Florida Life & Health Practice Test UPDATED ACTUAL Questions and
CORRECT Answers
1. T and S are named co-primary beneficiaries on a $500,000 Accidental Death
and Dismemberment policy insuring their father. Their mother was named
contingent beneficiary. Five years later, S dies of natural causes and the father
is killed in a scuba accident shortly afterwards. How much of the death benefit
will the mother receive?: $0
2. Which statement regarding the Change of Beneficiary provision is true?: The
policyowner can change the beneficiary
3. What is the underlying concept regarding level premiums?: The early years are charged
more than what is needed
4. C is trying to determine whether to convert her convertible term life policy to
whole life insurance using her original age or attained age. What factor would
affect her decision the most?: The cost
5. If the insured and primary beneficiary are both killed in the same accident
and it cannot be determined who died first, where are the death proceeds to
be directed under the Uniform Simultaneous Death Act?: Insured's contingent beneficiary
6. On a life insurance policy, who is qualified to change the beneficiary designa-
tion?: Policyowner
7. A policyowner is allowed to pay premiums more than once a year under which
provision?: Mode of Premium
8. A life insurance application must be signed by all of these EXCEPT: Beneficiary
9. Any changes made on an insurance application requires the initials of whom?-
: Applicant
10. Which Federal law allows an insurer to obtain an inspection report on a
potential insured?: Fair Credit Reporting Act
11. All of these are considered sources of underwriting information about an
applicant EXCEPT: Rating Services
12. K applies for a life insurance policy on herself and submits the initial premi-
um with the application. She is given a receipt by the agent stating that cov-
erage begins immediately if the application is approved. What kind of receipt
was used?: Conditional
, 13. P is a producer who notices 5 questions on a life application were not an-
swered. What actions should P take?: Set up a meeting with the applicant to answer the remaining
questions
14. An underwriter determines that an applicant's risk should be recategorized
due to a health issue. This life insurance policy may be issued with a(n): extra
premium
15. In order for coverage on a non-medical insurance application to take effect
the same day, the producer must collect a signed application and: the initial premium
16. When does a life insurance contract become effective if the initial premium
is not collected during the application process?: When producer delivers policy and collects
initial premium
17. Why is an applicant's signature required on a life insurance application?: To
attest that the statements on the application are accurate to the best of the applicant's knowledge
18. A Disability Income policyowner suffers a disability which was due to
the same cause as a previous disability. Both disabilities occurred within a
five-month period. The insurer may cover the second disability without a new
elimination period under the: Recurrent Disability provision
19. Which of these statements is INCORRECT regarding the federal income tax
treatment of life insurance?: Entire cash surrender value is taxable
20. Q would like to purchase $100,000 of permanent protection on his wife and
$50,000 of Term coverage on himself under the same policy. What kind of policy
should Q purchase?: Whole life policy with other insured rider
21. What action should a producer take if the initial premium is NOT submitted
with the application?: Forward the application to the insurer without the initial premium
22. What is being delivered during a policy delivery?: Insurance contract to the proposed
insured
23. Which of these actions should a producer take when submitting an insurance
application to an insurer?: Inform insurer of relevant information not included on the application
24. Before a life insurance policy is issued, which of these components of the
contract is required?: Applicant's signature on application
25. Which requirement must be met for an association to be eligible for a group
life plan?: Group was formed for a purpose other than acquiring insurance
CORRECT Answers
1. T and S are named co-primary beneficiaries on a $500,000 Accidental Death
and Dismemberment policy insuring their father. Their mother was named
contingent beneficiary. Five years later, S dies of natural causes and the father
is killed in a scuba accident shortly afterwards. How much of the death benefit
will the mother receive?: $0
2. Which statement regarding the Change of Beneficiary provision is true?: The
policyowner can change the beneficiary
3. What is the underlying concept regarding level premiums?: The early years are charged
more than what is needed
4. C is trying to determine whether to convert her convertible term life policy to
whole life insurance using her original age or attained age. What factor would
affect her decision the most?: The cost
5. If the insured and primary beneficiary are both killed in the same accident
and it cannot be determined who died first, where are the death proceeds to
be directed under the Uniform Simultaneous Death Act?: Insured's contingent beneficiary
6. On a life insurance policy, who is qualified to change the beneficiary designa-
tion?: Policyowner
7. A policyowner is allowed to pay premiums more than once a year under which
provision?: Mode of Premium
8. A life insurance application must be signed by all of these EXCEPT: Beneficiary
9. Any changes made on an insurance application requires the initials of whom?-
: Applicant
10. Which Federal law allows an insurer to obtain an inspection report on a
potential insured?: Fair Credit Reporting Act
11. All of these are considered sources of underwriting information about an
applicant EXCEPT: Rating Services
12. K applies for a life insurance policy on herself and submits the initial premi-
um with the application. She is given a receipt by the agent stating that cov-
erage begins immediately if the application is approved. What kind of receipt
was used?: Conditional
, 13. P is a producer who notices 5 questions on a life application were not an-
swered. What actions should P take?: Set up a meeting with the applicant to answer the remaining
questions
14. An underwriter determines that an applicant's risk should be recategorized
due to a health issue. This life insurance policy may be issued with a(n): extra
premium
15. In order for coverage on a non-medical insurance application to take effect
the same day, the producer must collect a signed application and: the initial premium
16. When does a life insurance contract become effective if the initial premium
is not collected during the application process?: When producer delivers policy and collects
initial premium
17. Why is an applicant's signature required on a life insurance application?: To
attest that the statements on the application are accurate to the best of the applicant's knowledge
18. A Disability Income policyowner suffers a disability which was due to
the same cause as a previous disability. Both disabilities occurred within a
five-month period. The insurer may cover the second disability without a new
elimination period under the: Recurrent Disability provision
19. Which of these statements is INCORRECT regarding the federal income tax
treatment of life insurance?: Entire cash surrender value is taxable
20. Q would like to purchase $100,000 of permanent protection on his wife and
$50,000 of Term coverage on himself under the same policy. What kind of policy
should Q purchase?: Whole life policy with other insured rider
21. What action should a producer take if the initial premium is NOT submitted
with the application?: Forward the application to the insurer without the initial premium
22. What is being delivered during a policy delivery?: Insurance contract to the proposed
insured
23. Which of these actions should a producer take when submitting an insurance
application to an insurer?: Inform insurer of relevant information not included on the application
24. Before a life insurance policy is issued, which of these components of the
contract is required?: Applicant's signature on application
25. Which requirement must be met for an association to be eligible for a group
life plan?: Group was formed for a purpose other than acquiring insurance
