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2024 FLORIDA LIFE & HEALTH INSURANCE SF 8/17 FINAL EXAM WITH CORRECT ANSWERS
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2024 FLORIDA LIFE & HEALTH INSURANCE SF 8/17 FINAL EXAM WITH CORRECT ANSWERS
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2024 FLORIDA LIFE & HEALTHINSURANCE SF 8/17 FINAL EXAM
WITH CORRECT ANSWERS
The Universal Life Policy is called an unbundled Life Policy because the
policyholder can see the expense charges, the interest earned, and the: -
CORRECT ANSWERS- Cost of insurance". The Universal Life Policy is called
an unbundled Life Policy because the policyholder can see the expense
charges, the interest earned, and the cost of insurance.
Which statement regarding a Key Employee Life policy is NOT true? -
CORRECT ANSWERS- The beneficiary is named by the key employee
Which of these actions is taken when a policyowner uses a Life Insurance
policy as collateral for a bank loan? - CORRECT ANSWERS- A policyowner
using the Life Insurance policy as collateral for a bank loan normally would
make a collateral assignment.
What is the Suicide provision designed to do? - CORRECT ANSWERS-
safeguard the insurer from an applicant who is contemplating suicide". The
purpose of a Suicide provision is to protect the insurer against the purchase
of a policy in contemplation of suicide.
The insuring clause
Specifies the additional time given to pay past due premiums
States the scope and limits of the coverage
States the amount of premium to be collected
Prohibits the insured from suing the insurer for at least 60 days after filing a
written proof of loss - CORRECT ANSWERS- The correct answer is "States the
scope and limits of the coverage". The purpose of the insuring clause is to
specify the scope and limits of the coverage provided.
M has an insurance policy that also has an outstanding policy loan at the
time of M's death. The insurer will deduct the outstanding loan balance from
the:
cash value
estate of the insured
policy proceeds
nonforfeiture value - CORRECT ANSWERS- The correct answer is "policy
proceeds". If not repaid by the time the insured dies, the loan balance and
,any interest accrued are deducted from the policy proceeds at the time of
claim.
A term life insurance policy matures: - CORRECT ANSWERS- The correct
answer is "upon the insured's death during the term of the policy". Term life
policies can only mature (pay out the face amount) if death occurs during
the term of the policy.
The difference between group insurance and blanket health policies is: -
CORRECT ANSWERS- Certificates are not issued in blanket policies.
The Health Insurance Portability and Accountability Act (HIPAA) gives privacy
protection for: - CORRECT ANSWERS- health information
Which of the following statements regarding a Tax Sheltered Annuity (TSA) is
INCORRECT? - CORRECT ANSWERS- The income from the TSA is received
income tax-free
Which of the following provisions is NOT required in HMO
contracts/certificates? - CORRECT ANSWERS- The correct answer is "Seven-
day grace period". This is inaccurate. A grace period of no less than 10 days
must be expressly included in an HMO contract.
According to Florida law, which of the following information does NOT need
to be obtained by an agent recommending an annuity purchase? - CORRECT
ANSWERS- Marital status
P is the insured on a participating life policy. Which statement is true if P's
premiums are waived due to a disability? - CORRECT ANSWERS- P will still
receive declared dividends
Which of the following combination plans is designed to protect an insured
from an unpaid mortgage balance upon premature death? - CORRECT
ANSWERS- he correct answer is "Joint Life". A joint life policy covers two or
more people. Using some type of permanent insurance (as opposed to term),
it pays the death benefit at the first insured's death.
A Renewable Term Policy is renewable at the option of the - CORRECT
ANSWERS- nsured
When an insurance application is taken by a producer, which of these
statements is true? - CORRECT ANSWERS- Any changes made on the
application require the applicant's initials
,What is Florida's definition of Life insurance replacement? - CORRECT
ANSWERS- A transaction in which a new policy is bought and an old policy is
terminated
Who is NOT required to sign a life insurance application? - CORRECT
ANSWERS- Benificiary
Additional coverage can be added to a Whole Life policy by adding a(n): -
CORRECT ANSWERS- decreasing term rider
After an insured gives notice of loss, what must he/she do if the insurer does
not furnish forms? - CORRECT ANSWERS- File written proof of loss
A comprehensive major medical health insurance policy contains an Eligible
Expenses provision which identifies the types of health care services that are
covered. All of the following health care services are typically covered,
EXCEPT for: - CORRECT ANSWERS- experimental and investigative services
How many hours of continuing education must a newly licensed agent
complete every two years? - CORRECT ANSWERS- 24
Which of the following is NOT required in the Outline of Coverage for a health
insurance policy? - CORRECT ANSWERS- Projection of the policy's future
costs
An accident policy will most likely pay a benefit for a(n): - CORRECT
ANSWERS- Off the job accident
A prepaid application for individual Disability Income insurance was recently
submitted to an insurer. When the insurer received the Medical Information
Bureau (MIB) report, the report showed that the applicant had suffered a
stroke 18 months ago, something that was not disclosed on the application.
Which of the following actions would the insurance company NOT take? -
CORRECT ANSWERS- Send a notice to the MIB
J, an Accidental Death and Dismemberment (AD&D) policy holder, dies after
injuries sustained in an accident. J's age as stated on the application five
years ago was found to be understated by ten years. Which of the following
actions will the insurance company take? - CORRECT ANSWERS- The insurer
will adjust the benefit to what the premiums paid would have purchased at
the insured's actual age
All of these statements about Equity Indexed Life Insurance are correct,
EXCEPT: - CORRECT ANSWERS- The premiums can be lowered or raised,
based on investment performance
, Which of the following does Social Security NOT provide benefits for? -
CORRECT ANSWERS- Dismemberment
Under a Renewable Term policy, - CORRECT ANSWERS- the renewal
premium is calculated on the basis of the insured's attained age
Which entity approves the insurance policy forms used in Florida? - CORRECT
ANSWERS- Office of Insurance Regulation (OIR)
S has a Whole Life policy with a premium payment due soon. Which provision
would keep the policy in force if S does not make the required payment and
the policy has adequate cash value from which the premium payment can be
made? - CORRECT ANSWERS- Automatic Policy Loan
M becomes disabled and is unable to work for six months. M dies soon after
from complications arising from this disability. M has a Disability Income
policy that pays $2,000 a month. Which of the following statements BEST
describes what is owed to her estate? - CORRECT ANSWERS- earned but
unpaid benefits
Which of the following is NOT considered rebating? - CORRECT ANSWERS-
Sharing commissions with an agent licensed in the same line of business
All of the following are considered to be typical characteristics describing the
nature of an insurance contract, EXCEPT: - CORRECT ANSWERS- Bilateral
Which of the following statements is CORRECT about accelerated death
benefits? - CORRECT ANSWERS- Must have a terminal illness to qualify
Which of these is considered a mandatory provision? - CORRECT ANSWERS-
Payment of Claims
According to Florida's rules on disclosure, a life insurance applicant is
expected to be provided with - CORRECT ANSWERS- a Buyer's Guide and
Policy Summary
The provision that defines to whom the insurer will pay benefits to is called: -
CORRECT ANSWERS- Payment of Claims
What kind of life insurance product covers children under their parent's
policy? - CORRECT ANSWERS- Term Rider
A policy loan is made possible by which of these life insurance policy
features? - CORRECT ANSWERS- Cash value provision
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