214 FLORIDA INSURANCE COMPLETE RETAKE EXAM STUDY SET / 100% VERIFIED
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Course
Florida insurance
Institution
Florida Insurance
214 FLORIDA INSURANCE COMPLETE RETAKE EXAM STUDY SET / 100% VERIFIED
Which of the following describes a participating insurance policy? - CORRECT ANSWER - Policyowners
are entitled to receive dividends
At what point must a life insurance applicant be informed of their rights that fall under the...
214 FLORIDA INSURANCE COMPLETE RETAKE EXAM STUDY SET / 100% VERIFIED
Which of the following describes a participating insurance policy? - CORRECT ANSWER - Policyowners
are entitled to receive dividends
At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit
Reporting Act? - CORRECT ANSWER - Upon completion of the application
Dividends payable to a policyowner are: - CORRECT ANSWER - Declared by the insurance company.
At what point does an informal agreement become a binding contract? - CORRECT ANSWER - When
consideration is provided by one of the parties to the contract
When third-party ownership is involved, applicants who also happen to be the stated primary
beneficiary are required to have - CORRECT ANSWER - Insurable interest in the proposed insured
Which of the following arrangements allows one to bypass insurable interest laws? - CORRECT ANSWER
- (STOLI) or Investor Originated Life Insurance
Taking receipt of premiums and holding them for the insurance company is an example of - CORRECT
ANSWER - Fiduciary Responsibility
A policy of adhesion can only be modified by whom? - CORRECT ANSWER - The Insurance Company
The exchange of unequal values reflects: - CORRECT ANSWER - Aleatory
Life and health insurance policies are - CORRECT ANSWER - Unilateral Contracts (one makes promise,
other can only accept by performance
,The consideration clause of insurance contract includes - CORRECT ANSWER - The schedule and amount
of premium payments
A life insurance arrangement which circumvents insurable interest values is called - CORRECT ANSWER -
Investor Originated Life Insurance (IOLI)
Who makes the legally enforceable promises in a unilateral contract? - CORRECT ANSWER - The
Insurance Company
A life insurance policy would be considered a wagering contract WITHOUT: - CORRECT ANSWER -
Insurable Interest
A life insurance policy that provides a policyowner with cash value along with a level face amount is
called: - CORRECT ANSWER - Whole Life Policy
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies? - CORRECT ANSWER -
the Policyowner(investor)
K purchased a Life insurance policy in 1986 which paid 10% interest in the early years of the policy.
Twenty years after the purchase, she received a notice from the insurer stating that the policy will soon
terminate unless a much-higher premium is paid because of falling interest rates. This type of policy is
known as: - CORRECT ANSWER - Universal Life Policy
Which of these would be considered a Limited-Pay-Life policy? - CORRECT ANSWER - Life Paid Up at Age
70
K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be
renewable? - CORRECT ANSWER - Level Term Policy (pays same death benefit if insured dies any time
during policy)
, A universal life policy is sometimes referred to as an unbundled Life Policy because the owner can see
the interest earned, cost of insurance, and - CORRECT ANSWER - Expense Charges
What type of insurance offers permanent life coverage with premiums that are payable for life? -
CORRECT ANSWER - Whole Life Policy
Which provision allows the policyowner to change a term life policy to a permanent one without
providing proof of good health? - CORRECT ANSWER - Conversion
When is the face amount of a Whole Life policy paid? - CORRECT ANSWER - When the insured dies, or
the policy's maturity, whichever comes first!
Additional coverage can be added to a Whole Life policy by adding a(n) - CORRECT ANSWER - Decreasing
Term Rider
When a life policy exceeds certain IRS table values, the result would create which of the following? -
CORRECT ANSWER - Modified Endowment Contract (MEC)
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How
much will the insurance company pay the beneficiary? - CORRECT ANSWER - $20,000 death benefit.
Which of the following combination of plans is designed to protect an insured from an unpaid mortgage
balance upon premature death? - CORRECT ANSWER - Joint Life Policy
Which policy requires an agent to register with the National Association of Securities Dealers (NASD)
before selling? - CORRECT ANSWER - Variable Life
Variable Whole Life Policy - CORRECT ANSWER - both an insurance and securities product
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