Florida Life & Health Practice Test
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
Dismemberment policy insuring their father. Their mother was named contingent beneficiary.
Five years later, S dies of natural causes and the father is killed in a scuba accident shortly
afterwards. How much of the death benefit will the mother receive? - ANS$0
Which statement regarding the Change of Beneficiary provision is true? - ANSThe policyowner
can change the beneficiary
What is the underlying concept regarding level premiums? - ANSThe early years are charged
more than what is needed
C is trying to determine whether to convert her convertible term life policy to whole life insurance
using her original age or attained age. What factor would affect her decision the most? -
ANSThe cost
If the insured and primary beneficiary are both killed in the same accident and it cannot be
determined who died first, where are the death proceeds to be directed under the Uniform
Simultaneous Death Act? - ANSInsured's contingent beneficiary
On a life insurance policy, who is qualified to change the beneficiary designation? -
ANSPolicyowner
A policyowner is allowed to pay premiums more than once a year under which provision? -
ANSMode of Premium
A life insurance application must be signed by all of these EXCEPT - ANSBeneficiary
Any changes made on an insurance application requires the initials of whom? - ANSApplicant
Which Federal law allows an insurer to obtain an inspection report on a potential insured? -
ANSFair Credit Reporting Act
All of these are considered sources of underwriting information about an applicant EXCEPT -
ANSRating Services
K applies for a life insurance policy on herself and submits the initial premium with the
application. She is given a receipt by the agent stating that coverage begins immediately if the
application is approved. What kind of receipt was used? - ANSConditional
, P is a producer who notices 5 questions on a life application were not answered. What actions
should P take? - ANSSet up a meeting with the applicant to answer the remaining questions
An underwriter determines that an applicant's risk should be recategorized due to a health
issue. This life insurance policy may be issued with a(n) - ANSextra premium
In order for coverage on a non-medical insurance application to take effect the same day, the
producer must collect a signed application and - ANSthe initial premium
When does a life insurance contract become effective if the initial premium is not collected
during the application process? - ANSWhen producer delivers policy and collects initial premium
Why is an applicant's signature required on a life insurance application? - ANSTo attest that the
statements on the application are accurate to the best of the applicant's knowledge
A Disability Income policyowner suffers a disability which was due to the same cause as a
previous disability. Both disabilities occurred within a five-month period. The insurer may cover
the second disability without a new elimination period under the - ANSRecurrent Disability
provision
Which of these statements is INCORRECT regarding the federal income tax treatment of life
insurance? - ANSEntire cash surrender value is taxable
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? -
ANSWhole life policy with other insured rider
What action should a producer take if the initial premium is NOT submitted with the application?
- ANSForward the application to the insurer without the initial premium
What is being delivered during a policy delivery? - ANSInsurance contract to the proposed
insured
Which of these actions should a producer take when submitting an insurance application to an
insurer? - ANSInform insurer of relevant information not included on the application
Before a life insurance policy is issued, which of these components of the contract is required? -
ANSApplicant's signature on application
Which requirement must be met for an association to be eligible for a group life plan? -
ANSGroup was formed for a purpose other than acquiring insurance
G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If G were
to die at age 50, how long would G's family receive an income? - ANS10 years
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
Dismemberment policy insuring their father. Their mother was named contingent beneficiary.
Five years later, S dies of natural causes and the father is killed in a scuba accident shortly
afterwards. How much of the death benefit will the mother receive? - ANS$0
Which statement regarding the Change of Beneficiary provision is true? - ANSThe policyowner
can change the beneficiary
What is the underlying concept regarding level premiums? - ANSThe early years are charged
more than what is needed
C is trying to determine whether to convert her convertible term life policy to whole life insurance
using her original age or attained age. What factor would affect her decision the most? -
ANSThe cost
If the insured and primary beneficiary are both killed in the same accident and it cannot be
determined who died first, where are the death proceeds to be directed under the Uniform
Simultaneous Death Act? - ANSInsured's contingent beneficiary
On a life insurance policy, who is qualified to change the beneficiary designation? -
ANSPolicyowner
A policyowner is allowed to pay premiums more than once a year under which provision? -
ANSMode of Premium
A life insurance application must be signed by all of these EXCEPT - ANSBeneficiary
Any changes made on an insurance application requires the initials of whom? - ANSApplicant
Which Federal law allows an insurer to obtain an inspection report on a potential insured? -
ANSFair Credit Reporting Act
All of these are considered sources of underwriting information about an applicant EXCEPT -
ANSRating Services
K applies for a life insurance policy on herself and submits the initial premium with the
application. She is given a receipt by the agent stating that coverage begins immediately if the
application is approved. What kind of receipt was used? - ANSConditional
, P is a producer who notices 5 questions on a life application were not answered. What actions
should P take? - ANSSet up a meeting with the applicant to answer the remaining questions
An underwriter determines that an applicant's risk should be recategorized due to a health
issue. This life insurance policy may be issued with a(n) - ANSextra premium
In order for coverage on a non-medical insurance application to take effect the same day, the
producer must collect a signed application and - ANSthe initial premium
When does a life insurance contract become effective if the initial premium is not collected
during the application process? - ANSWhen producer delivers policy and collects initial premium
Why is an applicant's signature required on a life insurance application? - ANSTo attest that the
statements on the application are accurate to the best of the applicant's knowledge
A Disability Income policyowner suffers a disability which was due to the same cause as a
previous disability. Both disabilities occurred within a five-month period. The insurer may cover
the second disability without a new elimination period under the - ANSRecurrent Disability
provision
Which of these statements is INCORRECT regarding the federal income tax treatment of life
insurance? - ANSEntire cash surrender value is taxable
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? -
ANSWhole life policy with other insured rider
What action should a producer take if the initial premium is NOT submitted with the application?
- ANSForward the application to the insurer without the initial premium
What is being delivered during a policy delivery? - ANSInsurance contract to the proposed
insured
Which of these actions should a producer take when submitting an insurance application to an
insurer? - ANSInform insurer of relevant information not included on the application
Before a life insurance policy is issued, which of these components of the contract is required? -
ANSApplicant's signature on application
Which requirement must be met for an association to be eligible for a group life plan? -
ANSGroup was formed for a purpose other than acquiring insurance
G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If G were
to die at age 50, how long would G's family receive an income? - ANS10 years
