Florida 2-15 Life, Health, Insurance Law
Final Exam
Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase an extended
term insurance option. When the term insurance expires, ANS: The Protection Ends
Projection of the policy's future costs ANS: Does NOT required in the Outline of Coverage for a health
insurance policy?
In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST ANS:
Provide evidence of insurability to the insurer
Life insurance policies will normally pay for losses arising from ANS: Commercial Aviation
Upon delivery, A producer must have an applicant sign if not initial premium was collected with the life
insurance application? ANS: A Good Health Statement
During the application process, the agent's primary responsibility is to ANS: The insurance company
Defamation ANS: Is an unfair trade practice that involves an agent who makes malicious statements
about another persons financial condition
Stock Insurance Company ANS: is owned exclusively by its shareholders
A license may be denied, suspended, or revoked if the licensee ANS: Is found guilty of misrepresentation
Within how many days must a licensee notify the Department Of Financial Services of a change in
address? ANS: 30
,An insurance company may NOT act in a health policy that contains a guaranteed renewable premium
benefit? ANS: Increase the premiums on the basis of an entire classification
K is an agent who made an improper sale of an annuity to a client. Which of the following corrective
actions would the Department of Financial Services likely order K to take? ANS: Pay the monetary
restitution of the client
Lorenzo is self employed with an S corporation. He is unmarried and had a net profit for the tax year.
What are the tax ramifications of his health insurance premiums paid for the year? ANS: 100% of his
health Insurance costs can be deducted from his gross income
Which type of rider will waive the premium on a child's life insurance policy if the parent paying the
premium dies? ANS: Payor Benefit
In group health care, what is the purpose of the coordination of benefits provision? ANS: Determines
what is paid by the primary and secondary insurers in the event of a claim
An annuity that is linked to a market-related index? ANS: Equity-indexed annuity
Life income annuity ANS: is NOT considered to be a common life insurance nonforfeiture option
The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond
ANS: 6 Months
After an insured gives a notice of loss, what must they of if the surer does not furnish forms? ANS: File a
written proof of loss
Claims payable to a Disability Income insured, even when the insured can continue to work, are the
result of a ANS: Presumptive Disability
, The type of multiple protection coverage that pays on the death of the last person is called? ANS:
Survivorship Life Policy
An agent making a material misrepresentation to the insured ANS: Is an example of a unfair trade
practice
Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q
be disabled before being able to apply for Social Security disability benefits? ANS: 5
If an insured dies during the grace period with no premiums paid ANS: The policy would be paid, minus
the premium amount
If a policy owner does not pay the premium by the due date, the ANS: Policy owner can make the
premium payment during the grace period
Term insurance is appropriate for someone who ANS: Seeks temporary protection and lower premiums
Annuities are intended to create an estate ANS: Aren't considered to be a purpose of an annuity
Offering different terms of coverage for different policy owners having the same risk classification ANS:
An example of unfair discrimination
Sole proprietors are permitted tax deductions for health costs paid from their earnings in the amount of
ANS: 100% Costs
Tim is covered by an accident and health insurance policy that may not be changed in any way by the
insurer up to a stated age, as long as the premiums are paid. What type of policy is this? ANS:
Noncancelable
Final Exam
Dorian exercised a nonforfeiture option by using his life policy's cash value to purchase an extended
term insurance option. When the term insurance expires, ANS: The Protection Ends
Projection of the policy's future costs ANS: Does NOT required in the Outline of Coverage for a health
insurance policy?
In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST ANS:
Provide evidence of insurability to the insurer
Life insurance policies will normally pay for losses arising from ANS: Commercial Aviation
Upon delivery, A producer must have an applicant sign if not initial premium was collected with the life
insurance application? ANS: A Good Health Statement
During the application process, the agent's primary responsibility is to ANS: The insurance company
Defamation ANS: Is an unfair trade practice that involves an agent who makes malicious statements
about another persons financial condition
Stock Insurance Company ANS: is owned exclusively by its shareholders
A license may be denied, suspended, or revoked if the licensee ANS: Is found guilty of misrepresentation
Within how many days must a licensee notify the Department Of Financial Services of a change in
address? ANS: 30
,An insurance company may NOT act in a health policy that contains a guaranteed renewable premium
benefit? ANS: Increase the premiums on the basis of an entire classification
K is an agent who made an improper sale of an annuity to a client. Which of the following corrective
actions would the Department of Financial Services likely order K to take? ANS: Pay the monetary
restitution of the client
Lorenzo is self employed with an S corporation. He is unmarried and had a net profit for the tax year.
What are the tax ramifications of his health insurance premiums paid for the year? ANS: 100% of his
health Insurance costs can be deducted from his gross income
Which type of rider will waive the premium on a child's life insurance policy if the parent paying the
premium dies? ANS: Payor Benefit
In group health care, what is the purpose of the coordination of benefits provision? ANS: Determines
what is paid by the primary and secondary insurers in the event of a claim
An annuity that is linked to a market-related index? ANS: Equity-indexed annuity
Life income annuity ANS: is NOT considered to be a common life insurance nonforfeiture option
The waiting period for a pre-existing condition under a Medicare Supplement policy may NOT go beyond
ANS: 6 Months
After an insured gives a notice of loss, what must they of if the surer does not furnish forms? ANS: File a
written proof of loss
Claims payable to a Disability Income insured, even when the insured can continue to work, are the
result of a ANS: Presumptive Disability
, The type of multiple protection coverage that pays on the death of the last person is called? ANS:
Survivorship Life Policy
An agent making a material misrepresentation to the insured ANS: Is an example of a unfair trade
practice
Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q
be disabled before being able to apply for Social Security disability benefits? ANS: 5
If an insured dies during the grace period with no premiums paid ANS: The policy would be paid, minus
the premium amount
If a policy owner does not pay the premium by the due date, the ANS: Policy owner can make the
premium payment during the grace period
Term insurance is appropriate for someone who ANS: Seeks temporary protection and lower premiums
Annuities are intended to create an estate ANS: Aren't considered to be a purpose of an annuity
Offering different terms of coverage for different policy owners having the same risk classification ANS:
An example of unfair discrimination
Sole proprietors are permitted tax deductions for health costs paid from their earnings in the amount of
ANS: 100% Costs
Tim is covered by an accident and health insurance policy that may not be changed in any way by the
insurer up to a stated age, as long as the premiums are paid. What type of policy is this? ANS:
Noncancelable
