EXAM SIMULATOR FLORIDA-LIFE & HEALTH / FL HEALTH & LIFE AND ANNUITY COMPLETE STUDY GUIDE| Actual Test
questions and answers |graded A+
A non-contributory plan requires _________ participation of all eligible employees ✔️100%
A characteristic of preferred provider organizations (PPOS) would be: ✔️Discounted fees for the patient
Which of the following areas of state regulation is NOT protected by the saving clause in ERISA?
✔️Commerce
Additional coverage can be added to a whole Life policy by adding a(n): ✔️decreasing term rider
What benefit does the payor clause on a Juvenile Life policy provide? ✔️Premiums are waived if the
payor becomes disabled
According to Florida law, when must an agent deliver the outline of Coverage to a Medicare Supplement
applicant? ✔️At the time of application
N is a student pilot with a large life insurance policy. Which of these features would limit the insurer's
obligation in the event N was killed while flying as a student pilot? ✔️Exclusion
Which statement is true regarding a minor beneficiary ? ✔️Normally, a guarding is required to be
appointed in the Beneficiary clause of the contract
A sole proprietor may use this plan ONLY if the employees of this business are included. ✔️Individual
Retirement Account (IRA)
Which of the following provisions is NOT required in HMO contracts/certificated? ✔️Seven-day grace
period
The Bureau of Unclaimed Property is overseen by the ✔️Chief Financial Officer
A life policy that contains a monthly mortality charge as well as self-directed investment choices is called
a(n) ✔️Variable Universal Life policy
An insurance company normally has 2 years to contest information provided on an accident and health
application. This 2 year period begins on the date that the: ✔️insurer dated the policy
P is a new employee and will be obtaining non- contributory group Major Medical insurance from her
employer. Which of the following actions must she take during the open enrollment period? ✔️Sign an
enrollment card
Which of the following statements is true about most Blue Cross/Blue Shield organizations? ✔️They are
nonprofit organizations
A "reimbursement policy" pays what amount of covered Long-Term care expenses? ✔️Actual covered
expenses up to the daily maximum
An individual covered under a group life insurance policy is considered to be a (n) ✔️certificate holder
,The __________ has the right to change a life insurance policy's beneficiary. ✔️policyowner
Which of the following documents must an agent submit to the replacing insurance company during the
replacement of an existing life insurance policy? ✔️Notice to existing and replacing insurers of intention
to replace
Which of these statements concerning an individual Disability income policy is TRUE? ✔️Normally
includes an Elimination period
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 ✔️a representation
A foreign insurance company doing business in Florida ✔️is a company that was formed under the laws
of another state
An insurer must provide an insured with claim forms within __ days after receiving notice of a loss. ✔️15
When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n)
: ✔️exclusion
What is the initial source of underwriting for an insurance policy? ✔️Application containing statements
from the insured
T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight life Annuity. What will this
transaction provide? ✔️Income that cannot be outlived by the owner
Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested".
How can this be interpreted? ✔️If Tom's employment is terminated, 20% of the funds would be forfeited
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?
✔️Life Income
K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6
and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this?
✔️Modified Whole Life
An Insured's inability to perform two or more activities of daily living may trigger which type of life
policy rider? ✔️Long term care
Which of these is an element of a Variable Life policy? ✔️A fixed, level premium
F needs life insurance that provides coverage for only a limited amount of time with a death benefit that
changes regularly to a schedule. What kind of policy is needed? ✔️Decreasing term policy
Which parts of a life insurance policy are guaranteed to be true? ✔️Warranty
In Major Medical Expense policies, what is the objective of a Stop Loss provision? ✔️Limits an insured's
out-of-pocket medical expenses.
, T has an annuity that guarantees an income payment for the rest of his life. The contract also
guaranteed that if T dies before receiving payments for 20 years, the remaining payments will be paid to
his son for the balance of the 20 years. What type of annuity is this? ✔️Life Annuity with Period Certain
Florida's 14-day free-look period for life insurance policies begins at the ✔️date of delivery
J would like to maintain the right to change beneficiaries. Which beneficiary designation should be
used? ✔️Revocable
The Notice of Claims provision requires a policyowner to: ✔️notify an insurer of a claim within a specified
time
What type of life policy cover 2 lives and pays the face amount after the first one dies? ✔️Joint Life Policy
on August 6, D submitted and application for a $50,000 Life Insurance policy and did not pay the initial
premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by
the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently
taken place with the doctor. What action should the producer take? ✔️Collect initial premium along with
a signed health statement
J owns a business and has a group Life policy covering her employees. J decides to cancel the policy by
letting it lapse on the renewal date. What action must be taken? ✔️All of the employees must be notified
of the cancellation either by the insurance company or through J
Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of Term coverage
on himself under the same policy. What kind of policy should Q purchase? ✔️Whole life policy with other
insured rider
A life insurance policy would be considered a wagering contract WITHOUT ✔️insurable interest
A Business overhead Expense policy would cover which of the following if a business owner becomes
disabled? ✔️Utilities and office rent
A Whole Life insurance policyowner does NOT have the right to ✔️change the grace period
Which of the following types of Term Life policies most likely contains a Renewability feature? ✔️10 Year
Convertible Term
A catastrophic illness would be best covered by which of the following health insurance plans? ✔️Major
Medical
Many small business owner worry how their business would survive financially if the owner becomes
disabled. The policy which BEST addresses this concern is: ✔️Business Overhead Expense
A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan. minus
$6,000 withholding. Which federal taxed apply if none of the funds were rolled over? ✔️Income taxes
plus a 10% penalty tax on $30,000
questions and answers |graded A+
A non-contributory plan requires _________ participation of all eligible employees ✔️100%
A characteristic of preferred provider organizations (PPOS) would be: ✔️Discounted fees for the patient
Which of the following areas of state regulation is NOT protected by the saving clause in ERISA?
✔️Commerce
Additional coverage can be added to a whole Life policy by adding a(n): ✔️decreasing term rider
What benefit does the payor clause on a Juvenile Life policy provide? ✔️Premiums are waived if the
payor becomes disabled
According to Florida law, when must an agent deliver the outline of Coverage to a Medicare Supplement
applicant? ✔️At the time of application
N is a student pilot with a large life insurance policy. Which of these features would limit the insurer's
obligation in the event N was killed while flying as a student pilot? ✔️Exclusion
Which statement is true regarding a minor beneficiary ? ✔️Normally, a guarding is required to be
appointed in the Beneficiary clause of the contract
A sole proprietor may use this plan ONLY if the employees of this business are included. ✔️Individual
Retirement Account (IRA)
Which of the following provisions is NOT required in HMO contracts/certificated? ✔️Seven-day grace
period
The Bureau of Unclaimed Property is overseen by the ✔️Chief Financial Officer
A life policy that contains a monthly mortality charge as well as self-directed investment choices is called
a(n) ✔️Variable Universal Life policy
An insurance company normally has 2 years to contest information provided on an accident and health
application. This 2 year period begins on the date that the: ✔️insurer dated the policy
P is a new employee and will be obtaining non- contributory group Major Medical insurance from her
employer. Which of the following actions must she take during the open enrollment period? ✔️Sign an
enrollment card
Which of the following statements is true about most Blue Cross/Blue Shield organizations? ✔️They are
nonprofit organizations
A "reimbursement policy" pays what amount of covered Long-Term care expenses? ✔️Actual covered
expenses up to the daily maximum
An individual covered under a group life insurance policy is considered to be a (n) ✔️certificate holder
,The __________ has the right to change a life insurance policy's beneficiary. ✔️policyowner
Which of the following documents must an agent submit to the replacing insurance company during the
replacement of an existing life insurance policy? ✔️Notice to existing and replacing insurers of intention
to replace
Which of these statements concerning an individual Disability income policy is TRUE? ✔️Normally
includes an Elimination period
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 ✔️a representation
A foreign insurance company doing business in Florida ✔️is a company that was formed under the laws
of another state
An insurer must provide an insured with claim forms within __ days after receiving notice of a loss. ✔️15
When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n)
: ✔️exclusion
What is the initial source of underwriting for an insurance policy? ✔️Application containing statements
from the insured
T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight life Annuity. What will this
transaction provide? ✔️Income that cannot be outlived by the owner
Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested".
How can this be interpreted? ✔️If Tom's employment is terminated, 20% of the funds would be forfeited
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?
✔️Life Income
K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6
and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this?
✔️Modified Whole Life
An Insured's inability to perform two or more activities of daily living may trigger which type of life
policy rider? ✔️Long term care
Which of these is an element of a Variable Life policy? ✔️A fixed, level premium
F needs life insurance that provides coverage for only a limited amount of time with a death benefit that
changes regularly to a schedule. What kind of policy is needed? ✔️Decreasing term policy
Which parts of a life insurance policy are guaranteed to be true? ✔️Warranty
In Major Medical Expense policies, what is the objective of a Stop Loss provision? ✔️Limits an insured's
out-of-pocket medical expenses.
, T has an annuity that guarantees an income payment for the rest of his life. The contract also
guaranteed that if T dies before receiving payments for 20 years, the remaining payments will be paid to
his son for the balance of the 20 years. What type of annuity is this? ✔️Life Annuity with Period Certain
Florida's 14-day free-look period for life insurance policies begins at the ✔️date of delivery
J would like to maintain the right to change beneficiaries. Which beneficiary designation should be
used? ✔️Revocable
The Notice of Claims provision requires a policyowner to: ✔️notify an insurer of a claim within a specified
time
What type of life policy cover 2 lives and pays the face amount after the first one dies? ✔️Joint Life Policy
on August 6, D submitted and application for a $50,000 Life Insurance policy and did not pay the initial
premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by
the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently
taken place with the doctor. What action should the producer take? ✔️Collect initial premium along with
a signed health statement
J owns a business and has a group Life policy covering her employees. J decides to cancel the policy by
letting it lapse on the renewal date. What action must be taken? ✔️All of the employees must be notified
of the cancellation either by the insurance company or through J
Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of Term coverage
on himself under the same policy. What kind of policy should Q purchase? ✔️Whole life policy with other
insured rider
A life insurance policy would be considered a wagering contract WITHOUT ✔️insurable interest
A Business overhead Expense policy would cover which of the following if a business owner becomes
disabled? ✔️Utilities and office rent
A Whole Life insurance policyowner does NOT have the right to ✔️change the grace period
Which of the following types of Term Life policies most likely contains a Renewability feature? ✔️10 Year
Convertible Term
A catastrophic illness would be best covered by which of the following health insurance plans? ✔️Major
Medical
Many small business owner worry how their business would survive financially if the owner becomes
disabled. The policy which BEST addresses this concern is: ✔️Business Overhead Expense
A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan. minus
$6,000 withholding. Which federal taxed apply if none of the funds were rolled over? ✔️Income taxes
plus a 10% penalty tax on $30,000
