Download FL Xcel Exam Simulator Latest 2025-2026 with Practice Questions and Correct Answers/ Flori and more Exams Insurance Economics in PDF only on Docsity!
FL Xcel Exam Simulator Latest 2025- 2026 with
Practice Questions and Correct Answers/
Florida XCEL Simulator Exam Prep Qs with
Correct As (New!) 2025 - 2026
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? 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? contributory plan. Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale of a business? 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? 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? 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? One year. Which of these life products is NOT considered interest-sensitive?
- Variable universal life
- Modified whole life
- Interest sensitive whole life
- Variable life Modified Whole Life.
What must an insurer obtain to conduct an HIV test? written consent All the following are Nonforfeiture options EXCEPT a) Reduced paid-up b) Automatic Premium loan option c) Cash surrender d) Extended term 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 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 The premiums for the handicapped child are not paid Additional coverage can be added to a Whole Life policy by adding a(n) 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 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
Defamation occurs when an agent makes a false statement intended to 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) 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 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? 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 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 Convertible Term
Group Life policies in Florida are required to contain a conversion privilege that allows for conversion
- with evidence of insurability
- to an individual policy for a stated period of time
- only if the premiums are paid by the employer
- to an individual policy at anytime to an individual policy for a stated period of time Which of the following services is NOT covered under a hospitalization expense policy?
- daily room and board
- surgeon's fees
- intensive care
- miscellaneous expenses surgeon's fees The percentage of an individual's Primary Insurance Amount (PIA) determines the benefits paid in which of the following programs?
- Social Security Disability Income
- Medicare Supplements
- Medicaid
- COBRA
Social Security Disability Income Nursing home benefits must be provided for at least 12 consecutive months in which of the following types of policies?
- blanket custodial
- long-term care
- critical illness
- medicare supplements long-term care Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy?
- Suitability form
- Guaranteed issue
- Free-look period of 30 days
- Limitation on pre-existing conditions for up to 12 months limitation on pre-existing conditions for up to 12 months there is only a 6 month limitation on pre-existing conditions for medicare supplements
A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following? Aviation exclusion Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? A. Modified Whole Life B. Variable Life C. Universal Life D. Adjustable Life Variable life Florida requires that coverage for newborns begins "from the moment of birth" and continues for: 18 months J is 35-years old and looking to purchase a whole life insurance policy. Which of the following types of policies will provide the most rapid growth of cash value?
- life paid-up at age 70
- 20 - pay life
- increasing term to age 65
- straight life
20 - pay Life the shorter the pay period, the faster the cash value growth A person insured under a health policy is required to give the insurance company a Notice of Claim within how many days after a covered loss? Twenty The department of financial services serves as the receiver of any insurer placed into:
- bankruptcy
- foreclosure
- receivership
- indebtedness Receivership The division of rehabilitation and liquidation plans, coordinates and directs the receivership processes on behalf of the department The insuring clause: States the scope and limits of the coverage
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?
- the proceeds which exceed the amount paid in premiums are taxable
- the proceeds are taxable only if the beneficiary's tax bracket has changed from the payout
- all proceeds are considered taxable income in the year they are received
- all proceeds are income tax free in the year they are received all proceeds are income tax free in the year they are received ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has
- waived one of its legal rights
- issued a voidable policy
- committed an act of fraud
- assigned the risk to a reinsurer waived one of its legal rights
An insurer receives proof of loss for an acceptable medical expense claim under an Individual Health Insurance Policy. Under the Time of Payment of Claims provision, the insurer MUST pay the benefits:
- immediately
- within a maximum of 3 months
- within a reasonable amount of time
- at least monthly Immediately When does a life insurance contract become effective if the initial premium is not collected during the application process?
- after all medical and personal information has been evaluated
- when the insurer receives initial premium from the producer
- when producer delivers policy and collects initial premium
- after application has been approved by the underwriters when producer delivers policy and collects initial premium
- the initial premium
- agreeing to a physical examination
- delivery of policy
- disclosure of any medical conditions the initial premium Variable Life products require a producer to:
- guarantee not more than a 12% return per annum
- hold a life and health insurance license
- hold a life insurance license and a securities license
- be regulated solely by state law hold a life insurance license and a securities license The underwriting process involves all of these EXCEPT for Credit report Policy loan Risk classification Application Policy loan
Who does an agent represent during the solicitation of insurance?
- The state of Florida
- Department of financial services
- the insurance company
- the client The insurance company Which of the following statements about noncontributory programs is FALSE?
- A minimum number of employees is required to participate
- All eligible employees must be covered
- No evidence of insurability required
- Must have conversion rights A minimum number of employees is required to participate Noncontributory employee group life insurance plans must cover ALL eligible employees at all times When is a Group Health policy required to provide coverage for a newborn child? At the moment of birth
