2024 FLORIDA HEALTH, LIFE &
ANNUITY END OF COURSE EXAM 1
WITH CORRECT ANSWERS
Who is employee group life insurance designed to benefit?
Select one:
a. Employer only
b. Employee and employer
c. Employee only
d. Employee or employer - CORRECT ANSWERS- Employee life insurance
insures the lives of a group of individual employees of an employer for the
benefit of persons other than the employer, under a group policy issued to
the employer.
The correct answer is: Employee only
All of the following are true about the probationary clause on a health policy,
EXCEPT:
Select one:
a. Accidents are covered immediately
b. Sicknesses are not covered until the probationary period has expired
c. The probationary clause is one of the 12 mandatory clauses
d. The probationary clause will be found in the insuring clause - CORRECT
ANSWERS- The probationary clause is usually added to limit or modify a
contract to protect against pre-existing conditions.
The correct answer is: The probationary clause is one of the 12 mandatory
clauses
When presenting long-term care or Medicare Supplement plans, it is
necessary to provide the prospect with a:
Select one:
a. Prefilled application form
b. A Shoppers Guide for the product presented
c. Illustrations with large print
d. Testimonials from other buyers - CORRECT ANSWERS- A Shoppers Guide
(Outline of Coverage) is required for many sales to senior citizens.
,The correct answer is: A Shoppers Guide for the product presented
Insurance advertisements may not imply that dividends or divisible surplus
is:
Select one:
a. Guaranteed
b. Legal
c. Included
d. Not guaranteed - CORRECT ANSWERS- Insurance advertisements may not
imply that dividends or divisible surplus is guaranteed.
The correct answer is: Guaranteed
All of the following programs quell the fear that some people have of losing
their investment if they were to die after only receiving a few payments from
their annuity, EXCEPT:
Select one:
a. Life with period certain
b. Installment refund
c. Period certain
d. Deferred annuity - CORRECT ANSWERS- Minimum guaranteed payouts are
benefits of the life, refund and temporary annuities. The deferred annuity
postpones benefits until a later, specified date, such as a retirement date.
The correct answer is: Deferred annuity
The Fair Credit Reporting Act states that generally, consumer reports cannot
contain the following information, EXCEPT:
Select one:
a. Adverse information about an individual that dates back over seven years
b. Tax liens older than seven years
c. An individual's character
d. An individual's criminal history - CORRECT ANSWERS- Consumer reports
are reports about the characteristics of an individual, including the
individual's general character and reputation, employment history, living
arrangements, and credit worthiness.
The correct answer is: An individual's character
Which of the following is not an assignment whereby someone would
transfer legal rights as the policy owner of a life contract?
,Select one:
a. Collateral, partial, conditional assignment
b. Total, complete, unconditional assignment
c. Beneficiaries' assignment
d. Absolute, voluntary, complete assignment - CORRECT ANSWERS- A total,
complete, unconditional assignment does not exist in the insurance world.
The correct answer is: Total, complete, unconditional assignment
Medicare Advantage plans are a type of Medicare health plan offered by:
Select one:
a. The state government
b. A private company with no government intervention
c. A private company that contracts with Medicare
d. Medicare that contracts with a private company - CORRECT ANSWERS-
Medicare Advantage plans are a type of Medicare health plan offered by a
private company that contracts with Medicare to provide all the Part A and
Part B benefits.
The correct answer is: A private company that contracts with Medicare
Steve bought a 20-year, $200,000 decreasing term policy in 2001 and a
$500,000 whole life policy. Steve died in 2006. What were the total benefits
payable to his beneficiary?
Select one:
a. $700,000
b. $650,000
c. $500,000
d. $200,000 - CORRECT ANSWERS- Because he died after 5 years, the policy
death benefit was worth $150,000. His whole life policy paid the full face
value of $500,000 upon his death. The total paid to his beneficiary was
$650,000.
The correct answer is: $650,000
Which of the following is not true about the accelerated benefit rider?
Select one:
a. The insured must have a terminal illness to receive the benefit.
b. Confinement in a nursing home sometimes suffices for payments to be
made.
c. The benefit is not subject to tax.
, d. Provides a monthly check when you become disabled. - CORRECT
ANSWERS- The Accelerated benefit rider does not provide a monthly check
when the insured becomes disabled.
The correct answer is: Provides a monthly check when you become disabled.
What Florida statute ensures coverage for employees of small businesses not
covered by COBRA 1985?
Select one:
a. Flori-COBRA
b. Mini-COBRA
c. Small Business-COBRA
d. VIPER - CORRECT ANSWERS- The purpose of the Florida Health Insurance
Coverage Continuation Act (Mini-COBRA) is to ensure coverage for
employees of small businesses not covered by COBRA 1985.
The correct answer is: Mini-COBRA
Which of the following is not an example of a plausible third party ownership
situation?
Select one:
a. A husband who owns a policy on his wife
b. A corporation that owns the policy of an officer of the corporation.
c. A woman that owns a policy on an ex-boyfriend
d. A parent who is the owner of a policy on their child - CORRECT ANSWERS-
A woman owning a policy on an ex-boyfriend would not be allowed, and
consequently not be an example of a third party ownership situation.
The correct answer is: A woman that owns a policy on an ex-boyfriend
HMO contracts must provide coverage for newborn children of a family
member from the moment of birth for at least:
Select one:
a. 1 month
b. 3 months
c. 9 months
d. 18 months - CORRECT ANSWERS- HMO contracts that provide coverage
for a family member of the insured must also provide coverage for the
insured's newborn children from the moment of birth. Coverage must be also
be provided for the newborn child of a covered family member (such as the
newborn of a daughter) for 18 months after the birth.
The correct answer is: 18 months
ANNUITY END OF COURSE EXAM 1
WITH CORRECT ANSWERS
Who is employee group life insurance designed to benefit?
Select one:
a. Employer only
b. Employee and employer
c. Employee only
d. Employee or employer - CORRECT ANSWERS- Employee life insurance
insures the lives of a group of individual employees of an employer for the
benefit of persons other than the employer, under a group policy issued to
the employer.
The correct answer is: Employee only
All of the following are true about the probationary clause on a health policy,
EXCEPT:
Select one:
a. Accidents are covered immediately
b. Sicknesses are not covered until the probationary period has expired
c. The probationary clause is one of the 12 mandatory clauses
d. The probationary clause will be found in the insuring clause - CORRECT
ANSWERS- The probationary clause is usually added to limit or modify a
contract to protect against pre-existing conditions.
The correct answer is: The probationary clause is one of the 12 mandatory
clauses
When presenting long-term care or Medicare Supplement plans, it is
necessary to provide the prospect with a:
Select one:
a. Prefilled application form
b. A Shoppers Guide for the product presented
c. Illustrations with large print
d. Testimonials from other buyers - CORRECT ANSWERS- A Shoppers Guide
(Outline of Coverage) is required for many sales to senior citizens.
,The correct answer is: A Shoppers Guide for the product presented
Insurance advertisements may not imply that dividends or divisible surplus
is:
Select one:
a. Guaranteed
b. Legal
c. Included
d. Not guaranteed - CORRECT ANSWERS- Insurance advertisements may not
imply that dividends or divisible surplus is guaranteed.
The correct answer is: Guaranteed
All of the following programs quell the fear that some people have of losing
their investment if they were to die after only receiving a few payments from
their annuity, EXCEPT:
Select one:
a. Life with period certain
b. Installment refund
c. Period certain
d. Deferred annuity - CORRECT ANSWERS- Minimum guaranteed payouts are
benefits of the life, refund and temporary annuities. The deferred annuity
postpones benefits until a later, specified date, such as a retirement date.
The correct answer is: Deferred annuity
The Fair Credit Reporting Act states that generally, consumer reports cannot
contain the following information, EXCEPT:
Select one:
a. Adverse information about an individual that dates back over seven years
b. Tax liens older than seven years
c. An individual's character
d. An individual's criminal history - CORRECT ANSWERS- Consumer reports
are reports about the characteristics of an individual, including the
individual's general character and reputation, employment history, living
arrangements, and credit worthiness.
The correct answer is: An individual's character
Which of the following is not an assignment whereby someone would
transfer legal rights as the policy owner of a life contract?
,Select one:
a. Collateral, partial, conditional assignment
b. Total, complete, unconditional assignment
c. Beneficiaries' assignment
d. Absolute, voluntary, complete assignment - CORRECT ANSWERS- A total,
complete, unconditional assignment does not exist in the insurance world.
The correct answer is: Total, complete, unconditional assignment
Medicare Advantage plans are a type of Medicare health plan offered by:
Select one:
a. The state government
b. A private company with no government intervention
c. A private company that contracts with Medicare
d. Medicare that contracts with a private company - CORRECT ANSWERS-
Medicare Advantage plans are a type of Medicare health plan offered by a
private company that contracts with Medicare to provide all the Part A and
Part B benefits.
The correct answer is: A private company that contracts with Medicare
Steve bought a 20-year, $200,000 decreasing term policy in 2001 and a
$500,000 whole life policy. Steve died in 2006. What were the total benefits
payable to his beneficiary?
Select one:
a. $700,000
b. $650,000
c. $500,000
d. $200,000 - CORRECT ANSWERS- Because he died after 5 years, the policy
death benefit was worth $150,000. His whole life policy paid the full face
value of $500,000 upon his death. The total paid to his beneficiary was
$650,000.
The correct answer is: $650,000
Which of the following is not true about the accelerated benefit rider?
Select one:
a. The insured must have a terminal illness to receive the benefit.
b. Confinement in a nursing home sometimes suffices for payments to be
made.
c. The benefit is not subject to tax.
, d. Provides a monthly check when you become disabled. - CORRECT
ANSWERS- The Accelerated benefit rider does not provide a monthly check
when the insured becomes disabled.
The correct answer is: Provides a monthly check when you become disabled.
What Florida statute ensures coverage for employees of small businesses not
covered by COBRA 1985?
Select one:
a. Flori-COBRA
b. Mini-COBRA
c. Small Business-COBRA
d. VIPER - CORRECT ANSWERS- The purpose of the Florida Health Insurance
Coverage Continuation Act (Mini-COBRA) is to ensure coverage for
employees of small businesses not covered by COBRA 1985.
The correct answer is: Mini-COBRA
Which of the following is not an example of a plausible third party ownership
situation?
Select one:
a. A husband who owns a policy on his wife
b. A corporation that owns the policy of an officer of the corporation.
c. A woman that owns a policy on an ex-boyfriend
d. A parent who is the owner of a policy on their child - CORRECT ANSWERS-
A woman owning a policy on an ex-boyfriend would not be allowed, and
consequently not be an example of a third party ownership situation.
The correct answer is: A woman that owns a policy on an ex-boyfriend
HMO contracts must provide coverage for newborn children of a family
member from the moment of birth for at least:
Select one:
a. 1 month
b. 3 months
c. 9 months
d. 18 months - CORRECT ANSWERS- HMO contracts that provide coverage
for a family member of the insured must also provide coverage for the
insured's newborn children from the moment of birth. Coverage must be also
be provided for the newborn child of a covered family member (such as the
newborn of a daughter) for 18 months after the birth.
The correct answer is: 18 months
