Florida Insurance Exam
A Business Disability Buyout plan policy is designed: - ANS-to pay benefits to the
Corporation or other shareholders
\A license may be denied, suspended, or revoked if the licensee - ANS-is found
guilty of misrepresentation
\A licensed agent must be appointed by an insurance company to solicit insurance in
Florida. The agent's license will terminate if a certain period of time elapses without
being appointed. How long is this period of time? - ANS-48 months
\A life insurance application must be signed by all of these, EXCEPT: -
ANS-beneficiary
\A life insurance arrangement which circumvents insurable interest statutes is called:
- ANS-Investor-Originated Life Insurance
\A life insurance policyowner may sell their policy to a(n) _____ in order to receive a
percentage of the policy's face value. - ANS-viatical settlement provider
\A person insured under a health policy is required to give the insurance company a
Notice of Claim within how many days after a covered loss? - ANS-Twenty
\A policy loan is made possible by which of these life insurance policy features? -
ANS-Cash value provision
\A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of these
statements made by the producer would be correct? - ANS-20-Pay Life accumulates
cash value faster than Straight Life
\A stock insurance company - ANS-is owned exclusively by its shareholders
\A term life insurance policy matures: - ANS-upon the insured's death during the term
of the policy
\According to Florida law, group life insurance conversion privileges must NOT -
ANS-require evidence of insurability
\According to Florida Law, in which of the following situations would a dependent
handicapped child NOT be covered under a Family Health policy? - ANS-The
premiums for the handicapped child are not paid
\According to Florida law, when must an agent deliver the Outline of Coverage to a
Medicare Supplement applicant? - ANS-At the time of application
\According to Florida law, which of the following information does NOT need to be
obtained by an agent recommending an annuity purchase? - ANS-Marital status
\According to Florida's rules on disclosure, a life insurance applicant is expected to
be provided with - ANS-a Certificate of Coverage and Buyer's Guide
\According to the Time Payment of Claims provision, the insurer must pay Disability
Income benefits no less frequently than which of the following options? -
ANS-Monthly
\Advertising gifts not to exceed ___ are allowed to be given by an agent to a
prospective client. - ANS-$25
, \After an insured gives notice of loss, what must he/she do if the insurer does not
furnish forms? - ANS-File written proof of loss
\Agent J takes an application and initial premium from an applicant and sends the
application and premium check to the insurance company. The insurance company
returns the check back to J because the check is made out to J instead of the
insurance company. What action should J take? - ANS-Return to the customer,
collect a new check made out to the insurance company, and send the new check
out to the insurance company
\All of the following are Nonforfeiture Options EXCEPT - ANS-Automatic Premium
Loan Option
\All of the following statements about traditional individual retirement accounts are
false EXCEPT - ANS-10% penalty is applied to withdrawals before age 59 1/2
\All of these Settlement options involve the systematic liquidation of the death
proceeds in the event of the insured's death, EXCEPT: - ANS-Interest Only
\An agent selling Medicare Supplement policies must provide every applicant with
a(n) - ANS-Suitability form
\An agent's license can be suspended or revoked by - ANS-writing primarily
controlled business
\An engineering firm that would suffer financially from the death of a project manager
should purchase a: - ANS-Key Person Life Policy
\An example of false advertising would be - ANS-An insurer exaggerating its
dividends in a magazine advertisement
\An example of unfair discrimination would be - ANS-offering different terms of
coverage for different policyowners having the same risk classification
\An incomplete life insurance application submitted to an insurer will result in which
of these actions? - ANS-Application will be returned to the writing agent
\An individual covered under a Group Life insurance policy is considered to be a(n) -
ANS-certificate holder
\An insurance company receives E's application for an individual health policy. E did
not complete all of the medical history questions because she could not remember
the exact dates. E signed the policy and submitted it to the insurance company
anyway. A few weeks later, E suffers a heart attack and is hospitalized without
completing the medical history questions and paying the initial premium. E is not
insured. Which of the following clauses details the conditions that E did not meet? -
ANS-Consideration clause
\An insured pays premiums on an annual basis for an individual health insurance
policy. What is the MINIMUM number of days for the Grace Period provision? -
ANS-31
\An insurer must provide an insured with claim forms within __ days after receiving
notice of a loss. - ANS-15
\At what time must a policyowner have insurable interest on the insured in order for
the life policy to be valid? - ANS-At the time of application
A Business Disability Buyout plan policy is designed: - ANS-to pay benefits to the
Corporation or other shareholders
\A license may be denied, suspended, or revoked if the licensee - ANS-is found
guilty of misrepresentation
\A licensed agent must be appointed by an insurance company to solicit insurance in
Florida. The agent's license will terminate if a certain period of time elapses without
being appointed. How long is this period of time? - ANS-48 months
\A life insurance application must be signed by all of these, EXCEPT: -
ANS-beneficiary
\A life insurance arrangement which circumvents insurable interest statutes is called:
- ANS-Investor-Originated Life Insurance
\A life insurance policyowner may sell their policy to a(n) _____ in order to receive a
percentage of the policy's face value. - ANS-viatical settlement provider
\A person insured under a health policy is required to give the insurance company a
Notice of Claim within how many days after a covered loss? - ANS-Twenty
\A policy loan is made possible by which of these life insurance policy features? -
ANS-Cash value provision
\A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of these
statements made by the producer would be correct? - ANS-20-Pay Life accumulates
cash value faster than Straight Life
\A stock insurance company - ANS-is owned exclusively by its shareholders
\A term life insurance policy matures: - ANS-upon the insured's death during the term
of the policy
\According to Florida law, group life insurance conversion privileges must NOT -
ANS-require evidence of insurability
\According to Florida Law, in which of the following situations would a dependent
handicapped child NOT be covered under a Family Health policy? - ANS-The
premiums for the handicapped child are not paid
\According to Florida law, when must an agent deliver the Outline of Coverage to a
Medicare Supplement applicant? - ANS-At the time of application
\According to Florida law, which of the following information does NOT need to be
obtained by an agent recommending an annuity purchase? - ANS-Marital status
\According to Florida's rules on disclosure, a life insurance applicant is expected to
be provided with - ANS-a Certificate of Coverage and Buyer's Guide
\According to the Time Payment of Claims provision, the insurer must pay Disability
Income benefits no less frequently than which of the following options? -
ANS-Monthly
\Advertising gifts not to exceed ___ are allowed to be given by an agent to a
prospective client. - ANS-$25
, \After an insured gives notice of loss, what must he/she do if the insurer does not
furnish forms? - ANS-File written proof of loss
\Agent J takes an application and initial premium from an applicant and sends the
application and premium check to the insurance company. The insurance company
returns the check back to J because the check is made out to J instead of the
insurance company. What action should J take? - ANS-Return to the customer,
collect a new check made out to the insurance company, and send the new check
out to the insurance company
\All of the following are Nonforfeiture Options EXCEPT - ANS-Automatic Premium
Loan Option
\All of the following statements about traditional individual retirement accounts are
false EXCEPT - ANS-10% penalty is applied to withdrawals before age 59 1/2
\All of these Settlement options involve the systematic liquidation of the death
proceeds in the event of the insured's death, EXCEPT: - ANS-Interest Only
\An agent selling Medicare Supplement policies must provide every applicant with
a(n) - ANS-Suitability form
\An agent's license can be suspended or revoked by - ANS-writing primarily
controlled business
\An engineering firm that would suffer financially from the death of a project manager
should purchase a: - ANS-Key Person Life Policy
\An example of false advertising would be - ANS-An insurer exaggerating its
dividends in a magazine advertisement
\An example of unfair discrimination would be - ANS-offering different terms of
coverage for different policyowners having the same risk classification
\An incomplete life insurance application submitted to an insurer will result in which
of these actions? - ANS-Application will be returned to the writing agent
\An individual covered under a Group Life insurance policy is considered to be a(n) -
ANS-certificate holder
\An insurance company receives E's application for an individual health policy. E did
not complete all of the medical history questions because she could not remember
the exact dates. E signed the policy and submitted it to the insurance company
anyway. A few weeks later, E suffers a heart attack and is hospitalized without
completing the medical history questions and paying the initial premium. E is not
insured. Which of the following clauses details the conditions that E did not meet? -
ANS-Consideration clause
\An insured pays premiums on an annual basis for an individual health insurance
policy. What is the MINIMUM number of days for the Grace Period provision? -
ANS-31
\An insurer must provide an insured with claim forms within __ days after receiving
notice of a loss. - ANS-15
\At what time must a policyowner have insurable interest on the insured in order for
the life policy to be valid? - ANS-At the time of application
