LORIDA 2-15 INSURANCE LICENSE EXAM ACTUAL EXAM
QUESTIONS AND CORRECT ANSWERS WITH RATIONALES GRADED
A+
.__________ is when policy values of an insurance policy are used
to purchase another policy with the same insurer for the sole
purpose of earning additional premiums or commissions. -
ANSWER-Churning
.___________ refers to the monies set aside by insurers for future
claims costs. - ANSWER-Reserve funds
.____________ term insurance provides a level amount of
protection for a specified period, after which the policy expires. -
ANSWER-Level
._____________ health insurance is issued to cover a group who
may be exposed to the same risks, but the composition of the
group is constantly changing. - ANSWER-Blanket
._______________ policies are commonly used as a hedge against
inflation to ward off decreased purchasing power. - ANSWER-
Increasing term
,.__________________ are the two most important factors in the
health insurance underwriting process. - ANSWER-Medical history
and occupation
."ACC" refers to the type of disability that prevents someone from
performing the job he was performing prior to the disability. -
ANSWER-FALSE
.A _____________ group involves combining several parties into a
group for the purpose of obtaining insurance. - ANSWER-fictitious
.A complete examination of an HMO's affairs is conducted at least:
- ANSWER-once every five years.
.A group life insurance plan in which the employer pays the entire
premium is known as a ________________ plan. - ANSWER-
noncontributory
.A health plan with a $5-per-point conversion factor would pay
_______ for a 200-point procedure. - ANSWER-$1,000
, .A life insurance policy will not be reinstated if it has been: -
ANSWER-surrendered for its cash value.
.A life insurance policy's cash value belongs to the insured. -
ANSWER-FALSE
.A man commits suicide 30 months after purchasing a life
insurance policy and his wife is the named beneficiary. What
amount will his wife receive? - ANSWER-The face amount of the
policy
.A medical expense policy states that it will pay a flat $200 a day
for each day of hospitalization. The policy pays benefits on what
basis? - ANSWER-Indemnity
.A portion of a mutual insurer's premiums are paid out as policy
dividends and are considered: - ANSWER-refunds
.A prospectus for an individual variable insurance contract: -
ANSWER-must accompany every sales presentation.
.A term life insurance policy's cash value builds during a
QUESTIONS AND CORRECT ANSWERS WITH RATIONALES GRADED
A+
.__________ is when policy values of an insurance policy are used
to purchase another policy with the same insurer for the sole
purpose of earning additional premiums or commissions. -
ANSWER-Churning
.___________ refers to the monies set aside by insurers for future
claims costs. - ANSWER-Reserve funds
.____________ term insurance provides a level amount of
protection for a specified period, after which the policy expires. -
ANSWER-Level
._____________ health insurance is issued to cover a group who
may be exposed to the same risks, but the composition of the
group is constantly changing. - ANSWER-Blanket
._______________ policies are commonly used as a hedge against
inflation to ward off decreased purchasing power. - ANSWER-
Increasing term
,.__________________ are the two most important factors in the
health insurance underwriting process. - ANSWER-Medical history
and occupation
."ACC" refers to the type of disability that prevents someone from
performing the job he was performing prior to the disability. -
ANSWER-FALSE
.A _____________ group involves combining several parties into a
group for the purpose of obtaining insurance. - ANSWER-fictitious
.A complete examination of an HMO's affairs is conducted at least:
- ANSWER-once every five years.
.A group life insurance plan in which the employer pays the entire
premium is known as a ________________ plan. - ANSWER-
noncontributory
.A health plan with a $5-per-point conversion factor would pay
_______ for a 200-point procedure. - ANSWER-$1,000
, .A life insurance policy will not be reinstated if it has been: -
ANSWER-surrendered for its cash value.
.A life insurance policy's cash value belongs to the insured. -
ANSWER-FALSE
.A man commits suicide 30 months after purchasing a life
insurance policy and his wife is the named beneficiary. What
amount will his wife receive? - ANSWER-The face amount of the
policy
.A medical expense policy states that it will pay a flat $200 a day
for each day of hospitalization. The policy pays benefits on what
basis? - ANSWER-Indemnity
.A portion of a mutual insurer's premiums are paid out as policy
dividends and are considered: - ANSWER-refunds
.A prospectus for an individual variable insurance contract: -
ANSWER-must accompany every sales presentation.
.A term life insurance policy's cash value builds during a
