FL Life and Health Insurance 2-15 Study Exam 165
Questions with Verified Answers
N is covered by a Term Life policy and does not make the required premium
payment which was due August 1. N dies September 15. What action will the
insurer take? - CORRECT ANSWER Claim will be denied.
A contract where one party either accepts or rejects the terms of a contract
written by another party is called a contract of - CORRECT ANSWER adhesion
All of the following statements about Major Medical benefits are true, EXCEPT: -
CORRECT ANSWER Benefits have no maximum limit
W gave W's age as 50 when W purchased a Life policy. At the time of W's death
seven years later, the company discovered W's true age at issue had been 59.
What would the normal procedure be under the misstatement of age provision in
regard to the payment of the death claim? - CORRECT ANSWER The proceeds
would be reduced based on whatever the premium would have been if purchased
at age 59.
All of these are considered sources of underwriting information about an
applicant, EXCEPT: - CORRECT ANSWER Inspection Report
According to the Mandatory Uniform Policy Provisions, what is the maximum
amount of time after the premium due date during which the policy remains in
force even though the premium has not been paid? - CORRECT ANSWER 31 days
Which provision allows the policy owner to change a term life policy to a
permanent one without providing proof of good health? - CORRECT ANSWER
Conversion
What do families pay that are covered by the Florida Healthy Kids Corporation? -
CORRECT ANSWER A portion of the premium
,Which statement regarding third-party ownership of a life insurance policy is
true? - CORRECT ANSWER It is used extensively in estate planning as well as
business circumstances.
Which of the following employees may NOT be excluded from a group life plan? -
CORRECT ANSWER Full-time employees after the probationary period.
Which of the following statements BEST describes what the Legal Actions
provision of an Accident and Health policy requires? - CORRECT ANSWER An
insured must wait at least 60 days after Proof of Loss has been submitted before a
lawsuit can be filed.
What percentage of eligible persons must a policy cover in a noncontributory
group? - CORRECT ANSWER 100%
What are adjustable rates for life policy loans in Florida based on? - CORRECT
ANSWER Moody's corporate bond index.
An underwriter determines that a life insurance applicant's risk should be
reclassified due to a health issue. This policy may be issued with a(n): - CORRECT
ANSWER exclusion for the medical condition
What is the initial requirement for an insured to become eligible for benefits
under the Waiver of Premium provision? - CORRECT ANSWER Insured must be
under a physician's care
J has a Disability Income policy that does NOT provide benefits for losses
occurring as the result of his employment. What kind of coverage is this? -
CORRECT ANSWER Nonoccupational coverage
K is insured under a Group Life Insurance policy. K is considered to be a(n) -
CORRECT ANSWER certificate holder
According to Florida law, which of the following information does NOT need to be
obtained by an agent recommending an annuity purchase? - CORRECT ANSWER
Marital status
, Dividends paid from a life insurance policy are - CORRECT ANSWER taxable
S takes out a health insurance policy which contains a provision that states the
agent does not have the authority to change the policy or waive any of its
provisions. Which health policy provision is this? - CORRECT ANSWER Entire
Contract
Which policy requires an agent to register with the National Association of
Securities Dealers (NASD) before selling? - CORRECT ANSWER Variable Life
Defamation occurs when an agent makes a false statement intended to -
CORRECT ANSWER malign another insurer
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? - CORRECT ANSWER All of the employees must be notified of the
cancellation either by the insurance company or through J.
Which of the following is NOT required in the Outline of Coverage for a health
insurance policy? - CORRECT ANSWER Projection of the policy's future costs.
What type of life policy covers two people and pays upon the death of the last
insured? - CORRECT ANSWER Survivorship
Which of the following acts is an agent NOT authorized to do on behalf of an
insurer? - CORRECT ANSWER Authorize claim payments
One becomes eligible for Social Security disability benefits after having been
disabled for - CORRECT ANSWER 5 months
Traditional individual retirement annuity (IRA) distributions must start by -
CORRECT ANSWER April 1st of the year following the year the participant attains
age 70 ½.
An agent selling Medicare Supplement policies must provide every applicant with
a(n): - CORRECT ANSWER Suitability form
Questions with Verified Answers
N is covered by a Term Life policy and does not make the required premium
payment which was due August 1. N dies September 15. What action will the
insurer take? - CORRECT ANSWER Claim will be denied.
A contract where one party either accepts or rejects the terms of a contract
written by another party is called a contract of - CORRECT ANSWER adhesion
All of the following statements about Major Medical benefits are true, EXCEPT: -
CORRECT ANSWER Benefits have no maximum limit
W gave W's age as 50 when W purchased a Life policy. At the time of W's death
seven years later, the company discovered W's true age at issue had been 59.
What would the normal procedure be under the misstatement of age provision in
regard to the payment of the death claim? - CORRECT ANSWER The proceeds
would be reduced based on whatever the premium would have been if purchased
at age 59.
All of these are considered sources of underwriting information about an
applicant, EXCEPT: - CORRECT ANSWER Inspection Report
According to the Mandatory Uniform Policy Provisions, what is the maximum
amount of time after the premium due date during which the policy remains in
force even though the premium has not been paid? - CORRECT ANSWER 31 days
Which provision allows the policy owner to change a term life policy to a
permanent one without providing proof of good health? - CORRECT ANSWER
Conversion
What do families pay that are covered by the Florida Healthy Kids Corporation? -
CORRECT ANSWER A portion of the premium
,Which statement regarding third-party ownership of a life insurance policy is
true? - CORRECT ANSWER It is used extensively in estate planning as well as
business circumstances.
Which of the following employees may NOT be excluded from a group life plan? -
CORRECT ANSWER Full-time employees after the probationary period.
Which of the following statements BEST describes what the Legal Actions
provision of an Accident and Health policy requires? - CORRECT ANSWER An
insured must wait at least 60 days after Proof of Loss has been submitted before a
lawsuit can be filed.
What percentage of eligible persons must a policy cover in a noncontributory
group? - CORRECT ANSWER 100%
What are adjustable rates for life policy loans in Florida based on? - CORRECT
ANSWER Moody's corporate bond index.
An underwriter determines that a life insurance applicant's risk should be
reclassified due to a health issue. This policy may be issued with a(n): - CORRECT
ANSWER exclusion for the medical condition
What is the initial requirement for an insured to become eligible for benefits
under the Waiver of Premium provision? - CORRECT ANSWER Insured must be
under a physician's care
J has a Disability Income policy that does NOT provide benefits for losses
occurring as the result of his employment. What kind of coverage is this? -
CORRECT ANSWER Nonoccupational coverage
K is insured under a Group Life Insurance policy. K is considered to be a(n) -
CORRECT ANSWER certificate holder
According to Florida law, which of the following information does NOT need to be
obtained by an agent recommending an annuity purchase? - CORRECT ANSWER
Marital status
, Dividends paid from a life insurance policy are - CORRECT ANSWER taxable
S takes out a health insurance policy which contains a provision that states the
agent does not have the authority to change the policy or waive any of its
provisions. Which health policy provision is this? - CORRECT ANSWER Entire
Contract
Which policy requires an agent to register with the National Association of
Securities Dealers (NASD) before selling? - CORRECT ANSWER Variable Life
Defamation occurs when an agent makes a false statement intended to -
CORRECT ANSWER malign another insurer
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? - CORRECT ANSWER All of the employees must be notified of the
cancellation either by the insurance company or through J.
Which of the following is NOT required in the Outline of Coverage for a health
insurance policy? - CORRECT ANSWER Projection of the policy's future costs.
What type of life policy covers two people and pays upon the death of the last
insured? - CORRECT ANSWER Survivorship
Which of the following acts is an agent NOT authorized to do on behalf of an
insurer? - CORRECT ANSWER Authorize claim payments
One becomes eligible for Social Security disability benefits after having been
disabled for - CORRECT ANSWER 5 months
Traditional individual retirement annuity (IRA) distributions must start by -
CORRECT ANSWER April 1st of the year following the year the participant attains
age 70 ½.
An agent selling Medicare Supplement policies must provide every applicant with
a(n): - CORRECT ANSWER Suitability form
