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
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
