Exam Simulator- Florida Life and Health
State Exam Simulator
A business overhead expense policy would cover which of the following if a business owner
becomes disabled? - ANS -Utilities and office rent
\A disability income policy owner suffers a disability which was due to the same cause as the
previous disability. Both disabilities occurred within the five months. The insurer may cover the
second disability without the new elimination period Under the? - ANS -Recurrent disability
provision
\A group plan was recently terminated. In Florida, how many days are covered individuals
guaranteed coverage after a group plan's termination? - ANS -31 days
\A level premium indicates - ANS -the premium is fixed for the entire duration of the contract
\A life policy loan in Florida cannot charge a fixed rate of interest higher then - ANS -10%
\A major medical policy typically - ANS -provides benefits for reasonable and necessary medical
expenses, subject to policy limits.
\A person who is insured within a group contract will be given a ? - ANS -Cartificate
\A physician opens up a new practice and qualifies for a $7000 month disability income policy.
What rider would the physician add if he wants the ability to increase his policy benefits as his
practice and income grow? - ANS -Guarantee insurability option rider
\A policy owner is able to choose the frequency of premium payment through what policy
feature? - ANS -Premium mode
\A policy owner would like to change the beneficiary on an accidental death and
Dismemberment (AD&D) insurance policy and make the change permanently. which type of
designation would fulfill this need? - ANS -Irrevocable
\A potential client age 40 would like to purchase a whole life policy that will accumulate cash
value at faster rate in the early years of the policy. Which of these Statemants made by the
producer would be correct? - ANS -20-Pay Life accumulates cash value faster than Straight Life
\A prepaid application for individual disability income insurance was recently submitted to
insurer. When the insurer received the medical information bureau report, The report showed
that the applicant has suffered a stroke 18 months ago, something that was not disclosed on the
application. Which of the following actions would the insurance company not take? - ANS -Send
a notice to the MIB that the applicant was declined
\A return of premium life insurance policy is? - ANS -Whole life and increasing term
\A term life insurance policy matures? - ANS -Up the insured's death during the term of the
policy
\A Variable insurance policy? - ANS -It does not guarantee a return on investment accounts
\A Variable life insurance agent must be licensed and appointed as a life and Variable contract
agent, as well as an - ANS -Broker dealer
\A warranty - ANS -Is a statement guaranteed to be true
, \A whole life insurance policyowner does not wish to continue making premium payments. which
of the following enables the policy owner to sell the policy for more than it's cash value? - ANS
-Life settlement contract
\Accidental death coverage is provided to commercial airline passengers in which of the
following types of policies? - ANS -Blanket accident policy.
\According to Florida law group life insurance conversion privilege must not? - ANS -Require
evidence of insurability
\According to Florida law, a group life insurance policy requires a minimum how many insureds?
- ANS -No minimum
\According to Florida law, in which of the following situations would a dependent handicapped
child NOT be covered under 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 statements accurately describes an admitted
mail order insurance company? - ANS -It may solicit insurance business by mail without the
assistance of a license agent
\According to Florida rules on disclosure, a life insurance applicant is excepted to be provided
with? - ANS -A Buyers guide and a policy summary.
\According to Florida's life insurance replacement law, about policyowner must be provided with
the written comparison and summary statement when it's required by? - ANS -The policyowner
\According to the time payment of claims provision, the insurer must pay disability income
benefits no less frequently then which of the following options? - ANS -Monthly
\Agent J takes an application and initial premium from an applicant and sends the application in
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.( is
not considered Nonforfeiture option)
\All of the following entries are classified under the four principal areas of Florida insurance law
except? - ANS -An agent's commission
\All of these statements concerning settlement options are true except? - ANS -Only the
beneficiary my select
\An employer that offers a qualified retirement plan to its employees is eligible to? - ANS -Make
tax-deductible contribution to the plan
\An example of rebating would be? - ANS -Offering a client something of value not stated in the
contract in exchange for their businesses
\An example of unfair trade practice is? - ANS -An agent making material a misrepresentation to
the insured
\An important underwriting principle of a group life is that all or a large percentage of person in
the group must be covered by the insurance. - ANS -"To an individual policy for a starter period
of time". In Florida, Group Life policy must contain a conversion privilege that allows for
conversion to an individual policy for a specified period of time.
State Exam Simulator
A business overhead expense policy would cover which of the following if a business owner
becomes disabled? - ANS -Utilities and office rent
\A disability income policy owner suffers a disability which was due to the same cause as the
previous disability. Both disabilities occurred within the five months. The insurer may cover the
second disability without the new elimination period Under the? - ANS -Recurrent disability
provision
\A group plan was recently terminated. In Florida, how many days are covered individuals
guaranteed coverage after a group plan's termination? - ANS -31 days
\A level premium indicates - ANS -the premium is fixed for the entire duration of the contract
\A life policy loan in Florida cannot charge a fixed rate of interest higher then - ANS -10%
\A major medical policy typically - ANS -provides benefits for reasonable and necessary medical
expenses, subject to policy limits.
\A person who is insured within a group contract will be given a ? - ANS -Cartificate
\A physician opens up a new practice and qualifies for a $7000 month disability income policy.
What rider would the physician add if he wants the ability to increase his policy benefits as his
practice and income grow? - ANS -Guarantee insurability option rider
\A policy owner is able to choose the frequency of premium payment through what policy
feature? - ANS -Premium mode
\A policy owner would like to change the beneficiary on an accidental death and
Dismemberment (AD&D) insurance policy and make the change permanently. which type of
designation would fulfill this need? - ANS -Irrevocable
\A potential client age 40 would like to purchase a whole life policy that will accumulate cash
value at faster rate in the early years of the policy. Which of these Statemants made by the
producer would be correct? - ANS -20-Pay Life accumulates cash value faster than Straight Life
\A prepaid application for individual disability income insurance was recently submitted to
insurer. When the insurer received the medical information bureau report, The report showed
that the applicant has suffered a stroke 18 months ago, something that was not disclosed on the
application. Which of the following actions would the insurance company not take? - ANS -Send
a notice to the MIB that the applicant was declined
\A return of premium life insurance policy is? - ANS -Whole life and increasing term
\A term life insurance policy matures? - ANS -Up the insured's death during the term of the
policy
\A Variable insurance policy? - ANS -It does not guarantee a return on investment accounts
\A Variable life insurance agent must be licensed and appointed as a life and Variable contract
agent, as well as an - ANS -Broker dealer
\A warranty - ANS -Is a statement guaranteed to be true
, \A whole life insurance policyowner does not wish to continue making premium payments. which
of the following enables the policy owner to sell the policy for more than it's cash value? - ANS
-Life settlement contract
\Accidental death coverage is provided to commercial airline passengers in which of the
following types of policies? - ANS -Blanket accident policy.
\According to Florida law group life insurance conversion privilege must not? - ANS -Require
evidence of insurability
\According to Florida law, a group life insurance policy requires a minimum how many insureds?
- ANS -No minimum
\According to Florida law, in which of the following situations would a dependent handicapped
child NOT be covered under 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 statements accurately describes an admitted
mail order insurance company? - ANS -It may solicit insurance business by mail without the
assistance of a license agent
\According to Florida rules on disclosure, a life insurance applicant is excepted to be provided
with? - ANS -A Buyers guide and a policy summary.
\According to Florida's life insurance replacement law, about policyowner must be provided with
the written comparison and summary statement when it's required by? - ANS -The policyowner
\According to the time payment of claims provision, the insurer must pay disability income
benefits no less frequently then which of the following options? - ANS -Monthly
\Agent J takes an application and initial premium from an applicant and sends the application in
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.( is
not considered Nonforfeiture option)
\All of the following entries are classified under the four principal areas of Florida insurance law
except? - ANS -An agent's commission
\All of these statements concerning settlement options are true except? - ANS -Only the
beneficiary my select
\An employer that offers a qualified retirement plan to its employees is eligible to? - ANS -Make
tax-deductible contribution to the plan
\An example of rebating would be? - ANS -Offering a client something of value not stated in the
contract in exchange for their businesses
\An example of unfair trade practice is? - ANS -An agent making material a misrepresentation to
the insured
\An important underwriting principle of a group life is that all or a large percentage of person in
the group must be covered by the insurance. - ANS -"To an individual policy for a starter period
of time". In Florida, Group Life policy must contain a conversion privilege that allows for
conversion to an individual policy for a specified period of time.
