Florida Life and Health Final Exam with
Updated Questions and Correct Answers
Question 1
Which rider provides coverage for a child under a parent's life insurance policy?
Correct Answer
Child term rider
One of the best methods of adding coverage for a child on a parent's life insurance
policy is to add a child term rider.
Question 2
M had an annual life insurance premium payment due January 1. She died January 10
without making the premium payment. What action will the insurer take?
Correct Answer
Pay face amount minus the past due premium
In this situation, the insurer would pay the death benefit less the past-due premium
because death occurred within the grace period.
Question 3
Which of the following Dividend options results in taxable income to the
policyowner?
Correct Answer
Accumulation at Interest.
While policy dividends are not taxable, any interest paid on them is taxable income
in the year the interest is credited to the policy.
Page 1 of 222
,Question 4
Which of the following is NOT included in an annuity contract?
Nonforfeiture benefit
Free-Look period
Beneficiary
AD&D rider
Correct Answer
All of these are included in an annuity contract EXCEPT an Accidental Death &
Dismemberment (AD&D) rider.
Question 5
Variable Whole Life Insurance can be described as
Correct Answer
Variable Whole Life Insurance is both an insurance and securities product.
Question 6
What action should a producer take if the initial premium is NOT submitted with the
application?
Correct Answer
Forward the application to the insurer without the initial premium.
In this situation, the producer should submit the application to the insurance
company without the premium. However, if a premium is not paid with the
application, the policy will not become valid until the initial premium is collected.
Question 7
A level premium indicates
Correct Answer
the premium is fixed for the entire duration of the contract
Page 2 of 222
,Question 8
Which of these is NOT considered to be a cost connected with an individual's death?
*Funeral expense
*Tax liability
*Business expenses
*Probate costs
Correct Answer
Business expenses
All of these are considered to be costs associated with an individual's death EXCEPT
business expenses.
Question 9
The individual who provides general medical care for a patient as well as the referral
for specialized care is known as a
Correct Answer
Primary Care Physician
The individual who provides general medical care for a patient as well as the referral
for specialized care is known as a Primary Care Physician.
Question 10
If a contract of adhesion contains complicated language, to whom would the
interpretation be in favor of?
Correct Answer
In a contract of adhesion, any confusing language would be interpreted in the favor
of the insured.
Page 3 of 222
, Question 11
Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE?
* Coverage can be added at specific events such as marriage or having a child
*Evidence of insurability is not required when the option is exercised
*Evidence of insurability is required when the option is exercised
* Coverage can be added at specific ages
Correct Answer
The correct answer is "Evidence of insurability is required when the option is
exercised". All of these statements are true EXCEPT "Evidence of insurability is
required when the option is exercised".
Question 12
A life insurance policy would be considered a wagering contract WITHOUT
Correct Answer
insurable interest.
Without insurable interest, a life insurance policy would be considered a wagering
contract.
Question 13
Nursing home benefits must be provided for at least 12 consecutive months in which
of the following types of policies?
Correct Answer
Long-Term Care
Long-Term Care policies are designed to provide nursing home benefits on an
extended basis of at least twelve consecutive months.
Question 14
On delivery of a policy, a signed statement of good health is typically requested if
Correct Answer
The application was submitted without the initial premium
Page 4 of 222
Updated Questions and Correct Answers
Question 1
Which rider provides coverage for a child under a parent's life insurance policy?
Correct Answer
Child term rider
One of the best methods of adding coverage for a child on a parent's life insurance
policy is to add a child term rider.
Question 2
M had an annual life insurance premium payment due January 1. She died January 10
without making the premium payment. What action will the insurer take?
Correct Answer
Pay face amount minus the past due premium
In this situation, the insurer would pay the death benefit less the past-due premium
because death occurred within the grace period.
Question 3
Which of the following Dividend options results in taxable income to the
policyowner?
Correct Answer
Accumulation at Interest.
While policy dividends are not taxable, any interest paid on them is taxable income
in the year the interest is credited to the policy.
Page 1 of 222
,Question 4
Which of the following is NOT included in an annuity contract?
Nonforfeiture benefit
Free-Look period
Beneficiary
AD&D rider
Correct Answer
All of these are included in an annuity contract EXCEPT an Accidental Death &
Dismemberment (AD&D) rider.
Question 5
Variable Whole Life Insurance can be described as
Correct Answer
Variable Whole Life Insurance is both an insurance and securities product.
Question 6
What action should a producer take if the initial premium is NOT submitted with the
application?
Correct Answer
Forward the application to the insurer without the initial premium.
In this situation, the producer should submit the application to the insurance
company without the premium. However, if a premium is not paid with the
application, the policy will not become valid until the initial premium is collected.
Question 7
A level premium indicates
Correct Answer
the premium is fixed for the entire duration of the contract
Page 2 of 222
,Question 8
Which of these is NOT considered to be a cost connected with an individual's death?
*Funeral expense
*Tax liability
*Business expenses
*Probate costs
Correct Answer
Business expenses
All of these are considered to be costs associated with an individual's death EXCEPT
business expenses.
Question 9
The individual who provides general medical care for a patient as well as the referral
for specialized care is known as a
Correct Answer
Primary Care Physician
The individual who provides general medical care for a patient as well as the referral
for specialized care is known as a Primary Care Physician.
Question 10
If a contract of adhesion contains complicated language, to whom would the
interpretation be in favor of?
Correct Answer
In a contract of adhesion, any confusing language would be interpreted in the favor
of the insured.
Page 3 of 222
, Question 11
Which of these statements about a Guaranteed Insurability Option rider is NOT TRUE?
* Coverage can be added at specific events such as marriage or having a child
*Evidence of insurability is not required when the option is exercised
*Evidence of insurability is required when the option is exercised
* Coverage can be added at specific ages
Correct Answer
The correct answer is "Evidence of insurability is required when the option is
exercised". All of these statements are true EXCEPT "Evidence of insurability is
required when the option is exercised".
Question 12
A life insurance policy would be considered a wagering contract WITHOUT
Correct Answer
insurable interest.
Without insurable interest, a life insurance policy would be considered a wagering
contract.
Question 13
Nursing home benefits must be provided for at least 12 consecutive months in which
of the following types of policies?
Correct Answer
Long-Term Care
Long-Term Care policies are designed to provide nursing home benefits on an
extended basis of at least twelve consecutive months.
Question 14
On delivery of a policy, a signed statement of good health is typically requested if
Correct Answer
The application was submitted without the initial premium
Page 4 of 222
