Final Exam - Florida Life and Health
Latest Update 2025/2026 GRADED A+
Which Unfair Trade Practice involves making a false statement on an insurance
application in order to receive money from an insurer? - correct
answerMisrepresentation
Who owns a stock company? - correct answerA stock insurance company is owned by
its stockholders.
In Florida, which of the following is considered an Unfair Trade Practice? - correct
answerCoercion
Which of these options can an individual use their medical flexible spending account to
pay for? - correct answerPrescription drugs are an allowable expense when paid for by
a medical flexible spending account.
Which of the following features of a group Term Life policy enables an individual to
leave the group and continue his or her insurance without providing evidence of
insurability? - correct answerThe conversion privilege allows an individual to leave the
group term plan and continue his or her insurance without providing evidence of
insurability.
An example of false advertising would be - correct answerAn insurer exaggerating its
dividends in a magazine advertisement
Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first
six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of
unequal values reflects which of the following insurance contract features? - correct
answerAleatory.
Insurance contracts are aleatory in that the amount the insured will pay in premiums is
unequal to the amount that the insurer will pay in the event of a loss.
An example of an unfair trade practice is - correct answerMaking a material
misrepresentation to an insured is considered to be an unfair trade practice.
How would a contingent beneficiary receive the policy proceeds in an Accidental Death
and Dismemberment (AD&D) policy? - correct answerA contingent beneficiary will
receive the policy proceeds if the primary beneficiary dies before the insured's death.
Which of these terms accurately defines an underwriter's assessment of information on
a life insurance application? - correct answerRisk classification.
,Underwriting, another term for risk selection, is the process of reviewing the many
characteristics that make up the risk profile of an applicant to determine if the applicant
is insurable and, if so, at standard or substandard rates.
T applies for a life insurance policy and is told by the producer that the insurer is bound
to the coverage as of the date of the application or medical examination, whichever is
later. Assuming that T is an acceptable risk, what item is given to T? - correct
answerConditional receipt.
A conditional receipt binds the insurer to coverage as of the date of the application or
medical exam, provided the proposed insured is determined to be an acceptable risk.
What is required in the Florida Employee Health Care Access Act? - correct
answerSmall group benefit plans are to be issued on a "guarantee-issue" basis
P and Q are married and have three children. P is the primary beneficiary on Q's
Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent
beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly.
The Accidental Death benefits will be paid to - correct answerP.
In this situation, benefits will be paid to P because P survived the accident and is the
primary beneficiary.
The health insurance program which is administered by each state and funded by both
the federal and state governments is called - correct answerMedicaid- is funded by both
the federal and state governments and administered by individual states.
Which of the following BEST describes a short-term medical expense policy? - correct
answerNonrenewable.
A typical short-term medical expense policy is best described as nonrenewable.
Which of the following statements about noncontributory employee group life insurance
is FALSE? - correct answerA minimum number of employees is required to participate".
Noncontributory employee group life insurance plans must cover ALL eligible
employees at all times
A Disability Income policyowner recently submitted a claim for a chronic neck problem
that has now resulted in total disability. The original neck injury occurred before the
application was taken 5 years prior. The neck injury was never disclosed to the insurer
at the time of application. How will the insurer handle this claim? - correct answerClaim
will be paid and coverage will remain in force.
After a policy has been in force for 2 (sometimes 3) years, it enters the incontestable
period, in which the insurer may not deny a claim based on information not disclosed at
the time of application.
,S takes out a health insurance policy which contains a provision that states that the
agent does not have the authority to change the policy or waive any of its provisions.
Which health policy provision is this? - correct answerEntire Contract.
The Entire Contract provision states that the agent does NOT have the authority to
change the policy or waive any of its provisions.
What type of life insurance gives the greatest amount of coverage for a limited period of
time? - correct answerTerm life.
Level Term or Level-Premium: Level term life insurance provides the insured with
coverage for a specified period of time; the term may be one, five, 10, 20 years or
longer. The premium is calculated based on the age and health of the insured.
Periodic health claim payments MUST be made at least - correct answermonthly.
Under an individual health policy, periodic claim payments must be made at least
monthly.
Many small business owners worry how their business would survive financially if the
owner becomes disabled. The policy which BEST addresses this concern is - correct
answerBusiness Overhead Expense.
A Business Overhead Expense policy's purpose is to cover certain overhead expenses
that continue when the businessowner is disabled.
J purchased a Disability Income Policy that ONLY J can terminate and on which the
rates will never increase above those illustrated in the policy. Which of the following
types of policies did J purchase? - correct answerNoncancelable.
A Disability Income Policy that only the policyowner can terminate and on which the
rates will never increase is a Noncancelable policy.
Under an Individual Disability policy in Florida, what is the minimum schedule of time in
which claims must be made to an insured? - correct answerMonthly.
Claims on an individual disability policies must be paid out at monthly intervals, at
minimum.
Which of the following statements BEST describes what the Legal Actions provision of
an Accident and Health policy requires? - correct answerAn insured must wait at least
60 days after Proof of Loss has been submitted before a lawsuit can be filed.
The Legal Actions provision of an Accident & Health policy requires that the insurer
settle a claim within 60 days after receipt of Proof of Loss.
, According to Florida law, which of the following information does NOT need to be
obtained by an agent recommending an annuity purchase? - correct answerMarital
status.
Florida law requires an agent who is recommending the purchase of an annuity to a
person to obtain information regarding all of these EXCEPT the person's marital status.
J is an agent who has induced an insured through misrepresentation to surrender an
existing insurance policy. What is J guilty of? - correct answerTwisting.
Twisting is the unfair trade practice of replacing an insurance policy from one insurer to
another based on misrepresentation.
An individual working part-time has an annual income of $25,000. If this individual has
an IRA, what is the maximum deductible IRA contribution allowable? - correct answerIn
this situation, the maximum allowable IRA contribution is $25,000.
What is the required minimum percentage of employee participation for a
noncontributory group health insurance plan according to Florida Law? - correct
answer"0%".
Most noncontributory group health plans require 100% participation by eligible
members. Under Florida law, there is no specific minimum percentage participation for
employees covered by employee group health insurance.
What is Florida's definition of Life insurance replacement? - correct answerFlorida's
Replacement Rule defines replacement of Life insurance as a transaction in which a
new policy is bought and an old policy is discontinued.
Which of the following provisions specifies how long a policyowner's health coverage
will remain in effect if the policyowner does not pay the premium when it is due? -
correct answerThe grace period is the additional period of time after a premium
payment is due that will allow the policy to remain in force in the event of nonpayment.
A mutual insurance company and a stock insurance company have one main difference
between them. What is this major contrast? - correct answerStock company is owned
by its shareholders. Mutual company is owned by its policyholders.
An agent who makes misleading statements that lead to the termination of an existing
insurance policy so that a new policy with another insurer can be taken out has
committed - correct answerTwisting is knowingly making misleading statements that
would cause an insured to lapse, assign, or terminate an insurance policy in order to
switch companies.
Which of the following situations are NOT subject to Florida life insurance laws? -
correct answerInsurance companies' day-to-day operations
Latest Update 2025/2026 GRADED A+
Which Unfair Trade Practice involves making a false statement on an insurance
application in order to receive money from an insurer? - correct
answerMisrepresentation
Who owns a stock company? - correct answerA stock insurance company is owned by
its stockholders.
In Florida, which of the following is considered an Unfair Trade Practice? - correct
answerCoercion
Which of these options can an individual use their medical flexible spending account to
pay for? - correct answerPrescription drugs are an allowable expense when paid for by
a medical flexible spending account.
Which of the following features of a group Term Life policy enables an individual to
leave the group and continue his or her insurance without providing evidence of
insurability? - correct answerThe conversion privilege allows an individual to leave the
group term plan and continue his or her insurance without providing evidence of
insurability.
An example of false advertising would be - correct answerAn insurer exaggerating its
dividends in a magazine advertisement
Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first
six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of
unequal values reflects which of the following insurance contract features? - correct
answerAleatory.
Insurance contracts are aleatory in that the amount the insured will pay in premiums is
unequal to the amount that the insurer will pay in the event of a loss.
An example of an unfair trade practice is - correct answerMaking a material
misrepresentation to an insured is considered to be an unfair trade practice.
How would a contingent beneficiary receive the policy proceeds in an Accidental Death
and Dismemberment (AD&D) policy? - correct answerA contingent beneficiary will
receive the policy proceeds if the primary beneficiary dies before the insured's death.
Which of these terms accurately defines an underwriter's assessment of information on
a life insurance application? - correct answerRisk classification.
,Underwriting, another term for risk selection, is the process of reviewing the many
characteristics that make up the risk profile of an applicant to determine if the applicant
is insurable and, if so, at standard or substandard rates.
T applies for a life insurance policy and is told by the producer that the insurer is bound
to the coverage as of the date of the application or medical examination, whichever is
later. Assuming that T is an acceptable risk, what item is given to T? - correct
answerConditional receipt.
A conditional receipt binds the insurer to coverage as of the date of the application or
medical exam, provided the proposed insured is determined to be an acceptable risk.
What is required in the Florida Employee Health Care Access Act? - correct
answerSmall group benefit plans are to be issued on a "guarantee-issue" basis
P and Q are married and have three children. P is the primary beneficiary on Q's
Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent
beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly.
The Accidental Death benefits will be paid to - correct answerP.
In this situation, benefits will be paid to P because P survived the accident and is the
primary beneficiary.
The health insurance program which is administered by each state and funded by both
the federal and state governments is called - correct answerMedicaid- is funded by both
the federal and state governments and administered by individual states.
Which of the following BEST describes a short-term medical expense policy? - correct
answerNonrenewable.
A typical short-term medical expense policy is best described as nonrenewable.
Which of the following statements about noncontributory employee group life insurance
is FALSE? - correct answerA minimum number of employees is required to participate".
Noncontributory employee group life insurance plans must cover ALL eligible
employees at all times
A Disability Income policyowner recently submitted a claim for a chronic neck problem
that has now resulted in total disability. The original neck injury occurred before the
application was taken 5 years prior. The neck injury was never disclosed to the insurer
at the time of application. How will the insurer handle this claim? - correct answerClaim
will be paid and coverage will remain in force.
After a policy has been in force for 2 (sometimes 3) years, it enters the incontestable
period, in which the insurer may not deny a claim based on information not disclosed at
the time of application.
,S takes out a health insurance policy which contains a provision that states that the
agent does not have the authority to change the policy or waive any of its provisions.
Which health policy provision is this? - correct answerEntire Contract.
The Entire Contract provision states that the agent does NOT have the authority to
change the policy or waive any of its provisions.
What type of life insurance gives the greatest amount of coverage for a limited period of
time? - correct answerTerm life.
Level Term or Level-Premium: Level term life insurance provides the insured with
coverage for a specified period of time; the term may be one, five, 10, 20 years or
longer. The premium is calculated based on the age and health of the insured.
Periodic health claim payments MUST be made at least - correct answermonthly.
Under an individual health policy, periodic claim payments must be made at least
monthly.
Many small business owners worry how their business would survive financially if the
owner becomes disabled. The policy which BEST addresses this concern is - correct
answerBusiness Overhead Expense.
A Business Overhead Expense policy's purpose is to cover certain overhead expenses
that continue when the businessowner is disabled.
J purchased a Disability Income Policy that ONLY J can terminate and on which the
rates will never increase above those illustrated in the policy. Which of the following
types of policies did J purchase? - correct answerNoncancelable.
A Disability Income Policy that only the policyowner can terminate and on which the
rates will never increase is a Noncancelable policy.
Under an Individual Disability policy in Florida, what is the minimum schedule of time in
which claims must be made to an insured? - correct answerMonthly.
Claims on an individual disability policies must be paid out at monthly intervals, at
minimum.
Which of the following statements BEST describes what the Legal Actions provision of
an Accident and Health policy requires? - correct answerAn insured must wait at least
60 days after Proof of Loss has been submitted before a lawsuit can be filed.
The Legal Actions provision of an Accident & Health policy requires that the insurer
settle a claim within 60 days after receipt of Proof of Loss.
, According to Florida law, which of the following information does NOT need to be
obtained by an agent recommending an annuity purchase? - correct answerMarital
status.
Florida law requires an agent who is recommending the purchase of an annuity to a
person to obtain information regarding all of these EXCEPT the person's marital status.
J is an agent who has induced an insured through misrepresentation to surrender an
existing insurance policy. What is J guilty of? - correct answerTwisting.
Twisting is the unfair trade practice of replacing an insurance policy from one insurer to
another based on misrepresentation.
An individual working part-time has an annual income of $25,000. If this individual has
an IRA, what is the maximum deductible IRA contribution allowable? - correct answerIn
this situation, the maximum allowable IRA contribution is $25,000.
What is the required minimum percentage of employee participation for a
noncontributory group health insurance plan according to Florida Law? - correct
answer"0%".
Most noncontributory group health plans require 100% participation by eligible
members. Under Florida law, there is no specific minimum percentage participation for
employees covered by employee group health insurance.
What is Florida's definition of Life insurance replacement? - correct answerFlorida's
Replacement Rule defines replacement of Life insurance as a transaction in which a
new policy is bought and an old policy is discontinued.
Which of the following provisions specifies how long a policyowner's health coverage
will remain in effect if the policyowner does not pay the premium when it is due? -
correct answerThe grace period is the additional period of time after a premium
payment is due that will allow the policy to remain in force in the event of nonpayment.
A mutual insurance company and a stock insurance company have one main difference
between them. What is this major contrast? - correct answerStock company is owned
by its shareholders. Mutual company is owned by its policyholders.
An agent who makes misleading statements that lead to the termination of an existing
insurance policy so that a new policy with another insurer can be taken out has
committed - correct answerTwisting is knowingly making misleading statements that
would cause an insured to lapse, assign, or terminate an insurance policy in order to
switch companies.
Which of the following situations are NOT subject to Florida life insurance laws? -
correct answerInsurance companies' day-to-day operations
