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
What type of whole life insurance policy only requires a payment of premium
at its inception, provides insurance protection for the life of the insured, and
endows at the insured's age 100? - answer-Single premium whole life.
What are the characteristics of the group that underwriters will consider
before issuing a group life policy? - answer-Groups purpose, size, financial
strength, and turnover.
What is the main advantage of converting from group life insurance to
individual coverage? - answer-Evidence of insurability is not required
What is included in Part 2 of a life insurance application? - answer-Medical
information about the prospective insured.
Term Insurance - answer-Coverage for a specified period of time without cash
values or living benefits.
Lump Sum - answer-A payout method that pays the beneficiary the entire
benefit in one payment.
,What are the consequences of withdrawing funds from a traditional IRA prior
to the age of 59 1/2? - answer-10% penalty
Whose life expectancy is taken into consideration in an annuity contract? -
answer-Annuitant
Who bears the investment risk in a fixed annuity? - answer-The insurer
What is the primary purpose of a 401(k) plan? - answer-Provide retirement
income.
Insured - answer-The person covered by the insurance policy.
Rider - answer-A written modification attached to a policy that increases or
decreases coverage and/or premiums.
What is a unilateral contract? - answer-A contract in which only one of the
parties is legally bound to fulfill its obligations.
What law protects consumers from the circulation of inaccurate or obsolete
information? - answer-The Fair Credit Reporting Act.
What are the three types of agent authority? - answer-Implied, Express, and
Apparent.
, Agent - answer-An individual who is licensed to sell, negotiate, or effect
insurance contracts on behalf of the insurer.
What is name of the process that insurance companies use to determine
whether or not an applicant is insurable? - answer-Underwriting
The requirement that agents must account for and promptly remit all
insurance funds collected is known as what type of agent responsibility? -
answer-Fiduciary
What is a third-party ownership? - answer-An insurance arrangement in which
the policy owner and the insured are not the same person.
Suitability - answer-Factors that determine if an insurance product is
appropriate for a particular customer.
Premium - answer-A payment by the policy owner to the insurance company
to keep the policy in force.
Disclosure - answer-Providing sufficient information to help someone make
informed decision.
An agent offer a client free tickets to a sporting event in exchange for the
purchase of an insurance policy. What is the agent guilty of? - answer-Rebating
HEALTH & LIFE AND ANNUITY COMPLETE STUDY GUIDE
(SOURCE Xcel solutions – Pearson) 400+ ACTUAL TEST
QUESTIONS WITH DETAILED VERIFIED ANSWERS /
ALREADY GRADED A
What type of whole life insurance policy only requires a payment of premium
at its inception, provides insurance protection for the life of the insured, and
endows at the insured's age 100? - answer-Single premium whole life.
What are the characteristics of the group that underwriters will consider
before issuing a group life policy? - answer-Groups purpose, size, financial
strength, and turnover.
What is the main advantage of converting from group life insurance to
individual coverage? - answer-Evidence of insurability is not required
What is included in Part 2 of a life insurance application? - answer-Medical
information about the prospective insured.
Term Insurance - answer-Coverage for a specified period of time without cash
values or living benefits.
Lump Sum - answer-A payout method that pays the beneficiary the entire
benefit in one payment.
,What are the consequences of withdrawing funds from a traditional IRA prior
to the age of 59 1/2? - answer-10% penalty
Whose life expectancy is taken into consideration in an annuity contract? -
answer-Annuitant
Who bears the investment risk in a fixed annuity? - answer-The insurer
What is the primary purpose of a 401(k) plan? - answer-Provide retirement
income.
Insured - answer-The person covered by the insurance policy.
Rider - answer-A written modification attached to a policy that increases or
decreases coverage and/or premiums.
What is a unilateral contract? - answer-A contract in which only one of the
parties is legally bound to fulfill its obligations.
What law protects consumers from the circulation of inaccurate or obsolete
information? - answer-The Fair Credit Reporting Act.
What are the three types of agent authority? - answer-Implied, Express, and
Apparent.
, Agent - answer-An individual who is licensed to sell, negotiate, or effect
insurance contracts on behalf of the insurer.
What is name of the process that insurance companies use to determine
whether or not an applicant is insurable? - answer-Underwriting
The requirement that agents must account for and promptly remit all
insurance funds collected is known as what type of agent responsibility? -
answer-Fiduciary
What is a third-party ownership? - answer-An insurance arrangement in which
the policy owner and the insured are not the same person.
Suitability - answer-Factors that determine if an insurance product is
appropriate for a particular customer.
Premium - answer-A payment by the policy owner to the insurance company
to keep the policy in force.
Disclosure - answer-Providing sufficient information to help someone make
informed decision.
An agent offer a client free tickets to a sporting event in exchange for the
purchase of an insurance policy. What is the agent guilty of? - answer-Rebating
