Florida Health, Life & Annuity End of Course Exam 4 with
solutions
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 - 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 - 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 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 - 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 - 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 - 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 - 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 - 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. - 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 - 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?
solutions
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 - 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 - 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 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 - 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 - 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 - 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 - 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 - 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. - 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 - 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?
