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
Answer 100%
A characteristic of preferred provider organizations (PPOS) would be: Answer
Discounted fees for the patient
Which of the following areas of state regulation is NOT protected by the saving clause in
ERISA? Answer Commerce
Additional coverage can be added to a whole Life policy by adding a(n): Answer
decreasing term rider
What benefit does the payor clause on a Juvenile Life policy provide? Answer
Premiums 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? Answer At 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?
Answer Exclusion
Which statement is true regarding a minor beneficiary ? Answer Normally, 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. Answer Individual Retirement Account (IRA)
Which of the following provisions is NOT required in HMO contracts/certificated?
Answer Seven-day grace period
The Bureau of Unclaimed Property is overseen by the Answer Chief Financial Officer
,A life policy that contains a monthly mortality charge as well as self-directed investment
choices is called a(n) Answer Variable Universal Life policy
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:
Answer insurer 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? Answer Sign an enrollment card
Which of the following statements is true about most Blue Cross/Blue Shield
organizations? Answer They are nonprofit organizations
A "reimbursement policy" pays what amount of covered Long-Term care expenses?
Answer Actual covered expenses up to the daily maximum
An individual covered under a group life insurance policy is considered to be a (n)
Answer certificate holder
The __________ has the right to change a life insurance policy's beneficiary. Answer
policyowner
Which of the following documents must an agent submit to the replacing insurance
company during the replacement of an existing life insurance policy? Answer Notice
to existing and replacing insurers of intention to replace
Which of these statements concerning an individual Disability income policy is TRUE?
Answer Normally 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
Answer a representation
A foreign insurance company doing business in Florida Answer is 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. Answer 15
When an insurer issues a policy that refuses to cover certain risks, this is referred to as
a(n)
: Answer exclusion
,What is the initial source of underwriting for an insurance policy? Answer Application
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? Answer Income 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? Answer If 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? Answer Life 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? Answer Modified Whole Life
An Insured's inability to perform two or more activities of daily living may trigger which
type of life policy rider? Answer Long term care
Which of these is an element of a Variable Life policy? Answer A 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?
Answer Decreasing term policy
Which parts of a life insurance policy are guaranteed to be true? Answer Warranty
In Major Medical Expense policies, what is the objective of a Stop Loss provision?
Answer Limits an insured's out-of-pocket medical expenses.
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? Answer Life Annuity with Period Certain
Florida's 14-day free-look period for life insurance policies begins at the Answer date
of delivery
J would like to maintain the right to change beneficiaries. Which beneficiary designation
should be used? Answer Revocable
, The Notice of Claims provision requires a policyowner to: Answer notify 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?
Answer Joint 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? Answer Collect 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?
Answer All 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? Answer Whole life policy with other insured rider
A life insurance policy would be considered a wagering contract WITHOUT Answer
insurable interest
A Business overhead Expense policy would cover which of the following if a business
owner becomes disabled? Answer Utilities and office rent
A Whole Life insurance policyowner does NOT have the right to Answer change the
grace period
Which of the following types of Term Life policies most likely contains a Renewability
feature? Answer 10 Year Convertible Term
A catastrophic illness would be best covered by which of the following health insurance
plans? Answer Major Medical
Many small business owner worry how their business would survive financially if the
owner becomes disabled. The policy which BEST addresses this concern is: Answer
Business Overhead Expense
A 55 year old recently received a $30,000 distribution from a previous employer's 401k
plan. minus $6,000 withholding. Which federal taxed apply if none of the funds were
rolled over? Answer Income taxes plus a 10% penalty tax on $30,000
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
Answer 100%
A characteristic of preferred provider organizations (PPOS) would be: Answer
Discounted fees for the patient
Which of the following areas of state regulation is NOT protected by the saving clause in
ERISA? Answer Commerce
Additional coverage can be added to a whole Life policy by adding a(n): Answer
decreasing term rider
What benefit does the payor clause on a Juvenile Life policy provide? Answer
Premiums 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? Answer At 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?
Answer Exclusion
Which statement is true regarding a minor beneficiary ? Answer Normally, 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. Answer Individual Retirement Account (IRA)
Which of the following provisions is NOT required in HMO contracts/certificated?
Answer Seven-day grace period
The Bureau of Unclaimed Property is overseen by the Answer Chief Financial Officer
,A life policy that contains a monthly mortality charge as well as self-directed investment
choices is called a(n) Answer Variable Universal Life policy
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:
Answer insurer 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? Answer Sign an enrollment card
Which of the following statements is true about most Blue Cross/Blue Shield
organizations? Answer They are nonprofit organizations
A "reimbursement policy" pays what amount of covered Long-Term care expenses?
Answer Actual covered expenses up to the daily maximum
An individual covered under a group life insurance policy is considered to be a (n)
Answer certificate holder
The __________ has the right to change a life insurance policy's beneficiary. Answer
policyowner
Which of the following documents must an agent submit to the replacing insurance
company during the replacement of an existing life insurance policy? Answer Notice
to existing and replacing insurers of intention to replace
Which of these statements concerning an individual Disability income policy is TRUE?
Answer Normally 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
Answer a representation
A foreign insurance company doing business in Florida Answer is 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. Answer 15
When an insurer issues a policy that refuses to cover certain risks, this is referred to as
a(n)
: Answer exclusion
,What is the initial source of underwriting for an insurance policy? Answer Application
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? Answer Income 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? Answer If 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? Answer Life 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? Answer Modified Whole Life
An Insured's inability to perform two or more activities of daily living may trigger which
type of life policy rider? Answer Long term care
Which of these is an element of a Variable Life policy? Answer A 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?
Answer Decreasing term policy
Which parts of a life insurance policy are guaranteed to be true? Answer Warranty
In Major Medical Expense policies, what is the objective of a Stop Loss provision?
Answer Limits an insured's out-of-pocket medical expenses.
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? Answer Life Annuity with Period Certain
Florida's 14-day free-look period for life insurance policies begins at the Answer date
of delivery
J would like to maintain the right to change beneficiaries. Which beneficiary designation
should be used? Answer Revocable
, The Notice of Claims provision requires a policyowner to: Answer notify 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?
Answer Joint 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? Answer Collect 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?
Answer All 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? Answer Whole life policy with other insured rider
A life insurance policy would be considered a wagering contract WITHOUT Answer
insurable interest
A Business overhead Expense policy would cover which of the following if a business
owner becomes disabled? Answer Utilities and office rent
A Whole Life insurance policyowner does NOT have the right to Answer change the
grace period
Which of the following types of Term Life policies most likely contains a Renewability
feature? Answer 10 Year Convertible Term
A catastrophic illness would be best covered by which of the following health insurance
plans? Answer Major Medical
Many small business owner worry how their business would survive financially if the
owner becomes disabled. The policy which BEST addresses this concern is: Answer
Business Overhead Expense
A 55 year old recently received a $30,000 distribution from a previous employer's 401k
plan. minus $6,000 withholding. Which federal taxed apply if none of the funds were
rolled over? Answer Income taxes plus a 10% penalty tax on $30,000
