FLORIDA INSURANCE EXAM
QUESTIONS & VERIFIED CORRECT
ANSWERS
The clause identifying which losses resulting from an accident or sickness are insured by the
policy is called the: - CORRECT ANSWER Insuring clause
K applies for a life insurance policy on herself and submits the initial premium with the
application. She is given a receipt by the agent stating that coverage begins immediately if the
application is approved. What kind of receipt was used? - CORRECT ANSWER Conditional
A life insurance arrangement which circumvents insurable interest statutes is called: - CORRECT
ANSWER Investor-Originated Life Insurance
Which of the following health policy provisions states that the producer does NOT have the
authority to change the policy or waive any of its provisions? - CORRECT ANSWER Entire
Contract
Within how many days after policy delivery can a Medicare Supplement policy be returned for a
100% premium refund? - CORRECT ANSWER 30
Which of the following is NOT an unfair claim settlement practice? - CORRECT ANSWER
Needing written documentation of claim details
Who is NOT required to sign a life insurance application? - CORRECT ANSWER Beneficiary
To be eligible for Social Security disability benefits, an employee must be unable to perform: -
CORRECT ANSWER any occupation
,The type of annuity that can be purchased with one monetary deposit is called a(n): - CORRECT
ANSWER Immediate annuity
A life insurance application must be signed by all of these, EXCEPT: - CORRECT ANSWER
beneficiary
Which of the following is considered an accurate statement of an unfair trade practice? -
CORRECT ANSWER Twisting involves an agent using misrepresentation to convince a
policyowner to cancel their current policy so that they can purchase a new life insurance policy
with another company
The Accelerated Death Benefit provision in a life insurance policy is also known as a(n): -
CORRECT ANSWER Living Benefit
Which of the following policy features allows an insured to defer current health charges to the
following year's deductible instead of the current year's deducitble? - CORRECT ANSWER
Carryover provision
Insurance policies are considered aleatory contracts because - CORRECT ANSWER performance
is conditioned upon a future occurrence
Within how many days must a licensee notify the Department of Financial Services of a change
in address? - CORRECT ANSWER 30
Which organization was established to provide funds to protect an insured in the event of an
insurer's insolvency? - CORRECT ANSWER Florida Life and Health Insurance Guaranty
Association
, The clause in an Accident and Health policy which defines the benefit amounts the insurer will
pay is called the: - CORRECT ANSWER Insuring clause
When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may
be considered a red flag for a(n): - CORRECT ANSWER Anti-Money Laundering violation
According to the Time Payment of Claims provision, the insurer must pay Disability Income
benefits no less frequently than which of the following options? - CORRECT ANSWER Monthly
What would the Medical Information Bureau (MIB) identify? - CORRECT ANSWER Testing
positive for marijuana use from a previous screening
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and
Dismemberment (AD&D) policy? - CORRECT ANSWER If the primary beneficiary dies before the
insured
Under a Renewable Term policy, - CORRECT ANSWER the renewal premium is calculated on the
basis of the insured's attained age
Which of the following statements is true about most Blue Cross/Blue Shield organizations? -
CORRECT ANSWER They are nonprofit organizations
If a policyowner does not pay the premium by the due date, the - CORRECT ANSWER
policyowner can make the premium payment during the grace period
According to Florida law, which of the following information does NOT need to be obtained by
an agent recommending an annuity purchase? - CORRECT ANSWER Marital status
Which of these characteristics is consistent with a Straight Life policy? - CORRECT ANSWER
Premiums are payable for as long as there is insurance coverage in force
QUESTIONS & VERIFIED CORRECT
ANSWERS
The clause identifying which losses resulting from an accident or sickness are insured by the
policy is called the: - CORRECT ANSWER Insuring clause
K applies for a life insurance policy on herself and submits the initial premium with the
application. She is given a receipt by the agent stating that coverage begins immediately if the
application is approved. What kind of receipt was used? - CORRECT ANSWER Conditional
A life insurance arrangement which circumvents insurable interest statutes is called: - CORRECT
ANSWER Investor-Originated Life Insurance
Which of the following health policy provisions states that the producer does NOT have the
authority to change the policy or waive any of its provisions? - CORRECT ANSWER Entire
Contract
Within how many days after policy delivery can a Medicare Supplement policy be returned for a
100% premium refund? - CORRECT ANSWER 30
Which of the following is NOT an unfair claim settlement practice? - CORRECT ANSWER
Needing written documentation of claim details
Who is NOT required to sign a life insurance application? - CORRECT ANSWER Beneficiary
To be eligible for Social Security disability benefits, an employee must be unable to perform: -
CORRECT ANSWER any occupation
,The type of annuity that can be purchased with one monetary deposit is called a(n): - CORRECT
ANSWER Immediate annuity
A life insurance application must be signed by all of these, EXCEPT: - CORRECT ANSWER
beneficiary
Which of the following is considered an accurate statement of an unfair trade practice? -
CORRECT ANSWER Twisting involves an agent using misrepresentation to convince a
policyowner to cancel their current policy so that they can purchase a new life insurance policy
with another company
The Accelerated Death Benefit provision in a life insurance policy is also known as a(n): -
CORRECT ANSWER Living Benefit
Which of the following policy features allows an insured to defer current health charges to the
following year's deductible instead of the current year's deducitble? - CORRECT ANSWER
Carryover provision
Insurance policies are considered aleatory contracts because - CORRECT ANSWER performance
is conditioned upon a future occurrence
Within how many days must a licensee notify the Department of Financial Services of a change
in address? - CORRECT ANSWER 30
Which organization was established to provide funds to protect an insured in the event of an
insurer's insolvency? - CORRECT ANSWER Florida Life and Health Insurance Guaranty
Association
, The clause in an Accident and Health policy which defines the benefit amounts the insurer will
pay is called the: - CORRECT ANSWER Insuring clause
When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may
be considered a red flag for a(n): - CORRECT ANSWER Anti-Money Laundering violation
According to the Time Payment of Claims provision, the insurer must pay Disability Income
benefits no less frequently than which of the following options? - CORRECT ANSWER Monthly
What would the Medical Information Bureau (MIB) identify? - CORRECT ANSWER Testing
positive for marijuana use from a previous screening
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and
Dismemberment (AD&D) policy? - CORRECT ANSWER If the primary beneficiary dies before the
insured
Under a Renewable Term policy, - CORRECT ANSWER the renewal premium is calculated on the
basis of the insured's attained age
Which of the following statements is true about most Blue Cross/Blue Shield organizations? -
CORRECT ANSWER They are nonprofit organizations
If a policyowner does not pay the premium by the due date, the - CORRECT ANSWER
policyowner can make the premium payment during the grace period
According to Florida law, which of the following information does NOT need to be obtained by
an agent recommending an annuity purchase? - CORRECT ANSWER Marital status
Which of these characteristics is consistent with a Straight Life policy? - CORRECT ANSWER
Premiums are payable for as long as there is insurance coverage in force
