FLORIDA HEALTH AND LIFE INSURANCE STATE EXAM PRACTICE PART 1 (Pearson) 150 TEST QUESTIONS WITH DETAILED VERIFIED ANSWERS
The clause identifying which losses resulting from an accident or sickness are insured by the policy is called the: ✔️Insuring clause
K applies for a life insurance policy on herself and submits the initial premium with the application. She is given a receipt by the agent stating
that coverage begins immediately if the application is approved. What kind of receipt was used? ✔️Conditional
A life insurance arrangement which circumvents insurable interest statutes is called: ✔️Investor-Originated Life Insurance
Which of the following health policy provisions states that the producer does NOT have the authority to change the policy or waive any of its
provisions? ✔️Entire Contract
Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund? ✔️30
Which of the following is NOT an unfair claim settlement practice? ✔️Needing written documentation of claim details
Who is NOT required to sign a life insurance application? ✔️Beneficiary
To be eligible for Social Security disability benefits, an employee must be unable to perform: ✔️any occupation
The type of annuity that can be purchased with one monetary deposit is called a(n): ✔️Immediate annuity
A life insurance application must be signed by all of these, EXCEPT: ✔️beneficiary
Which of the following is considered an accurate statement of an unfair trade practice? ✔️Twisting involves an agent using misrepresentation to
convince a policyowner to cancel their current policy so that they can purchase a new life insurance policy with another company
The Accelerated Death Benefit provision in a life insurance policy is also known as a(n): ✔️Living Benefit
Which of the following policy features allows an insured to defer current health charges to the following year's deductible instead of the
current year's deducitble? ✔️Carryover provision
Insurance policies are considered aleatory contracts because ✔️performance is conditioned upon a future occurrence
Within how many days must a licensee notify the Department of Financial Services of a change in address? ✔️30
Which organization was established to provide funds to protect an insured in the event of an insurer's insolvency? ✔️Florida Life and Health
Insurance Guaranty Association
The clause in an Accident and Health policy which defines the benefit amounts the insurer will pay is called the: ✔️Insuring clause
When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n): ✔️Anti-
Money Laundering violation
According to the Time Payment of Claims provision, the insurer must pay Disability Income benefits no less frequently than which of the
following options? ✔️Monthly
What would the Medical Information Bureau (MIB) identify? ✔️Testing positive for marijuana use from a previous screening
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? ✔️If the primary
beneficiary dies before the insured
Under a Renewable Term policy, ✔️the renewal premium is calculated on the basis of the insured's attained age
Which of the following statements is true about most Blue Cross/Blue Shield organizations? ✔️They are nonprofit organizations
If a policyowner does not pay the premium by the due date, the ✔️policyowner can make the premium payment during the grace period
According to Florida law, which of the following information does NOT need to be obtained by an agent recommending an annuity purchase?
✔️Marital status
Which of these characteristics is consistent with a Straight Life policy? ✔️Premiums are payable for as long as there is insurance coverage in
force
, P completes an application for a $10,000 life policy, but does not give the producer the initial premium. P's coverage becomes effective when:
✔️P receives the policy and pays the premium
On August 6, D submitted an 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 then take? ✔️Collect initial premium along with a
signed health statement
A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of the policy's face value. ✔️viatical settlement
provider
According to Florida law, when must an agent deliver the Outline of Coverage to a Medicare Supplement applicant? ✔️At the time of application
Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE? ✔️It is taxed as ordinary
income
The automatic premium loan provision is designed to: ✔️avoid a policy lapse
A term life insurance policy matures: ✔️upon the insured's death during the term of the policy
What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies? ✔️Family Maintenance
Policy
The guarantee of insurability option provides a long-term care policyowner the ability to: ✔️buy additional coverage at a later date
When determining the monthly benefit amount for a Disability Income policy, the factor that limits the amount a prospective insured may
purchase is: ✔️income
Periodic health claim payments MUST be made at least: ✔️monthly
Which type of plan allows an employer to give money to an employee for buying a life insurance policy and also permits the employee to select
the beneficiary? ✔️Split-dollar plan
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 ✔️fiduciary responsibility
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? ✔️Coercion
An example of unfair discrimination would be ✔️offering different terms of coverage for different policyowners having the same risk
classification
Which of the following is a characteristic of a variable annuity? ✔️Underlying equity investments
A person insured under a health policy is required to give the insurance company a Notice of Claim within how many days after a covered loss?
✔️Twenty
How many days does an insurance company have to reject a reinstatement application before it is automatically reinstated? ✔️45
The Life and Health Insurance Guaranty Association is ✔️funded by admitted insurance companies through assessments
On January 8, an applicant filled out an application for a 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? ✔️January 26
Which of the following types of insureds are life insurance companies allowed to make policy rate discriminations against? ✔️People that smoke
P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's
sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits
will be paid to: ✔️P only
An insured pays premiums on an annual basis for an individual health insurance policy. What is the MINIMUM number of days for the Grace
Period provision? ✔️31
The clause identifying which losses resulting from an accident or sickness are insured by the policy is called the: ✔️Insuring clause
K applies for a life insurance policy on herself and submits the initial premium with the application. She is given a receipt by the agent stating
that coverage begins immediately if the application is approved. What kind of receipt was used? ✔️Conditional
A life insurance arrangement which circumvents insurable interest statutes is called: ✔️Investor-Originated Life Insurance
Which of the following health policy provisions states that the producer does NOT have the authority to change the policy or waive any of its
provisions? ✔️Entire Contract
Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund? ✔️30
Which of the following is NOT an unfair claim settlement practice? ✔️Needing written documentation of claim details
Who is NOT required to sign a life insurance application? ✔️Beneficiary
To be eligible for Social Security disability benefits, an employee must be unable to perform: ✔️any occupation
The type of annuity that can be purchased with one monetary deposit is called a(n): ✔️Immediate annuity
A life insurance application must be signed by all of these, EXCEPT: ✔️beneficiary
Which of the following is considered an accurate statement of an unfair trade practice? ✔️Twisting involves an agent using misrepresentation to
convince a policyowner to cancel their current policy so that they can purchase a new life insurance policy with another company
The Accelerated Death Benefit provision in a life insurance policy is also known as a(n): ✔️Living Benefit
Which of the following policy features allows an insured to defer current health charges to the following year's deductible instead of the
current year's deducitble? ✔️Carryover provision
Insurance policies are considered aleatory contracts because ✔️performance is conditioned upon a future occurrence
Within how many days must a licensee notify the Department of Financial Services of a change in address? ✔️30
Which organization was established to provide funds to protect an insured in the event of an insurer's insolvency? ✔️Florida Life and Health
Insurance Guaranty Association
The clause in an Accident and Health policy which defines the benefit amounts the insurer will pay is called the: ✔️Insuring clause
When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n): ✔️Anti-
Money Laundering violation
According to the Time Payment of Claims provision, the insurer must pay Disability Income benefits no less frequently than which of the
following options? ✔️Monthly
What would the Medical Information Bureau (MIB) identify? ✔️Testing positive for marijuana use from a previous screening
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? ✔️If the primary
beneficiary dies before the insured
Under a Renewable Term policy, ✔️the renewal premium is calculated on the basis of the insured's attained age
Which of the following statements is true about most Blue Cross/Blue Shield organizations? ✔️They are nonprofit organizations
If a policyowner does not pay the premium by the due date, the ✔️policyowner can make the premium payment during the grace period
According to Florida law, which of the following information does NOT need to be obtained by an agent recommending an annuity purchase?
✔️Marital status
Which of these characteristics is consistent with a Straight Life policy? ✔️Premiums are payable for as long as there is insurance coverage in
force
, P completes an application for a $10,000 life policy, but does not give the producer the initial premium. P's coverage becomes effective when:
✔️P receives the policy and pays the premium
On August 6, D submitted an 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 then take? ✔️Collect initial premium along with a
signed health statement
A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of the policy's face value. ✔️viatical settlement
provider
According to Florida law, when must an agent deliver the Outline of Coverage to a Medicare Supplement applicant? ✔️At the time of application
Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE? ✔️It is taxed as ordinary
income
The automatic premium loan provision is designed to: ✔️avoid a policy lapse
A term life insurance policy matures: ✔️upon the insured's death during the term of the policy
What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies? ✔️Family Maintenance
Policy
The guarantee of insurability option provides a long-term care policyowner the ability to: ✔️buy additional coverage at a later date
When determining the monthly benefit amount for a Disability Income policy, the factor that limits the amount a prospective insured may
purchase is: ✔️income
Periodic health claim payments MUST be made at least: ✔️monthly
Which type of plan allows an employer to give money to an employee for buying a life insurance policy and also permits the employee to select
the beneficiary? ✔️Split-dollar plan
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 ✔️fiduciary responsibility
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? ✔️Coercion
An example of unfair discrimination would be ✔️offering different terms of coverage for different policyowners having the same risk
classification
Which of the following is a characteristic of a variable annuity? ✔️Underlying equity investments
A person insured under a health policy is required to give the insurance company a Notice of Claim within how many days after a covered loss?
✔️Twenty
How many days does an insurance company have to reject a reinstatement application before it is automatically reinstated? ✔️45
The Life and Health Insurance Guaranty Association is ✔️funded by admitted insurance companies through assessments
On January 8, an applicant filled out an application for a 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? ✔️January 26
Which of the following types of insureds are life insurance companies allowed to make policy rate discriminations against? ✔️People that smoke
P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's
sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits
will be paid to: ✔️P only
An insured pays premiums on an annual basis for an individual health insurance policy. What is the MINIMUM number of days for the Grace
Period provision? ✔️31
