200 Question Exam Simulator: Florida Life and Health
with verified answers
A __ day notice to the policyholder is required for any health insurer that wishes
to cancel a health insurance policy. Ans✓✓✓ 45
A 15-year mortgage is best protected by what kind of life policy? Ans✓✓✓ 15-
year decreasing term
A 45 year-old woman won $100,000 in a scratch-off lottery ticket. She purchased
an annuity that will pay her $1,500 per month beginning at age 60. Which of
these annuities did this woman purchase? Ans✓✓✓ Deferred Fixed annuity
Because the annuity will pay a fixed amount beginning at a future date, it is
considered a Deferred Fixed annuity.
A CEO's personal assistant suffered injuries at home and as a result, was unable to
work for four months. Which type of policy will pay a monthly benefit to the
personal assistant? Ans✓✓✓ Disability Income
A disability elimination period is best described as a: Ans✓✓✓ time deductible
A Key Employee policy is taken out by Company X on its vice president. Ten years
later, this employee leaves Company X and begins working for Company Y. If this
individual were to die and the policy is still in force and unchanged, where would
the death proceeds be directed? Ans✓✓✓ company X
,A license may be denied, suspended, or revoked if the licensee Ans✓✓✓ is found
guilty of misrepresentation
A life insurance arrangement which circumvents insurable interest statutes is
called: Ans✓✓✓ Investor-Originated Life Insurance
A life insurance policyowner would like to file a complaint against a life insurance
agent. In Florida, the entity that oversees these complaints is called the Ans✓✓✓
Office of Financial Regulation
A Life insurance policyowner would like to take out a policy loan against the cash
value in his Whole Life policy. The interest rate applied to this loan may vary over
time. This is referred to as a(n) ________ rate loan. Ans✓✓✓ Variable
A life policy that contains a monthly mortality charge as well as self-directed
investment choices is called a(n) Ans✓✓✓ Variable Universal Life policy
A long-term care lapse notice must be delivered to both the applicant and
Ans✓✓✓ secondary addressee
A major medical policy typically: Ans✓✓✓ provides benefits for reasonable and
necessary medical expenses, subject to policy limits
A Multiple Employer Welfare Arrangement (MEWA) provides what type of
benefits? Ans✓✓✓ insurance
A physician opens up a new practice and qualifies for a $7,000/month Disability
Income policy. What rider would the physician add if he wants the ability to
, increase his policy benefit as his practice and income grow? Ans✓✓✓
Guaranteed Insurability Option rider
A policy that becomes a Modified Endowment Contract (MEC): Ans✓✓✓ will lose
many of its tax advantages
A prospective insured completes and signs an application for health insurance but
intentionally conceals information about a pre-existing heart condition. The
company issues the policy. Two months later, the insured suffers a heart attack
and submits a claim. While processing the claim, the company discovers the pre-
existing condition. In this situation, the company will: Ans✓✓✓ continue
coverage but exclude the heart condition
A qualified profit-sharing plan is designed to: Ans✓✓✓ allow employees to
participate in the profits of the company
A statement made by an insured in an insurance application that must be true to
the best of one's knowledge and which becomes a part of the contract is known
as: Ans✓✓✓ a representation
A Variable Annuity has which of the following characteristics? Ans✓✓✓
Underlying equity investments
A variable life insurance agent must be licensed and appointed as a life and
variable contract agent, as well as a(n) Ans✓✓✓ broker dealer
ABC Insurance Company has accepted a life insurance application which contains
unanswered questions. The company then makes the application part of the life
contract. In this situation, the insurer has: Ans✓✓✓ waived one of its legal rights
with verified answers
A __ day notice to the policyholder is required for any health insurer that wishes
to cancel a health insurance policy. Ans✓✓✓ 45
A 15-year mortgage is best protected by what kind of life policy? Ans✓✓✓ 15-
year decreasing term
A 45 year-old woman won $100,000 in a scratch-off lottery ticket. She purchased
an annuity that will pay her $1,500 per month beginning at age 60. Which of
these annuities did this woman purchase? Ans✓✓✓ Deferred Fixed annuity
Because the annuity will pay a fixed amount beginning at a future date, it is
considered a Deferred Fixed annuity.
A CEO's personal assistant suffered injuries at home and as a result, was unable to
work for four months. Which type of policy will pay a monthly benefit to the
personal assistant? Ans✓✓✓ Disability Income
A disability elimination period is best described as a: Ans✓✓✓ time deductible
A Key Employee policy is taken out by Company X on its vice president. Ten years
later, this employee leaves Company X and begins working for Company Y. If this
individual were to die and the policy is still in force and unchanged, where would
the death proceeds be directed? Ans✓✓✓ company X
,A license may be denied, suspended, or revoked if the licensee Ans✓✓✓ is found
guilty of misrepresentation
A life insurance arrangement which circumvents insurable interest statutes is
called: Ans✓✓✓ Investor-Originated Life Insurance
A life insurance policyowner would like to file a complaint against a life insurance
agent. In Florida, the entity that oversees these complaints is called the Ans✓✓✓
Office of Financial Regulation
A Life insurance policyowner would like to take out a policy loan against the cash
value in his Whole Life policy. The interest rate applied to this loan may vary over
time. This is referred to as a(n) ________ rate loan. Ans✓✓✓ Variable
A life policy that contains a monthly mortality charge as well as self-directed
investment choices is called a(n) Ans✓✓✓ Variable Universal Life policy
A long-term care lapse notice must be delivered to both the applicant and
Ans✓✓✓ secondary addressee
A major medical policy typically: Ans✓✓✓ provides benefits for reasonable and
necessary medical expenses, subject to policy limits
A Multiple Employer Welfare Arrangement (MEWA) provides what type of
benefits? Ans✓✓✓ insurance
A physician opens up a new practice and qualifies for a $7,000/month Disability
Income policy. What rider would the physician add if he wants the ability to
, increase his policy benefit as his practice and income grow? Ans✓✓✓
Guaranteed Insurability Option rider
A policy that becomes a Modified Endowment Contract (MEC): Ans✓✓✓ will lose
many of its tax advantages
A prospective insured completes and signs an application for health insurance but
intentionally conceals information about a pre-existing heart condition. The
company issues the policy. Two months later, the insured suffers a heart attack
and submits a claim. While processing the claim, the company discovers the pre-
existing condition. In this situation, the company will: Ans✓✓✓ continue
coverage but exclude the heart condition
A qualified profit-sharing plan is designed to: Ans✓✓✓ allow employees to
participate in the profits of the company
A statement made by an insured in an insurance application that must be true to
the best of one's knowledge and which becomes a part of the contract is known
as: Ans✓✓✓ a representation
A Variable Annuity has which of the following characteristics? Ans✓✓✓
Underlying equity investments
A variable life insurance agent must be licensed and appointed as a life and
variable contract agent, as well as a(n) Ans✓✓✓ broker dealer
ABC Insurance Company has accepted a life insurance application which contains
unanswered questions. The company then makes the application part of the life
contract. In this situation, the insurer has: Ans✓✓✓ waived one of its legal rights
