BUSINESS INSURANCE FL LH FL HEALTH
LIFE AND ANNUITY EXAM STIMULATOR
WITH VERIFIED SOLUTIONS.
Group life insurance policies are generally written as:
annually renewable term
P received Disability income benefits for 3 months then returns to work. She is
able to work one month before her condition returns, leaving her disabled once
again. What would the insurance company most likely regard this second period
of disability as?
A recurrent disability
One becomes eligible for Social Security disability benefits after having been
disabled for
5 months
How long is the typical free look period for Long Term care insurance policies?
30 days
Which Unfair Trade Practice involves an agent telling a prospective client that a
policy's dividends are guaranteed?
Misrepresentation
When funds are shifted straight from one IRA to another IRA, what percentage
of the tax is withheld?
None
T is an employee covered under a Group Life policy. If T's employment is
terminated, the conversion privilege gives T the right to convert
To an individual policy upon employment termination
A life insurance policy's grace period entitles the insured a period of no less
than __ days to make the premium payment
,30
All of the following statements regarding a Tax Sheltered Annuity (TSA) are true
EXCEPT:
Income derived from the TSA is received income tax-free
Which of these life insurance riders allows the applicant to have excess
coverage?
Term rider
Omitting information that affects the issuance or the rate of an insurance
contract is called:
concealment
In Florida, the underwriting and issuance of a master group health policy
requires all employees
are eligible to participate, regardless of their individual health history
S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of
$100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500.
What kind of rider did S include on the policy?
Return of premium rider
Which of the following are Equity indexed annuities typically invested in?
S&P 500
Health insurance benefits NOT covered due to an act of war are:
excluded by the insurer in the contract provisions
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?
Endowment at Age 70
Under a life insurance policy the __________ has the authority to name the
beneficiary.
owner
,A policy of adhesion can only be modified by whom?
The insurance company
From what authority derives the requirement that an insurance application
contains a disclosure stating that an investigative consumer report may be
obtained on an applicant?
Fair Credit Reporting Act
Which life insurance rider typically appears on a Juvenile life insurance policy?
Payor benefit rider
Term Life Policies that have the ability to be converted to permanent coverage
may do so during a specific time period. This conversion period
varies according to the contract
Insurers/agents must, in Florida, offer and issue all small employer health plans
on a ________________
guaranteed-issue
P is self-employed and owns an Individual Disability Income policy. He
becomes totally disabled on June 1 and receives $2,000 a month for the next
10 months. How much of this income is subject to federal income tax?
$0
An insurance company receives E's application for an individual health policy. E
did not complete all of the medical history questions because she could not
remember the exact dates. E signed the policy and submitted it to the insurance
company anyway. A few weeks later, E suffers a heart attack and is
hospitalized without completing the medical history questions and paying the
initial premium. E is not insured. Which of the following clauses details the
conditions that E did not meet?
Consideration clause
Whole Life insurance is sometimes referred to as "Straight Life". What does the
word "Straight" indicate when using this phrase?
The duration of premium payments
, In order for coverage on a non-medical insurance application to take effect the
same day, the producer must collect a signed application and
the initial premium
K is looking to purchase Renewable Term insurance. Which of these types of
Term insurance may be renewable?
level
The provision in a Group Health policy allows the insurer to postpone coverage
for a covered illness 30 days after the policy's effective date is referred to as
the:
Waiting period
A $20,000 life insurance policy application is completed, however the producer
does not collect the initial premium. At what point does the coverage go into
effect?
When the applicant receives the policy and pays the initial premium
Life insurance that covers an insured's whole life with level premiums paid over
a limited time is called:
Limited Pay Life
The most important factor to consider when determining whether to convert term
insurance at the insured's attained age or the insured's original age is
the cost
Which of these needs is satisfied by Adjustable Life Insurance
Insured's need for flexible premiums
T is receiving $3,000/month from a Disability Income policy in which T's
employer had paid the premiums. How are the $3,000 benefit payments
taxable?
Benefits are taxable to T
What is the maximum Social Security Disability benefit amount an insured can
receive?
100% of the insured's Primary Insurance Amount (PIA)
LIFE AND ANNUITY EXAM STIMULATOR
WITH VERIFIED SOLUTIONS.
Group life insurance policies are generally written as:
annually renewable term
P received Disability income benefits for 3 months then returns to work. She is
able to work one month before her condition returns, leaving her disabled once
again. What would the insurance company most likely regard this second period
of disability as?
A recurrent disability
One becomes eligible for Social Security disability benefits after having been
disabled for
5 months
How long is the typical free look period for Long Term care insurance policies?
30 days
Which Unfair Trade Practice involves an agent telling a prospective client that a
policy's dividends are guaranteed?
Misrepresentation
When funds are shifted straight from one IRA to another IRA, what percentage
of the tax is withheld?
None
T is an employee covered under a Group Life policy. If T's employment is
terminated, the conversion privilege gives T the right to convert
To an individual policy upon employment termination
A life insurance policy's grace period entitles the insured a period of no less
than __ days to make the premium payment
,30
All of the following statements regarding a Tax Sheltered Annuity (TSA) are true
EXCEPT:
Income derived from the TSA is received income tax-free
Which of these life insurance riders allows the applicant to have excess
coverage?
Term rider
Omitting information that affects the issuance or the rate of an insurance
contract is called:
concealment
In Florida, the underwriting and issuance of a master group health policy
requires all employees
are eligible to participate, regardless of their individual health history
S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of
$100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500.
What kind of rider did S include on the policy?
Return of premium rider
Which of the following are Equity indexed annuities typically invested in?
S&P 500
Health insurance benefits NOT covered due to an act of war are:
excluded by the insurer in the contract provisions
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?
Endowment at Age 70
Under a life insurance policy the __________ has the authority to name the
beneficiary.
owner
,A policy of adhesion can only be modified by whom?
The insurance company
From what authority derives the requirement that an insurance application
contains a disclosure stating that an investigative consumer report may be
obtained on an applicant?
Fair Credit Reporting Act
Which life insurance rider typically appears on a Juvenile life insurance policy?
Payor benefit rider
Term Life Policies that have the ability to be converted to permanent coverage
may do so during a specific time period. This conversion period
varies according to the contract
Insurers/agents must, in Florida, offer and issue all small employer health plans
on a ________________
guaranteed-issue
P is self-employed and owns an Individual Disability Income policy. He
becomes totally disabled on June 1 and receives $2,000 a month for the next
10 months. How much of this income is subject to federal income tax?
$0
An insurance company receives E's application for an individual health policy. E
did not complete all of the medical history questions because she could not
remember the exact dates. E signed the policy and submitted it to the insurance
company anyway. A few weeks later, E suffers a heart attack and is
hospitalized without completing the medical history questions and paying the
initial premium. E is not insured. Which of the following clauses details the
conditions that E did not meet?
Consideration clause
Whole Life insurance is sometimes referred to as "Straight Life". What does the
word "Straight" indicate when using this phrase?
The duration of premium payments
, In order for coverage on a non-medical insurance application to take effect the
same day, the producer must collect a signed application and
the initial premium
K is looking to purchase Renewable Term insurance. Which of these types of
Term insurance may be renewable?
level
The provision in a Group Health policy allows the insurer to postpone coverage
for a covered illness 30 days after the policy's effective date is referred to as
the:
Waiting period
A $20,000 life insurance policy application is completed, however the producer
does not collect the initial premium. At what point does the coverage go into
effect?
When the applicant receives the policy and pays the initial premium
Life insurance that covers an insured's whole life with level premiums paid over
a limited time is called:
Limited Pay Life
The most important factor to consider when determining whether to convert term
insurance at the insured's attained age or the insured's original age is
the cost
Which of these needs is satisfied by Adjustable Life Insurance
Insured's need for flexible premiums
T is receiving $3,000/month from a Disability Income policy in which T's
employer had paid the premiums. How are the $3,000 benefit payments
taxable?
Benefits are taxable to T
What is the maximum Social Security Disability benefit amount an insured can
receive?
100% of the insured's Primary Insurance Amount (PIA)
