FLORIDA 2-15 INSURANCE LICENSE
EXAM QUESTIONS WITH CORRECT
ANSWERS
According to Florida's Standard Valuation Law, the __________________ is
mandatory. - ANSWER-legal reserve
Equity indexed annuities are a form of: - ANSWER-fixed rate annuity.
Of the following, who would most likely pay a lower premium amount? - ANSWER-A
preferred risk client
Mathew purchased an annuity naming his wife, Cher, beneficiary. Upon Mathew's
death, Cher will receive the proceeds: - ANSWER-taxed as ordinary income above
Mathew's cost basis.
Policy reserves are the intangible amounts set aside by the _____________ out of
the insurer's assets at the beginning of the policy period. - ANSWER-insurer
SIMPLE plans can be structured as an IRA or a 401(k). - ANSWER-TRUE
A complete examination of an HMO's affairs is conducted at least: - ANSWER-once
every five years.
A portion of a mutual insurer's premiums are paid out as policy dividends and are
considered: - ANSWER-refunds
The "currently insured" classification under Social Security limits survivorship
benefits. In order to be eligible for Social Security survivor benefits, a person must
have earned _________________ period ending with the quarter in which the
worker died. - ANSWER-six credits during the 13-quarter
A prospectus for an individual variable insurance contract: - ANSWER-must
accompany every sales presentation.
Most group disability policies use the ___________ method to calculate the amount
of the insured's earnings prior to the accident. - ANSWER-percentage
Group health plans that are issued on an experience-rated basis can make both
premium reductions and premium increases retroactive for 12 months. - ANSWER-
FALSE
Employees may be classified for group life insurance in all of the following categories
EXCEPT which? - ANSWER-Gender
, Lauren wants to purchase an annuity that will pay her a guaranteed income for the
remainder of her life once she retires. Which type of annuity should she purchase? -
ANSWER-Straight Life Income Annuity
COBRA provides health benefit extensions for ____________ after employment is
terminated. - ANSWER-18 months
Which of the following expenses would NOT be covered under a Business Overhead
Expense policy? - ANSWER-Owner's salary
Complete this sentence: "Typically, the shorter the premium-paying period, the
_________________." - ANSWER-higher the premium.
Florida statutes require licensees to notify the Department in writing within _____
days after a change of name, residence address, principal business street address,
or mailing address. - ANSWER-60
The Statute of Limitations states that if a lawsuit is to be filed, it must be brought
within ______ years after Proof of Loss is furnished to the insurance company. -
ANSWER-five
Which type of life insurance is sold by home service insurers? - ANSWER-Industrial
life insurance
Social Security provides welfare benefits to all citizens. - ANSWER-FALSE
In general, the standard life insurance Incontestable Clause means that a policy is
incontestable after: - ANSWER-two years.
A medical expense policy states that it will pay a flat $200 a day for each day of
hospitalization. The policy pays benefits on what basis? - ANSWER-Indemnity
Basic Medical Expense insurance limits coverage to specific types of medical care. -
ANSWER-TRUE
A _____________ group involves combining several parties into a group for the
purpose of obtaining insurance. - ANSWER-fictitious
The ____________________ Act mandated once and for all that insurance would be
regulated by the states. - ANSWER-McCarran-Ferguson
The type of annuity that provides a guaranteed rate of return is called a variable
annuity. - ANSWER-FALSE
When an agent spreads a false story that damages a competing agent's reputation,
the offense is called: - ANSWER-defamation
EXAM QUESTIONS WITH CORRECT
ANSWERS
According to Florida's Standard Valuation Law, the __________________ is
mandatory. - ANSWER-legal reserve
Equity indexed annuities are a form of: - ANSWER-fixed rate annuity.
Of the following, who would most likely pay a lower premium amount? - ANSWER-A
preferred risk client
Mathew purchased an annuity naming his wife, Cher, beneficiary. Upon Mathew's
death, Cher will receive the proceeds: - ANSWER-taxed as ordinary income above
Mathew's cost basis.
Policy reserves are the intangible amounts set aside by the _____________ out of
the insurer's assets at the beginning of the policy period. - ANSWER-insurer
SIMPLE plans can be structured as an IRA or a 401(k). - ANSWER-TRUE
A complete examination of an HMO's affairs is conducted at least: - ANSWER-once
every five years.
A portion of a mutual insurer's premiums are paid out as policy dividends and are
considered: - ANSWER-refunds
The "currently insured" classification under Social Security limits survivorship
benefits. In order to be eligible for Social Security survivor benefits, a person must
have earned _________________ period ending with the quarter in which the
worker died. - ANSWER-six credits during the 13-quarter
A prospectus for an individual variable insurance contract: - ANSWER-must
accompany every sales presentation.
Most group disability policies use the ___________ method to calculate the amount
of the insured's earnings prior to the accident. - ANSWER-percentage
Group health plans that are issued on an experience-rated basis can make both
premium reductions and premium increases retroactive for 12 months. - ANSWER-
FALSE
Employees may be classified for group life insurance in all of the following categories
EXCEPT which? - ANSWER-Gender
, Lauren wants to purchase an annuity that will pay her a guaranteed income for the
remainder of her life once she retires. Which type of annuity should she purchase? -
ANSWER-Straight Life Income Annuity
COBRA provides health benefit extensions for ____________ after employment is
terminated. - ANSWER-18 months
Which of the following expenses would NOT be covered under a Business Overhead
Expense policy? - ANSWER-Owner's salary
Complete this sentence: "Typically, the shorter the premium-paying period, the
_________________." - ANSWER-higher the premium.
Florida statutes require licensees to notify the Department in writing within _____
days after a change of name, residence address, principal business street address,
or mailing address. - ANSWER-60
The Statute of Limitations states that if a lawsuit is to be filed, it must be brought
within ______ years after Proof of Loss is furnished to the insurance company. -
ANSWER-five
Which type of life insurance is sold by home service insurers? - ANSWER-Industrial
life insurance
Social Security provides welfare benefits to all citizens. - ANSWER-FALSE
In general, the standard life insurance Incontestable Clause means that a policy is
incontestable after: - ANSWER-two years.
A medical expense policy states that it will pay a flat $200 a day for each day of
hospitalization. The policy pays benefits on what basis? - ANSWER-Indemnity
Basic Medical Expense insurance limits coverage to specific types of medical care. -
ANSWER-TRUE
A _____________ group involves combining several parties into a group for the
purpose of obtaining insurance. - ANSWER-fictitious
The ____________________ Act mandated once and for all that insurance would be
regulated by the states. - ANSWER-McCarran-Ferguson
The type of annuity that provides a guaranteed rate of return is called a variable
annuity. - ANSWER-FALSE
When an agent spreads a false story that damages a competing agent's reputation,
the offense is called: - ANSWER-defamation
