2024 FLORIDA HEALTH, LIFE &
ANNUITY END OF COURSE EXAM 4
WITH CORRECT ANSWERS
Identify the part of the application that would have the applicant's medical
history:
Select one:
a. Part 1
b. Part 2
c. Part 3
d. All of the above - CORRECT ANSWERS- Part 2 of the application collects
information about the applicant's medical history.
The correct answer is: Part 2
All of the following demonstrate constructive delivery, EXCEPT:
Select one:
a. A conditional receipt is issued to the applicant
b. The insurer mails the policy to the agent, who in turn, mails the policy to
the insured
c. The agent mails the policy to the insured
d. The insurer mails the policy to the insured - CORRECT ANSWERS-
Constructive delivery occurs when the insurer divests all control over the
policy to the policyowner. Delivery has not occurred when the agent issues a
conditional receipt.
The correct answer is: A conditional receipt is issued to the applicant
The acceptance by insurers of a portion of the risk underwritten by another
insurer is:
Select one:
a. Insurance transaction
b. Risk retention
c. Reinsurance
d. Fiduciary - CORRECT ANSWERS- Reinsurance is the acceptance by one or
more insurers, called reinsurers, of a portion of the risk underwritten by
another insurer who has contracted for the entire coverage.
,The correct answer is: Reinsurance
Which accident and health renewability provision is the same as the
guaranteed renewable provision, except that premiums cannot be
increased?
Select one:
a. Cancelable
b. Conditionally renewable
c. Noncancelable
d. Optionally renewable - CORRECT ANSWERS- A noncancelable policy
provides the insured the right to continue coverage by making timely
payment of premiums. The insurer cannot make changes to a noncancelable
policy without the consent of the insured. The noncancelable renewability
provision is the same as the guaranteed renewable provision, except that
premiums cannot be increased.
The correct answer is: Noncancelable
The policy that allows the most flexibility and power over policy features is:
Select one:
a. Variable universal life
b. Convertible term
c. Adjustable life
d. Universal life - CORRECT ANSWERS- Variable universal life insurance
allows the policyowner to choose how the premiums are invested, increase
or decrease premiums, and change the death benefit.
The correct answer is: Variable universal life
Term riders include all of the following, EXCEPT:
Select one:
a. Return of premium rider
b. Other-insured rider
c. Variable income rider
d. Spouse rider - CORRECT ANSWERS- Term riders include: spouse, other
insured, children, family, return of premium and return of cash value. There
is not a variable income rider.
The correct answer is: Variable income rider
In Florida, the term "agent" includes which of the following?
,Select one:
a. Customer service representative
b. Limited customer representative
c. Service representative
d. General lines agent - CORRECT ANSWERS- An agent is a general lines
agent, life agent, health agent, or title agent. In Florida, the term "agent"
does not include a customer service representative, limited customer
representative, or service representative.
The correct answer is: General lines agent
Amelia has a nonqualified annuity that is paid out of her paycheck. It will be
paid:
Select one:
a. Post tax
b. Deferred tax
c. Before tax
d. Immediate tax - CORRECT ANSWERS- A nonqualified plan is not eligible
for tax benefits. Therefore a nonqualified annuity would be paid with after
tax income. The test makers try to trick you with different names of annuities
or policies, but the question is asking about pretax or after tax on a
nonqualified plan.
The correct answer is: Post tax
Who is employee group life insurance designed to benefit?
Select one:
a. Employee only
b. Employee or employer
c. Employer only
d. Employee and 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
Which of the following reasons best explains why whole life policies are more
expensive than other insurance options?
Select one:
a. The policyholders are high risk.
b. Whole life is generally not more expensive.
, c. They must cover cash values, net insurance and mortality costs, as well as
expenses.
d. They last a really long time. - CORRECT ANSWERS- Because whole life
policies include cash values in addition to net insurance, the premiums must
cover mortality costs, expenses and the savings amount.
The correct answer is: They must cover cash values, net insurance and
mortality costs, as well as expenses.
In order to continue coverage for a newborn, when must the insurer be
notified of the birth?
Select one:
a. Within 7 days
b. Within 14 days
c. Within 30 days
d. Within 31 days - CORRECT ANSWERS- To continue coverage for a
newborn, the insurer must be informed of the birth within 30 days of the
birth.
The correct answer is: Within 30 days
If someone covered by a group health plan loses their employment, how
many days do they have to convert to an individual policy?
Select one:
a. 21 days
b. 30 days
c. 31 days
d. 45 days - CORRECT ANSWERS- Group health plans must contain a
conversion privilege for individual insureds, which allows them to convert
their group certificate to an individual medical expense policy with the same
insurer within the conversion period of 31 days.
The correct answer is: 31 days
How much time does an individual have to convert to a new individual life
policy after the termination of their group life policy?
Select one:
a. 28 days
b. 30 days
c. 31 days
d. 60 days - CORRECT ANSWERS- If a group life policy is terminated, the
members and dependents may convert their group coverage to individual
ANNUITY END OF COURSE EXAM 4
WITH CORRECT ANSWERS
Identify the part of the application that would have the applicant's medical
history:
Select one:
a. Part 1
b. Part 2
c. Part 3
d. All of the above - CORRECT ANSWERS- Part 2 of the application collects
information about the applicant's medical history.
The correct answer is: Part 2
All of the following demonstrate constructive delivery, EXCEPT:
Select one:
a. A conditional receipt is issued to the applicant
b. The insurer mails the policy to the agent, who in turn, mails the policy to
the insured
c. The agent mails the policy to the insured
d. The insurer mails the policy to the insured - CORRECT ANSWERS-
Constructive delivery occurs when the insurer divests all control over the
policy to the policyowner. Delivery has not occurred when the agent issues a
conditional receipt.
The correct answer is: A conditional receipt is issued to the applicant
The acceptance by insurers of a portion of the risk underwritten by another
insurer is:
Select one:
a. Insurance transaction
b. Risk retention
c. Reinsurance
d. Fiduciary - CORRECT ANSWERS- Reinsurance is the acceptance by one or
more insurers, called reinsurers, of a portion of the risk underwritten by
another insurer who has contracted for the entire coverage.
,The correct answer is: Reinsurance
Which accident and health renewability provision is the same as the
guaranteed renewable provision, except that premiums cannot be
increased?
Select one:
a. Cancelable
b. Conditionally renewable
c. Noncancelable
d. Optionally renewable - CORRECT ANSWERS- A noncancelable policy
provides the insured the right to continue coverage by making timely
payment of premiums. The insurer cannot make changes to a noncancelable
policy without the consent of the insured. The noncancelable renewability
provision is the same as the guaranteed renewable provision, except that
premiums cannot be increased.
The correct answer is: Noncancelable
The policy that allows the most flexibility and power over policy features is:
Select one:
a. Variable universal life
b. Convertible term
c. Adjustable life
d. Universal life - CORRECT ANSWERS- Variable universal life insurance
allows the policyowner to choose how the premiums are invested, increase
or decrease premiums, and change the death benefit.
The correct answer is: Variable universal life
Term riders include all of the following, EXCEPT:
Select one:
a. Return of premium rider
b. Other-insured rider
c. Variable income rider
d. Spouse rider - CORRECT ANSWERS- Term riders include: spouse, other
insured, children, family, return of premium and return of cash value. There
is not a variable income rider.
The correct answer is: Variable income rider
In Florida, the term "agent" includes which of the following?
,Select one:
a. Customer service representative
b. Limited customer representative
c. Service representative
d. General lines agent - CORRECT ANSWERS- An agent is a general lines
agent, life agent, health agent, or title agent. In Florida, the term "agent"
does not include a customer service representative, limited customer
representative, or service representative.
The correct answer is: General lines agent
Amelia has a nonqualified annuity that is paid out of her paycheck. It will be
paid:
Select one:
a. Post tax
b. Deferred tax
c. Before tax
d. Immediate tax - CORRECT ANSWERS- A nonqualified plan is not eligible
for tax benefits. Therefore a nonqualified annuity would be paid with after
tax income. The test makers try to trick you with different names of annuities
or policies, but the question is asking about pretax or after tax on a
nonqualified plan.
The correct answer is: Post tax
Who is employee group life insurance designed to benefit?
Select one:
a. Employee only
b. Employee or employer
c. Employer only
d. Employee and 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
Which of the following reasons best explains why whole life policies are more
expensive than other insurance options?
Select one:
a. The policyholders are high risk.
b. Whole life is generally not more expensive.
, c. They must cover cash values, net insurance and mortality costs, as well as
expenses.
d. They last a really long time. - CORRECT ANSWERS- Because whole life
policies include cash values in addition to net insurance, the premiums must
cover mortality costs, expenses and the savings amount.
The correct answer is: They must cover cash values, net insurance and
mortality costs, as well as expenses.
In order to continue coverage for a newborn, when must the insurer be
notified of the birth?
Select one:
a. Within 7 days
b. Within 14 days
c. Within 30 days
d. Within 31 days - CORRECT ANSWERS- To continue coverage for a
newborn, the insurer must be informed of the birth within 30 days of the
birth.
The correct answer is: Within 30 days
If someone covered by a group health plan loses their employment, how
many days do they have to convert to an individual policy?
Select one:
a. 21 days
b. 30 days
c. 31 days
d. 45 days - CORRECT ANSWERS- Group health plans must contain a
conversion privilege for individual insureds, which allows them to convert
their group certificate to an individual medical expense policy with the same
insurer within the conversion period of 31 days.
The correct answer is: 31 days
How much time does an individual have to convert to a new individual life
policy after the termination of their group life policy?
Select one:
a. 28 days
b. 30 days
c. 31 days
d. 60 days - CORRECT ANSWERS- If a group life policy is terminated, the
members and dependents may convert their group coverage to individual
