Exam Simulator FL-LH - FL Health and
Life and Annuity correctly answered
A non-contributory plan requires _________ participation of all eligible employees - correct answer
✔✔100%
A characteristic of preferred provider organizations (PPOS) would be: - correct answer ✔✔Discounted
fees for the patient
Which of the following areas of state regulation is NOT protected by the saving clause in ERISA? - correct
answer ✔✔Commerce
Additional coverage can be added to a whole Life policy by adding a(n): - correct answer ✔✔decreasing
term rider
What benefit does the payor clause on a Juvenile Life policy provide? - correct answer ✔✔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? - correct answer ✔✔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? - correct answer ✔✔Exclusion
Which statement is true regarding a minor beneficiary ? - correct answer ✔✔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. - correct answer
✔✔Individual Retirement Account (IRA)
,Which of the following provisions is NOT required in HMO contracts/certificated? - correct answer
✔✔Seven-day grace period
The Bureau of Unclaimed Property is overseen by the - correct answer ✔✔Chief Financial Officer
A life policy that contains a monthly mortality charge as well as self-directed investment choices is called
a(n) - correct answer ✔✔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: - correct answer ✔✔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? - correct
answer ✔✔Sign an enrollment card
Which of the following statements is true about most Blue Cross/Blue Shield organizations? - correct
answer ✔✔They are nonprofit organizations
A "reimbursement policy" pays what amount of covered Long-Term care expenses? - correct answer
✔✔Actual covered expenses up to the daily maximum
An individual covered under a group life insurance policy is considered to be a (n) - correct answer
✔✔certificate holder
The __________ has the right to change a life insurance policy's beneficiary. - correct answer
✔✔policyowner
Which of the following documents must an agent submit to the replacing insurance company during the
replacement of an existing life insurance policy? - correct answer ✔✔Notice to existing and replacing
insurers of intention to replace
Which of these statements concerning an individual Disability income policy is TRUE? - correct answer
✔✔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 - correct answer ✔✔a representation
A foreign insurance company doing business in Florida - correct answer ✔✔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. -
correct answer ✔✔15
When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n)
: - correct answer ✔✔exclusion
What is the initial source of underwriting for an insurance policy? - correct answer ✔✔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? - correct answer ✔✔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? - correct answer ✔✔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? -
correct answer ✔✔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? -
correct answer ✔✔Modified Whole Life
An Insured's inability to perform two or more activities of daily living may trigger which type of life policy
rider? - correct answer ✔✔Long term care
, Which of these is an element of a Variable Life policy? - correct answer ✔✔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? - correct answer ✔✔Decreasing term
policy
Which parts of a life insurance policy are guaranteed to be true? - correct answer ✔✔Warranty
In Major Medical Expense policies, what is the objective of a Stop Loss provision? - correct answer
✔✔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? - correct answer ✔✔Life Annuity with Period
Certain
Florida's 14-day free-look period for life insurance policies begins at the - correct answer ✔✔date of
delivery
J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used?
- correct answer ✔✔Revocable
The Notice of Claims provision requires a policyowner to: - correct answer ✔✔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? - correct answer
✔✔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? - correct answer ✔✔Collect initial
premium along with a signed health statement
Life and Annuity correctly answered
A non-contributory plan requires _________ participation of all eligible employees - correct answer
✔✔100%
A characteristic of preferred provider organizations (PPOS) would be: - correct answer ✔✔Discounted
fees for the patient
Which of the following areas of state regulation is NOT protected by the saving clause in ERISA? - correct
answer ✔✔Commerce
Additional coverage can be added to a whole Life policy by adding a(n): - correct answer ✔✔decreasing
term rider
What benefit does the payor clause on a Juvenile Life policy provide? - correct answer ✔✔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? - correct answer ✔✔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? - correct answer ✔✔Exclusion
Which statement is true regarding a minor beneficiary ? - correct answer ✔✔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. - correct answer
✔✔Individual Retirement Account (IRA)
,Which of the following provisions is NOT required in HMO contracts/certificated? - correct answer
✔✔Seven-day grace period
The Bureau of Unclaimed Property is overseen by the - correct answer ✔✔Chief Financial Officer
A life policy that contains a monthly mortality charge as well as self-directed investment choices is called
a(n) - correct answer ✔✔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: - correct answer ✔✔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? - correct
answer ✔✔Sign an enrollment card
Which of the following statements is true about most Blue Cross/Blue Shield organizations? - correct
answer ✔✔They are nonprofit organizations
A "reimbursement policy" pays what amount of covered Long-Term care expenses? - correct answer
✔✔Actual covered expenses up to the daily maximum
An individual covered under a group life insurance policy is considered to be a (n) - correct answer
✔✔certificate holder
The __________ has the right to change a life insurance policy's beneficiary. - correct answer
✔✔policyowner
Which of the following documents must an agent submit to the replacing insurance company during the
replacement of an existing life insurance policy? - correct answer ✔✔Notice to existing and replacing
insurers of intention to replace
Which of these statements concerning an individual Disability income policy is TRUE? - correct answer
✔✔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 - correct answer ✔✔a representation
A foreign insurance company doing business in Florida - correct answer ✔✔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. -
correct answer ✔✔15
When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n)
: - correct answer ✔✔exclusion
What is the initial source of underwriting for an insurance policy? - correct answer ✔✔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? - correct answer ✔✔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? - correct answer ✔✔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? -
correct answer ✔✔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? -
correct answer ✔✔Modified Whole Life
An Insured's inability to perform two or more activities of daily living may trigger which type of life policy
rider? - correct answer ✔✔Long term care
, Which of these is an element of a Variable Life policy? - correct answer ✔✔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? - correct answer ✔✔Decreasing term
policy
Which parts of a life insurance policy are guaranteed to be true? - correct answer ✔✔Warranty
In Major Medical Expense policies, what is the objective of a Stop Loss provision? - correct answer
✔✔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? - correct answer ✔✔Life Annuity with Period
Certain
Florida's 14-day free-look period for life insurance policies begins at the - correct answer ✔✔date of
delivery
J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used?
- correct answer ✔✔Revocable
The Notice of Claims provision requires a policyowner to: - correct answer ✔✔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? - correct answer
✔✔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? - correct answer ✔✔Collect initial
premium along with a signed health statement
