Florida Life Insurance State Exam Questions and Answers with Complete Solutions

Single Premium - Allows the person to pay entire lump sum, is covered for life, and has the highest cash value. Level term covers - Covers for a period of time with lowest premium pay Endowment at age 70 - 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? renewable - Level term may be Modify whole life - Premium stays fixed for 5yrs, premium increases yr 6, then levels out while death benefit stays the same. 20-pay life - A policy that provides the most rapid growth of cash value Decreasing term rider - Additional coverage can be added to a Whole Life policy by adding a(n): Decreasing - The combination of Whole Life and ______ Term insurance is referred to as a Family Income Policy. face amount can be adjusted using policy dividends - All of these are characteristics of an Adjustable Life policy, EXCEPT: Cash value may be borrowed against - Which statement about a whole life policy is correct? Upon the insured's death during the term of the policy - A term life insurance policy matures: A variable insurance policy - What does not guarantee a return on its investment accounts When the cash value equals the death benefit - At what point does a Whole Life Insurance policy endow? Change the policy's interest rate - A company that owns a life insurance policy on one of its key employees may do all of the following EXCEPT Coverage is limited to only congenital defects - Which of the following statements about health coverage for newborns is NOT true? Until terminated - How long does an insurance company application remain in force? Insureds need for flexible premiums - Which of these needs is satisfied by Adjustable Life insurance? commissioner - An Evidence of Coverage form may be issued by a Health Maintenance Organization (HMO) after being approved by the bilateral - All of the following are considered to be typical characteristics describing the nature of an insurance contract, EXCEPT: