FL Life and Health Insurance 2-15 Study Exam Questions & Answers

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? - ANSWERSClaim will be denied. A contract where one party either accepts or rejects the terms of a contract written by another party is called a contract of - ANSWERSadhesion All of the following statements about Major Medical benefits are true, EXCEPT: - ANSWERSBenefits have no maximum limit W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the company discovered W's true age at issue had been 59. What would the normal procedure be under the misstatement of age provision in regard to the payment of the death claim? - ANSWERSThe proceeds would be reduced based on whatever the premium would have been if purchased at age 59. All of these are considered sources of underwriting information about an applicant, EXCEPT: - ANSWERSInspection Report According to the Mandatory Uniform Policy Provisions, what is the maximum amount of time after the premium due date during which the policy remains in force even though the premium has not been paid? - ANSWERS31 days Which provision allows the policy owner to change a term life policy to a permanent one without providing proof of good health? - ANSWERSConversion What do families pay that are covered by the Florida Healthy Kids Corporation? - ANSWERSA portion of the premium Which statement regarding third-party ownership of a life insurance policy is true? - ANSWERSIt is used extensively in estate planning as well as business circumstances. Which of the following employees may NOT be excluded from a group life plan? - ANSWERSFull-time employees after the probationary period. Which of the following statements BEST describes what the Legal Actions provision of an Accident and Health policy requires? - ANSWERSAn insured must wait at least 60 days after Proof of Loss has been submitted before a lawsuit can be filed. What percentage of eligible persons must a policy cover in a noncontributory group? - ANSWERS100% What are adjustable rates for life policy loans in Florida based on? - ANSWERSMoody's corporate bond index. An underwriter determines that a life insurance applicant's risk should be reclassified due to a health issue. This policy may be issued with a(n): - ANSWERSexclusion for the medical condition What is the initial requirement for an insured to become eligible for benefits under the Waiver of Premium provision? - ANSWERSInsured must be under a physician's care J has a Disability Income policy that does NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this? - ANSWERSNonoccupational coverage K is insured under a Group Life Insurance policy. K is considered to be a(n) - ANSWERScertificate holder According to Florida law, which of the following information does NOT need to be obtained by an agent recommending an annuity purchase? - ANSWERSMarital status Dividends paid from a life insurance policy are - ANSWERStaxable S takes out a health insurance policy which contains a provision that states the agent does not have the authority to change the policy or waive any of its provisions. Which health policy provision is this? - ANSWERSEntire Contract Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? - ANSWERSVariable Life Defamation occurs when an agent makes a false statement intended to - ANSWERSmalign another insurer J owns a business and has a Group Life policy covering her employees. J decides to cancel the policy by letting it lapse on the renewal date. What action must be taken? - ANSWERSAll of the employees must be notified of the cancellation either by the insurance company or through J. Which of the following is NOT required in the Outline of Coverage for a health insurance policy? - ANSWERSProjection of the policy's future costs. What type of life policy covers two people and pays upon the death of the last insured? - ANSWERSSurvivorship Which of the following acts is an agent NOT authorized to do on behalf of an insurer? - ANSWERSAuthorize claim payments One becomes eligible for Social Security disability benefits after having been disabled for - ANSWERS5 months Traditional individual retirement annuity (IRA) distributions must start by - ANSWERSApril 1st of the year following the year the participant attains age 70 ½. An agent selling Medicare Supplement policies must provide every applicant with a(n): - ANSWERSSuitability form P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to - ANSWERSP only. Which health policy clause stipulates that an insurance company must attach a copy of the application to the policy to ensure that it is part of the contract? - ANSWERSEntire Contract A Major Medical policy typically contains a provision that requires the insurer to pay only part of a loss, while the balance is paid by the insured. This provision is called - ANSWERSCoinsurance K is an annuitant currently receiving payments. If she were to die before receiving payments equal to the correct value, a beneficiary will continue receiving payments until an amount equal to the contract value has been paid. This is called a(n) - ANSWERSInstallment Refund annuity K is an agent who made an improper sale of an annuity to a client. Which of the following corrective actions would the Department of Financial Services likely order K to take? - ANSWERSPay monetary restitution to the client P purchases a $50,000 whole life insurance policy in 2005. One of the questions on the application asks if P engages in scuba diving, to which P answers "No". The policy is then issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related accident in 2011. What will the insurer pay to P's beneficiary? - ANSWERS$50,000 minus any outstanding policy loans