Florida 2-15 Final Exam With Complete
Solution Graded A+
When life insurance proceeds are used to pay inheritance taxes and federal
estate taxes, it is known as - Answer Estate conservation
In group insurance, the primary purpose of the Coordination of Benefits
provision is to - Answer Prevent overinsurance
Which of the following statements is NOT true regarding health insurance
policy provisions? - Answer All additional provisions written by insurers are
cataloged by their respective states.
The policyowner has an option to pledge the life insurance policy as collateral
for a bank loan. This is called - Answer A collateral assignment
A whole life policy is surrendered for a reduced-paid up policy. The cash
value in the new policy will - Answer Continue to increase
When filling out an application for insurance, the applicant makes a
mistake. If a fresh application were not available, what could the applicant
do to properly correct the mistake? - Answer Cross the incorrect answer
out, write the correct one beside it, and initial the answer.
Which of the following riders pays a beneficiary a death benefit that is
double or triple the face amount if the insured's death was caused by an
accident as defined in the policy? - Answer An Accidental Death Rider
All of the following are consideration in an insurance policy EXCEPT - Answer
The cash value in the policy.
An individual has a $200,000 convertible term life insurance policy. If he
chooses, he can - Answer Convert to a whole life policy for the same face
amount without proof of insurability.
Which of the following is NOT true regarding a deferred annuity? -
Answer Income payments begin within 1 year from the date of
purchase.
A retail shop owner is insured under a business overhead expense policy
that pays a maximum monthly benefit of $2,500. His actual monthly
expenses are $3,000. If the
, owner becomes disabled, the monthly benefit payable under his policy will be
- Answer
$2,500
Which federal act defines rules pertaining to protected health
information? - Answer HIPAA
The "stop-loss" feature on a major medical policy is intended to - Answer
Establish a maximum amount of out-of-pocket expense that an insured will
have to pay for medical expense in a calendar year.
If a business wants to make sure it will be able to cover losses due to the
disability of its top employee, the business should get which type of
insurance? - Answer Key person disability income
Life insurance creates an immediate estate. Which of the following best
explains this statement? - Answer The face value of the policy is payable to
the beneficiary upon the death of the insured.
What is the maximum age that a disabled insured worker may receive
Social Security disability benefits? - Answer 65
Whose responsibility is it to ensure that the application for health insurance is
complete and accurate? - Answer The agent's
Which of the following policies would NOT offer a policy loan option? -
Answer Term Life
Regarding the consideration clause, which of the following is NOT correct?
- Answer Consideration of the insurer and insured must be equal.
The guaranteed purchase option is also referred to as the - Answer
Future increase option.
When an insured terminates membership in the insured group, the insured
can convert to - Answer Whole life without proof of insurability.
Which dividend option will increase the death benefit? - Answer Paid-up
additions
What is the difference between a straight life policy and a 20-pay whole
life policy? - Answer Premium payment period
Which of the following policies can be described as a flexible premium
adjustable life policy? - Answer Universal Life
All of the following statements are true regarding an Ordinary (Straight)
Life policy EXCEPT - Answer It does not have a guaranteed death benefit.
Solution Graded A+
When life insurance proceeds are used to pay inheritance taxes and federal
estate taxes, it is known as - Answer Estate conservation
In group insurance, the primary purpose of the Coordination of Benefits
provision is to - Answer Prevent overinsurance
Which of the following statements is NOT true regarding health insurance
policy provisions? - Answer All additional provisions written by insurers are
cataloged by their respective states.
The policyowner has an option to pledge the life insurance policy as collateral
for a bank loan. This is called - Answer A collateral assignment
A whole life policy is surrendered for a reduced-paid up policy. The cash
value in the new policy will - Answer Continue to increase
When filling out an application for insurance, the applicant makes a
mistake. If a fresh application were not available, what could the applicant
do to properly correct the mistake? - Answer Cross the incorrect answer
out, write the correct one beside it, and initial the answer.
Which of the following riders pays a beneficiary a death benefit that is
double or triple the face amount if the insured's death was caused by an
accident as defined in the policy? - Answer An Accidental Death Rider
All of the following are consideration in an insurance policy EXCEPT - Answer
The cash value in the policy.
An individual has a $200,000 convertible term life insurance policy. If he
chooses, he can - Answer Convert to a whole life policy for the same face
amount without proof of insurability.
Which of the following is NOT true regarding a deferred annuity? -
Answer Income payments begin within 1 year from the date of
purchase.
A retail shop owner is insured under a business overhead expense policy
that pays a maximum monthly benefit of $2,500. His actual monthly
expenses are $3,000. If the
, owner becomes disabled, the monthly benefit payable under his policy will be
- Answer
$2,500
Which federal act defines rules pertaining to protected health
information? - Answer HIPAA
The "stop-loss" feature on a major medical policy is intended to - Answer
Establish a maximum amount of out-of-pocket expense that an insured will
have to pay for medical expense in a calendar year.
If a business wants to make sure it will be able to cover losses due to the
disability of its top employee, the business should get which type of
insurance? - Answer Key person disability income
Life insurance creates an immediate estate. Which of the following best
explains this statement? - Answer The face value of the policy is payable to
the beneficiary upon the death of the insured.
What is the maximum age that a disabled insured worker may receive
Social Security disability benefits? - Answer 65
Whose responsibility is it to ensure that the application for health insurance is
complete and accurate? - Answer The agent's
Which of the following policies would NOT offer a policy loan option? -
Answer Term Life
Regarding the consideration clause, which of the following is NOT correct?
- Answer Consideration of the insurer and insured must be equal.
The guaranteed purchase option is also referred to as the - Answer
Future increase option.
When an insured terminates membership in the insured group, the insured
can convert to - Answer Whole life without proof of insurability.
Which dividend option will increase the death benefit? - Answer Paid-up
additions
What is the difference between a straight life policy and a 20-pay whole
life policy? - Answer Premium payment period
Which of the following policies can be described as a flexible premium
adjustable life policy? - Answer Universal Life
All of the following statements are true regarding an Ordinary (Straight)
Life policy EXCEPT - Answer It does not have a guaranteed death benefit.
