2025 FLORIDA REAL ESTATE ACTUAL EXAM TEST QUESTIONS WITH CORRECT VERIFIED ANSWERS LATEST U, Exams of Nursing

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2025 FLORIDA REAL ESTATE ACTUAL EXAM

TEST QUESTIONS WITH CORRECT VERIFIED

ANSWERS LATEST UPDATE 2024-2025 |

GUARANTEED PASS A+

insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy? l funds not paid out after paying claims and other operating costs are returned to the policy owners in the form of a dividend. if all funds are paid out, no dividends are paid Following a career change, an insured is no longer required to perform many physical activities, so he has implemented a program where he walks and jogs for 45 minutes each morning. The insured has also eliminated most fatty foods from his diet. Which method of dealing with risk does this scenario describe? a. retention b. reduction c. transfer d. avoidance - ANSWER.... B. reduction the insured's change in lifestyle and habits would likely reduce the chances of health problems In insurance, an offer is usually made when a. an applicant submits an application to the insurer b. the insurer approves the application and receives the initial premium c. the agent hands the policy to the policyholder d. an agent explains a policy to a potential applicant - ANSWER.... A. an applicant submits an application to the insurer in insurance, the offer is usually made by the applicant in the form of an application. acceptance takes place when an insurer's underwriter approves the application and a. mutual b. reciprocal c. nonprofit service organization d. stock - ANSWE R .... A. mutua

issues a policy the causes of loss insured against in an insurance policy are known as a. perils b. losses c. risks d. hazards - ANSWER.... A. perils perils are the causes of loss insured against in an insurance policy what documentation grants express authority to an agent? a. agents contract with the principal b. agents insurance license c. fiduciary contract d. state provisions - ANSWER.... A. agents contract with the principal the principal grants authority to an agent through the agent's contract which of the following best describes an insurance company that has been formed under the laws of this state? a. domestic b. sovereign c. alien d. foreign - ANSWER.... A. domestic a company is domestic when doing business within the state in which it is incorporated which of the following factors is NOT considered by an underwriter when determining the premium rates for an individual seeking insurance? a. medical history b. sex c. age d. race - ANSWER.... D. race age, medical history, and sex provide sound statistical date for determining the probability of loss. Race, religion, sexual orientation, etc. are the factors that cannot be used because there is not sound statistical data to show that they effect the probability of loss; therefore, they are considered to be discriminatory

a. subrogation b. warranty c. aleatory d. adhesion - ANSWER.... C. aleatory an insurance contract is an aleatory contract in that it requires a relatively small amount of premium for a large risk When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following? a. legal purpose b. contract of adhesion c. acceptance d. consideration - ANSWER.... D. consideration consideration is something of value that each party gives to the other. The consideration on the part of the insured is the payment of premium and the representations made in the application which of the following would qualify as a competent party in an insurance contract? a. the applicant is intoxicated at the time of application b. the applicant is 12 year old student c. the applicant is under the influence of a mind-impairing medication at the time of application d. the applicant has a prior felony conviction - ANSWER.... D. the applicant has a prior felony conviction when an insurer and insured enter into a contract, both parties must be legal of age and mentally competent. It is legal for a person convicted of a felony to buy an insurance contract. An intoxicated person, however, may not be mentally competent, a 12 year old student is considered to be underage in most states and a person under mind-impairing medication most likely would not be mentally competent an insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? a. representation b. adhesion c. consideration d. good health - ANSWER.... C. consideration

the binding force in any contract is consideration. consideration on the part of the insureds the payment of premiums and the health representations made in the application. Consideration on the part of the insurer is the promise to pay in the even of loss which of the following is a primary source of information used for insurance underwriting? a. application b. applicant interviews c. medical records. d. private investigations - ANSWER.... A. application the application contains most of the information used for underwriting purposes. this is why its completeness and accurarcy are so critical which of the following is the best reason to purchase life insurance rather than annuities? a. to liquidate a sum of money over a period of year b. to create regular income payments c. to liquidate a sum money over a lifetime d. to create an estate - ANSWER.... D. to create an estate with insurance, the death creates an immediate estate should the insured die a producer is helping a married couple determine the financial needs of their children in the event of one or both should die prematurely. This is a personal use of life insurance known as a. survivorship insurance b. juvenile protection provision c. survivorship protection d. life planning - ANSWER.... C. survivorship protection life insurance can provide the funds necessary for the survivors of the insured to be able to maintain their lifestyle in the event of the insured's death. This is known as survivor protection a producer agent must do all of the following when delivering a new policy to the insured EXCEPT

loading is another term for expenses. Net premium (mortality minus interest earned) plus expenses (or loading) equal the gross premium which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation? a. needs approach b. blackout approach c. lump-sum approach d. human life value approach - ANSWER.... D. human life value approach human life value approach is determined by the loss of the income that would result with the death of the insured, after making adjustments for expenses, inflation, etc. which of the following is NOT required for a producer to tell a prospect? a. how the insurer would use any outside information regarding the applicant b. an explanation of products that the insurer is selling c. what requirements the producer needed to meet to obtain the insurance license d. from what outside sources the insurer would seek information, regarding the insured - ANSWER.... C. what requirements the producer needed to meet to obtain the insurance license agents are required to inform prospects of the products they are selling, as well as their information collecting practices which of the following statements concerning buy-sell agreements is true? a. premium paid are deductible as a business expense b. benefits received are considered income taxable c. buy-sell agreements pay in the event of a medical emergency d. buy-sell agreements are normally funded with a life insurance expectancy - ANSWER.... D. buy-sell agreements are normally funded with life insurance expectancy

a buy-sell agreements is simply a contract that establishes what willl be done with a business in the event that an owner dies. Buy-sell agreements are normally funded with a life insurance policy Who may complete a paramedical report? a. an underwriter b. a nursing assistant c. a registered nurse d. a spouse - ANSWER.... C. a registered nurse paramedical reports are completed by paramedics or registered nurses. Full medical expectations are reserved for those wanting higher coverage or for those who have more complex medical history the term "illustrations" in a life insurance policy refers to a. a presentation of non guaranteed elements of a policy b. a depiction of policy benefits and guarantees c. pictures accompanying a policy d. charts and graphs - ANSWER.... A. a presentation of non guaranteed elements of a policy the term "illustrations" means presentation of depiction that includes non guaranteed elements of a policy of individual of group life insurance over a period of years which is generally true regarding insureds who have been classified as preferred risks? a. they can borrow higher amounts off of their policies b. they can decide when to pay their monthly premiums c. they keep a higher percentage of any interest earned on their policies d. their premiums are lower - ANSWER.... D. their premiums are lower the preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. These individuals qualify to lower premiums than those in other categories all of the following are requirements for life insurance illustrations EXCEPT? a. they may only be used as approved b. they must identify non guaranteed values c. they must differentiate between guaranteed and projected amounts d. they must be part of the contract - ANSWER.... D. they must be part of the contract

an individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of the life insurance policy would be best suited to this situation? a. universal life b. whole life c. decreasing term d. variable life - ANSWER.... C. decreasing term a decreasing term policy's face amount decreases as the amount of debt is reduced which of the following are generally NOT considered when underwriting group insurance? a. the group's past claim experience b. the site of the group c. the insured's medical history d. the nature of the group - ANSWER.... C. the insured's medical history group life insurance is written on a group, not individual basis. Each individual completes an application that identifies the participant and the beneficiary. Then, the group is judged based on its nature and past claim experience. Generally, medical questions are not necessary what are the 2 components of a universal policy? a. insurance and investments b. mortality cost and interest c. separate account and policy loans d. insurance and cash account - ANSWER.... D. insurance and cash account a universal life policy has 2 components: an insurance components and cash account. The insurance component of a universal life policy is always renewable term insurance. The cash account accumulates on a tax deferred basis each year and earns either the guaranteed contract rate or the current rate, whichever is higher an adjustable life policyowner can change which of the following features? a. the coverage period b. the mortality expense c. the investment account d. the insured - ANSWER.... A. the coverage period

typically, the owner of an adjustable life policy has the following privileges: increasing or decreasing premium, changing the premium paying-period, increasing or decreasing the fat amount of coverage, or changing the period of protection Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid a. for 20 years or until death, whichever occurs first b. until the policyowner reaches age 65 c. for 20 years d. until the policyowner's age 100, when policy matures - ANSWER.... A. for 20 years or until death, whichever occurs first under a 20-pay life policy, all of the premiums necessary to cause the policy to endow at the insured's age 100 are paid during the first 20 years; however, if the insured dies before all of the planned premiums are paid, the beneficiary will receive the face amount as a death benefit A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy a. required a premium increase each renewal b. built cash value c. required proof of insurability ever year d. decreased death benefit each renewal - ANSWER.... A. required a premium increase each renewal annually renewable term policies premiums are adjusted each year to the insured's attained age, however, the policy may be guaranteed renewable. Death benefits remain level, and switch any term policy, there are no cash values Both Universal Life and Variable Universal Life have a a. flexible premium b. level fixed premium c. decreasing premium d. increasing premium - ANSWER.... A. flexible premium variable universal life, like universal life itself, has a flexible premium that can be increased or decrease as the policyowner chooses, so long as there is enough value in the policy to fund the death benefit all other factors being equal, what would the premium be like in a survivorship life policy

once the cash surrender value is paid, the contract is over which of the following is true about the premium on the children's rider in a life insurance policy? a. it decreases when an adopted child is added to the policy b. it remains the same no matter how many children are added to the policy c. it decreases when the oldest child remains the age of 21 d. it increases when a newborn baby is added to the policy - ANSWER.... B. it remains the same no matter how many children are added to the policy the premium does not change on the inclusion of additional children, it is based on an average number of children the automatic premium loan provision is activated at the end of the a. grace period b. free-look period c. elimination period d. policy period - ANSWER.... a. grace period provided there is sufficient cash value in the policy, this provision triggers a loan at the end of the grace period to keep a policy in force which of the following explains the policyowner's right to change beneficiaries, choose options, and receive proceeds of a policy? a. the Entire Contract Provision b. The Consideration Clause c. Agreement Rights d. Owner's Rights - ANSWER.... D. owner's rights policy owners can learn about their ownership rights by referring to the policy The owner of a life insurance policy wishes to name two beneficiaries for the policy proceeds. What will the soliciting insurance producer say? a. the proceeds will be split evenly between the 2 beneficiaries b. the policyowner can specify the way the proceeds are split in the policy c. the way proceeds are split between beneficiaries is decided by which type of policy is chosen

D. life insurance policies may have only one beneficiary - ANSWER.... B. the policyowner can specifiy the way the proceeds are split in the policy the owner of a life policy may name any individual as a beneficiary for the policy proceeds. The owner may name more than one individual, in which case the individual beneficiaries will split the benefit by the percentage specified in the policy An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do? a. pay nothing, there was a misrepresentation on the application b. pay the full death benefit and refund excess premium c. pay a reduced death benefit d. pay the full death benefit - ANSWER.... C. pay a reduced death benefit the incontestability clause prevents an insurer from denying a claim due to statements in an application after the policy has been in force for 2 years. However, is does not apply to statements relating to age, sex, and identity after a back injury, an insured is disabled for a year. His insurance policy carries a disability income death benefit rider. Which of the following benefits will he receive? a. monthly premium waiver and monthly income b. percentage of medical costs paid by the insurer c. payments for life d. yearly premium waiver and income - ANSWER.... A.monthly premium waiver and monthly income the disability income death benefit rider waives the policy premiums, just like the Waiver of Premium rider. Unlike the Waiver Premium rider, it also allows the insured to receive a weekly or monthly income during the disability period The provision which states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the a. complete contract b. entire contract c. total contract d. aleatory contract - ANSWER.... D. entire contract

An insured receives an annual life insurance dividend check. What term best describes this arrangement? a. accumulation at interest b. cash option c. reduction of premium d. annual dividend premium - ANSWER.... B. cash option the cash option allows, an insurer to send the policyholder an annual, nontaxable dividend check an insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an automobile accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as an attachment? a. $ b. $100, c. $200, d. $100,000 plus the total of paid premiums - ANSWER.... C. $200, the beneficiary would most likely receive 2x the face value of the policy, since his fatal injuries were caused by an accident and he died within the 90-day benefit limit stipulated in most policies When an annuity is written, whose life expectancy is taken into account? a. annuitant b. beneficiary c. life expectancy is not a factor when writing an annuity d. owner - ANSWER.... A. annuitant the annuitant receives payments from an annuity and is the person whose life expectancy is considered when writing the contract. The annuitant and annuity owner are often the same person but do not have to be which of the following is a true comparison between annuities and life insurance? a. both annuities and life insurance use mortality tables b. annuities serve the same function as life insurance c. both provide a lifetime of income

d. neither annuities or life insurance subject to income taxes - ANSWER.... A. both annuities and life insurance use mortality tables annuities are not life insurance, they do not pay a face amount upon the death of the annuitant. In most cases, the payment phase stops upon the death of the annuitant. Annuities use mortality tables, which reflect a longer life expectancy than the tables used in life insruance annuities can be used to fund which of the following? a. variable life insurance b. group life insurance c. estate creation d. retirement plans -

ANSWER.... D.

retirement plans since annuities are a popular means to provide retirement plans, they are often used to fund qualified retirement plans which of the following is a feature of a single premium immediate annuity? a. it is purchased through periodic payments b. income payments start at age 65 c. it is also referred to as a deferred annuity d. income payments start within one year - ANSWER.... D. income payments start within one year A Single Premium Immediate annuity is paid in a single premium. The annuity payments begin within a year of the date of the purchase. A deferred annuity can be punched with either a lump sum or through periodic payments, but the benefit is not paid until after one year or more has lapsed which of the following would most directly affect the purchasing power of death benefits paid on a fixed annuity? a. company investment performance b. guaranteed minimum payout c. economic inflation d. interest rations - ANSWER.... C. economic inflation

with any period certain, death of the annuitant within the state period will provide payments to the beneficiary only for the remainder of the period certain The form of life annuity which pays benefits throughout the lifetime of the annuitant and also guarantees payment for a minimum number of years is called a. joint life annuity b. life income with period certain c. life income with refund d. joint and survivorship - ANSWER.... B. life income with period certain if the annuitant dies before the period certain, the payments continue to a beneficiary or the estate for the remainder of the period certain the annuity purchased with multiple payments, whose benefit is paid more than one year after the purchase is know as which type of annuity? a.flexible premium immediate annuity b. single premium deferred annuity c. flexible premium deferred annuity d. single premium immediate annuity - ANSWER.... C. flexible premium deferred annuity the flexible premium deferred annuity (FPDA) is purchased with multiple payments, such as a portion of each paycheck. The benefit payment begin sometime after a one year from the date of purchase which of the following will NOT be an appropriate use of a deferred annuity? a. creating an estate b. accumulating retirement funds c. accumulating funds in an IRA d. funding a child's college education - ANSWER.... A. creating an estate which of the following products requires a securities license? a. variable annuity b. fixed annuity c. equity indexed annuity d. deferred annuity - ANSWER.... A. variable annuity a variable annuity is considered to be a security and is regulated by the Securities

Exchange Commission (SEC) in addition to state regulations. For that reason, a person must hold a securities license in addition to a life agent's license in order to sell variable annuities all of the following statements are true regarding installments for a fixed period annually settlement option EXCEPT: a. it will pay the benefit only for a designated period of time b. the payments are not guaranteed for life c. the insurer determines the amount for each payment d. it is a life contingency option - ANSWER.... D. it is a life contingency option under the installments for a fixed period annuity settlement option, the annuitant selects the time period for the benefits; the insurer determines how much each payment will be. This option for a specific amount of time only, and there are no life contingencies What type of annuity can be purchased with a single premium and provides benefits payments immediately? a. fixed b. immediate c. single premium d. deferred - ANSWER.... B. immediate with an immediate annuity, distribution starts within 1 year of purchase which of the following are NOT fundable by annuities? a. death benefits b. cash accumulation for any reason c. a person's retirement d. estate liquidation - ANSWER.... A. death benefits annuities are most commonly used to fund a person's retirement, but they can technically be used to accumulate cash for any reason. Annuities can also be used to liquidate an estate. Annuities do not provide death benefits; those are provided by life insurance which of the following is TRUE of a qualified plan? a. it may allow unlimited contributions b. it has a tax benefit for both employer and employee c. it does not need to have a vesting schedule