Florida Health, Life & Annuity End of
Course Exam 4 Questions And Correct
Answers[100%]
Identify the part of the application that would have the applicant's medical history:
Select one:
a. Part 1
b. Part 2
c. Part 3
d. All of the above - CORRECT ANSWER- Part 2 of the application collects information
about the applicant's medical history.
The correct answer is: Part 2
All of the following demonstrate constructive delivery, EXCEPT:
Select one:
a. A conditional receipt is issued to the applicant
b. The insurer mails the policy to the agent, who in turn, mails the policy to the insured
c. The agent mails the policy to the insured
d. The insurer mails the policy to the insured - CORRECT ANSWER- Constructive
delivery occurs when the insurer divests all control over the policy to the policyowner.
Delivery has not occurred when the agent issues a conditional receipt.
The correct answer is: A conditional receipt is issued to the applicant
The policy that allows the most flexibility and power over policy features is:
Select one:
a. Variable universal life
b. Convertible term
c. Adjustable life
d. Universal life - CORRECT ANSWER- Variable universal life insurance allows the
policyowner to choose how the premiums are invested, increase or decrease premiums,
and change the death benefit.
The correct answer is: Variable universal life
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,Term riders include all of the following, EXCEPT:
Select one:
a. Return of premium rider
b. Other-insured rider
c. Variable income rider
d. Spouse rider - CORRECT ANSWER- Term riders include: spouse, other insured,
children, family, return of premium and return of cash value. There is not a variable
income rider.
The correct answer is: Variable income rider
In Florida, the term "agent" includes which of the following?
Select one:
a. Customer service representative
b. Limited customer representative
c. Service representative
d. General lines agent - CORRECT ANSWER- An agent is a general lines agent, life
agent, health agent, or title agent. In Florida, the term "agent" does not include a
customer service representative, limited customer representative, or service
representative.
The correct answer is: General lines agent
Amelia has a nonqualified annuity that is paid out of her paycheck. It will be paid:
Select one:
a. Post tax
b. Deferred tax
c. Before tax
d. Immediate tax - CORRECT ANSWER- A nonqualified plan is not eligible for tax
benefits. Therefore a nonqualified annuity would be paid with after tax income. The test
makers try to trick you with different names of annuities or policies, but the question is
asking about pretax or after tax on a nonqualified plan.
The correct answer is: Post tax
Who is employee group life insurance designed to benefit?
Select one:
a. Employee only
b. Employee or employer
c. Employer only
g
,d. Employee and employer - CORRECT ANSWER- Employee life insurance insures the
lives of a group of individual employees of an employer for the benefit of persons other
than the employer, under a group policy issued to the employer.
The correct answer is: Employee only
Which of the following reasons best explains why whole life policies are more expensive
than other insurance options?
Select one:
a. The policyholders are high risk.
b. Whole life is generally not more expensive.
c. They must cover cash values, net insurance and mortality costs, as well as expenses.
d. They last a really long time. - CORRECT ANSWER- Because whole life policies
include cash values in addition to net insurance, the premiums must cover mortality
costs, expenses and the savings amount.
The correct answer is: They must cover cash values, net insurance and mortality costs,
as well as expenses.
In order to continue coverage for a newborn, when must the insurer be notified of the
birth?
Select one:
a. Within 7 days
b. Within 14 days
c. Within 30 days
d. Within 31 days - CORRECT ANSWER- To continue coverage for a newborn, the
insurer must be informed of the birth within 30 days of the birth.
The correct answer is: Within 30 days
If someone covered by a group health plan loses their employment, how many days do
they have to convert to an individual policy?
Select one:
a. 21 days
b. 30 days
c. 31 days
d. 45 days - CORRECT ANSWER- Group health plans must contain a conversion
privilege for individual insureds, which allows them to convert their group certificate to
an individual medical expense policy with the same insurer within the conversion period
of 31 days.
The correct answer is: 31 days
g
, How much time does an individual have to convert to a new individual life policy after
the termination of their group life policy?
Select one:
a. 28 days
b. 30 days
c. 31 days
d. 60 days - CORRECT ANSWER- If a group life policy is terminated, the members and
dependents may convert their group coverage to individual life coverage. The individual
must apply for individual coverage within 31 days after the date of group coverage
termination.
The correct answer is: 31 days
Randall purchases an individual health insurance policy from ABC Insurance Company.
If he has had asthma since the age of 5, what action will the insurance company take in
underwriting/issuing his policy?
Select one:
a. Issue the policy with an extended pre-existing condition provision
b. Issue the policy with a noncancellable renewability provision
c. Issue the policy with an impairment rider
d. Deny coverage due to a pre-existing condition - CORRECT ANSWER- ABC
Insurance Company is likely to issue the coverage to Randall with an impairment rider,
which simply excludes coverage for certain losses relating to asthma.
The correct answer is: Issue the policy with an impairment rider
Who are the members of the Florida Life and Health Guaranty Association?
Select one:
a. The CFO and their appointees
b. The CFO, the Commissioner of the Office of Insurance Regulation, and their
appointees
c. Elected representatives of some insurers
d. All insurers authorized by the state of Florida - CORRECT ANSWER- All member
insurers must be members of the association as a condition to eligibility to transact
insurance in Florida. In addition, member insurers are assessed amounts to contribute
to the guaranty fund for insurer insolvency.
The correct answer is: All insurers authorized by the state of Florida
If an insured is approved for a specific medical procedure and is provided with the
maximum amount the insurance company will pay for that procedure, it would be
reasonable to assume their policy has the _________________ payment provision.
g
Course Exam 4 Questions And Correct
Answers[100%]
Identify the part of the application that would have the applicant's medical history:
Select one:
a. Part 1
b. Part 2
c. Part 3
d. All of the above - CORRECT ANSWER- Part 2 of the application collects information
about the applicant's medical history.
The correct answer is: Part 2
All of the following demonstrate constructive delivery, EXCEPT:
Select one:
a. A conditional receipt is issued to the applicant
b. The insurer mails the policy to the agent, who in turn, mails the policy to the insured
c. The agent mails the policy to the insured
d. The insurer mails the policy to the insured - CORRECT ANSWER- Constructive
delivery occurs when the insurer divests all control over the policy to the policyowner.
Delivery has not occurred when the agent issues a conditional receipt.
The correct answer is: A conditional receipt is issued to the applicant
The policy that allows the most flexibility and power over policy features is:
Select one:
a. Variable universal life
b. Convertible term
c. Adjustable life
d. Universal life - CORRECT ANSWER- Variable universal life insurance allows the
policyowner to choose how the premiums are invested, increase or decrease premiums,
and change the death benefit.
The correct answer is: Variable universal life
g
,Term riders include all of the following, EXCEPT:
Select one:
a. Return of premium rider
b. Other-insured rider
c. Variable income rider
d. Spouse rider - CORRECT ANSWER- Term riders include: spouse, other insured,
children, family, return of premium and return of cash value. There is not a variable
income rider.
The correct answer is: Variable income rider
In Florida, the term "agent" includes which of the following?
Select one:
a. Customer service representative
b. Limited customer representative
c. Service representative
d. General lines agent - CORRECT ANSWER- An agent is a general lines agent, life
agent, health agent, or title agent. In Florida, the term "agent" does not include a
customer service representative, limited customer representative, or service
representative.
The correct answer is: General lines agent
Amelia has a nonqualified annuity that is paid out of her paycheck. It will be paid:
Select one:
a. Post tax
b. Deferred tax
c. Before tax
d. Immediate tax - CORRECT ANSWER- A nonqualified plan is not eligible for tax
benefits. Therefore a nonqualified annuity would be paid with after tax income. The test
makers try to trick you with different names of annuities or policies, but the question is
asking about pretax or after tax on a nonqualified plan.
The correct answer is: Post tax
Who is employee group life insurance designed to benefit?
Select one:
a. Employee only
b. Employee or employer
c. Employer only
g
,d. Employee and employer - CORRECT ANSWER- Employee life insurance insures the
lives of a group of individual employees of an employer for the benefit of persons other
than the employer, under a group policy issued to the employer.
The correct answer is: Employee only
Which of the following reasons best explains why whole life policies are more expensive
than other insurance options?
Select one:
a. The policyholders are high risk.
b. Whole life is generally not more expensive.
c. They must cover cash values, net insurance and mortality costs, as well as expenses.
d. They last a really long time. - CORRECT ANSWER- Because whole life policies
include cash values in addition to net insurance, the premiums must cover mortality
costs, expenses and the savings amount.
The correct answer is: They must cover cash values, net insurance and mortality costs,
as well as expenses.
In order to continue coverage for a newborn, when must the insurer be notified of the
birth?
Select one:
a. Within 7 days
b. Within 14 days
c. Within 30 days
d. Within 31 days - CORRECT ANSWER- To continue coverage for a newborn, the
insurer must be informed of the birth within 30 days of the birth.
The correct answer is: Within 30 days
If someone covered by a group health plan loses their employment, how many days do
they have to convert to an individual policy?
Select one:
a. 21 days
b. 30 days
c. 31 days
d. 45 days - CORRECT ANSWER- Group health plans must contain a conversion
privilege for individual insureds, which allows them to convert their group certificate to
an individual medical expense policy with the same insurer within the conversion period
of 31 days.
The correct answer is: 31 days
g
, How much time does an individual have to convert to a new individual life policy after
the termination of their group life policy?
Select one:
a. 28 days
b. 30 days
c. 31 days
d. 60 days - CORRECT ANSWER- If a group life policy is terminated, the members and
dependents may convert their group coverage to individual life coverage. The individual
must apply for individual coverage within 31 days after the date of group coverage
termination.
The correct answer is: 31 days
Randall purchases an individual health insurance policy from ABC Insurance Company.
If he has had asthma since the age of 5, what action will the insurance company take in
underwriting/issuing his policy?
Select one:
a. Issue the policy with an extended pre-existing condition provision
b. Issue the policy with a noncancellable renewability provision
c. Issue the policy with an impairment rider
d. Deny coverage due to a pre-existing condition - CORRECT ANSWER- ABC
Insurance Company is likely to issue the coverage to Randall with an impairment rider,
which simply excludes coverage for certain losses relating to asthma.
The correct answer is: Issue the policy with an impairment rider
Who are the members of the Florida Life and Health Guaranty Association?
Select one:
a. The CFO and their appointees
b. The CFO, the Commissioner of the Office of Insurance Regulation, and their
appointees
c. Elected representatives of some insurers
d. All insurers authorized by the state of Florida - CORRECT ANSWER- All member
insurers must be members of the association as a condition to eligibility to transact
insurance in Florida. In addition, member insurers are assessed amounts to contribute
to the guaranty fund for insurer insolvency.
The correct answer is: All insurers authorized by the state of Florida
If an insured is approved for a specific medical procedure and is provided with the
maximum amount the insurance company will pay for that procedure, it would be
reasonable to assume their policy has the _________________ payment provision.
g
