215 License Exam Questions and Answers
Graded A+
Disability insurance provides an income stream for an individual who is unable to
continue working due to accident or illness. However, if a person is under ______
disabled, he/she does not qualify for benefits. - Correct answer-20%
Should a policyowner get into a situation in which he/she cannot continue to make
the required premium payments, _____________ options can be utilized. - Correct
answer-nonforfeiture
Who is not a participating party in an annuity - Correct answer-the annuitant's
spouse
The goals of _________ were to encourage individual employers to establish
employee health plans. - Correct answer-ERISA (employee Retirement Income
Security Act of 1974)
AD&D policies make benefits payable in the form of the principal sum and capital
sum. True or false - Correct answer-True
,In order for the Social Security 40-quarter rule to apply, an individual must have
been employed and paid FICA taxes for at least _____ years. - Correct answer-10
When it comes to hospital expenses, a Medical Indemnity plan pays: - Correct
answer-1) a fixed amount per day of hospitalization.
What does FICA stand for? - Correct answer-Federal Insurance Contributions Act
Adverse Selection is based on what premise? - Correct answer-The propensity for
insuring less favorable insurance risks.
Reciprocal insurers are owned by: - Correct answer-policyholders
Insurers are required by law to provide annuity owners with an annual report which
states the units credited to the contract and: - Correct answer-The dollar value of a
unit
In the process of selling life insurance and when evaluating the needs of your
client, the Human Life Value approach has been largely replaced by the more
practical Needs Approach. True or false - Correct answer-True
Which is the proper term for a company owned by its policyowners? - Correct
answer-A mutual insurance company
, Joan's insurance agent, Tim, has offered her a $100 dinner gift certificate if Joan
purchases a life insurance policy from Tim. Tim has violated ethical sales practices
by: - Correct answer-Rebating
Florida's Replacement Rule sets forth the requirements and procedures to be
followed by insurance companies and insurance producers when a proposal is
being made to a client who plans to replace an existing life insurance contract with:
- Correct answer-A proposed new life insurance policy
Family Income and Family Maintenance contracts both utilize a ____________ as
the base, with a __________ rider. - Correct answer-whole life policy, term
insurance
Generally, the more liberal the process is for renewing a health insurance policy,
the _______ the premiums are going to be. - Correct answer-higher
The actual number of annuity units is determined by: - Correct answer-the current
value of one unit relative to the amount of premiums paid.
A $50,000 fine can be assessed for violation of a Cease and Desist order. True or
false - Correct answer-true
ERISA overrides any state laws regarding the regulation of retirement plans. true
or false - Correct answer-true
Graded A+
Disability insurance provides an income stream for an individual who is unable to
continue working due to accident or illness. However, if a person is under ______
disabled, he/she does not qualify for benefits. - Correct answer-20%
Should a policyowner get into a situation in which he/she cannot continue to make
the required premium payments, _____________ options can be utilized. - Correct
answer-nonforfeiture
Who is not a participating party in an annuity - Correct answer-the annuitant's
spouse
The goals of _________ were to encourage individual employers to establish
employee health plans. - Correct answer-ERISA (employee Retirement Income
Security Act of 1974)
AD&D policies make benefits payable in the form of the principal sum and capital
sum. True or false - Correct answer-True
,In order for the Social Security 40-quarter rule to apply, an individual must have
been employed and paid FICA taxes for at least _____ years. - Correct answer-10
When it comes to hospital expenses, a Medical Indemnity plan pays: - Correct
answer-1) a fixed amount per day of hospitalization.
What does FICA stand for? - Correct answer-Federal Insurance Contributions Act
Adverse Selection is based on what premise? - Correct answer-The propensity for
insuring less favorable insurance risks.
Reciprocal insurers are owned by: - Correct answer-policyholders
Insurers are required by law to provide annuity owners with an annual report which
states the units credited to the contract and: - Correct answer-The dollar value of a
unit
In the process of selling life insurance and when evaluating the needs of your
client, the Human Life Value approach has been largely replaced by the more
practical Needs Approach. True or false - Correct answer-True
Which is the proper term for a company owned by its policyowners? - Correct
answer-A mutual insurance company
, Joan's insurance agent, Tim, has offered her a $100 dinner gift certificate if Joan
purchases a life insurance policy from Tim. Tim has violated ethical sales practices
by: - Correct answer-Rebating
Florida's Replacement Rule sets forth the requirements and procedures to be
followed by insurance companies and insurance producers when a proposal is
being made to a client who plans to replace an existing life insurance contract with:
- Correct answer-A proposed new life insurance policy
Family Income and Family Maintenance contracts both utilize a ____________ as
the base, with a __________ rider. - Correct answer-whole life policy, term
insurance
Generally, the more liberal the process is for renewing a health insurance policy,
the _______ the premiums are going to be. - Correct answer-higher
The actual number of annuity units is determined by: - Correct answer-the current
value of one unit relative to the amount of premiums paid.
A $50,000 fine can be assessed for violation of a Cease and Desist order. True or
false - Correct answer-true
ERISA overrides any state laws regarding the regulation of retirement plans. true
or false - Correct answer-true
