Florida Life and Health Insurance State Exam Review
(2-15) Questions and Answers
A father who dies within 3 years after purchasing a life insurance policy on his infant
daughter can have the policy premiums waived under which provision -
ANSWERPayor Provision
Which of the following actions is NOT possible with Universal Life policy -
ANSWERPremiums may be applied as a credit against income tax
A life policy with death benefit and cash value that can fluctuate according to
performance of its underlying investment portfolio is referred to as -
ANSWERVariable life
Which policy requires an agent to register with the National Association of Securities
Dealers (NASD) before selling? - ANSWERVariable life
P owns a $25,000 Life Policy that pays the face amount to him if he lives to age 70, or
to his beneficiary if he dies before age 70. What kind of policy does P own. -
ANSWEREndowment at Age 70
All of these are characteristics of Adjustable life policy, EXCEPT: - ANSWERface
amount can be adjusted using policy dividends
J is 35-years old and looking to purchase a whole life insurance policy. Which of the
following types of policies will provide the most rapid growth of cash value? -
ANSWER20- pay life
What kind of life insurance policy pays a specified monthly income to a beneficiary
for 30 years and then pays a lump sum benefit at the end of that 30 years? -
ANSWERFamily maintenance Policy
K age 45, and his wife, age 43, have three children. They purchase a Family Policy
that covers K's wife to age 65. All of these situations will pay a death benefit EXCEPT:
- ANSWERK's wife dies at age 66
Which statement is correct regarding the premium payment schedule for whole life
policies? - ANSWERPremiums are payable throughout the insured's
lifetime/coverage lasts until death of the insured.
Under a Graded Premium policy, the premiums - ANSWERAre lower during the
policy's early years
Term insurance has which of the following characteristics? - ANSWERExpires at the
end of the policy period
, How long does the coverage normally remain on a limited-pay life policy? -
ANSWERage 100
Which of these is an element of a Variable Life policy - ANSWERA fixed, level
premium
Variable Whole Life insurance can be described as - ANSWERboth an insurance and
securities product
Which of the following features of a group Term Life policy enables an individual to
leave the group and continue his or her insurance without providing evidence of
insurability? - ANSWERConversion Privilege
Life insurance immediately creates an estate upon the death of an insured. Which of
the following policies is characterized by a guaranteed minimum death benefit? -
ANSWERVariable life
What does a Face Amount Plus Cash Value Policy pay upon the insured's death? -
ANSWERFace amount plus the policy's cash value
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? - ANSWERClaim will be denied
What provision in a life insurance policy states that the application is considered part
of the contract? - ANSWEREntire Contract provision
B recently died and was insured with a life insurance policy for over five years.
During the claims process, the insurer discovered that B had understated his age by 5
years at the time of application. In this situation, the insurer will - ANSWERpay the
amount that the premium would have purchased at the correct age
K's whole life insurance policy lapsed two months ago due to nonpayment. She
would now like to reinstate the policy. All of these statements are correct about the
policy's reinstatement EXCEPT - ANSWERK will forfeit the right to use the automatic
loan provision upon reinstatement
Which of the following provisions guarantees that premiums will be waived if a
Juvenile Life policyowner becomes disabled? - ANSWERPayor clause
Which of the following is an example of a nonforfeiture option? - ANSWERReduced
paid- up option
K owns a Whole Life policy. If K wants an increasing Death Benefit to protect against
inflation, which Divided Option should she chose? - ANSWERPaid-Up Additional
Insurance
(2-15) Questions and Answers
A father who dies within 3 years after purchasing a life insurance policy on his infant
daughter can have the policy premiums waived under which provision -
ANSWERPayor Provision
Which of the following actions is NOT possible with Universal Life policy -
ANSWERPremiums may be applied as a credit against income tax
A life policy with death benefit and cash value that can fluctuate according to
performance of its underlying investment portfolio is referred to as -
ANSWERVariable life
Which policy requires an agent to register with the National Association of Securities
Dealers (NASD) before selling? - ANSWERVariable life
P owns a $25,000 Life Policy that pays the face amount to him if he lives to age 70, or
to his beneficiary if he dies before age 70. What kind of policy does P own. -
ANSWEREndowment at Age 70
All of these are characteristics of Adjustable life policy, EXCEPT: - ANSWERface
amount can be adjusted using policy dividends
J is 35-years old and looking to purchase a whole life insurance policy. Which of the
following types of policies will provide the most rapid growth of cash value? -
ANSWER20- pay life
What kind of life insurance policy pays a specified monthly income to a beneficiary
for 30 years and then pays a lump sum benefit at the end of that 30 years? -
ANSWERFamily maintenance Policy
K age 45, and his wife, age 43, have three children. They purchase a Family Policy
that covers K's wife to age 65. All of these situations will pay a death benefit EXCEPT:
- ANSWERK's wife dies at age 66
Which statement is correct regarding the premium payment schedule for whole life
policies? - ANSWERPremiums are payable throughout the insured's
lifetime/coverage lasts until death of the insured.
Under a Graded Premium policy, the premiums - ANSWERAre lower during the
policy's early years
Term insurance has which of the following characteristics? - ANSWERExpires at the
end of the policy period
, How long does the coverage normally remain on a limited-pay life policy? -
ANSWERage 100
Which of these is an element of a Variable Life policy - ANSWERA fixed, level
premium
Variable Whole Life insurance can be described as - ANSWERboth an insurance and
securities product
Which of the following features of a group Term Life policy enables an individual to
leave the group and continue his or her insurance without providing evidence of
insurability? - ANSWERConversion Privilege
Life insurance immediately creates an estate upon the death of an insured. Which of
the following policies is characterized by a guaranteed minimum death benefit? -
ANSWERVariable life
What does a Face Amount Plus Cash Value Policy pay upon the insured's death? -
ANSWERFace amount plus the policy's cash value
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? - ANSWERClaim will be denied
What provision in a life insurance policy states that the application is considered part
of the contract? - ANSWEREntire Contract provision
B recently died and was insured with a life insurance policy for over five years.
During the claims process, the insurer discovered that B had understated his age by 5
years at the time of application. In this situation, the insurer will - ANSWERpay the
amount that the premium would have purchased at the correct age
K's whole life insurance policy lapsed two months ago due to nonpayment. She
would now like to reinstate the policy. All of these statements are correct about the
policy's reinstatement EXCEPT - ANSWERK will forfeit the right to use the automatic
loan provision upon reinstatement
Which of the following provisions guarantees that premiums will be waived if a
Juvenile Life policyowner becomes disabled? - ANSWERPayor clause
Which of the following is an example of a nonforfeiture option? - ANSWERReduced
paid- up option
K owns a Whole Life policy. If K wants an increasing Death Benefit to protect against
inflation, which Divided Option should she chose? - ANSWERPaid-Up Additional
Insurance
