with the final 1/3 payable when
the first beneficiary dies.
SIMULATION QUESTIONS QUESTIONS AND
ANSWERS GRADED A+ GUARANTEED PASS
Which of the following employees insured under a group life plan would be allowed to
convert to individual insurance of the same coverage once the plan is terminated?
a) Those who have worked in the company for at least 3 years
b) Those who have dependents
c) Those who have no history of claims
d) Those who have been insured under the plan for at least 5 years - ANS>> d) Those
who have been insured under the plan for at least 5 years
According to the rights of renewability rider for cancellable policies, all of the following
are correct about the cancellation of an individual insurance policy EXCEPT
a) Unearned premiums are retained by the insurance company.
b) The insurer must provide the insured a written notice of the cancellation.
c) Claims incurred before cancellation must be honored.
d) An insurance company may cancel the policy at any time. - ANS>> a) Unearned
premiums are retained by the insurance company.
Another term used to describe "no deductible" is
a) Comprehensive.
b) Total coverage.
c) Immediate cooperative
d) First-dollar basis. - ANS>> d) First-dollar basis.
Which of the following is an example of a limited-pay life policy?
, a) Level Term Life
b) Straight Life
c) Life Paid-up at Age 65
d) Renewable Term to Age 70 - ANS>> c) Life Paid-up at Age 65
An insured has a life insurance policy from a participating company and receives
quarterly dividends. He has instructed the company to apply the policy dividends to
increase the death benefit. The dividend option that the insured has chosen is called
a) Reduction of premiums.
b) Paid-up additions.
c) One-year term purchase.
d) Accumulation at interest. - ANS>> b) Paid-up additions.
. All of the following are true regarding insurance policy loans EXCEPT
a) The policy will terminate if the loan plus interest equals or exceeds the cash value of
the policy.
b) Policyowners can borrow up to the full amount of their whole life policy's cash value.
c) Policy loans can be made on policies that do not accumulate cash value.
d) The amount of the outstanding loan and interest will be deducted from the policy
proceeds when the insured dies. - ANS>> c) Policy loans can be made on policies that
do not accumulate cash value.
An insured has chosen joint and 2/3 survivor as the settlement option. What does this
mean to the beneficiaries?
a) The beneficiary will receive 2/3 of the lump sum up front, and the remaining 1/3 will
be paid over time.
b) The beneficiary will receive 2/3 of the total benefit, with the final 1/3 payable when
the first beneficiary dies.
