https://www.stuvia.com/user/profgoodluck
Florida 2-15 Insurance Final Exam 2026/2027 |
Health & Life (Incl. Annuities & Variable
Contracts) Practice Review with Verified
Answers | Agent License
When life insurance proceeds are used to pay inheritance taxes and federal estate taxes, it is
known as
Estate conservation
In group insurance, the primary purpose of the Coordination of Benefits provision is to
Prevent overinsurance
Which of the following statements is NOT true regarding health insurance policy provisions?
All additional provisions written by insurers are cataloged by their respective states.
The policyowner has an option to pledge the life insurance policy as collateral for a bank loan.
This is called
A collateral assignment
A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy
will
Continue to increase
When filling out an application for insurance, the applicant makes a mistake. If a fresh
application were not available, what could the applicant do to properly correct the mistake?
Cross the incorrect answer out, write the correct one beside it, and initial the answer.
Which of the following riders pays a beneficiary a death benefit that is double or triple the face
amount if the insured's death was caused by an accident as defined in the policy?
An Accidental Death Rider
All of the following are consideration in an insurance policy EXCEPT
The cash value in the policy.
An individual has a $200,000 convertible term life insurance policy. If he chooses, he can
Convert to a whole life policy for the same face amount without proof of insurability.
Which of the following is NOT true regarding a deferred annuity?
Income payments begin within 1 year from the date of purchase.
,A retail shop owner is insured under a business overhead expense policy that pays a maximum
monthly benefit of $2,500. His actual monthly expenses are $3,000. If the owner becomes
disabled, the monthly benefit payable under his policy will be
$2,500
Which federal act defines rules pertaining to protected health information?
HIPAA
The "stop-loss" feature on a major medical policy is intended to
Establish a maximum amount of out-of-pocket expense that an insured will have to pay for
medical expense in a calendar year.
If a business wants to make sure it will be able to cover losses due to the disability of its top
employee, the business should get which type of insurance?
Key person disability income
Life insurance creates an immediate estate. Which of the following best explains this statement?
The face value of the policy is payable to the beneficiary upon the death of the insured.
What is the maximum age that a disabled insured worker may receive Social Security disability
benefits?
65
Whose responsibility is it to ensure that the application for health insurance is complete and
accurate?
The agent's
Which of the following policies would NOT offer a policy loan option?
Term Life
Regarding the consideration clause, which of the following is NOT correct?
Consideration of the insurer and insured must be equal.
The guaranteed purchase option is also referred to as the
Future increase option.
When an insured terminates membership in the insured group, the insured can convert to
Whole life without proof of insurability.
Which dividend option will increase the death benefit?
Paid-up additions
,What is the difference between a straight life policy and a 20-pay whole life policy?
Premium payment period
Which of the following policies can be described as a flexible premium adjustable life policy?
Universal Life
All of the following statements are true regarding an Ordinary (Straight) Life policy EXCEPT
It does not have a guaranteed death benefit.
An elimination (waiting) period may NOT have to be satisfied for a disability in which of the
following?
An insured suffers a relapse of a prior disability within 6-months of the initial covered disability
An insured was seriously injured in a skiing accident that required him to be hospitalized for 5
weeks. His medical expense policy covered all of the following EXCEPT
Loss of income while hospitalized. b) Necessary medicine and
Which of the following used to be called Medicare + Choice Plans?
Medicare Advantage Plans
How does insurance distribute the financial consequences of individual losses?
It transfers the risk to all persons insured.
According to the Fair Credit Reporting Act, all of the following statements are true EXCEPT
If an applicant is declined for an insurance policy, he or she has no right to know what was in the
report.
Which of the following is a permissible reason for an insurance company to contest payment of a
claim based on statements in the application?
The application contains material misstatements.
According to the metal level classification of health plans, what percentage of health care costs
will be covered under a gold plan?
80%
Your client is sole proprietor and wishes to include his family on a medical expense plan. How
much of the cost of the medical expense plan can be deducted (since he is considered self-
employed)?
100%
Which of the following statements regarding HIV testing is NOT true?
, Test results must be sent to the Department of Insurance.
To be valid, an insurance policy must have all of the following EXCEPT
Countersignature
If a basic medical insurance plan's benefits are exhausted, what type of plan will then begin
covering those losses?
Supplementary major medical
Who is the annuity owner? a) The person who receives
The person who purchases the annuity
Under the Payment of Claims provision, to whom will the insured's benefits be paid if the
insured is deceased?
The insured's primary beneficiary
An insured's cancelable health insurance policy is being cancelled. One day before the policy is
scheduled to end, he is involved in a major accident and is hospitalized for a week. Which of the
following best describes the coverage that he would receive?
Full benefits, as if the policy were still completely in effect
A married couple wants to include the entire family in their whole life policy under one rider.
Which of the following riders will help them achieve that goal?
Family term
Under the mandatory uniform provision Legal Actions, an insured is prevented from bringing a
suit against the insurer to recover on a health policy prior to
60 days after written proof of loss has been submitted.
An underwriter is reviewing an applicant with an extensive medical history. Which of the
following would give the underwriter a better understanding of how the applicant has been
treated for various illnesses?
Attending Physician's Statement
Jack's retirement plan meets all federal requirements and entitles him to certain tax benefits as
the owner of the plan. What term best describes Jack's retirement plan?
Qualified
In a variable life insurance policy, all of the following assets are held in the insurance company's
general account EXCEPT
Cash surrender values.
The Uniform Provision Law that prevents an insurance company from altering its agreement
Florida 2-15 Insurance Final Exam 2026/2027 |
Health & Life (Incl. Annuities & Variable
Contracts) Practice Review with Verified
Answers | Agent License
When life insurance proceeds are used to pay inheritance taxes and federal estate taxes, it is
known as
Estate conservation
In group insurance, the primary purpose of the Coordination of Benefits provision is to
Prevent overinsurance
Which of the following statements is NOT true regarding health insurance policy provisions?
All additional provisions written by insurers are cataloged by their respective states.
The policyowner has an option to pledge the life insurance policy as collateral for a bank loan.
This is called
A collateral assignment
A whole life policy is surrendered for a reduced-paid up policy. The cash value in the new policy
will
Continue to increase
When filling out an application for insurance, the applicant makes a mistake. If a fresh
application were not available, what could the applicant do to properly correct the mistake?
Cross the incorrect answer out, write the correct one beside it, and initial the answer.
Which of the following riders pays a beneficiary a death benefit that is double or triple the face
amount if the insured's death was caused by an accident as defined in the policy?
An Accidental Death Rider
All of the following are consideration in an insurance policy EXCEPT
The cash value in the policy.
An individual has a $200,000 convertible term life insurance policy. If he chooses, he can
Convert to a whole life policy for the same face amount without proof of insurability.
Which of the following is NOT true regarding a deferred annuity?
Income payments begin within 1 year from the date of purchase.
,A retail shop owner is insured under a business overhead expense policy that pays a maximum
monthly benefit of $2,500. His actual monthly expenses are $3,000. If the owner becomes
disabled, the monthly benefit payable under his policy will be
$2,500
Which federal act defines rules pertaining to protected health information?
HIPAA
The "stop-loss" feature on a major medical policy is intended to
Establish a maximum amount of out-of-pocket expense that an insured will have to pay for
medical expense in a calendar year.
If a business wants to make sure it will be able to cover losses due to the disability of its top
employee, the business should get which type of insurance?
Key person disability income
Life insurance creates an immediate estate. Which of the following best explains this statement?
The face value of the policy is payable to the beneficiary upon the death of the insured.
What is the maximum age that a disabled insured worker may receive Social Security disability
benefits?
65
Whose responsibility is it to ensure that the application for health insurance is complete and
accurate?
The agent's
Which of the following policies would NOT offer a policy loan option?
Term Life
Regarding the consideration clause, which of the following is NOT correct?
Consideration of the insurer and insured must be equal.
The guaranteed purchase option is also referred to as the
Future increase option.
When an insured terminates membership in the insured group, the insured can convert to
Whole life without proof of insurability.
Which dividend option will increase the death benefit?
Paid-up additions
,What is the difference between a straight life policy and a 20-pay whole life policy?
Premium payment period
Which of the following policies can be described as a flexible premium adjustable life policy?
Universal Life
All of the following statements are true regarding an Ordinary (Straight) Life policy EXCEPT
It does not have a guaranteed death benefit.
An elimination (waiting) period may NOT have to be satisfied for a disability in which of the
following?
An insured suffers a relapse of a prior disability within 6-months of the initial covered disability
An insured was seriously injured in a skiing accident that required him to be hospitalized for 5
weeks. His medical expense policy covered all of the following EXCEPT
Loss of income while hospitalized. b) Necessary medicine and
Which of the following used to be called Medicare + Choice Plans?
Medicare Advantage Plans
How does insurance distribute the financial consequences of individual losses?
It transfers the risk to all persons insured.
According to the Fair Credit Reporting Act, all of the following statements are true EXCEPT
If an applicant is declined for an insurance policy, he or she has no right to know what was in the
report.
Which of the following is a permissible reason for an insurance company to contest payment of a
claim based on statements in the application?
The application contains material misstatements.
According to the metal level classification of health plans, what percentage of health care costs
will be covered under a gold plan?
80%
Your client is sole proprietor and wishes to include his family on a medical expense plan. How
much of the cost of the medical expense plan can be deducted (since he is considered self-
employed)?
100%
Which of the following statements regarding HIV testing is NOT true?
, Test results must be sent to the Department of Insurance.
To be valid, an insurance policy must have all of the following EXCEPT
Countersignature
If a basic medical insurance plan's benefits are exhausted, what type of plan will then begin
covering those losses?
Supplementary major medical
Who is the annuity owner? a) The person who receives
The person who purchases the annuity
Under the Payment of Claims provision, to whom will the insured's benefits be paid if the
insured is deceased?
The insured's primary beneficiary
An insured's cancelable health insurance policy is being cancelled. One day before the policy is
scheduled to end, he is involved in a major accident and is hospitalized for a week. Which of the
following best describes the coverage that he would receive?
Full benefits, as if the policy were still completely in effect
A married couple wants to include the entire family in their whole life policy under one rider.
Which of the following riders will help them achieve that goal?
Family term
Under the mandatory uniform provision Legal Actions, an insured is prevented from bringing a
suit against the insurer to recover on a health policy prior to
60 days after written proof of loss has been submitted.
An underwriter is reviewing an applicant with an extensive medical history. Which of the
following would give the underwriter a better understanding of how the applicant has been
treated for various illnesses?
Attending Physician's Statement
Jack's retirement plan meets all federal requirements and entitles him to certain tax benefits as
the owner of the plan. What term best describes Jack's retirement plan?
Qualified
In a variable life insurance policy, all of the following assets are held in the insurance company's
general account EXCEPT
Cash surrender values.
The Uniform Provision Law that prevents an insurance company from altering its agreement
