EXAM SIMULATOR FLORIDA-LIFE & HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE (SOURCE Xcel solutions – Pearson)
400+ ACTUAL TEST QUESTIONS WITH DETAILED VERIFIED ANSWERS /
ALREADY GRADED A
A non-contributory plan requires _________ participation of all eligible employees -
correct answer100%
A characteristic of preferred provider organizations (PPOS) would be: - correct
answerDiscounted fees for the patient
Which of the following areas of state regulation is NOT protected by the saving clause in
ERISA? - correct answerCommerce
Additional coverage can be added to a whole Life policy by adding a(n): - correct
answerdecreasing term rider
What benefit does the payor clause on a Juvenile Life policy provide? - correct
answerPremiums are waived if the payor becomes disabled
According to Florida law, when must an agent deliver the outline of Coverage to a
Medicare Supplement applicant? - correct answerAt the time of application
N is a student pilot with a large life insurance policy. Which of these features would limit
the insurer's obligation in the event N was killed while flying as a student pilot? - correct
answerExclusion
Which statement is true regarding a minor beneficiary ? - correct answerNormally, a
guarding is required to be appointed in the Beneficiary clause of the contract
A sole proprietor may use this plan ONLY if the employees of this business are
included. - correct answerIndividual Retirement Account (IRA)
Which of the following provisions is NOT required in HMO contracts/certificated? -
correct answerSeven-day grace period
The Bureau of Unclaimed Property is overseen by the - correct answerChief Financial
Officer
A life policy that contains a monthly mortality charge as well as self-directed investment
choices is called a(n) - correct answerVariable Universal Life policy
,
EXAM SIMULATOR FLORIDA-LIFE & HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE (SOURCE Xcel solutions – Pearson)
400+ ACTUAL TEST QUESTIONS WITH DETAILED VERIFIED ANSWERS /
ALREADY GRADED A
An insurance company normally has 2 years to contest information provided on an
accident and health application. This 2 year period begins on the date that the: - correct
answerinsurer dated the policy
P is a new employee and will be obtaining non- contributory group Major Medical
insurance from her employer. Which of the following actions must she take during the
open enrollment period? - correct answerSign an enrollment card
Which of the following statements is true about most Blue Cross/Blue Shield
organizations? - correct answerThey are nonprofit organizations
A "reimbursement policy" pays what amount of covered Long-Term care expenses? -
correct answerActual covered expenses up to the daily maximum
An individual covered under a group life insurance policy is considered to be a (n) -
correct answercertificate holder
The __________ has the right to change a life insurance policy's beneficiary. - correct
answerpolicyowner
Which of the following documents must an agent submit to the replacing insurance
company during the replacement of an existing life insurance policy? - correct
answerNotice to existing and replacing insurers of intention to replace
Which of these statements concerning an individual Disability income policy is TRUE? -
correct answerNormally includes an Elimination period
A statement made by an insured in an insurance application that must be true to the
best of one's knowledge and which becomes a part of the contract is known as - correct
answera representation
A foreign insurance company doing business in Florida - correct answeris a company
that was formed under the laws of another state
An insurer must provide an insured with claim forms within __ days after receiving
notice of a loss. - correct answer15
,
EXAM SIMULATOR FLORIDA-LIFE & HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE (SOURCE Xcel solutions – Pearson)
400+ ACTUAL TEST QUESTIONS WITH DETAILED VERIFIED ANSWERS /
ALREADY GRADED A
When an insurer issues a policy that refuses to cover certain risks, this is referred to as
a(n)
: - correct answerexclusion
What is the initial source of underwriting for an insurance policy? - correct
answerApplication containing statements from the insured
T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight life
Annuity. What will this transaction provide? - correct answerIncome that cannot be
outlived by the owner
Tom has a qualified retirement plan with his employer that is currently considered to be
80% "vested". How can this be interpreted? - correct answerIf Tom's employment is
terminated, 20% of the funds would be forfeited
Which settlement option pays a stated amount to an annuitant, but no residual value to
a beneficiary? - correct answerLife Income
K buys a policy where the premium stays fixed for the first 5 years. The premium then
increases in year 6 and stays level thereafter, all the while the death benefit remains the
same. What kind of policy is this? - correct answerModified Whole Life
An Insured's inability to perform two or more activities of daily living may trigger which
type of life policy rider? - correct answerLong term care
Which of these is an element of a Variable Life policy? - correct answerA fixed, level
premium
F needs life insurance that provides coverage for only a limited amount of time with a
death benefit that changes regularly to a schedule. What kind of policy is needed? -
correct answerDecreasing term policy
Which parts of a life insurance policy are guaranteed to be true? - correct
answerWarranty
In Major Medical Expense policies, what is the objective of a Stop Loss provision? -
correct answerLimits an insured's out-of-pocket medical expenses.
,
EXAM SIMULATOR FLORIDA-LIFE & HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE (SOURCE Xcel solutions – Pearson)
400+ ACTUAL TEST QUESTIONS WITH DETAILED VERIFIED ANSWERS /
ALREADY GRADED A
T has an annuity that guarantees an income payment for the rest of his life. The
contract also guaranteed that if T dies before receiving payments for 20 years, the
remaining payments will be paid to his son for the balance of the 20 years. What type of
annuity is this? - correct answerLife Annuity with Period Certain
Florida's 14-day free-look period for life insurance policies begins at the - correct
answerdate of delivery
J would like to maintain the right to change beneficiaries. Which beneficiary designation
should be used? - correct answerRevocable
The Notice of Claims provision requires a policyowner to: - correct answernotify an
insurer of a claim within a specified time
What type of life policy cover 2 lives and pays the face amount after the first one dies? -
correct answerJoint Life Policy
on August 6, D submitted and application for a $50,000 Life Insurance policy and did
not pay the initial premium. On August 18, D went to his doctor complaining of chest
pains and some tests were given by the doctor. The life policy was delivered by the
producer on August 20 and D explains what had recently taken place with the doctor.
What action should the producer take? - correct answerCollect initial premium along
with a signed health statement
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? -
correct answerAll of the employees must be notified of the cancellation either by the
insurance company or through J
Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of
Term coverage on himself under the same policy. What kind of policy should Q
purchase? - correct answerWhole life policy with other insured rider
A life insurance policy would be considered a wagering contract WITHOUT - correct
answerinsurable interest
A Business overhead Expense policy would cover which of the following if a business
owner becomes disabled? - correct answerUtilities and office rent
EXAM SIMULATOR FLORIDA-LIFE & HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE (SOURCE Xcel solutions – Pearson)
400+ ACTUAL TEST QUESTIONS WITH DETAILED VERIFIED ANSWERS /
ALREADY GRADED A
A non-contributory plan requires _________ participation of all eligible employees -
correct answer100%
A characteristic of preferred provider organizations (PPOS) would be: - correct
answerDiscounted fees for the patient
Which of the following areas of state regulation is NOT protected by the saving clause in
ERISA? - correct answerCommerce
Additional coverage can be added to a whole Life policy by adding a(n): - correct
answerdecreasing term rider
What benefit does the payor clause on a Juvenile Life policy provide? - correct
answerPremiums are waived if the payor becomes disabled
According to Florida law, when must an agent deliver the outline of Coverage to a
Medicare Supplement applicant? - correct answerAt the time of application
N is a student pilot with a large life insurance policy. Which of these features would limit
the insurer's obligation in the event N was killed while flying as a student pilot? - correct
answerExclusion
Which statement is true regarding a minor beneficiary ? - correct answerNormally, a
guarding is required to be appointed in the Beneficiary clause of the contract
A sole proprietor may use this plan ONLY if the employees of this business are
included. - correct answerIndividual Retirement Account (IRA)
Which of the following provisions is NOT required in HMO contracts/certificated? -
correct answerSeven-day grace period
The Bureau of Unclaimed Property is overseen by the - correct answerChief Financial
Officer
A life policy that contains a monthly mortality charge as well as self-directed investment
choices is called a(n) - correct answerVariable Universal Life policy
,
EXAM SIMULATOR FLORIDA-LIFE & HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE (SOURCE Xcel solutions – Pearson)
400+ ACTUAL TEST QUESTIONS WITH DETAILED VERIFIED ANSWERS /
ALREADY GRADED A
An insurance company normally has 2 years to contest information provided on an
accident and health application. This 2 year period begins on the date that the: - correct
answerinsurer dated the policy
P is a new employee and will be obtaining non- contributory group Major Medical
insurance from her employer. Which of the following actions must she take during the
open enrollment period? - correct answerSign an enrollment card
Which of the following statements is true about most Blue Cross/Blue Shield
organizations? - correct answerThey are nonprofit organizations
A "reimbursement policy" pays what amount of covered Long-Term care expenses? -
correct answerActual covered expenses up to the daily maximum
An individual covered under a group life insurance policy is considered to be a (n) -
correct answercertificate holder
The __________ has the right to change a life insurance policy's beneficiary. - correct
answerpolicyowner
Which of the following documents must an agent submit to the replacing insurance
company during the replacement of an existing life insurance policy? - correct
answerNotice to existing and replacing insurers of intention to replace
Which of these statements concerning an individual Disability income policy is TRUE? -
correct answerNormally includes an Elimination period
A statement made by an insured in an insurance application that must be true to the
best of one's knowledge and which becomes a part of the contract is known as - correct
answera representation
A foreign insurance company doing business in Florida - correct answeris a company
that was formed under the laws of another state
An insurer must provide an insured with claim forms within __ days after receiving
notice of a loss. - correct answer15
,
EXAM SIMULATOR FLORIDA-LIFE & HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE (SOURCE Xcel solutions – Pearson)
400+ ACTUAL TEST QUESTIONS WITH DETAILED VERIFIED ANSWERS /
ALREADY GRADED A
When an insurer issues a policy that refuses to cover certain risks, this is referred to as
a(n)
: - correct answerexclusion
What is the initial source of underwriting for an insurance policy? - correct
answerApplication containing statements from the insured
T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight life
Annuity. What will this transaction provide? - correct answerIncome that cannot be
outlived by the owner
Tom has a qualified retirement plan with his employer that is currently considered to be
80% "vested". How can this be interpreted? - correct answerIf Tom's employment is
terminated, 20% of the funds would be forfeited
Which settlement option pays a stated amount to an annuitant, but no residual value to
a beneficiary? - correct answerLife Income
K buys a policy where the premium stays fixed for the first 5 years. The premium then
increases in year 6 and stays level thereafter, all the while the death benefit remains the
same. What kind of policy is this? - correct answerModified Whole Life
An Insured's inability to perform two or more activities of daily living may trigger which
type of life policy rider? - correct answerLong term care
Which of these is an element of a Variable Life policy? - correct answerA fixed, level
premium
F needs life insurance that provides coverage for only a limited amount of time with a
death benefit that changes regularly to a schedule. What kind of policy is needed? -
correct answerDecreasing term policy
Which parts of a life insurance policy are guaranteed to be true? - correct
answerWarranty
In Major Medical Expense policies, what is the objective of a Stop Loss provision? -
correct answerLimits an insured's out-of-pocket medical expenses.
,
EXAM SIMULATOR FLORIDA-LIFE & HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE (SOURCE Xcel solutions – Pearson)
400+ ACTUAL TEST QUESTIONS WITH DETAILED VERIFIED ANSWERS /
ALREADY GRADED A
T has an annuity that guarantees an income payment for the rest of his life. The
contract also guaranteed that if T dies before receiving payments for 20 years, the
remaining payments will be paid to his son for the balance of the 20 years. What type of
annuity is this? - correct answerLife Annuity with Period Certain
Florida's 14-day free-look period for life insurance policies begins at the - correct
answerdate of delivery
J would like to maintain the right to change beneficiaries. Which beneficiary designation
should be used? - correct answerRevocable
The Notice of Claims provision requires a policyowner to: - correct answernotify an
insurer of a claim within a specified time
What type of life policy cover 2 lives and pays the face amount after the first one dies? -
correct answerJoint Life Policy
on August 6, D submitted and application for a $50,000 Life Insurance policy and did
not pay the initial premium. On August 18, D went to his doctor complaining of chest
pains and some tests were given by the doctor. The life policy was delivered by the
producer on August 20 and D explains what had recently taken place with the doctor.
What action should the producer take? - correct answerCollect initial premium along
with a signed health statement
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? -
correct answerAll of the employees must be notified of the cancellation either by the
insurance company or through J
Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of
Term coverage on himself under the same policy. What kind of policy should Q
purchase? - correct answerWhole life policy with other insured rider
A life insurance policy would be considered a wagering contract WITHOUT - correct
answerinsurable interest
A Business overhead Expense policy would cover which of the following if a business
owner becomes disabled? - correct answerUtilities and office rent
