Exam Simulator- Florida Life and Health State Exam and Florida Life Insurance Test with Co, Exams of Insurance law

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Exam Simulator- Florida Life and Health

State Exam and Florida Life Insurance

Test with Correct Answers.

1. S buys $100,000 whole life policy in 2003 and pays an annual premium of $100. S dies five years later in 2008 and the insured pays the beneficiary $10,500. What kind of writer did S include on the policy? - Correct Ans: Correct Ans: ✔✔A Return of permium rider
2. All of these statements about the Waiver of Premium provision are correct EXCEPT - Correct Ans: Correct Ans: ✔✔Insured must be eligible for Social Security disability for claim to be excepted
3. Which of these provisions require proof of insurability after a policy has lapsed? - Correct Ans: Correct Ans: ✔✔Reinstatement
4. S would like to use dividends from her life insurance policy to purchase paid-up additions. All of these would be factors that determine how much coverage can be purchased EXCEPT - Correct Ans: Correct Ans: ✔✔Beneficiary's age
5. What action can a policyholder take if an application for a bank loan requires collateral? - Correct Ans: Correct Ans: ✔✔Assign policy ownership to the bank

6. How do life insurance companies handle cases where the insured commit suicide with in the contract's stated Contestable period? - Correct Ans: Correct Ans: ✔✔Claims are denied under the Suicide clause of the policy
7. P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount? - Correct Ans: Correct Ans: ✔✔Accidental Death and Dismemberment provision
8. B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of - Correct Ans: Correct Ans: ✔✔Additional Whole Life coverage at specified times
9. How are surrender charges deducted in a life policy with a rear- end loaded provision? - Correct Ans: Correct Ans: ✔✔Deducted when the policy is discontinued
10. What does the ownership clause in a life insurance policy state? - Correct Ans: Correct Ans: ✔✔Who the policy owner is and what rights the policy owner is entitled to

11. A life insurance policy which ensures that the premiums will be paid if the insured becomes disabled has what kind of rider attached? - Correct Ans: Correct Ans: ✔✔Waiver of premium
12. A provision in a life insurance policy that pays the policyholder an amount that does not surpass the guaranteed cash value is called the - Correct Ans: Correct Ans: ✔✔Policy Loan provision
13. P died five years after purchasing a life policy. While investigating the claim, the insurer discovered material misrepresentation made by P during the application process. Which of these actions will be in sure take? - Correct Ans: Correct Ans: ✔✔Beneficiary will be paid the death benefit
14. All of the statement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPT - Correct Ans: Correct Ans: ✔✔Interest Only
15. Which statement is true in the regards to a policy loan? - Correct Ans: Correct Ans: ✔✔Past-due interest on a policy loan is added to the total debt
16. K has a life insurance policy where her husband is the beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in

an automobile accident, where will the death proceeds be directed? - Correct Ans: Correct Ans: ✔✔Daughter

17. T and S are named co-primary beneficiary on a $500, Accidental Death and Dismemberment policy ensuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive? - Correct Ans: Correct Ans: ✔✔$
18. K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true? - Correct Ans: Correct Ans: ✔✔Proceeds will be paid to P's estate
19. How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? - Correct Ans: Correct Ans: ✔✔If the primary beneficiary dies before the insured
20. Which statement regarding the Change of Beneficiary provision is true? - Correct Ans: Correct Ans: ✔✔The policy owner can change the beneficiary

21. 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? - Correct Ans: Correct Ans: ✔✔The cost
22. A level premium indicates - Correct Ans: Correct Ans: ✔✔The premium is fixed for the entire duration of the contract
23. A policy owner is able to choose the frequency of premium payments through what policy feature? - Correct Ans: Correct Ans: ✔✔Premium Mode
24. An insured covered by life insurance has just died. What will happen if the primary beneficiary had already died before the insured and contingent beneficiary? - Correct Ans: Correct Ans: ✔✔Proceeds will go to the contingency beneficiary
25. Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance? - Correct Ans: Correct Ans: ✔✔Entire cash surrender value is taxable
26. All of these are considered sources of underwriting information about an applicant EXCEPT - Correct Ans: Correct Ans: ✔✔Rating Services

27. When does the life insurance contract become affective of the initial premium is not collected during the application process? - Correct Ans: Correct Ans: ✔✔When producer delivers policy and collects initial premium
28. Why is an applicant signature required on the life insurance application? - Correct Ans: Correct Ans: ✔✔To attest that the statements on the application are accurate to the best of the applicants knowledge
29. T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage as of the date of the application or medical examination, whichever is later. Assuming that he is an acceptable risk, what item is given to T? - Correct Ans: Correct Ans: ✔✔Binding receipt
30. M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT - Correct Ans: Correct Ans: ✔✔Free-look period has expired
31. What action should a producer take if the initial premium is NOT submitted with the application? - Correct Ans: Correct Ans: ✔✔Forward the application to the end sure without the initial premium

32. What is the purpose of the U.S.A. Patriot Act? - Correct Ans: Correct Ans: ✔✔Detect and deter terrorism
33. On January 8, an applicant filled out an application for life insurance policy but did not include the initial premium. The insurance company approved the application on January 14 and issued the policy January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective? - Correct Ans: Correct Ans: ✔✔January 26
34. K is an agent who takes an application for individual life insurance and except the check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective? - Correct Ans: Correct Ans: ✔✔The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured
35. Information obtained from a phone conversation to the proposed insured can be found in which of these reports? - Correct Ans: Correct Ans: ✔✔Inspection report
36. Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to

determine - Correct Ans: Correct Ans: ✔✔Probability of making timely premium payments

37. P is a producer who notices five questions on a life application were not answered. What action should P take? - Correct Ans: Correct Ans: ✔✔Set up a meeting with the applicant to answer the remaining questions
38. When an insurance application is taken by a producer, which of these statements is true? - Correct Ans: Correct Ans: ✔✔Any changes made on the application require the applicants initials
39. Before a life insurance policy is issued, which of these components of the contract is required? - Correct Ans: Correct Ans: ✔✔Applicants signature on application
40. From what authority derives the requirement that an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant? - Correct Ans: Correct Ans: ✔✔Fair Credit Reporting Act
41. Which of these do NOT constitute policy delivery - Correct Ans: Correct Ans: ✔✔Policy issued with a rating

42. What does the Medical Information Bureau (MIB) identify? - Correct Ans: Correct Ans: ✔✔Existing life insurance coverage with other carriers
43. Agent J takes an application and initial premium from an applicant and send the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take? - Correct Ans: Correct Ans: ✔✔Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company
44. Which of the following statements about guaranteed renewable health insurance policy is correct? - Correct Ans: ✔✔Premiums normally increase at the time of renewal.
45. The issuer must provide a perspective buyer with an? - Correct Ans: ✔✔Buyers guide and policy summary
46. T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase? - Correct Ans: ✔✔Ten-year Endowment
47. According to the time payment of claims provision, the insurer must pay disability income benefits no less frequently then which of the following options? - Correct Ans: ✔✔Monthly

48. Which of the following is the most important factor when deciding how much disability income coverage an applicant should purchase? - Correct Ans: ✔✔Applicants monthly income
49. Which two entitles regulate variable annuities? - Correct Ans: ✔✔Department of Financial Services; Securities Exchange Commission.
50. The amount of coverage on a group life policy is limited to? - Correct Ans: ✔✔The insured's total loan value
51. The provision that can be used to put on insurance policy back in force after it has lapsed due to nonpayment is called? - Correct Ans: ✔✔Reinstatement
52. Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company? - Correct Ans: ✔✔Annuity
53. According to Florida law, a group life insurance policy requires a minimum how many insureds? - Correct Ans: ✔✔No minimum

54. Multiple employer welfare arrangement (MEWA) provides what type of benefits? - Correct Ans: ✔✔Insurance
55. In a qualified retirement plan, the yearly contributions to an employee's account? - Correct Ans: ✔✔Are restricted to maximum level set by the IRS
56. All of the following entries are classified under the four principal areas of Florida insurance law except? - Correct Ans: ✔✔An agent's commission
57. According to Florida's life insurance replacement law, about policyowner must be provided with the written comparison and summary statement when it's required by? - Correct Ans: ✔✔The policyowner
58. On delivery of policy, a signed statement of good health is typically request if? - Correct Ans: ✔✔The application was submitted without the initial premium.
59. K is the insured and P is the sole beneficiary on an accidental death and dismemberment insurance policy. Both are involved in a fatal accident where K dies before P. Under the common disaster provision, which of these statements is true? - Correct Ans: ✔✔Proceeds will be paid to P's estate

60. An insured is past due on his life insurance premium but is still within the grace period. What will the beneficiary receive if the insured dies during the grace period.? - Correct Ans: ✔✔Full face amount minus any past due premiums
61. A business overhead expens policy would cover which of the following if a business owner becomes disabled? - Correct Ans: ✔✔Utilities and office rent
62. Employers with less then —— employees are affected by Florida health insurance coverage continuation act (Mini COBRA)?
    • Correct Ans: ✔✔ 20
63. S is employer by large corporation that provides group health coverage for its employees and their dependents. If S dies, The company must allow his surviving spouse and dependents to continue their group health coverage for a maximum of how many months on the cobra regulations? - Correct Ans: ✔✔ 36 months (under COBRA)
64. J is an agent who recently told a claimant that his rights might be impaired if he does not complete a release form within a specified time. What could this agent be found guilty of? - Correct Ans: ✔✔Coercion

65. An employer that offers a qualified retirement plan to its employees is eligible to? - Correct Ans: ✔✔Make tax-deductible contribution to the plan
66. Which of the following employees may not be excluded from the group life plan? - Correct Ans: ✔✔Full-time employees after the probation period.
67. When is the face amount of a whole life policy paid? - Correct Ans: ✔✔When the insured dies or at the policies maturity date whichever happens first.
68. Major medical policies typically? - Correct Ans: ✔✔Contain deductible and coinsurance
69. Which of the following provisions is not required in HMO contracts certificates? - Correct Ans: ✔✔Seven-day grace period
70. The health insurance program which is administrated by each state and founded by both the federal and state government is called? - Correct Ans: ✔✔Madicaid
71. On insured pays premium on an annual basis for an individual health insurance policy. What is the minimum number of days for the grace period Provision? - Correct Ans: ✔✔ 31

72. Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent? - Correct Ans: ✔✔Only if the child is incapable of employment and chiefly depend on the policy owner
73. P is producer who notice five questions on the life application where not answer. What action would P take? - Correct Ans: ✔✔Set up meeting with the applicant to answer the remaining questions
74. K becomes ill after traveling overseas and is unable to work for three months, what kind of policy would cover her loss of income? - Correct Ans: ✔✔Disability income
75. What are adjustable rates for life policy loan in Florida based on? - Correct Ans: ✔✔Moody's corporate bond index
76. When determining the monthly benefit amount for disability income policy, the factor that limits the amount a prospective insured may purchased is - Correct Ans: ✔✔Income
77. Basic hospital and surgical policy benefits are? - Correct Ans: ✔✔Lower than actual expenses incurred.

78. In Florida which the following practitioners normally do not receive payment from health insurance policies? - Correct Ans: ✔✔Naturopath
79. J purchase a disability income policy that only Jay can terminate and on which the rate will never increase above those illustrated in the policy. Which of the following types of policies did J purchase? - Correct Ans: ✔✔Noncancelable
80. The provision in a group health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is a reference to as the? - Correct Ans: ✔✔Waiting period
81. Nonprofit life insurance providers that are covered by special section in Florida insurance code are called? - Correct Ans: ✔✔Fraternal Life insurance organizations
82. Which of the following is true if the owner of IRA names their spouse as beneficiary, but then dies before any distributions are made? - Correct Ans: ✔✔The account can be rolled into a surviving spouse's IRA
83. According to Florida law group life insurance conversion privilege must not? - Correct Ans: ✔✔Require evidence of insurability

84. L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of age provision, the insurer will? - Correct Ans: ✔✔Adjust the death benefit to reduced amount.
85. The waiting period for a pre-existing condition under a Medicare supplement policy may NOT go beyond? - Correct Ans: ✔✔6 months
86. Which of the following statements is correct about accelerated death benefits? - Correct Ans: ✔✔Must have terminal illness to qualify.
87. Any charges made on an insurance application requires the initial of whom? - Correct Ans: ✔✔Applicant
88. What is the exercise tax rate the I RS imposes on individuals ages 70 1/2 or older who do not take the required minimum distribution's from their qualified retirement plan? - Correct Ans: ✔✔50%

89. Which of the following characteristics is correct about interest sensitive whole life? - Correct Ans: ✔✔There is a flexible premium payment
90. What type of renewability guarantees premium rates and renewability? - Correct Ans: ✔✔Noncancellable
91. 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 proceed to the directed under the uniform simultaneous death act? - Correct Ans: ✔✔Insured's contingent beneficiary.
92. A policy owner is able to choose the frequency of premium payment through what policy feature? - Correct Ans: ✔✔Premium mode
93. Which of the following cost would a basic hospital/surgical policy likely cover? - Correct Ans: ✔✔Surgically removing a facial birthmark.
94. In Florida, agents are allowed to engage in rebating if? - Correct Ans: ✔✔Offered to all insureds in the same actuarial class.

95. Which of the following it's not required in the outline of coverage for a health insurance policy? - Correct Ans: ✔✔Project of the policy's future costs.
96. A group plan was recently terminated. In Florida, how many days are covered individuals guaranteed coverage after a group plan's termination? - Correct Ans: ✔✔31 days
97. What is the underlying concepts regarding lever premiums?
    • Correct Ans: ✔✔The early years are charged more than what is needed.
98. In major medical expenses policies, what is the intent of a Stop Loss provision? - Correct Ans: ✔✔Limits an insured's out-of- pocket medical expenses.
99. Which of the following health policy provision states that the producer does not have the authority to change the policy or wave any of any of its provisions? - Correct Ans: ✔✔Entire contract
100. K is looking to purchase renewable term insurance. Which of the following types of Term insurance may be renewable? - Correct Ans: ✔✔Level

101. Which of the following combination plants is designed to protect an insured from an unpaid mortgage balance upon premature death? - Correct Ans: ✔✔Joint life
102. A policy owner would like to change the beneficiary on an accidental death and Dismemberment (AD&D) insurance policy and make the change permanently. which type of designation would fulfill this need? - Correct Ans: ✔✔Irrevocable
103. Deductibles are used in health policies to lower - Correct Ans: ✔✔overuse of medical services
104. A major medical policy typically - Correct Ans: ✔✔provides benefits for reasonable and necessary medical expenses, subject to policy limits.
105. Under Florida law, a Variable annuity policyowner must be notified of the accumulated value of the contract? - Correct Ans: ✔✔Once each year.
106. Florida requires that an insurance agent must complete —— hours of continuing education on the subject of law and ethics every two years? - Correct Ans: ✔✔ 5

107. G is an accountant who has 10 employees and is concerned about how the business would survive financially if G becomes disabled. The type of policy which best addresses this concern is?

- Correct Ans: ✔✔Business overhead expenses. 

108. The clause identifying which losses resulting from an accident or sickness are insured by the policy is called the? - Correct Ans: ✔✔Insuring clause.
109. When does a probationary Provision become effective in a health insurance contract? - Correct Ans: ✔✔At the policy's inception
110. According to Florida rules on disclosure, a life insurance applicant is excepted to be provided with? - Correct Ans: ✔✔A Buyers guide and a policy summary.
111. Before a life insurance policy is issued, which of these components of the contract is required? - Correct Ans: ✔✔Applicant's signature on application
112. Variable annuities may invest premiums in each of the following except? - Correct Ans: ✔✔Insurer's corporate business account

113. During the course of insurance transaction, if an agent makes a false or incomplete statement, he/she could be found guilty of? - Correct Ans: ✔✔Misrepresentation
114. Which is true concerning Variable universal life policy? - Correct Ans: ✔✔Policy owner controls where the investment will go and select the amount of the premium payment.
115. If an invitation has an accidental death and dismemberment policy and dies, an autopsy can be performed in all these situations except? - Correct Ans: ✔✔When the state prohibits this by law
116. Which of the following types of care is typically not covered in the long-term care policy? - Correct Ans: ✔✔Acupuncture
117. An insurer receives proof of loss for an acceptable medical expenses claim under an individual health insurance policy. Under the time of payment of claims provision, the insurer MUST pay the benefits? - Correct Ans: ✔✔Immediately
118. Which premium schedule result in the lowest cost to the policy owner? - Correct Ans: ✔✔Annual

119. T is an employee covered under a Group Life policy. If T employment is terminated, the conversation privilege gives T the right to convert? - Correct Ans: ✔✔To an individual policy upon employment termination
120. Insurance contract known as —— because certain future conditions or acts must occur before any claims can be paid? - Correct Ans: ✔✔Conditional
121. M had an annual life insurance premium payment due January 1. she died January 10 without making the premium payment. what action will the insurer take? - Correct Ans: ✔✔Pay face amount minus the past due premium
122. Which of the following factors affect the amount of monthly disability benefits payable under Social Security? - Correct Ans: ✔✔The amount of the benefits available from other sources.
123. Who makes the legally enforceable promise in a unilateral insurance policy? - Correct Ans: ✔✔Insurance company
124. Which of these statements is incorrect regarding a preference provider organization? (PPO) - Correct Ans: ✔✔PPO's are not a type of managed care system( ppo are considered to be a managed health care system)

125. Non-occupational disability coverage is designed for? - Correct Ans: ✔✔Employees who suffer non-work related disability, since work-related disability are covered by workers compensation.
126. Nursing home benefits must be provided for all at least consecutive months in which of the following types of policies? - Correct Ans: ✔✔Long-term care
127. With how many days after policy delivery can a Medicare supplement policy be returning for 100% premium refund? - Correct Ans: ✔✔30 (maximum 30 days)
128. What is the purpose of the Time of Payment of claims provision? - Correct Ans: ✔✔Prevents delayed claims payments made by insurer
129. When replacing or exchanging an annuity, the agent must disclose to the annuitant? - Correct Ans: ✔✔The possible tax ramifications as a result of the transaction
130. Q purchase $500,000 life insurance policy and pays $900 in premiums over the first six months. Q die suddenly and the beneficiary is paid $500,000. This exchange of unequal value

reflects which of the following assurance contract pictures? - Correct Ans: ✔✔Aleatory.

131. How many hours of continuing education must the newly licensed agent complete every two years - Correct Ans: ✔✔ 24
132. Which the these statements accurately describes the waiver of premium provision in an accident and health policy? - Correct Ans: ✔✔Premiums are waved after the insured has been totally disabled for a specified time period.
133. From what authority derives the requirement that an insurance application contains a disclosure starting that an investigative consumer report may be updated on an applicant? - Correct Ans: ✔✔Fair Credit Report Act
134. A person who is insured within a group contract will be given a? - Correct Ans: ✔✔Cartificate
135. R Had received the full disability income benefits for six months. When he returns to work, he's only able to resume half his normal daily workload. Which provision pays reduce benefits to R while he's not working a full capacity? - Correct Ans: ✔✔Residual disability

136. N has a major medical policy that only pays a portion of N medical expenses. N is responsible for paying the remaining balance. This provision is known as? - Correct Ans: ✔✔Coinsurance
137. An example of unfair trade practice is? - Correct Ans: ✔✔An agent making material a misrepresentation to the insured
138. Group life insurance policies are generally written as? - Correct Ans: ✔✔Annually renewable term
139. T and S are name 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 scuba accident shortly afterwords. How much of the death benefits will the mother receive? - Correct Ans: ✔✔$0
140. Which of the following provisions specified how long a policyowner's health coverage will remain in effect if the policyowner does not pay the premium when it is due? - Correct Ans: ✔✔Grace Period
141. A potential client age 40 would like to purchase a whole life policy that will accumulate cash value at faster rate in the early years of the policy. Which of these Statemants made by the