NAIFA FLORIDA Exam Questions and Answers (Latest Update 2024), Exams of Nursing

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Answers (Latest Update 2024)

All of the following are elements of a contract Except: A offer and acceptance B consideration C fairly negotiable D competent parties - Correct Answer ✅C All of the following are reasons for the agent to personally deliver the life policy Except: A applicants don't remember everything about the policy B Commissions are delivered to the agent quicker C timely opportunity to review the contract and provisions D reinforces the sale - Correct Answer ✅B A STOLI or IOLI are life insurance arrangements involving investors that: A Take out life insurance and name the investor as the beneficiary B Sell life insurance policies to young adults as investments C Invest in Split Level term

Answers (Latest Update 2024)

D Sell Whole Life policies to businesses and split the commissions - Correct Answer ✅A When must insurable interest exist with life and health contracts? A At the time of the claim B Continuous throughout the duration of the policy C At the inception of the policy D Insurable interest is not an element of life and health policies - Correct Answer ✅C Who is responsible for deciding if an applicant is an uninsurable risk? A Actuary B Underwriter A Applicant's physician D Agent - Correct Answer ✅B If an agent makes misleading comparisons so that an insured will lapse their policy and take out another policy is called:

Answers (Latest Update 2024)

A Churning B Rebate C Twisting D Coercion - Correct Answer ✅C The policy effective date is important because it establishes: A the acceptance clause retro date B the consideration clause effective date C The date by which future annual premium must be paid D The entire contract renewal date - Correct Answer ✅C All of the following are considered misrepresentation Except: A Making someone believe the government is responsible for sales B Overstating guarantees C Taking part in intentional fraud D Charging an applicant for a coverage without the consent of the applicant - Correct Answer ✅D

Answers (Latest Update 2024)

Which of the following is not an element for a contract to be legally valid? A Legal purpose B Consideration C Competent parties D Offer and rejection - Correct Answer ✅D All of the following are powers and duties of the Department of Financial Services Except: A Enforce the insurance code B Conduct investigations of insurance matters C Approve policy forms D Develop and implement an outreach program - Correct Answer ✅C Publishing written statements critical of any person and is calculated to injure such person: A Defamation B False advertising C Misrepresentation

Answers (Latest Update 2024)

D Intimidation - Correct Answer ✅A An insurance company that has its home office in Switzerland is called: A An overseas company B A foreign company C A domestic company D An alien company - Correct Answer ✅D Answers that must be true only to the extent that they are material to the risk are: A Representations B Warranties C Statements D Opinions - Correct Answer ✅A All of the following are considered serving the best interest of the insuring public Except: A Understanding and observing the spirit of the law

Answers (Latest Update 2024)

B Placing the insurer's interest first C Presenting every fact accurately and completely D Being fair in all relations - Correct Answer ✅B A statement made by the applicant guaranteed to be true is called: A Warranty B Disclosure C Aleatory D Incontestable statement - Correct Answer ✅A An aleatory contract is described as: A Only an element of chance on the insurer's part B No element of chance C Unequal value D Not depending on the occurrence of an event - Correct Answer ✅C

Answers (Latest Update 2024)

Which of the following is not a prohibited practice under Unfair Methods of Competition? A Rebating B Churning C Twisting D Disclosure - Correct Answer ✅D Defamation, coercion, false advertising, and sliding are referred to in the Florida Statutes as: A McCarron-Ferguson B Unfair Methods of Competition C Fair Credit Reporting D Administrative Code - Correct Answer ✅B In Florida, the free-look period for life insurance is: A 14 days B 21 days C 30 days D 15 days - Correct Answer ✅A

Answers (Latest Update 2024)

The maximum allowable rate in Florida for a policy loan is: A 8% B 5% C 10% D No maximum - Correct Answer ✅C If the policyowner names his children beneficiary and his wife, the primary beneficiary dies, the children are referred to as: A per capita B per stirps C tertiary D contingent - Correct Answer ✅D If a policyowner commits suicide 6 months after the policy is issued, the insurer will: A pay the face amount B return all premium paid

Answers (Latest Update 2024)

C pay nothing D include interest with the return premiums - Correct Answer ✅B The incontestability clause specifies after how many years does the insurer not have the right to contest the validity of the life insurance policy? A usually 3 years from the issue date B usually 5 years from the issue date C usually 2 years from the issue date D usually 7 years from the issue date - Correct Answer ✅C One of the following is not a right a policyowner has in regards to a irrevocable beneficiary: A change the beneficiary B policy assignment C settlement option D choose the dividend option - Correct Answer ✅A The Fair Credit Reporting Act:

Answers (Latest Update 2024)

A requires the insurer to provide all the names contacted in the preceding 12 months for purposes of the report B allows the insurer to keep all gathered information concerning the applicant for other insurance companies to use C requires the insurer to disclose the source of the investigation within 5 days from the request D none of the above - Correct Answer ✅C Each application requires the signature of all of the following Except: A proposed insured B the policyowner C underwriter D agent - Correct Answer ✅C How many days does the grace period provision allow to keep a life insurance policy in force? A 30 B 15

Answers (Latest Update 2024)

C 20

D 60 - Correct Answer ✅A The most common types of exclusions include all of the following Except A aviation B felony C pre-existing conditions D hazard occupations - Correct Answer ✅C Life insurance premium rates are generally expressed as: A operating expenses plus mortality table rates B death rates plus mortality rates C mortality factors plus operating costs D annual cost per $1,000 of face amount - Correct Answer ✅D The insurance clause is typically undersigned by the: A company actuary

Answers (Latest Update 2024)

B underwriter C agent D president of the company - Correct Answer ✅D A return of premium rider does not actually return premium but: A purchases a policy for beneficiaries B pays an additional benefit equal to premiums paid C Pays dividends from the insurance company stock D sets aside a percentage of premium to the beneficiary - Correct Answer ✅B The other insured's rider which provides insurance for more than one family member is also referred to as: A children's rider B family rider C term rider D all of the above - Correct Answer ✅D

Answers (Latest Update 2024)

A rider that is attached to the policy and covers other family member is called: A family rider B additional beneficiary rider C Add-on rider D Generational rider - Correct Answer ✅A If the insured had an accidental death benefit rider and the death occurred under stated conditions, the policy would: A pay only the face amount B reduce the policy's face amount C triple the policy's face amount D double the policy's face amount - Correct Answer ✅D The payor provisions is also known as the: A death and disability payor benefit B waiver of premium C Benefit rider D Disability income rider - Correct Answer ✅A

Answers (Latest Update 2024)

When life insurance is used to protect a business against interruptions caused by the loss of one of its valuable assets, the policy is called: A key employee B split dollar C corporate stock redemption D buy-sell plan - Correct Answer ✅A If the applicant incorrectly list the wrong age on the application and 5 years later dies, the insurer will: A adjust the benefits according to the correct age B return premium paid C pay the face amount D void the policy due to the misstatement - Correct Answer ✅A All of the following are true concerning the reinstatement of a life insurance policy Except: A interest on past-due premiums may be required to be paid

Answers (Latest Update 2024)

B outstanding loans default are accepted C the policyowner may be asked to prove insurability D All back premiums must be paid - Correct Answer ✅B All of the following are modes of payments for life insurance policyowners Except: A annually B semiannually C weekly D monthly - Correct Answer ✅C The Florida Employee Health Care Access Act's definition of small employer does not allow more than _____ employees. A 100 B 30 C 50 D no limit - Correct Answer ✅C

Answers (Latest Update 2024)

Continuous around the clock care provided by a licensed medical professional is called: A continuous care B custodial care C intermediate nursing care D skilled nursing care - Correct Answer ✅D All applicants of long term care insurance must be furnished with: A policy illustration B advertisement gift C buyer's guide D insurer brochure - Correct Answer ✅C All of the following are generally covered by Long Term Care Except: A alzheimers B parkinsons C drug abuse

Answers (Latest Update 2024)

D chronic heart disease - Correct Answer ✅C All of the following acts and practices are prohibited Except: A twisting B high pressure tactics C prospecting D cold calling, without disclosing a solicitation - Correct Answer ✅C A medicare supplement insurer cannot deny an application for a medicare supplement policy if the application is submitted prior to or during the six month period before age: A 70 B 67 C 63 D 65 - Correct Answer ✅D How is the premium for a joint life policy determined? A ages of insured are "averaged" and single premium is charged

Answers (Latest Update 2024)

B the ages are divided by two and amortized C the insured determines the premium in the contract D none of the above - Correct Answer ✅A A policy filed with the Office of Insurance Regulation as a medicare supplement policy must do all of the following Except: A preclude pre-existing conditions for more than 18 months B have a definition of "medicare eligible expense" C provide that benefits designed to cover cost sharing amounts under medicare will be changed to coincide with medicare deductible amounts D be written in a simplified language - Correct Answer ✅A What type of insurance is designed to reimburse a business for overhead expenses in the event a business owner becomes disabled? A buy-sell agreement B Cafeteria plans C Business overhead expense insurance

Answers (Latest Update 2024)

D Key person disability - Correct Answer ✅C Which of the following is a correct statement about a contract of adhesion? A The contract is fairly negotiated B The contract is prepared by one party C Only the insurer adheres to the terms D The contract is viewed more favorably for the party that drafted the contract - Correct Answer ✅B Guaranteed insurability options usually do not extend past age: A 65 B 40 C 55 D 25 - Correct Answer ✅B What kind of policy pays the benefits upon the death of the last surviving insured? A family plan policy

Answers (Latest Update 2024)

B Credit life policy C Second to die policy D multiple protection policy - Correct Answer ✅C The option to convert a policy to a whole life can be done without: A premium increase B evidence of insurability C an additional amount D whole life waiver - Correct Answer ✅B A guaranteed renewable policy allows the insured to renew without: A increasing the premiums B decreasing the death benefit C naming a beneficiary D providing evidence of insurability - Correct Answer ✅D

Answers (Latest Update 2024)

Most term policies contain two options that extend the coverage. They are the options to: A increase and renew B convert and pay C renew and convert D review and renew - Correct Answer ✅C A policy rider that in the event of death of the insured within a specified period of time, the policy will pay, in addition to the face amount, all the premiums paid to date is called: A premium rider B return of premium rider C equalized rider D short term rider - Correct Answer ✅B A policy that is characterized by premiums that vary to reflect the insurers changing experiences with regard to its mortality, investment and expense factors is called: A Credit life B multiple protection policy

Answers (Latest Update 2024)

C interest sensitive whole life D adjustable life - Correct Answer ✅C The health plan that the employer pays a fixed periodic contribution in advance for the services of participating physicians and cooperating hospitals is called a: A health maintenance organization B preferred provider organization C exclusive provider organization D multiple employer welfare arrangement - Correct Answer ✅A A long term care policy issued to an individual must not contain renewal provisions other than: A guaranteed renewable B irrevocable renewal C renewable optional D cancellable under limited term - Correct Answer ✅A

Answers (Latest Update 2024)

If a sale involves replacement of medicare supplement coverage, the agent must furnish the applicant a: A notice regarding replacement of medicare supplement coverage B notice of insurance coverage affordability C notice of health insurance comparison D notice of replacement review - Correct Answer ✅A The waiver of premium rider does not apply to: A the insured if unable to work for 18 months B disabilities C long-term injury D short term illness - Correct Answer ✅D Most insurers may limit the number of times Annually Renewable Term can be renewed. It is not uncommon for an ART to be renewed up to age: A 65 B 70 C 55

Answers (Latest Update 2024)

D 99 - Correct Answer ✅A This type of policy provides coverage for one year and allows the policyholder to renew without evidence of insurability A annually renewable term B evidence of insurability term C one year term policy D level term policy - Correct Answer ✅A The pre-existing conditions provision in the medicare supplement policy is limited to: A 6 months B 12 months C 18 months D 24 months - Correct Answer ✅A Plans that enter into "alternative rates of payments" agreement with licensed health care providers are called: A exclusive provider organization

Answers (Latest Update 2024)

B health maintenance organization C preferred provider organization D multiple employer welfare arrangement - Correct Answer ✅C Providing assistance in meeting daily living requirements such as bathing, dressing, or getting out of bed that doesn't require specialized training is called: A skilled nursing care B custodial care C intermediate nursing care D short term care - Correct Answer ✅B Another name for nursing home care is: A extended care coverage B disability insurance C chronic illness care D long term care - Correct Answer ✅D