XCEL Exam Simulator FL Questions and
Answers
S recently received a $500,000 lump sum retirement buyout from her employer. She
would like to buy an annuity that will immediately furnish her with a guaranteed income
for life. What type of annuity is best suited for her situation? - Answers -Single Premium.
Immediate Annuities are purchased with a single lump sum payment and will start
providing income payments within the first year, but usually starting 30 days from the
purchase date.
What type of group plan involves employees sharing the cost? - Answers -contributory
plan.
Which of these circumstances is a Business Disability Buy-Sell policy designed to help
in the sale of a business? - Answers -Business owner becoming disabled.
A business Disability Buy-Sell policy is signed to assist in the sale of a business when
one of the owners becomes disabled.
On August 6, D submitted an application for a $50,000 Life Insurance policy and did not
pay the initial premium. On August 18, D went to his doctor complaining of chest pains
and some tests were given by the doctor. The life policy was delivered by the producer
on August 20 and D explains what had recently taken place with the doctor. What action
should the producer then take? - Answers -Collect initial premium along with a signed
health statement.
in this situation, the producer should deliver the policy and obtain the premium payment
along with a signed health statement.
On a life insurance policy, who is qualified to change the beneficiary designation? -
Answers -Policyowner.
However, consent may be needed by the current beneficiary if designated as
irrevocable.
Generally, how long is a benefit period for a major medical expense plan? - Answers -
One year.
Which of these life products is NOT considered interest-sensitive?
,-Variable universal life
-Modified whole life
-Interest sensitive whole life
-Variable life - Answers -Modified Whole Life.
The following ARE interest sensitive:
-Variable universal life
-Interest sensitive whole life
-Variable life
How does an indexed annuity differ from a fixed annuity? - Answers -indexed annuity
owners receive credited interest tied to the fluctuations of the linked index.
Which mode of payment is NOT used by health insurance policies? - Answers -Single
premium
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 - Answers -
Recurrent Disability provision.
In this situation, the insurer will provide the same benefits without a new elimination
period under the recurrent disability provision.
In Major Medical Expense policies, what is the intent of a Stop Loss provision? -
Answers -limits an insured's out-of-pocket medical expenses
What must an insurer obtain to conduct an HIV test? - Answers -written consent
All the following are Nonforfeiture options EXCEPT
a) Reduced paid-up
b) Automatic Premium loan option
c) Cash surrender
d) Extended term - Answers -Automatic Premium loan option
Which of these is NOT considered to be a right given to a policyowner?
-Surrendering the policy's cash value
-Modify a provision in the insurance contract
-Assignment of ownership
-Change the beneficiary, if revocable - Answers -Modify a provision in the insurance
contract
According to Florida Law, in which of the following situations would a dependent
handicapped child NOT be covered under a Family Health policy?
,-The handicapped child has reached the limiting age
-The premiums for the handicapped child are not paid
-The handicapped child becomes a full-time student
-The family moves outside the provider network - Answers -The premiums for the
handicapped child are not paid
Additional coverage can be added to a Whole Life policy by adding a(n) - Answers -
decreasing term rider
Many small business owners worry how their business would survive financially if the
owner becomes disabled. The policy which BEST addresses this concern is
-Business overhead expense
-disability income
-key employee life
-contributory - Answers -Business overhead expense
Which of these options can an individual use their medical flexible spending account to
pay for?
-vitamins and supplements
-prescription drugs
-household expenditures
-cosmetic procedures - Answers -prescription drugs
P died five years after purchasing a Life policy. While investigating the claim, the insurer
discovered material misrepresentations made by P during the application process.
Which of these actions will the insurer take?
-beneficiary will be denied the claim
-beneficiary will be denied the claim and refunded all paid premiums
-beneficiary will be paid the death benefit
-beneficiary will be paid a partial death benefit - Answers -beneficiary will be paid the
death benefit.
the incontestable clause prevents the insurer from canceling the contract even for a
material misrepresentation.
In regards to representations or warranties, which of these statements is TRUE?
-warranties are statements considered to be true to the best of the applicant's beliefs
-if material to the risk, false representations will void a policy
-representations are statements guaranteed to be true in every aspect
-if material to the risk, false representations will NOT void a policy - Answers -if material
to the risk, false representations will void a policy
, Defamation occurs when an agent makes a false statement intended to - Answers -
Malign another insurer
Which of the following are NOT managed care organizations?
-Point of service plan (POS)
-Preferred provider organization (PPO)
-Medical Information Bureau (MIB)
-Health maintenance organization (HMO) - Answers -Medical Information Bureau (MIB)
Which of the following statements regarding a Tax Sheltered Annuity (TSA) is
INCORRECT?
-the income from the TSA is received income tax-free
-the amount contributed is deductible from taxable income
-the interest earnings are tax deferred
-a tax-sheltered annuity is available to employees of non-profit organizations - Answers
-the income from the TSA is received income tax-free
Upon retirement, payments received by employees from the accumulated savings in
tax-sheltered annuities are treated as ordinary income
A licensed agent must be appointed by an insurance company to solicit insurance in
Florida. The agent's license will terminate if a certain period of time elapses without
being appointed. How long is this period of time? - Answers -48 months
An agent's license will terminate if the agent allows 48 months to elapse without being
appointed for the class or classes of insurance listed on the license.
All of the following entries are classified under the four principal areas of Florida
insurance law EXCEPT
-An agent's commission
-Policyowner's rights
-Policy provisions
-An agent's licensing requirements - Answers -An agent's commission
What kind of life insurance starts out as temporary coverage but can be later modified to
permanent coverage without evidence of insurability?
A. Endowment policy
B. Limited-Pay Whole life
C. Convertible Term
D. Decreasing Term - Answers -Convertible Term
Answers
S recently received a $500,000 lump sum retirement buyout from her employer. She
would like to buy an annuity that will immediately furnish her with a guaranteed income
for life. What type of annuity is best suited for her situation? - Answers -Single Premium.
Immediate Annuities are purchased with a single lump sum payment and will start
providing income payments within the first year, but usually starting 30 days from the
purchase date.
What type of group plan involves employees sharing the cost? - Answers -contributory
plan.
Which of these circumstances is a Business Disability Buy-Sell policy designed to help
in the sale of a business? - Answers -Business owner becoming disabled.
A business Disability Buy-Sell policy is signed to assist in the sale of a business when
one of the owners becomes disabled.
On August 6, D submitted an application for a $50,000 Life Insurance policy and did not
pay the initial premium. On August 18, D went to his doctor complaining of chest pains
and some tests were given by the doctor. The life policy was delivered by the producer
on August 20 and D explains what had recently taken place with the doctor. What action
should the producer then take? - Answers -Collect initial premium along with a signed
health statement.
in this situation, the producer should deliver the policy and obtain the premium payment
along with a signed health statement.
On a life insurance policy, who is qualified to change the beneficiary designation? -
Answers -Policyowner.
However, consent may be needed by the current beneficiary if designated as
irrevocable.
Generally, how long is a benefit period for a major medical expense plan? - Answers -
One year.
Which of these life products is NOT considered interest-sensitive?
,-Variable universal life
-Modified whole life
-Interest sensitive whole life
-Variable life - Answers -Modified Whole Life.
The following ARE interest sensitive:
-Variable universal life
-Interest sensitive whole life
-Variable life
How does an indexed annuity differ from a fixed annuity? - Answers -indexed annuity
owners receive credited interest tied to the fluctuations of the linked index.
Which mode of payment is NOT used by health insurance policies? - Answers -Single
premium
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 - Answers -
Recurrent Disability provision.
In this situation, the insurer will provide the same benefits without a new elimination
period under the recurrent disability provision.
In Major Medical Expense policies, what is the intent of a Stop Loss provision? -
Answers -limits an insured's out-of-pocket medical expenses
What must an insurer obtain to conduct an HIV test? - Answers -written consent
All the following are Nonforfeiture options EXCEPT
a) Reduced paid-up
b) Automatic Premium loan option
c) Cash surrender
d) Extended term - Answers -Automatic Premium loan option
Which of these is NOT considered to be a right given to a policyowner?
-Surrendering the policy's cash value
-Modify a provision in the insurance contract
-Assignment of ownership
-Change the beneficiary, if revocable - Answers -Modify a provision in the insurance
contract
According to Florida Law, in which of the following situations would a dependent
handicapped child NOT be covered under a Family Health policy?
,-The handicapped child has reached the limiting age
-The premiums for the handicapped child are not paid
-The handicapped child becomes a full-time student
-The family moves outside the provider network - Answers -The premiums for the
handicapped child are not paid
Additional coverage can be added to a Whole Life policy by adding a(n) - Answers -
decreasing term rider
Many small business owners worry how their business would survive financially if the
owner becomes disabled. The policy which BEST addresses this concern is
-Business overhead expense
-disability income
-key employee life
-contributory - Answers -Business overhead expense
Which of these options can an individual use their medical flexible spending account to
pay for?
-vitamins and supplements
-prescription drugs
-household expenditures
-cosmetic procedures - Answers -prescription drugs
P died five years after purchasing a Life policy. While investigating the claim, the insurer
discovered material misrepresentations made by P during the application process.
Which of these actions will the insurer take?
-beneficiary will be denied the claim
-beneficiary will be denied the claim and refunded all paid premiums
-beneficiary will be paid the death benefit
-beneficiary will be paid a partial death benefit - Answers -beneficiary will be paid the
death benefit.
the incontestable clause prevents the insurer from canceling the contract even for a
material misrepresentation.
In regards to representations or warranties, which of these statements is TRUE?
-warranties are statements considered to be true to the best of the applicant's beliefs
-if material to the risk, false representations will void a policy
-representations are statements guaranteed to be true in every aspect
-if material to the risk, false representations will NOT void a policy - Answers -if material
to the risk, false representations will void a policy
, Defamation occurs when an agent makes a false statement intended to - Answers -
Malign another insurer
Which of the following are NOT managed care organizations?
-Point of service plan (POS)
-Preferred provider organization (PPO)
-Medical Information Bureau (MIB)
-Health maintenance organization (HMO) - Answers -Medical Information Bureau (MIB)
Which of the following statements regarding a Tax Sheltered Annuity (TSA) is
INCORRECT?
-the income from the TSA is received income tax-free
-the amount contributed is deductible from taxable income
-the interest earnings are tax deferred
-a tax-sheltered annuity is available to employees of non-profit organizations - Answers
-the income from the TSA is received income tax-free
Upon retirement, payments received by employees from the accumulated savings in
tax-sheltered annuities are treated as ordinary income
A licensed agent must be appointed by an insurance company to solicit insurance in
Florida. The agent's license will terminate if a certain period of time elapses without
being appointed. How long is this period of time? - Answers -48 months
An agent's license will terminate if the agent allows 48 months to elapse without being
appointed for the class or classes of insurance listed on the license.
All of the following entries are classified under the four principal areas of Florida
insurance law EXCEPT
-An agent's commission
-Policyowner's rights
-Policy provisions
-An agent's licensing requirements - Answers -An agent's commission
What kind of life insurance starts out as temporary coverage but can be later modified to
permanent coverage without evidence of insurability?
A. Endowment policy
B. Limited-Pay Whole life
C. Convertible Term
D. Decreasing Term - Answers -Convertible Term
