Florida Life, Health, and Annuities 215 Study Set with Correct Answers
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Course
FLORIDA HEALTH AND LIFE
Institution
FLORIDA HEALTH AND LIFE
All of the following are systems that support the sale of insurance through agents and
brokers... - CORRECT ANSWER- Independent Agency system
Career Agency System
Personal Producing General Agency System
Dividends from a stock company are paid to stockholders, whereas in a mutual
company, divi...
Florida Life, Health, and Annuities 215
Study Set with Correct Answers
All of the following are systems that support the sale of insurance through agents and
brokers... - CORRECT ANSWER- Independent Agency system
Career Agency System
Personal Producing General Agency System
Dividends from a stock company are paid to stockholders, whereas in a mutual
company, dividends are - CORRECT ANSWER- Paid to the policy owners
Who is considered the owner of a mutual insurance company? - CORRECT ANSWER-
Policyholders
Which of the following statements is correct when comparing participating policies with
non-participating policies? - CORRECT ANSWER- Premiums for participating policies
are usually higher than for non-participating policies
What is the purpose of insurance? - CORRECT ANSWER- To replace the uncertainty of
risk with guarantees.
What type of agent may represent a number of insurance companies under separate
contractual agreements? - CORRECT ANSWER- independent agent
An applicant for life insurance must be informed of their rights under the fair credit report
act at what time? - CORRECT ANSWER- When the producer competes the insureds
application.
The governing body of a mutual insurance company is elected by the - CORRECT
ANSWER- Policy holders
The authority behind the requirements that an applicant for an Accident and Healthy
policy MUST be notified of an investigation concerning the applicant's character,
general reputation, and model of living is known as the - CORRECT ANSWER- Fair
Credit Reporting Act
An adjustable life policy owner may take all of the following actions without providing
proof of insurability - CORRECT ANSWER- Decrease the face amount
Decrease the premium paying period
Increase the premium paying period
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,Credit policies MUST be issued in which of the following forms? - CORRECT ANSWER-
term
Which of the following policies guarantees to pay the face value either to the beneficiary
when the insured dies or to the insured at age 100? - CORRECT ANSWER- Whole life
Which of the following reflects the definition of a Modified Endowment Contract (MEC)?
- CORRECT ANSWER- The guideline level premiums being the maximum level that
can be paid into a policy and still have it qualify as a life insurance contract
Which of the following statements is correct about credit life insurance? - CORRECT
ANSWER- It shall be issued in an amount not to exceed the total amount of
indebtedness
A 40-year-old insured who buys a single premium whole life policy and lives to age 85
will have paid a total out-of-pocket cost that is - CORRECT ANSWER- Less than the
premiums paid for the straight life policy
Investors-Originated Life Insurance( IOLI) is an arrangement in which the death of
insured benefits the - CORRECT ANSWER- owner
Under a group Credit Life policy, the amount of insurance on the life of a debtor is
limited to - CORRECT ANSWER- the total amount of the insured's loan
Which of the following features is typical of the term insurance? - CORRECT ANSWER-
The policy expires at the end of the policy period
Which of the following features of a group term life policy enables an individual to leave
the group and continue his or her insurance without providing evidence of insurability? -
CORRECT ANSWER- Conversion privilege
Which of the following statements is correct about a limited pay life policy ? - CORRECT
ANSWER- Premium payments are limited to a specified number of a years
Which of the following statements is correct about a while life policy? - CORRECT
ANSWER- The policy owner may borrow against the cash value of the policy.
Which of the following items may be used to include coverage for children under their
parents insurance policy? - CORRECT ANSWER- Term rider
Which life insurance arrangement is used to circumvent state insurable insurable
interest statutes key person insurance ? - CORRECT ANSWER- Investor originated life
insurance
The concept of level premiums - CORRECT ANSWER- Charges more than needed in
early years
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, A policy that is overfunded, according to IRS tables, is classified as which of the
following types of policies? - CORRECT ANSWER- Modified Endowment Contract
An agent is required to register with the National association of Securities Dealer
(NASD) in order to sell - CORRECT ANSWER- Variable life
J, a 30 year old proposed insured, plans to retire at age 60 and wants to purchase life
insurance that offers level premiums and life protection. If J also wants the policy to be
puf up when J retires J should buy - CORRECT ANSWER- 30 Pay Life
Under a Limited-Pay Life policy, the death benefit coverage usually continues -
CORRECT ANSWER- To age 100
Equity indexed life insurance - CORRECT ANSWER- •Is linked to an outside equity
index, like S&P 500.
•It is permanent insurance and the cash value accumulate at a guaranteed minimum
rate.
•If the return of the index exceeds the policy's guaranteed rate of return, the cash value
will reflect that of the index.
Variable whole life policy offers which of the following features - CORRECT ANSWER-
A fixed, level premium
Example of limited pay life policy is - CORRECT ANSWER- Life Paid-up at Age 65
Which of the following policy sections enables a policy owner to exchange one
insurance policy for a policy of a different kind - CORRECT ANSWER- Conversion
privilege
Which of the following is correct about the premium payment schedule for a whole life
policy - CORRECT ANSWER- Premiums are payable throughout the insured's life and
coverage continues until the insured's death
Which of the following statements is correct about limited pay life policy - CORRECT
ANSWER- Premium payments are limited to a specified number of a years
Which of the following factors are most important when insured Owner is trying to
decide whether to convert term insurance at the insured's original age to the insured
attained age - CORRECT ANSWER- Cost of insurance
Which of the following statements is correct about a variable insurance contract -
CORRECT ANSWER- It does not guarantee a return on investment accounts
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