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HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE
ACTUAL TEST QUESTIONS WITH
DETAILED VERIFIED ANSWERS /
ALREADY GRADED A+
LATEST UPDATED 2025/
A non-contributory plan requires _________ participation of all eligible employees - ans100% A characteristic of preferred provider organizations (PPOS) would be: - ansDiscounted fees for the patient Which of the following areas of state regulation is NOT protected by the saving clause in ERISA? - ansCommerce Additional coverage can be added to a whole Life policy by adding a(n): - ansdecreasing term rider What benefit does the payor clause on a Juvenile Life policy provide? - ansPremiums are waived if the payor becomes disabled According to Florida law, when must an agent deliver the outline of Coverage to a Medicare Supplement applicant? - ansAt the time of application N is a student pilot with a large life insurance policy. Which of these features would limit the insurer's obligation in the event N was killed while flying as a student pilot? - ansExclusion Which statement is true regarding a minor beneficiary? - ansNormally, a guarding is required to be appointed in the Beneficiary clause of the contract A sole proprietor may use this plan ONLY if the employees of this business are included. - ansIndividual Retirement Account (IRA) Which of the following provisions is NOT required in HMO contracts/certificated? - ansSeven-day grace period The Bureau of Unclaimed Property is overseen by the - ansChief Financial Officer A life policy that contains a monthly mortality charge as well as self-directed investment choices is called a(n) - ansVariable Universal Life policy An insurance company normally has 2 years to contest information provided on an accident and health application. This 2 year period begins on the date that the: - ansinsurer dated the policy P is a new employee and will be obtaining non- contributory group Major Medical insurance from her employer. Which of the following actions must she take during the open enrollment period? - ansSign an enrollment card Which of the following statements is true about most Blue Cross/Blue Shield organizations? - ansThey are nonprofit organizations A "reimbursement policy" pays what amount of covered Long-Term care expenses? - ansActual covered expenses up to the daily maximum An individual covered under a group life insurance policy is considered to be a (n) - anscertificate holder
HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE
ACTUAL TEST QUESTIONS WITH
DETAILED VERIFIED ANSWERS /
ALREADY GRADED A+
LATEST UPDATED 2025/
The __________ has the right to change a life insurance policy's beneficiary. - anspolicyowner Which of the following documents must an agent submit to the replacing insurance company during the replacement of an existing life insurance policy? - ansNotice to existing and replacing insurers of intention to replace Which of these statements concerning an individual Disability income policy is TRUE? - ansNormally includes an Elimination period A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as - ansa representation A foreign insurance company doing business in Florida - ansis a company that was formed under the laws of another state An insurer must provide an insured with claim forms within __ days after receiving notice of a loss. - ans When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n) : - ansexclusion What is the initial source of underwriting for an insurance policy? - ansApplication containing statements from the insured T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight life Annuity. What will this transaction provide? - ansIncome that cannot be outlived by the owner Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested". How can this be interpreted? - ansIf Tom's employment is terminated, 20% of the funds would be forfeited Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? - ansLife Income K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this? - ansModified Whole Life An Insured's inability to perform two or more activities of daily living may trigger which type of life policy rider? - ansLong term care Which of these is an element of a Variable Life policy? - ansA fixed, level premium F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly to a schedule. What kind of policy is needed? - ansDecreasing term policy Which parts of a life insurance policy are guaranteed to be true? - ansWarranty In Major Medical Expense policies, what is the objective of a Stop Loss provision? - ansLimits an insured's out-of-pocket medical expenses.
HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE
ACTUAL TEST QUESTIONS WITH
DETAILED VERIFIED ANSWERS /
ALREADY GRADED A+
LATEST UPDATED 2025/
A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan. minus $6,000 withholding. Which federal taxed apply if none of the funds were rolled over? - ansIncome taxes plus a 10% penalty tax on $30, Which of the following organizations would make reimbursement payments directly to the insured individual for covered medical expenditures? - ansCommercial insurer Which of these Nonforfeiture Options continue a build-up of cash value? - ansReduced Paid- Up Which of the following statements about noncontributory employee group life insurance is FALSE? - ansA minimum number of employees is required to participate 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, a month. Which of the following statements BEST describes what is owed to her state? - ansEarned, but unpaid benefits Insurers/agents must, in Florida, offer and issue a small employer health plans on a ___________ basis: - ansguaranteed-issue insurers may request a hearing within _____________ if their policy is rejected - ans20 Days Which policy requires an agent to register with the National Association of Securities Dealers (NASD) - ansVariable Life A disability elimination period is best described as a: - anstime deductible At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid? - ansAt the time of application An accident policy will most likely pay a benefit for a(n): - ansoff-the-job accident Which of the following will a Long Term Care plan typically provide benefits for? - anshome health care in what year was The Florida Office of Financial Regulation (OFR) created? - ans The difference between group insurance and blanket health policies are: - ansBlanket health policies do not issue certificates The coordination of benefits (COB) provision exists in order to - ansavoid duplication of benefit payments Which rider provides coverage for a child under a parent's life insurance policy? - ansChild term rider K has an Accidental Death and Dismemberment (AD&D) insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? - ansDaughter Which premium schedule results in the lowest cost to the policyowner? - ansAnnual
HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE
ACTUAL TEST QUESTIONS WITH
DETAILED VERIFIED ANSWERS /
ALREADY GRADED A+
LATEST UPDATED 2025/
A(n) _______________ term life policy is normally used when covering an insured's mortgage balance. - ansdecreasing A Medical Information Report (MIB) report may disclose which of the following: - ansPrior use of marijuana P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What type of policy should P purchase? - ansFamily Maintenance policy T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase? - ansTen-Year-Endowment Under an individual Disability policy in Florida, what is the minimum schedule of time in which claims must be made to an insured? - ansMonthly What provision in a life insurance policy states that the application is considered part of the contract? - ansEntire Contract provision K has a health policy that must be renewed by the insurer and the premiums can only be increased if applied to the entire class of insureds. This type of policy is considered: - ansguaranteed renewable what is the required minimum percentage of employee participation for a noncontributory group health insurance plan according to Florida Law? - ans0% According to the Mandatory Uniform Policy Provisions, what is the maximum amount of time after the premium due date during which the policy remains in force even though the premium has not been paid? - ans31 days P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to - ansP Only A Disability Income policy that only the policyowner can terminate and which the rates will never go up is considered to be - ansNoncancellable Which two entities regulate variable annuities? - ansDepartment of Financial Services; and Securities Exchange Commission in Florida, agents are allowed to engage in rebating if - ansoffered to all insureds in the same actuarial class A Multiple Employer Welfare Arrangement (MEWA) provides what type of benefits? - ansInsurance 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? - ans$20,000 death benefit
HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE
ACTUAL TEST QUESTIONS WITH
DETAILED VERIFIED ANSWERS /
ALREADY GRADED A+
LATEST UPDATED 2025/
A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has what kind of rider attached? - ansWaiver of Premium Within how many days after policy delivery can a Medicare Supplement policy be returned for a 100% premium refund? - ans During the application process, the agent's primary responsibility is to - ansthe insurance company S filed a written proof of Loss for a Disability Income claim on September 1. The insurance company did not respond to the claim. S can take legal action against the insurer beginning: - ansNovember 1 ( 60 days ) What do families pay that are covered by the Florida Healthy Kids Corporation? - ansA portion of the premium Which of the following factors is NOT considered when the Department of Financial Services determines if an agent's home is an insurance agency? - ansThe amount of premium collected at this location A(n) ____________ beneficiary may be changed by the policyowner WITHOUT the consent of the beneficiary. - ansRevocable When an insurance company sends a policy to the insured with an attached application, the element that makes the application part of the contract between the insured and the insurer is called the: - ansEntire contract provision K is shopping for a permanent life insurance policy that will offer her the MOST protection per dollar of annual premium. Which of these policies best fits her need? - ansStraight life in Florida, monthly-premium insurance policies must provide a grace period of at least - ans10 days M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son? - ansRevocable Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group Term Life plan to all its eligible employees? - ansPortion of the premiums paid by the employer may be a tax deduction Rick recently died and left an individual IRA account in his name. His widow was forwarded to the balance of the IRA. The widow qualifies for the: - ansmarital deduction The Common Disaster clause provides that if both the insured and the sole named beneficiary were to die in a common accident, which of the following is true? - ansThis clause provides the payment of proceeds to the insured's estate Periodic health claim payments MUST be made at least: - ansmonthly
HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE
ACTUAL TEST QUESTIONS WITH
DETAILED VERIFIED ANSWERS /
ALREADY GRADED A+
LATEST UPDATED 2025/
What percentage of eligible persons must a policy cover in a noncontributory group? - ans100% D owns a Whole Life policy that was purchased 10 years ago. If the premium payments suddenly stop and D takes no additional action, which Nonforfeiture Option will the insurer likely proceed with? - ansExtended term A life insurance arrangement which circumvents insurable interest statues is called: - ansInvestor-originated Life Insurance Which of the following information is NOT requires to be included in a Whole Life policy? - ansPolicy's guaranteed dividend table A(n) ______________ _____________ Life policy combines investment choices with a form of Term coverage - ansVariable Universal P is a forty year old woman and would like to purchase an annuity that will provide a lifetime income stream beginning at age sixty. Which of the following did she NOT buy? - ansAn immediate annuity The fundamental reason for regulation of insurance is to: - ansprotect consumers 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? - ans48 months Which of the following employees may NOT be excluded from a group life plan? - ansFull- time employees after the probationary period A(n) _________ Life policy offers the owner investment in products such as money-market funds, long-term bonds and equities - ansVariable T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privileges gives T the right to convert - ansto an individual policy upon employment termination Which of the following situations are NOT subject to Florida life insurance laws? - ansInsurance companies' day-to-day operations The Florida Employee Health Care Access Act was established to make - ansgroup health insurance available to employers with up to 50 employees A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct? - ans20-Pay Life accumulates cash value faster than Straight Life Which of the following is NOT a consequence for placing business with an unauthorized insurer? - ansFirst degree misdemeanor
HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE
ACTUAL TEST QUESTIONS WITH
DETAILED VERIFIED ANSWERS /
ALREADY GRADED A+
LATEST UPDATED 2025/
If an insurance company issues a Disability income policy that it cannot cancel or for which it cannot increase premiums, the type of renewability that best describes this policy is called: - ansnoncancellable Credit Life insurance is: - ansissued in an amount not to exceed the amount of the loan An example of rebating would be - ansoffering a client something of value not stated in the contract in exchange for their business a Business Overhead Expense policy: - anscovers business expenses such as rent and utilities An insured covered by Accidental Death and Dismemberment (AD&D) insurance has just died. What will happen if the primary beneficiary had already before the insured and contingent beneficiary? - ansProceeds will go to contingent beneficiary Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a Disability income policy? - ansIssue the policy with an altered Time of Payment of Claims provision What is the underlying concept regarding level premiums? - ansThe early years are charged more than what is needed Which of the following types o care is typically not covered in a Long-Term Care policy? - ansAcupuncture Which of the following statements is CORRECT regarding the tax treatment of a lump-sum payment paid to a life insurance policy's primary beneficiary? - ansAll proceeds are income tax free in the year they are received A policy loan is made possible by which of these life insurance policy features? - ansCash value provision XYZ Company pays the entire premium for its group health plan. The MINIMUM percentage of eligible employees that must be covered is: - ans100% An individual who purchases a Life annuity is given protection against: - ansthe risk of living longer than expected Which of these terms accurately defines an underwriter's assessment of information on a life insurance application? - ansRisk classification what are adjustable rates for life policy loans in Florida based on? - ansMoody's corporate bond index which statement is true regarding a minor beneficiary? - ansNormally, a guardian is required to be appointed in the beneficiary clause of the contract in the event of an illness, a(n) _________________ ___________ policy would reimburse an insured for loss of earnings. - ansDisability Income P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability? - ansP will still receive declared dividends
HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE
ACTUAL TEST QUESTIONS WITH
DETAILED VERIFIED ANSWERS /
ALREADY GRADED A+
LATEST UPDATED 2025/
What is the purpose of the Time of Payment of Claims provision? - ansPrevents delayed claim payments made by the insurer Which of the following claims are typically excluded from Medical expense policies? - ansIntentionally self-inflicted injuries S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits? - ansFull benefits are payable under the Master contract Which of the following is considered an accurate statement of an unfair trade practice? - ansTwisting involves an agent using misrepresentation to convince a policyowner to cancel their current policy so that they can purchase a new life insurance policy with another company Association Plans that are designed to provide health benefits to their members are regulated by the state because - ansthey are insured by an authorized insurer What is the main reason for regulating the insurance industry? - ansMaintain the solvency of insurance companies A 15-year mortgage is best protected by what kind of lice policy? - ans15-year decreasing term which of these life products is NOT considered interest-sensitive? - ansModified whole life What type of rider would be added to an Accident and Health policy if the policyowner wants to ensure the policy will continue if he/she ever becomes totally disabled? - ansWaiver of premium rider How many hours of continuing education must a newly licensed agent complete every two years? - ans M has a Major Medical insurance policy with a $200 flat deductible and an 80% Coinsurance clause. If M incurs a $2,200 claim for an eligible medical expense, how much will M receive in payment for this claim? - ans Who owns a stock company - ansits stockholders In order for a domestic, foreign, or alien insurance company to conduct business, it must be authorized by whom? - ansThe state where they are conducting business Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it? - ansDecreasing Term A father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have the policy premiums waived under which provision? - ansPayor provision At what point does a Whole Life Insurance policy endow? - ansWhen the cash value equals the death benefit
HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE
ACTUAL TEST QUESTIONS WITH
DETAILED VERIFIED ANSWERS /
ALREADY GRADED A+
LATEST UPDATED 2025/
Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive? - ans$ Which of the following BEST describes how a policy that uses the "accidental bodily injury" definition of an accident differs from one that uses the "accidental means" definition? - ansLess restrictive Which of these arrangements allows one to bypass insurable interest laws? - ansInvestor- Originated Life Insurance Which of the following BEST describes how a Preferred Provider Organization (PPO) is less restrictive than a Health Maintenance Organization (HMO) - ansMore physicians to choose from What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability? - ansConversion The reason for a business having a Business Overhead Expense Disability Plan is to cover - ansfixed business expenses What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time? - ansDecreasing term Term insurance has which of the following characteristics? - ansExpires at the end of the policy period N is a 4 0 - year old applicant who would like to retire at age 70. He is looking to buy a life insurance policy with level premiums, permanent protection, and be paid-up at retirement. Which of these should N purchase? - ans30 Pay Life W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n) - ansImmediate annuity How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy? - ansIf the primary beneficiary dies before the insured A life insurance application must be signed by all of these, EXCEPT: - ansthe beneficiary What is considered to be a characteristic of an immediate annuity? - ansbenefit payments start within one payment period of purchase Which mode of payment is NOT used by health insurance policies? - ansSingle premium The Financial Services commission may hold hearings - ansfor any reason deemed necessary Which of these statements accurately describes the Waiver of Premium provision in an Accident and Health policy? - ansPremiums are waived after the insured has been totally disabled for a specified time period Which of these statements concerning an individual Disability Income policy is TRUE? - ansNormally includes an Elimination period
HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE
ACTUAL TEST QUESTIONS WITH
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ALREADY GRADED A+
LATEST UPDATED 2025/
Which premium schedule results in the lowest cost to the policyowner - ansannual All of the following will result in the suspension of an agent's license EXCEPT - ansacting with fiduciary responsibility When a person returns to work after a period of total disability but cannot earn as much as he or she did before the disability, this situation is called which of the following? - ansResidual disability The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers (and their families) whose employment has been terminated the right to - anscontinue group health benefits At what point does an informal contract become binding? - ansWhen one party makes an offer and the other party accepts that offer With Disability Income insurance, an insurance company may limit the monthly benefit amount a prospective policy holder may obtain because of the insured's - ansgross income at the time of purchase K is insured under a Group life insurance policy. K is considered to be a(n) - anscertificate holder What must an insurer obtain to conduct an HIV test? - answritten consent An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction? - ans20% is withheld for income taxes In regards to representations or warranties, which of these statements is TRUE? - ansIf material to the risk, false representations will void a policy K failed to pay a renewal premium within the time granted by the insurer. K then sends in a payment which the insurer subsequently accepts. Which policy provision specifies that coverage may be restored in this situation? - ansReinstatement What is required in the Florida Employee Health Care Access Act? - ansSmall group benefits plans are to be issued on a "guarantee-issue" basis All are true statements regarding the underwriting process, EXCEPT: - ansAIDS and HIV virus exams can be conducted in a discriminatory fashion Which of the following statements about Health Reimbursement Arrangements (HRA) is CORRECT? - ansIf the employee paid for qualified medical expenses, the reimbursements may be tax-free Under the USA Patriot Act, insurers are required to report receipt of cash payments in excess of: - ans10, An example of false advertising would be - ansAn insurer exaggerating its dividends in a magazine advertisement
HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE
ACTUAL TEST QUESTIONS WITH
DETAILED VERIFIED ANSWERS /
ALREADY GRADED A+
LATEST UPDATED 2025/
Which of these actions should a producer take when submitting an insurance application to an insurer? - ansInform insurer of relevant information not included on the application J is a subscriber to a plan which contracts with doctors and hospitals to provide medical benefits at a predetermined price. What type of plan does J belong to? - ansHealth Maintenance Organization P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase? - ansDeffered What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies? - ansFamily Maintenance Policy An agent selling Medicare Supplement policies must provide every applicant with a(n) - ansSuitability form Whose life is covered on a life insurance policy that contains a payor benefit clause? - ansChild According to Florida law, an additional lapse notice must be issued after the standard grace period has expired for policyowner age - ans64 or older older At the age of 45, an individual withdraws $50,000 from his Qualified Profit-Sharing Plan and then deposits this amount into a personal savings account. This action would result in: - ansIncome tax and a %10 penalty assessed upon funds withdrawn from the Qualified Plan Why is an applicant's signature required on a life insurance application - ansTo attest that the statements on the application are accurate to the best of the applicant's knowledge What is the consideration given by an insurer in the Consideration clause of a life policy? - ansPromise to pay death benefit to a named beneficiary K made a fraudulent statement on her health insurance policy application. In the event of a claim on this policy, the insurance company is required to pay - ansnothing R becomes disabled and owns an individual Disability Income policy. When is R eligible to receive disability benefits? - ansUpon satisfying the elimination period requirement Group life insurance policies are generally written as: - ansannually renewable term P received Disability income benefits for 3 months then returns to work. She is able to work one month before her condition returns, leaving her disabled once again. What would the insurance company most likely regard this second period of disability as? - ansA recurrent disability One becomes eligible for Social Security disability benefits after having been disabled for - ans5 months How long is the typical free look period for Long Term care insurance policies? - ans30 days
HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE
ACTUAL TEST QUESTIONS WITH
DETAILED VERIFIED ANSWERS /
ALREADY GRADED A+
LATEST UPDATED 2025/
Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed? - ansMisrepresentation When funds are shifted straight from one IRA to another IRA, what percentage of the tax is withheld? - ansNone T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert - ansTo an individual policy upon employment termination A life insurance policy's grace period entitles the insured a period of no less than __ days to make the premium payment - ans All of the following statements regarding a Tax Sheltered Annuity (TSA) are true EXCEPT: - ansIncome derived from the TSA is received income tax-free Which of these life insurance riders allows the applicant to have excess coverage? - ansTerm rider Omitting information that affects the issuance or the rate of an insurance contract is called: - ansconcealment In Florida, the underwriting and issuance of a master group health policy requires all employees - ansare eligible to participate, regardless of their individual health history S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy? - ansReturn of premium rider Which of the following are Equity indexed annuities typically invested in? - ansS&P 500 Health insurance benefits NOT covered due to an act of war are: - ansexcluded by the insurer in the contract provisions P owns a $25,000 Life Policy that pays the face amount to him if he lives to age 70, or to his beneficiary if he dies before age 70. What kind of policy does P own? - ansEndowment at Age 70 Under a life insurance policy the __________ has the authority to name the beneficiary. - ansowner A policy of adhesion can only be modified by whom? - ansThe insurance company From what authority derives the requirement that an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant? - ansFair Credit Reporting Act Which life insurance rider typically appears on a Juvenile life insurance policy? - ansPayor benefit rider Term Life Policies that have the ability to be converted to permanent coverage may do so during a specific time period. This conversion period - ansvaries according to the contract
HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE
ACTUAL TEST QUESTIONS WITH
DETAILED VERIFIED ANSWERS /
ALREADY GRADED A+
LATEST UPDATED 2025/
Which of these is NOT relevant when determining the amount of personal life insurance needed> - ansLocal unemployment rates Which of the following types of health coverage frequently uses a deductible? - ansMajor Medical policy Which statement is TRUE regarding a Variable Whole Life policy? - ansA minimum guaranteed Death benefit is provided An example of unfair discrimination would be - ansoffering different premiums for individuals of the same risk classification Who has the option to renew a Renewable Term policy? - ansInsured An insured covered by a group Major Medical plan is hospitalized after sustaining injuries that resulted from an automobile accident. Assuming the plan had a $1,000 deductible and 80/20 Coinsurance clause, how much will the INSURED be responsible to pay with $11, in covered medical expenses? - ans$3, Which of the following is the best description of 'insurer'? - ansAny person, corporation, association, or society that writes insurance contracts Under a graded Premium policy, the premiums - ansare lower during the policy's early years With Accidental Death and Dismemberment policies, what is the purpose of the Grace Period? - ansGives policyowner additional time to pay overdue premiums The USA Patriot Act was enacted in: - ans Eligibility for coverage under the Florida Healthy Kids Corporation requires a family to be within ________ of the federal poverty level. - ans200% A life insurance application may be rejected on the basis of all of these factor EXCEPT - ansGender What kind of premium does a Whole Life policy have? - anslevel A Major Medical policy typically contains a provision that requires the insurer to pay only part of a loss, while the balance is paid by the insured. This provision is called. - ansCoinsurance Upon policy delivery, a signed good health statement is requested from the applicant. Why would this be necessary? - ansThe initial premium was NOT submitted with the application Which of the following BEST defines usual, customary, and reasonable (UCR) charges? - ansThe maximum amount considered eligible for reimbursement by an insurance company under a health plan Any changed made on an insurance application requires the initials of whom? - ansApplicant This type of deductible provision states that should more than one family member be involved in a common accident, or suffer the same illness, only one individual deductible amount shall be applied. - ansCommon accident deductible
HEALTH / FL HEALTH & LIFE AND
ANNUITY COMPLETE STUDY GUIDE
ACTUAL TEST QUESTIONS WITH
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ALREADY GRADED A+
LATEST UPDATED 2025/
When a life insurance policy exceeds certain IRS table values, the result would create which of the following? - ansModified Endowment Contract (MEC) An insurance company can contest a life insurance contract due to application fraud within - ans2 years A sole proprietor may use this plan ONLY if the employees of this business are included - ansKeogh Pension Plan What type of employee welfare plans are not subject to ERISA regulations - ansChurch plans Which of the following medical expenses does Cancer insurance NOT cover? - ansArthritis What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then pay a lump sum benefit of that 30 years? - ansFamily Maintenance Policy Which type of policy would pay an employee's salary if the employer was injured in a bicycle accident - ansBusiness Overhead Expense When an insured has the same disability within a specified time period and the insurance company provides the same benefits without a new waiting period, the second disability is covered under which of the following benefits? - ansRecurrent Disability Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company? - ansAnnuity Which of the following policy provisions prohibits an insurance company from incorporating external documents into an insurance policy? - ansEntire Contract An insured's inability to perform two or more activities of daily living may trigger which type of life policy rider? - ansLong term care Which of these circumstances is a business Disability Buy-sell policy designed to help in the sale of a busness? - ansBusiness owner becoming disabled Which of these require an offer, acceptance, and consideration? - ansContract The payments on Q's annuity are no less than $250 quarterly. Which of the following annuities does Q own? - ansFlexible installment Deferred Which of the following characteristics is associated with a large group disability income policy? - ansNo medical underwriting All of the following are eligibility requirements for an association group EXCEPT: - ansContributory plans require minimum of 25 participants J is an agent who has induced an insured though misrepresentation to surrender an existing insurance policy. What is J guilty of? - ansTwisting The amount of coverage on a group credit life policy is limited to: - ansthe insured's total loan value in a qualifies retirement plan, the yearly contributions to an employee's account: - ansare restricted to maximum levels set by the IRS
