FLA 0214 Health and Life Insurance Final Year 2024/2025 Entry Exam with A+ Answers., Exams of Insurance law

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FLA 0214 Health and Life Insurance Final

Year 2024/2025 Entry Exam with A+

Answers.

1. A return of Premium life insurance policy is: - Correct Ans: ✔✔Whole life and Increasing term
2. Which of the following is the best description of 'insurer'? - Correct Ans: ✔✔Any person, corporation, association or society that writes insurance contracts
3. How are Roth IRA distributions normally taxed? - Correct Ans: ✔✔Distributions are received tax-free
4. What kind of policy either pays the face value upon the death of the insured or when the insured reaches age 100? - Correct Ans: ✔✔Whole Life
5. According to Florida's life insurance replacement laws, a policyowner must be proved with a written Comparison and Summary statement when it's requested by: - Correct Ans: ✔✔the policyowner

6. Two partners own equal shares in a business worth a total of $1,000,000. If they both commit to the purchase of a life insurance policy that will fund a Buy-Sell Agreement, which of the following is TRUE? - Correct Ans: ✔✔Each partner owns a $500,000 policy on their partner's life
7. Agents that have been licensed for less than six years must complete __ hours of continuing education every two years. - Correct Ans: ✔✔ 24
8. Information obtained from a phone conversation to the proposed insured can be found in which of these reports? - Correct Ans: ✔✔inspection report
9. Which department oversees Market Conduct Examinations in Florida? - Correct Ans: ✔✔The Office of Insurance Regulation (OIR)
10. Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy? - Correct Ans: ✔✔Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company.

11. Which of the following factors is NOT considered when the Department of Financial Services determines if an agent's home is an insurance agency? - Correct Ans: ✔✔The amount of premium collected at this location
12. 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: ✔✔Proceeds will be payable to K's estate if P dies within a specified time
13. Omitting information that affects the issuance or the rate of an insurance contract is called: - Correct Ans: ✔✔Concealment
14. Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following contractual elements? - Correct Ans: ✔✔Legal Purpose (Insurable Interest)
15. A variable life insurance agent must be licensed and appointed as a life and variable contract agent, as well as a(n) - Correct Ans: ✔✔broker dealer
16. Which statement regarding third-party ownership of a life insurance policy is true? - Correct Ans: ✔✔it's used extensively in estate-planning as well as business circumstances

17. group life policies in Florida are required to contain a conversion privilege that allows - Correct Ans: ✔✔for conversion to an individual policy for a specified period of time.
18. Which entity approves the insurance policy forms used in Florida? - Correct Ans: ✔✔Office of Insurance Regulation (OIR)
19. T is an agent and when hired, is reminded that he has a responsibility to handle clients' funds in an honest and ethical manner. This responsibility is referred to as - Correct Ans: ✔✔fiduciary responsibility
20. all of these are characteristics of an adjustable life policy except - Correct Ans: ✔✔face amount can be adjusted using policy dividends
21. Which of the following acts is an agent NOT authorized to do on behalf of an insurer? - Correct Ans: ✔✔Which of the following acts is an agent NOT authorized to do on behalf of an insurer?
22. During the course of an insurance transaction, if an agent makes a false or incomplete statement, he/she could be found guilty of - Correct Ans: ✔✔Misrepresentation

23. The insurer must provide a prospective buyer with a(n) - Correct Ans: ✔✔Buyer's Guide and Policy Summary
24. A life insurance policyowner may sell their policy to a __ in order to receive a percentage of the policy's face value - Correct Ans: ✔✔viatical settlement provider
25. According to Florida law, which of the following information does NOT need to be obtained by an agent recommending an annuity purchase? - Correct Ans: ✔✔Marital status
26. An applicant who pays the initial premium at the time of application is typically given a(n) - Correct Ans: ✔✔conditional receipt
27. What percentage of eligible persons must a policyowner cover in a noncontributory group? - Correct Ans: ✔✔100%
28. A mutual insurance company is owned by: - Correct Ans: ✔✔Its policyholders
29. An insurance company can contest a life insurance contract due to application fraud within - Correct Ans: ✔✔2 years

30. A license may be denied, suspended, or revoked if the licensee - Correct Ans: ✔✔is found guilty of misrepresentation
31. Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company? - Correct Ans: ✔✔Annuity
32. Which of the following information is NOT required to be included in a Whole Life policy? - Correct Ans: ✔✔Policy's guaranteed dividend table
33. An agent who makes misleading statements that lead to the termination of an existing insurance policy so that a new policy with another insurer can be taken out has committed - Correct Ans: ✔✔twisting
34. A life insurance policy's grace period entitles the insured a period of time no less than __ days to make the premium payment - Correct Ans: ✔✔ 30
35. 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

36. Which of these is NOT a legal entity for selling life insurance in Florida? - Correct Ans: ✔✔Risk management advisers
37. Which of the following situations are NOT subject to Florida life insurance laws? - Correct Ans: ✔✔Insurance companies' day- to-day operations
38. How do life insurance companies handle cases where the insured commits suicide within the contract's stated Contestable period? - Correct Ans: ✔✔Claims are denied under the Suicide clause of the policy
39. Insurance Guaranty Fund Association is - Correct Ans: ✔✔funded by admitted insurance companies through assessments
40. Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed? - Correct Ans: ✔✔Misrepresentation
41. Nonprofit life insurance providers that are covered by a special section in the Florida insurance code are called - Correct Ans: ✔✔fraternal life insurance organizations

42. What is the purpose of a Policy Summary - Correct Ans: ✔✔It highlights the critical parts of the policy issued
43. Florida's 14-day free-look period for life insurance policies begins at the - Correct Ans: ✔✔date of delivery
44. 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: ✔✔Additional whole life coverage at specified times
45. Which two entities regulate variable annuities? - Correct Ans: ✔✔Department of Financial Services; and Securities Exchange Commission
46. The policy summary contains specific information on all of the following EXCEPT: - Correct Ans: ✔✔commission
47. Which of the following employees may NOT be excluded from a group life plan - Correct Ans: ✔✔Full-time employees after the probationary period
48. Who is NOT required to sign a life insurance application? - Correct Ans: ✔✔beneficiary

49. 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 Ans: ✔✔Endowment at Age 70
50. An agent that sells ___ Life insurance MUST be registered with the Financial Industry Regulatory Authority - Correct Ans: ✔✔variable
51. A $20000 life insurance policy application is completed , however the producer does not collect the initial premium. At what point does the coverage go into effect - Correct Ans: ✔✔when the applicant receives the policy and pays the initial
52. Any violations of the Florida financial institutions code may be investigated by the - Correct Ans: ✔✔Department of Financial Services
53. What is the main reason for regulating the insurance industry? - Correct Ans: ✔✔Maintain the solvency of insurance companies
54. T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the

right to convert - Correct Ans: ✔✔To an individual policy upon employment termination.

55. Advertising gifts not to exceed ___ are allowed to be given by an agent to a prospective client. - Correct Ans: ✔✔$
56. What are adjustable rates for life policy loans in Florida based on? - Correct Ans: ✔✔Moody's corporate bond index
57. The Bureau of Unclaimed Property is overseen by the - Correct Ans: ✔✔Chief Financial Officer
58. K has inherited a large sum of money. K purchases an annuity with this sum on July 1, and starts receiving payments August 1. These payments will continue for as long as she and her spouse lives. Which type of annuity did K purchase? - Correct Ans: ✔✔Single Premium immediate Joint With Survivor Annuity
59. Insurance policies are offered on a take it or leave it basis, which make them - Correct Ans: ✔✔Contracts of Adhesion
60. What is Old Age and Survivors Health Insurance (OASDHI) also known as? - Correct Ans: ✔✔social security

61. Which of the following employer tasks does a Professional Employer Organization normally handle? - Correct Ans: ✔✔Administration Tasks
62. An example of rebating would be - Correct Ans: ✔✔offering a client something of value not stated in the contract in exchange for their business
63. What is the purpose of the Insurance Guaranty Fund Association? - Correct Ans: ✔✔Protects policyowners against insolvent insurance companies
64. What is considered to be a characteristic of an immediate annuity? - Correct Ans: ✔✔Benefit payments start within one payment period of purchase
65. An insured inability to perform two or more activities of daily living may trigger which type of policy rider? - Correct Ans: ✔✔long term care
66. 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 - Correct Ans: ✔✔Office of Financial Regulation

67. N is a 40-year old applicant who would like to retire at age
    70. He is looking to buy a life insurance policy with level premiums, permanent protection, and be paid-up at retirement. Which of these should N purchase? - Correct Ans: ✔✔30 Pay Life
68. Which of these is NOT considered rebating - Correct Ans: ✔✔sharing commissions with an agent licensed in the same line of business
69. ___ can be defined as "using the contract values of an existing policy to purchase a new policy with an existing insurer" - Correct Ans: ✔✔churning
70. The act of an insurance company publishing misleading information about its policy's provisions is called - Correct Ans: ✔✔false advertising
71. Which of the following documents must an agent submit to the replacing insurance company during the replacement of an existing life insurance policy? - Correct Ans: ✔✔Notice to existing and replacing insurers of intention to replace
72. An individual working part-time has an annual income of $25,000. If this individual has an IRA, what is the maximum deductible IRA contribution allowable? - Correct Ans: ✔✔$6,

73. A policyowner is able to choose the frequency of premium payments through what policy feature? - Correct Ans: ✔✔premium mode
74. The Department of Financial Services serves as the court appointed Receiver of any insurer placed into - Correct Ans: ✔✔receivership
75. An architecture firm would stand to lose a lot of money in the event of the death of its project manager. Which type of policy should the firm purchase on its project manager? - Correct Ans: ✔✔key person life policy
76. 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 Ans: ✔✔All proceeds are income tax free in the year they are received
77. hich of the following situations does NOT apply to the Florida Replacement Rule - Correct Ans: ✔✔An existing policyholder purchases an additional policy from the same insurer
78. S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the

insurer pays the beneficiary $10,500. What kind of rider did S include on the policy? - Correct Ans: ✔✔-Return of premium rider

79. A provision in life insurance policy that pays the policy owner an amount that does not surpass the guaranteed cash value is called - Correct Ans: ✔✔Policy Loan Provision
80. Which of the following statements is correct about accelerated death benefits - Correct Ans: ✔✔must have a terminal illness to qualify
81. Which provision prevents an insurer from changing the terms of the contract with the policyowner by referring to documents not found within the policy itself? - Correct Ans: ✔✔Entire Contract
82. if a corporation pays the premium on a group life policy for its employees, The corporation is required to report how much additional taxable income for each employee? - Correct Ans: ✔✔nothing
83. Convincing a prospective insured to buy an insurance policy based on exaggerations is called - Correct Ans: ✔✔misrepresentation

84. One of the purposes of a qualified profit-sharing plan is to - Correct Ans: ✔✔distribute a portion of company earnings to employees
85. How many days does an insurance company have to reject a reinstatement application before it is automatically reinstated? - Correct Ans: ✔✔ 45
86. Life insurance that covers an insured's whole life with level premiums paid over a limited time is called - Correct Ans: ✔✔Limited Pay Life
87. J is an agent who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of? - Correct Ans: ✔✔twisting
88. K is shopping for a permanent life insurance policy that will offer her the MOST protection per dollar of annual premium. Which of these policies best fits her needs? - Correct Ans: ✔✔Straight Life
89. In Florida, when agents recommend changes be made for existing coverage, the agent must follow established procedures.

The name of this rule is called the - Correct Ans: ✔✔Florida Replacement Rule

90. The incontestable clause allows an insurer to - Correct Ans: ✔✔contest a claim during the contestable period
91. The Payor clause of an insurance policy on a juvenile provides which of the following benefits - Correct Ans: ✔✔A waiver of premiums if the payor becomes disabled
92. How Long Does the Coverage normally remain on a limited pay life policy - Correct Ans: ✔✔until age 100 or until death
93. If an annuity is terminated prior to the beginning of the income payment period - Correct Ans: ✔✔the contract owner receives the contract surrender value at that time.
94. a policy that becomes a modified endowment contract - Correct Ans: ✔✔gets stripped of many tax benefits
95. K is an annuitant currently receiving payments. if she were to die before recieving payments equal to the correct value , a beneficiary will continue receiving payment until an amount equal to the contract value has been paid- this is a - Correct Ans: ✔✔Installment refund annuity

96. Common Disaster Clause provides that if both the insured and the sole named beneficiary were to die in a common accident, which of the following is true? - Correct Ans: ✔✔This clause provides the payment of proceeds to the insured's estate
97. Under a life insurance policy the ___ has the authority to name the beneficiary? - Correct Ans: ✔✔owner
98. 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 Ans: ✔✔Pay the amount that the premium would have purchased at the correct age.
99. Which Unfair Trade Practice involves an agent suggesting that an insurance policy is like a share of stock? *Twisting *Intimidation *Misrepresentation *Sliding - Correct Ans: ✔✔misrepresentation
100. 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 a reduced amount

101. W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the company discovered W's true age at issue had been 59. What would the normal procedure be under the misstatement of age provision in regard to the payment of the death claim? - Correct Ans: ✔✔The proceeds would be reduced based on whatever the premium would have been if purchased at age 59
102. The financial services commission may hold hearings - Correct Ans: ✔✔for any reason deemed necessary
103. In Florida, which agency is responsible for the rehabilitation or liquidation of insurers? - Correct Ans: ✔✔The Department of Financial Services
104. All of the following entries are classified under the four principles areas of Florida insurance law EXCEPT - Correct Ans: ✔✔An agent's commission
105. All of the following are Nonforfeiture Options EXCEPT - Correct Ans: ✔✔Automatic Premium Loan Option

106. Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group Term Life plan to all its eligible employees? - Correct Ans: ✔✔Portion of the premiums paid for by the employer may be a tax deduction
107. What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability? - Correct Ans: ✔✔Conversion