FLORIDA HEALTH AND LIFE INSURANCE
EXAM QUESTIONS WITH COMPLETE
SOLUTIONS
AN INSURED IS HOSPITALIZED WITH A BACK INJURY.UPON
CHECKING HIS DISABILITY INCOME POLICY, HE LEARNS THAT HE
WILL NOT BE ELIGIBLE FOR BENEFITS FOR AT LEAST 30 DAYS. THIS
INDICATES THAT HIS POLICY IS WRITTEN WITH A 30 DAY
______________. - CORRECT SOLUTION ELIMINATION PERIOD
ALL OF THE FOLLOWING ARE EXAMPLES OF THIRD-PARTY
OWNERSHIP OF A LIFE INSURANCE POLICY EXCEPT - CORRECT
SOLUTION AN INSURED BORROWS MONEY FROM THE BANK AND
MAKES A COLLATERAL ASSIGNMENT OF A PART OF THE DEATH
BENEFIT TO SECURE THE LOAN
WHAT DOCUMENT DESCRIBES AN INSURED'S MEDICAL HISTORY,
INCLUDING DIAGNOSES AND TREATMENTS? - CORRECT SOLUTION
ATTENDING PHYSICIAN'S STATEMENT
UNDER A HEALTH INSURANCE POLICY, OTHER THAN DEATH
BENEFITS, THAT HAVE NOT OTHERWISE BEEN ASSIGNED, WILL BE
PAID TO _______________ - CORRECT SOLUTION THE INSURED
A POLICY WILL PAY THE DEATH BENEFIT IF THE INSURED DIES
DURING THE 20 YEAR PREMIUM-PAYING PERIOD, AND NOTHING IF
DEATH OCCURS AFTER THE 20-YEAR PERIOD. WHAT TYPE OF POLICY
IS THIS? - CORRECT SOLUTION LEVEL TERM
,WHICH OPTION FOR UNIVERSAL LIFE ALLOWS THE BENEFICIARY TO
COLLECT BOTH THE DEATH BENEFIT AND CASH VALUE UPON THE
DEATH OF THE INSURED? - CORRECT SOLUTION OPTION B
WHO MUST PAY FOR THE COST OF A MEDICAL EXAMINATION
REQUIRED IN THE PROCESS OF UNDERWRITING? - CORRECT
SOLUTION INSURER
WHICH OF THE FOLLOWING WOULD BE DEDUCTED FROM THE DEATH
BENEFIT PAID TO A BENEFICIARY, IF A PARTIAL ACCELERATED
DEATH BENEFIT HAD BEEN PAID WHILE THE INSURED WAS STILL
ALIVE? - CORRECT SOLUTION AMOUNT PAID WITH ACCELERATED
BENEFIT, PLUS THE EARNINGS LOST BY INSURANCE COMPANY IN
INTEREST INCOME FROM ACCELERATED BENEFIT
AN INSURED'S LONG-TERM CARE POLICY IS SCHEDULED TO PAY A
FIXED AMOUNT OF COVERAGE OF $120 PER DAY. THE LONG-TERM
CARE FACILITY ONLY CHARGED $100 PER DAY. HOW MUCH WILL THE
INSURANCE COMPANY PAY? - CORRECT SOLUTION $120 A DAY
ACCORDING TO THE RIGHTS OF RENEWABILITY RIDER FOR
CANCELLABLE POLICIES, ALL OF THE FOLLOWING ARE CORRECT
ABOUT THE CANCELLATION OF AN INDIVIDUAL INSURANCE POLICY
EXCEPT - CORRECT SOLUTION UNEARNED PREMIUMS ARE RETAINED
BY THE INSURANCE COMPANY.
AS IT PERTAINS TO GROUP HEALTH INSURANCE, COBRA STIPULATES
THAT - CORRECT SOLUTION GROUP COVERAGE MUST BE EXTENDED
FOR TERMINATED EMPLOYEES UP TO A CERTAIN PERIOD OF TIME AT
THE FORMER EMPLOYEE'S EXPENSE.
, ALL OF THE FOLLOWING STATEMENTS CONCERNING MEDICAID ARE
CORRECT EXCEPT - CORRECT SOLUTION MEDICAID IS A STATE
FUNDED PROGRAM THAT PROVIDES HEALTH CARE TO PERSONS
OVER AGE 65, ONLY.
WHICH OF THE FOLLOWING IS TRUE REGARDING TAXATION OF
ACCELERATED BENEFITS UNDER A LIFE INSURANCE POLICY? -
CORRECT SOLUTION THEY ARE TAX FREE TO TERMINALLY ILL
INSURED.
AN ABSOLUTE ASSIGNMENT IS A - CORRECT SOLUTION TRANSFER OF
ALL OWNERSHIP RIGHTS IN A POLICY.
WHICH OF THE FOLLOWING BEST DESCRIBES THE CONCEPT THAT
THE INSURED PAYS A SMALL AMOUNT OF PREMIUM FOR A LARGE
AMOUNT OF RISK ON THE PART OF THE INSURANCE COMPANY? -
CORRECT SOLUTION ALEATORY
THE TRANSFER OF AN INSURED'S RIGHT TO SEEK DAMAGES FROM A
NEGLIGENT PARTY TO THE INSURER IS FOUND IN WHICH OF THE
FOLLOWING CLAUSES? - CORRECT SOLUTION SUBROGATION
AN INSURED OWNS A $50,000 WHOLE LIFE POLICY. AT AGE 47, THE
INSURED DECIDES TO CANCEL HIS POLICY AND EXERCISE THE
EXTENDED TERM OPTION FOR THE POLICY'S CASH VALUE, WHICH IS
CURRENTLY $20,000. WHAT WOULD BE THE FACE AMOUNT OF THE
NEW TERM POLICY? - CORRECT SOLUTION $50,000
IF A LIFE INSURANCE POLICY HAS AN IRREVOCABLE BENEFICIARY
DESIGNATION, - CORRECT SOLUTION THE BENEFICIARY CAN ONLY
BE CHANGED WITH WRITTEN PERMISSION OF THE BENEFICIARY.
EXAM QUESTIONS WITH COMPLETE
SOLUTIONS
AN INSURED IS HOSPITALIZED WITH A BACK INJURY.UPON
CHECKING HIS DISABILITY INCOME POLICY, HE LEARNS THAT HE
WILL NOT BE ELIGIBLE FOR BENEFITS FOR AT LEAST 30 DAYS. THIS
INDICATES THAT HIS POLICY IS WRITTEN WITH A 30 DAY
______________. - CORRECT SOLUTION ELIMINATION PERIOD
ALL OF THE FOLLOWING ARE EXAMPLES OF THIRD-PARTY
OWNERSHIP OF A LIFE INSURANCE POLICY EXCEPT - CORRECT
SOLUTION AN INSURED BORROWS MONEY FROM THE BANK AND
MAKES A COLLATERAL ASSIGNMENT OF A PART OF THE DEATH
BENEFIT TO SECURE THE LOAN
WHAT DOCUMENT DESCRIBES AN INSURED'S MEDICAL HISTORY,
INCLUDING DIAGNOSES AND TREATMENTS? - CORRECT SOLUTION
ATTENDING PHYSICIAN'S STATEMENT
UNDER A HEALTH INSURANCE POLICY, OTHER THAN DEATH
BENEFITS, THAT HAVE NOT OTHERWISE BEEN ASSIGNED, WILL BE
PAID TO _______________ - CORRECT SOLUTION THE INSURED
A POLICY WILL PAY THE DEATH BENEFIT IF THE INSURED DIES
DURING THE 20 YEAR PREMIUM-PAYING PERIOD, AND NOTHING IF
DEATH OCCURS AFTER THE 20-YEAR PERIOD. WHAT TYPE OF POLICY
IS THIS? - CORRECT SOLUTION LEVEL TERM
,WHICH OPTION FOR UNIVERSAL LIFE ALLOWS THE BENEFICIARY TO
COLLECT BOTH THE DEATH BENEFIT AND CASH VALUE UPON THE
DEATH OF THE INSURED? - CORRECT SOLUTION OPTION B
WHO MUST PAY FOR THE COST OF A MEDICAL EXAMINATION
REQUIRED IN THE PROCESS OF UNDERWRITING? - CORRECT
SOLUTION INSURER
WHICH OF THE FOLLOWING WOULD BE DEDUCTED FROM THE DEATH
BENEFIT PAID TO A BENEFICIARY, IF A PARTIAL ACCELERATED
DEATH BENEFIT HAD BEEN PAID WHILE THE INSURED WAS STILL
ALIVE? - CORRECT SOLUTION AMOUNT PAID WITH ACCELERATED
BENEFIT, PLUS THE EARNINGS LOST BY INSURANCE COMPANY IN
INTEREST INCOME FROM ACCELERATED BENEFIT
AN INSURED'S LONG-TERM CARE POLICY IS SCHEDULED TO PAY A
FIXED AMOUNT OF COVERAGE OF $120 PER DAY. THE LONG-TERM
CARE FACILITY ONLY CHARGED $100 PER DAY. HOW MUCH WILL THE
INSURANCE COMPANY PAY? - CORRECT SOLUTION $120 A DAY
ACCORDING TO THE RIGHTS OF RENEWABILITY RIDER FOR
CANCELLABLE POLICIES, ALL OF THE FOLLOWING ARE CORRECT
ABOUT THE CANCELLATION OF AN INDIVIDUAL INSURANCE POLICY
EXCEPT - CORRECT SOLUTION UNEARNED PREMIUMS ARE RETAINED
BY THE INSURANCE COMPANY.
AS IT PERTAINS TO GROUP HEALTH INSURANCE, COBRA STIPULATES
THAT - CORRECT SOLUTION GROUP COVERAGE MUST BE EXTENDED
FOR TERMINATED EMPLOYEES UP TO A CERTAIN PERIOD OF TIME AT
THE FORMER EMPLOYEE'S EXPENSE.
, ALL OF THE FOLLOWING STATEMENTS CONCERNING MEDICAID ARE
CORRECT EXCEPT - CORRECT SOLUTION MEDICAID IS A STATE
FUNDED PROGRAM THAT PROVIDES HEALTH CARE TO PERSONS
OVER AGE 65, ONLY.
WHICH OF THE FOLLOWING IS TRUE REGARDING TAXATION OF
ACCELERATED BENEFITS UNDER A LIFE INSURANCE POLICY? -
CORRECT SOLUTION THEY ARE TAX FREE TO TERMINALLY ILL
INSURED.
AN ABSOLUTE ASSIGNMENT IS A - CORRECT SOLUTION TRANSFER OF
ALL OWNERSHIP RIGHTS IN A POLICY.
WHICH OF THE FOLLOWING BEST DESCRIBES THE CONCEPT THAT
THE INSURED PAYS A SMALL AMOUNT OF PREMIUM FOR A LARGE
AMOUNT OF RISK ON THE PART OF THE INSURANCE COMPANY? -
CORRECT SOLUTION ALEATORY
THE TRANSFER OF AN INSURED'S RIGHT TO SEEK DAMAGES FROM A
NEGLIGENT PARTY TO THE INSURER IS FOUND IN WHICH OF THE
FOLLOWING CLAUSES? - CORRECT SOLUTION SUBROGATION
AN INSURED OWNS A $50,000 WHOLE LIFE POLICY. AT AGE 47, THE
INSURED DECIDES TO CANCEL HIS POLICY AND EXERCISE THE
EXTENDED TERM OPTION FOR THE POLICY'S CASH VALUE, WHICH IS
CURRENTLY $20,000. WHAT WOULD BE THE FACE AMOUNT OF THE
NEW TERM POLICY? - CORRECT SOLUTION $50,000
IF A LIFE INSURANCE POLICY HAS AN IRREVOCABLE BENEFICIARY
DESIGNATION, - CORRECT SOLUTION THE BENEFICIARY CAN ONLY
BE CHANGED WITH WRITTEN PERMISSION OF THE BENEFICIARY.
