FLORIDA HEALTH AND LIFE INSURANCE EXAM 2024 AND
PRACTICE EXAM TEST BANK | 450 ACCURATE REAL EXAM
QUESTIONS WITH VERIFIED ANSWERS | ACCURATE FOR
GUARANTEED PASS | GRADED A | LATEST UPDATE
K age 45, and his wife, age 43, have three children. They purchase a Family Policy that covers
K's wife to age 65. All of these situations will pay a death benefit EXCEPT: - CORRECT
ANSWER K's wife dies at age 66
Which statement is correct regarding the premium payment schedule for whole life policies? -
CORRECT ANSWER Premiums are payable throughout the insured's lifetime/coverage lasts
until death of the insured.
Under a Graded Premium policy, the premiums - CORRECT ANSWER Are lower during the
policy's early years
Term insurance has which of the following characteristics? - CORRECT ANSWER Expires at
the end of the policy period
How long does the coverage normally remain on a limited-pay life policy? - CORRECT
ANSWER age 100
Which of these is an element of a Variable Life policy - CORRECT ANSWER A fixed, level
premium
Variable Whole Life insurance can be described as - CORRECT ANSWER both an insurance
and securities product
Which of the following features of a group Term Life policy enables an individual to leave the
group and continue his or her insurance without providing evidence of insurability? -
CORRECT ANSWER Conversion Privilege
Life insurance immediately creates an estate upon the death of an insured. Which of the
following policies is characterized by a guaranteed minimum death benefit? - CORRECT
ANSWER Variable life
What does a Face Amount Plus Cash Value Policy pay upon the insured's death? - CORRECT
ANSWER Face amount plus the policy's cash value
,N is covered by a Term Life policy and does not make the required premium payment which was
due August 1. N dies September 15. What action will the insurer take? - CORRECT ANSWER
Claim will be denied
What provision in a life insurance policy states that the application is considered part of the
contract? - CORRECT ANSWER Entire Contract provision
B recently died and was insured with a life insurance policy for over five years. During the
claims process, the insurer discovered that B had understated his age by 5 years at the time of
application. In this situation, the insurer will - CORRECT ANSWER pay the amount that the
premium would have purchased at the correct age
K's whole life insurance policy lapsed two months ago due to nonpayment. She would now like
to reinstate the policy. All of these statements are correct about the policy's reinstatement
EXCEPT - CORRECT ANSWER K will forfeit the right to use the automatic loan provision
upon reinstatement
A father who dies within 3 years after purchasing a life insurance policy on his infant daughter
can have the policy premiums waived under which provision - CORRECT ANSWER Payor
Provision
Which of the following actions is NOT possible with Universal Life policy - CORRECT
ANSWER Premiums may be applied as a credit against income tax
A life policy with death benefit and cash value that can fluctuate according to performance of its
underlying investment portfolio is referred to as - CORRECT ANSWER Variable life
Which policy requires an agent to register with the National Association of Securities Dealers
(NASD) before selling? - CORRECT ANSWER Variable life
P owns a $25,000 Life Policy that pays the face amount to him if he lives to age 70, or to his
beneficiary if he dies before age 70. What kind of policy does P own. - CORRECT ANSWER
Endowment at Age 70
All of these are characteristics of Adjustable life policy, EXCEPT: - CORRECT ANSWER
face amount can be adjusted using policy dividends
J is 35-years old and looking to purchase a whole life insurance policy. Which of the following
types of policies will provide the most rapid growth of cash value? - CORRECT ANSWER
20- pay life
What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years
and then pays a lump sum benefit at the end of that 30 years? - CORRECT ANSWER Family
maintenance Policy
,Which of the following provisions guarantees that premiums will be waived if a Juvenile Life
policyowner becomes disabled? - CORRECT ANSWER Payor clause
Which of the following is an example of a nonforfeiture option? - CORRECT ANSWER
Reduced paid- up option
K owns a Whole Life policy. If K wants an increasing Death Benefit to protect against inflation,
which Divided Option should she chose? - CORRECT ANSWER Paid-Up Additional
Insurance
A life insurance policy which ensures that the premium will be paid if the insured becomes
disabled has what kind of rider attached? - CORRECT ANSWER waiver of premium
A cost of living rider gives the insured - CORRECT ANSWER additional death benefits
B receives yearly dividends and interest from a participating life insurance policy. Which of
these should B include as gross income for federal income tax purposes? - CORRECT
ANSWER Interest only
All of these statements about the waiver of premium provision are correct, EXCEPT: -
CORRECT ANSWER Insured must be eligible for social security disability of claim to be
accepted.
Whose life is covered on a life insurance policy that contains a payor benefit clause -
CORRECT ANSWER Child
D owns a whole life policy that was purchased 10 years ago. If the premium payments suddenly
stop and D takes no additional action, which Nonforfeiture option will the insurer likely proceed
with? - CORRECT ANSWER Extended Term
What action can a policyowner take if an application for a bank loan requires collateral? -
CORRECT ANSWER Assign policy ownership to bank
M has an insurance policy that also has an outstanding policy loan at the time of M's death. The
insurer will deduct the outstanding loan balance from the - CORRECT ANSWER policy
proceeds
An insured's inability to perform two or more activities of daily living may trigger which type of
life policy rider? - CORRECT ANSWER Long term care
Variable whole life insurance can be described as - CORRECT ANSWER both an insurance
and securities product
, The Accidental Death and Dismemberment (AD&D) provisions in a life insurance policy would
pay additional benefits in the insured - CORRECT ANSWER is blinded in an accident
N is a student pilot with a large life insurance policy. Which of these features would limit the
insurer's obligation in the event N was killed while flying as a student pilot? - CORRECT
ANSWER Exclusion
S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider.
S dies 1 year later of natural causes. How much will the insurer pay the beneficiary? -
CORRECT ANSWER $50,000
Which of the following best describes a contingent beneficiary - CORRECT ANSWER Person
designated by the insured to receive policy proceeds in the event that the primary beneficiary
dies before the insured.
J chooses a monthly premium payment mode on his Whole life insurance policy. Which of these
statements is correct - CORRECT ANSWER The gross premium is higher on a monthly
premium mode as compared to being paid annually
Which statement is true regarding minor beneficiary - CORRECT ANSWER Normally a
guardian is required to be appointed in the beneficiary clause of the contract.
Which premium schedule results in the lowest cost to the policyownwer? - CORRECT
ANSWER Annual
If the insured and primary beneficiary are both killed in the same accident and it cannot be
determined who dies first, where are the death proceeds to be directed under the uniform
Simultaneous Death Act? - CORRECT ANSWER Insured's contingent beneficiary
Which of the following statements is CORRECT regarding the tax treatment of a lump-sum
payment paid to a life insurance policy's primary beneficiary? - CORRECT ANSWER All
proceeds are income tax free in the year they are received.
Which settlement option pays a stated amount to an annuitant, but no residual value to a
beneficiary ? - CORRECT ANSWER Life income
The common Disaster clause provides that if both the insured and the sole named beneficiary
where to die in a common accident, which of the following is true? - CORRECT ANSWER
The clause provides the payment of proceeds to the insured's estate
A policyowner is allowed to pay premiums more than once a year under which provision? -
CORRECT ANSWER Mode of premium
PRACTICE EXAM TEST BANK | 450 ACCURATE REAL EXAM
QUESTIONS WITH VERIFIED ANSWERS | ACCURATE FOR
GUARANTEED PASS | GRADED A | LATEST UPDATE
K age 45, and his wife, age 43, have three children. They purchase a Family Policy that covers
K's wife to age 65. All of these situations will pay a death benefit EXCEPT: - CORRECT
ANSWER K's wife dies at age 66
Which statement is correct regarding the premium payment schedule for whole life policies? -
CORRECT ANSWER Premiums are payable throughout the insured's lifetime/coverage lasts
until death of the insured.
Under a Graded Premium policy, the premiums - CORRECT ANSWER Are lower during the
policy's early years
Term insurance has which of the following characteristics? - CORRECT ANSWER Expires at
the end of the policy period
How long does the coverage normally remain on a limited-pay life policy? - CORRECT
ANSWER age 100
Which of these is an element of a Variable Life policy - CORRECT ANSWER A fixed, level
premium
Variable Whole Life insurance can be described as - CORRECT ANSWER both an insurance
and securities product
Which of the following features of a group Term Life policy enables an individual to leave the
group and continue his or her insurance without providing evidence of insurability? -
CORRECT ANSWER Conversion Privilege
Life insurance immediately creates an estate upon the death of an insured. Which of the
following policies is characterized by a guaranteed minimum death benefit? - CORRECT
ANSWER Variable life
What does a Face Amount Plus Cash Value Policy pay upon the insured's death? - CORRECT
ANSWER Face amount plus the policy's cash value
,N is covered by a Term Life policy and does not make the required premium payment which was
due August 1. N dies September 15. What action will the insurer take? - CORRECT ANSWER
Claim will be denied
What provision in a life insurance policy states that the application is considered part of the
contract? - CORRECT ANSWER Entire Contract provision
B recently died and was insured with a life insurance policy for over five years. During the
claims process, the insurer discovered that B had understated his age by 5 years at the time of
application. In this situation, the insurer will - CORRECT ANSWER pay the amount that the
premium would have purchased at the correct age
K's whole life insurance policy lapsed two months ago due to nonpayment. She would now like
to reinstate the policy. All of these statements are correct about the policy's reinstatement
EXCEPT - CORRECT ANSWER K will forfeit the right to use the automatic loan provision
upon reinstatement
A father who dies within 3 years after purchasing a life insurance policy on his infant daughter
can have the policy premiums waived under which provision - CORRECT ANSWER Payor
Provision
Which of the following actions is NOT possible with Universal Life policy - CORRECT
ANSWER Premiums may be applied as a credit against income tax
A life policy with death benefit and cash value that can fluctuate according to performance of its
underlying investment portfolio is referred to as - CORRECT ANSWER Variable life
Which policy requires an agent to register with the National Association of Securities Dealers
(NASD) before selling? - CORRECT ANSWER Variable life
P owns a $25,000 Life Policy that pays the face amount to him if he lives to age 70, or to his
beneficiary if he dies before age 70. What kind of policy does P own. - CORRECT ANSWER
Endowment at Age 70
All of these are characteristics of Adjustable life policy, EXCEPT: - CORRECT ANSWER
face amount can be adjusted using policy dividends
J is 35-years old and looking to purchase a whole life insurance policy. Which of the following
types of policies will provide the most rapid growth of cash value? - CORRECT ANSWER
20- pay life
What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years
and then pays a lump sum benefit at the end of that 30 years? - CORRECT ANSWER Family
maintenance Policy
,Which of the following provisions guarantees that premiums will be waived if a Juvenile Life
policyowner becomes disabled? - CORRECT ANSWER Payor clause
Which of the following is an example of a nonforfeiture option? - CORRECT ANSWER
Reduced paid- up option
K owns a Whole Life policy. If K wants an increasing Death Benefit to protect against inflation,
which Divided Option should she chose? - CORRECT ANSWER Paid-Up Additional
Insurance
A life insurance policy which ensures that the premium will be paid if the insured becomes
disabled has what kind of rider attached? - CORRECT ANSWER waiver of premium
A cost of living rider gives the insured - CORRECT ANSWER additional death benefits
B receives yearly dividends and interest from a participating life insurance policy. Which of
these should B include as gross income for federal income tax purposes? - CORRECT
ANSWER Interest only
All of these statements about the waiver of premium provision are correct, EXCEPT: -
CORRECT ANSWER Insured must be eligible for social security disability of claim to be
accepted.
Whose life is covered on a life insurance policy that contains a payor benefit clause -
CORRECT ANSWER Child
D owns a whole life policy that was purchased 10 years ago. If the premium payments suddenly
stop and D takes no additional action, which Nonforfeiture option will the insurer likely proceed
with? - CORRECT ANSWER Extended Term
What action can a policyowner take if an application for a bank loan requires collateral? -
CORRECT ANSWER Assign policy ownership to bank
M has an insurance policy that also has an outstanding policy loan at the time of M's death. The
insurer will deduct the outstanding loan balance from the - CORRECT ANSWER policy
proceeds
An insured's inability to perform two or more activities of daily living may trigger which type of
life policy rider? - CORRECT ANSWER Long term care
Variable whole life insurance can be described as - CORRECT ANSWER both an insurance
and securities product
, The Accidental Death and Dismemberment (AD&D) provisions in a life insurance policy would
pay additional benefits in the insured - CORRECT ANSWER is blinded in an accident
N is a student pilot with a large life insurance policy. Which of these features would limit the
insurer's obligation in the event N was killed while flying as a student pilot? - CORRECT
ANSWER Exclusion
S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider.
S dies 1 year later of natural causes. How much will the insurer pay the beneficiary? -
CORRECT ANSWER $50,000
Which of the following best describes a contingent beneficiary - CORRECT ANSWER Person
designated by the insured to receive policy proceeds in the event that the primary beneficiary
dies before the insured.
J chooses a monthly premium payment mode on his Whole life insurance policy. Which of these
statements is correct - CORRECT ANSWER The gross premium is higher on a monthly
premium mode as compared to being paid annually
Which statement is true regarding minor beneficiary - CORRECT ANSWER Normally a
guardian is required to be appointed in the beneficiary clause of the contract.
Which premium schedule results in the lowest cost to the policyownwer? - CORRECT
ANSWER Annual
If the insured and primary beneficiary are both killed in the same accident and it cannot be
determined who dies first, where are the death proceeds to be directed under the uniform
Simultaneous Death Act? - CORRECT ANSWER Insured's contingent beneficiary
Which of the following statements is CORRECT regarding the tax treatment of a lump-sum
payment paid to a life insurance policy's primary beneficiary? - CORRECT ANSWER All
proceeds are income tax free in the year they are received.
Which settlement option pays a stated amount to an annuitant, but no residual value to a
beneficiary ? - CORRECT ANSWER Life income
The common Disaster clause provides that if both the insured and the sole named beneficiary
where to die in a common accident, which of the following is true? - CORRECT ANSWER
The clause provides the payment of proceeds to the insured's estate
A policyowner is allowed to pay premiums more than once a year under which provision? -
CORRECT ANSWER Mode of premium
