Exam simulator 1
K pays on a $20,000 20- year endowment policy for 10 years and died from an automobile accident. How much will the insurance company pay the beneficiary?
$20,000 death benefit
As far as a $50,000 whole life policy with a $50,000 accidental death and dismemberment writer. As dies one you later of natural causes. How much will ensure pay the beneficiary
$50,000
A disability income policy owner recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the application was taken five years prior. The neck injury was never disclosed to the insurer at the time of the application. How will the insurer handle this claim
Claim will be paid and covered will remain in force because Policies outside of the contestability. After two years
****Insurance company receives ease application for an individual health policy. E did not complete all of the medical history questions because she could not remember the exact dates. He signed the policy and submitted it to the insurance company anyway. If you weeks later, he suffers a heart attack and is hospitalized without completing the medical history questions and paying the initial premium he is not insured. Which of the following clauses details the conditions that we did not meet?
*****Insuring clause
If a 10 year term life policy contains a renewability provision the policy will renew
*****Without evidence of insurability
When does the life insurance contract become effective if the initial premium is not collected during the application process
****When producer delivers policy and collects initial premium
What is required minimum percentage of employee participation for a non-contributory group health insurance plan according to Florida law?
0%
of personal life insurance premiums as usually deductible for federal income tax purposes.
0%
In Florida, monthly premium health insurance policies must provide a grace period of at least
10 days
Do you purchase a family income policy at 8:40. The policy has a 20 year rider.. If she were to die at age 50, how long would geez family receive income
10 years
Ensures may request a hearing within blank if their policy is rejected
20 days ****
Eligibility for coverage under the Florida healthy kids corporation requires a family to be with in of the federal poverty level
200%
The USA patriot act Was enacted in
2001
A person insured under the health policy is required to give the insurance company a notice of claim within how many days after a covered loss
20✅✅✅✅
A life insurance policy's grace. Entitles the insured a period of no less than days to make the premium payment
30
The free look. For all qualify long-term care policy sold in Florida is days
30!!!!
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?
31 days✅✅✅✅
Florida requires an insurance agent must complete hours of continuing education on the subject of law of ethics every two years
4/5
A licensed agent must be appointed by insurance company to solicit insurance in Florida. The agents license will terminate if a certain period of time... Without being appointed. How long is this period of time
48 months
In Florida, what is the maximum percentage of control business and agent may produce
50%
Y purchased $100,000 worth of permanent protection on himself and $50,000 worth of 10-year Term coverage for his wife on the same policy. Which of these policies did Y purchase?
A Whole Life Policy with an Other Insured Rider
What kind of premium does a whole life policy have?
A Whole Life insurance policy has a level premium
Which statement is true regarding a variable whole life policy
A minimum guaranteed Death benefit is provided
What do families pay that are covered by the Florida healthy kids corporation
A portion of the premium✅✅✅✅
Which of the following organizations would make reimbursement payments directly to the insured individual for covered medical expenditures?
Commercial insurer
An applicant who pays the initial premium at the time of the application is typically given a
Conditional receipt✅✅✅
A prospective insured's complete and signed an application for health insurance but intentionally conceals information about pre-existing heart condition. The company issues the policy. Two months later, the insured suffered a heart attack and submit a claim. While processing the claim the company discovers the pre-existing condition. In this situation, the company will
Continue coverage by exclude the heart condition
A blink term life policy is normally use one covering and insurance mortgage balance
Decreasing
How are surrender charges deducted in a life policy with a rear end loaded provision?
Deducted when the policy is discontinued
****Any violations of the Florida financial institution code may be investigated by the
Department of financial services DFS
M is insured under a basic hospital/surgical expense policy. A physician perform surgery on him. What determines the claim M is eligible for
Determined by the terms of the policy✅✅✅✅
C is a key employee at ABC Inc. If a key employee life policy is purchased on her life, which of these statements would be true?
ABC is the policy owner, C is the insured, & ABC is the beneficiary
Which of the following is not included in annuity contract
AD&D Rider ****
Insurance companies that are organized and countries outside of the United States are referred to as
Alien companies
A variable life insurance agent must be license and appointed as a life and variable contract agent as well as an
Broker dealer
Which of these is not considered to be a cost connected with an individual's death
Business expenses!!!!!
G is an accountant who has 10 employees and is concerned about how the business would survive financially if she became disabled. The type of policy which best address this concern is
Business overhead expense
Many small business owners worry how their business will survive financially if the owner becomes disabled. The policy which best address this concern is
Business overhead expense
****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 company that owns a life insurance policy on one of his key employees may do all of the following except
Change the policy interest rate****
Which rider provides coverage for a child under a parent life insurance policy
Child term Rider
can be defined as using the contract values of an existing policy to purchase a new policy with an existing insurer
Churning ✅✅✅✅
The coordination of benefits COB provision exist in order to
avoid duplication of benefit payments
He is a teacher who was injured in a car accident and cannot work. She is now receiving monthly benefit as a result of this accident. Which type of policy does b have
Disability income
Accidental death coverage It's provided to commercial airline passengers in which the following types of policies?
Disability income policy, accident reimbursement accounts, accident savings plans, the correct answer is blanket accident policy
Which of the following statements best describes the intent of a coinsurance clause in a major medical policy
Discourages overutilization of the insurance coverage****
T purchased a $100,000 single premium, straight life annuity five years ago. He has received monthly payments since the inception of the annuity. If he dies, the insurance company
Does not have to make any further payments✅✅✅✅✅✅✅✅✅
And insurance company Incorporated under the laws of the state in which it's home office is located is called an
Domestic✅✅✅✅
Companies he has a cross purchased Byselle agreement in place among its three founding partners. If the agreement is funded with individual life insurance, what would it require
Each partner must on a policy on the other partners✅✅✅✅
Which health policy clause stipulates that an insurance company must attach a copy of the application to the policy to ensure that it is part of the contract
Entire Contract
S is close to retiring and would like to purchase a policy that will yield greater gaines and bonds, but will still protect the principal with a minimum level or risk. Which product would S be advised to purchase
Equity index insurance✅✅✅✅✅
Which of these statements about a guaranteed insurability Option Rider is NOT true
Evidence of insurability IS required when the option is exercised
An underwriter determines that a life insurance applicants risk should be re-classify due to a health issue. This policy may be issued with an
Extra premium😢
Which federal law allows an insurer to obtain an inspection report on a potential insured
Fair Credit Reporting Act
After insured gives notice of loss, what must he/she do if the insured does not furnished forms
File written proof of loss
The payments on Q annuity are no less than $250 quarterly . Which of the following Annuities does Q own
Flexible installment deferred✅✅✅✅
In Florida, and ensure license to conduct business in Florida, but domiciled in New Jersey is called an
Foreign companycompany
V is insured under an individual disability income policy with a 30 day elimination period. On July 1, he is involved in the accident and temporarily disabled. He returns to work on December 1. How many months of benefits are payable?
Four months, after the 30 day elimination period has been satisfied you get paid 4 months of benefits
Nonprofit life insurance providers that are covered by a special section in the Florida insurance code are called
Fraternal life insurance organizations
And insured is past due on his life insurance premium, but is still within the grace period. What will the beneficiary receive if the insured dies during this grace period?
Full face amount minus any past you premiums
Which of the following employees may not be excluded from a group life plan
Full-time employees after the probationary period
Insurers/agents must, in Florida, offer an issue all small employer health plans on a blank basis
Guaranteed issue
Which type of renewability best describes a disability income policy that covers an individual until the age of 65, but the insure has the right to change the premium rate for the overall risk class
Guaranteed renewability✅✅✅✅✅
In life insurance, the needs approach is use mostly to establish
How much life insurance a client should apply for
Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested". How can this be interpreted?
If Tom's employment is terminated, 20% of the funds would be forfeited
Which of these is not a reason for purchasing life insurance on the life of a minor?
If both parents were to die, it would provide death benefits to the child.
The type of annuity that can be purchased with one monetary deposit is called a(n)
Immediate annuity***
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 an
Immediate annuity✅✅✅✅
**** A 55-year-old recently received a $30,000 distribution from a previous employer's 401(k) plan, -$6000 withholding. Which federal taxes apply if none of the funds were rolled over
Income taxes plus a 10% penalty tax on $30,000
T, age 70 , what's yawls cash on the profit-sharing plan and purchase is a straight life annuity. What will this transaction provide?
Income that cannot be outlive by the owner
What is the initial requirement for an insured to become eligible for benefits under the waiver of premium provision
Insured must be under a physician's care
If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act?
Insured's contingent beneficiary✅✅✅✅
Which of these needs is satisfied by Adjustable Life insurance?
Insured's need for flexible premiums
Which of these arrangements allows one to bypass insurable interest laws?
Investor-Originated Life Insurance STOLI
T has Disability Income policy that pays a monthly benefit of $5000. If T becomes partially disabled, what can he likely expect?
Less than $5,000 per month benefit regardless of the cause✅✅✅✅
*****Do you need life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium what kind of policy is needed
Level term
If an agent would like to sell variable annuities, which state examination musty agent pass
Life in variable contracts
*****A whole life insurance policy owner does not wish to continue making premium payments. Which of the following enables the policy owner to sell the policy for more than it's cash value
Life settlement contract
****Under a guaranteed renewable health insurance policy, the insurer
May cancel the policy for nonpayment only
The whole insurance program which is administered by each state is funded by both the federal and state government is called
Medicaid✅✅✅✅
During the course of an insurance transaction, if an agent makes a false or incomplete statement, he she could be found guilty of
Misrepresentation ***
A policy owner is allowed to pay premiums more than once a year under which provision
Mode of premium
Which of these life policies is not considered interest sensitive
Modified whole life✅✅✅✅
Periodic health claim payment must be made at least
Monthly
What are adjustable rates for Florida life policy loans in Florida based on?
Moody's corporate bond index
Which of the following statements is correct about accelerated death benefits
Must have a terminal illness to qualify✅✅✅
In Florida, which of the following practitioners normally do NOT receive payment from health insurance policies?
Naturopaths
****Which of the following characteristics is associated with a large group disability income policy
No medical underwriting
Which of the following documents mess and agent submit to the place and insurance company during the replacement of existing my policy
Notice to existing and replacing ensures of intention to place
A life insurance policy owner would like to file a complaint against a life insurance agent. In Florida, the entity that oversees this complaint is called the
Office of financial regulation{study this)****
Which tax would an IRA participant be subjected to on distributions received prior to age 59 1/2?
Ordinary income tax and a 10% tax penalty for early withdrawal
Under what system do a group of doctors and hospitals in a designated area contract with and ensure to provide services at a prearranged cost to the insured?
PPO
Which of the following types of organizations are prepaid group health plans, where members pay in advance for services
PPO pay in advance to participating physicians
****Which statement is true in regards to policy loan
Past-due interest on a policy loan is added to the total debt
We recently died and was insured with a life insurance policy for over five years. During the claims process, the insured discovered that we had understated his age by five years at the time of the application. And the situation, the insure well
Pay the amount that the premium would have purchased at the correct age
The Is authorized to assign a life insurance policy as collateral for a loan
Policyowner
The has the right to change a life insurance policies Beneficiary
Policyowner
A policy owner is able to choose the frequency of premium payments through what policy feature
Premium Mode
Which of these statements accurately describes the waiver of premium provision in an accident and health policy
Premiums are waived after the insured has been totally disabled for a specified time period ✅✅✅
Which of the following actions is not possible with a universal life policy
Premiums may be applied as a credit against income tax ****
T is covered by to health insurance plans a group plan through his employer and his spouse's plan as a dependent. Under the model group coordination of benefits provision, 20 files a claim, his employer's plan is considered the
Primary carrier
A medical information report MIB report made us close which of the following
Prior use of marijuana
Which of the following is not required in the outline of coverage for a health insurance policy
Projection of the policy's future costs✅✅✅✅
What is the purpose of the insurance Guaranty fund association
Protects policyowners against insolvent insurance companies
The Department of financial services serves as the receiver of any ensure placed into
Receivership
T has a term policy that allows him to continue the coverage after expiration of the initial policy period. What type of coverage is this?
Renewable
****Which factors are taken into consideration when an insurance company determines the premium rate for a whole life policy to an applicant
Risk classification
Which of these terms accurately describes an underwriters assessment of information on a life insurance application?
Risk classification
Which of these is not a legal entity for selling life insurance in Florida
Risk management advisers
He is a producer who notices five questions on a life application will not answer. What action should be take
Schedule meeting with applicant and correct the application
Which of the following is not considered rebating
Sharing commission with an agent licensed in the same line of business
An application for Medicare supplement coverage may not be denied by the insurer if the application was submitted within months after the applicant reaches the age of 65
Six months✅✅✅
A mutual insurance company and a stock insurance company have one main difference between them. What is the major contrast
Stock company is owned by its shareholders. Mutual company is owned by its policyholders.✅
What shouldn't ensure do if the insured does not send claim forms within the time. Set forth in a health policies claims form's provision
Submit claim in any form
Which of the following statements about the classification of applicants is incorrect
Substandard applicants are never declined by underwriters✅✅✅✅
An agent selling Medicare Supplement policies must provide every applicant with a(n)
Suitability form
Which of the following cost would A basic hospital/surgical policy likely cover
Surgically removing a facial birthmark
What type of life insurance gives the greatest amount of coverage for a limited period of time
Term life
He was looking to buy a life insurance policy that will provide the greatest amount of protection for a temporary time. Period which of these policy should Q purchase
Term life because it's temporary
Which organization was established to provide funds to protect and insured in the event of an insurers insolvency
The Florida Insurance and Guaranty fund association
*****What does a guaranteed insurability writer provide a disability income policyowner?
The ability to periodically increase the amount of coverage without evidence of insurability
Which statement regarding a key employee life policy is not true
The beneficiary is named by the key employee♀️
Which of the following is a standard provision of the conversion privileges in a group life policy
The correct answer is "Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis". Conversion at regular rates on an attained-age basis without a medical exam is a standard provision for conversion privileges in Group Life policies.****
Which of the following best describes how pre-admission certificates and is used
Used to prevent nonessential medical cost
Which of the following phrases refers to the fees charged by a healthcare professional
Usual, customary, and reasonable expenses✅✅✅✅
A life insurance policy owner would like to take out a policy loan against the cash value in his whole life policy. The interest rate applied to this lame very overtime. This is referred to as an rate loan
Variable
****A(n) life policy combines investment choices with a form of term coverage
Variable Universal
A life policy that contains a monthly mortality charge as well as self-directed investment choices is called a(n)
Variable universal life policy
A life insurance policy owner may sell their policy to a In order to receive a percentage of the policies face value
Viaticle settlement provider
When is the face amount of a whole Life policy paid
When the insured dies or at the policy's maturity date, whichever happens first
When is the face amount of a whole life policy paid
When the insured dies or at the policy's maturity date, whichever happens first
What does the ownership clause in a life insurance policy state
Who the policyowner is and what rights the policyowner is entitled to***
Which of the following activities will not result in a suspension of agents license
Working for a foreign insurer
What must ensure obtain to conduct an HIV test
Written consent
In Florida, the underwriting and issuance of a master group health policy requires that all employees
are eligible to participate, regardless of their individual health history
A whole life insurance policy owner does not have the right to
change the grace period
The policy summary contain specific information on all of the following except
commission
Major medical policies typically
contain a deductible and coinsurance✅✅✅
Which of these require an offer, acceptance, and consideration
contract****
Business Overhead Expense Policy
covers business expenses such as rent and utilities
Additional coverage can be added to a whole life policy by adding an
decreasing term rider✅✅✅
****Which of the following the Social Security not provide benefits for
dismemberment
Non-occupational disability coverage is designed for
employees who suffer non-work related disabilities, since work-related disabilities are covered by Workers' Compensation ✅✅✅✅
Health insurance benefits not covered due to an act of war are
excluded by the insurer in the contract provisions
An example of an unfair claims practice would be
failing to effectuate prompt, fair, and equitable settlements of a claim
Which of these is NOT a source of funding for Social Security Benefits?
federal government
Under an individual health insurance policy, the time limit of certain defenses provision States that non-fraudulent misstatements first become incontestable two years
from the date that the policy was issued
A life insurance application may be rejected on the basis of all of these factors except
gender
Variable life products require a producer to
hold a Life Insurance license and a Securities license
Who does an agent represent during the solicitation of insurance?
insurance company
Who has the option to renew a renewable term policy
insured
A foreign insurance company doing business in Florida
is a company that was formed under the laws of another state by z
Dividends paid from a life insurance policy are
issued by the insurer✅✅✅✅
An employer that offers a qualified retirement plan to its employees is eligible to
make tax-deductible contributions to the plan✅✅✅✅
Under an individual disability policy in Florida, what is the minimum schedule of time in which claims must be made to an insured
monthly✅✅✅
Which life insurance rider typically appears on a juvenile life insurance policy
payor benefit rider ***
What type of policy covers two people and pays upon the death of the last insured
survivorship
The premiums paid by an employer for his employees group life insurance are usually considered to be
tax-deductible to the employer
What type of insurance are Credit policies issued as
term. Because they decrease as the loan decreases
****The amount of coverage on a group credit life policy is limited to
the insured's total loan value
****Association plans that are designed to provide health benefits to their members are regulated by the state because
they are insured by an authorized insurer
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
to an individual policy upon employment termination
Which of the following is considered an element of a Variable life policy
underlying equity investment✅✅✅✅
All of these are considered to be a benefit under Social Security, except for
unemployment
In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What kind of contract is this
unilateral
A policy that becomes a modified endowment contract MEC
will lose many of its tax advantages ****
W gave W's age is 51W purchased a life policy. At the time of W's death seven years later, the company discover W is true age that issue has been 59. What were the normal procedure be under the misstatement a provision in regards to the payment and the death claim
✅✅✅✅ the proceeds will be reduced based on whatever the premium would've been if purchased at age 59
Under an Interest Sensitive Whole Life policy,
cash values are determined by interest rates
Which policy requires an agent to register with the national Association of securities dealers, NASD, before selling?
*Variable Life (Because of the transfer of investment risk from the insurer to the policyowner, variable insurance products are considered securities contracts as well as insurance contracts.)
What is Florida definition of life insurance replacement?
A transaction in which a new policy is brought and an old policy is terminated
Which of the following situations does not apply to the Florida replacement rule?
An existing policy holder purchases in additional policy from the same insurer
**** T. cash surrenders a recently issued whole life policy. He also requested the proceeds be payable to and I'm related third-party. T would likely be red flag for violation of
Anti-money laundering rules
Before a life insurance policy is issued, which of these components of the contract is required
Applicant's signature on application
Which of the following is the most important factor when deciding how much disability income coverage in applicant should purchase?
Applicants monthly income
An applicants medical information received from the medical information bureau MIB maybe furnished to the
Applicants physician
An incomplete life insurance application submitted to an insurer will result in which of these actions
Application will be returned to the writing agent
In a qualified retirement plan, the yearly contributions to an employee's account
Are restricted to maximum level set by the IRS
T is the policy owner for a life insurance policy within your vocal beneficiary designation. If he wishes to change the beneficiary, T must obtain permission from the
Beneficiary
A policy loan is made possible by which of these life insurance policy features
Cash value provision****
Florida is 14 day free look Period for life insurance policies begins at the
Date of delivery✅
Jay, and accidental death and dismemberment a D in D policyholder, dies after injury sustained in an accident. Jay's age as stated on the application five years ago was found to be understated by 10 years which of the following actions will the insurance company take
The ensure will adjust the benefit to what the premiums paid would have been purchased at the insurance actual age
J chooses a monthly premium payment mode on his whole life insurance policy. Which of these statements is correct?
The gross premium is higher on a monthly payment mode as compared to being paid annually
T was insured under an individual disability income policy and was severely burned in a fire. As a result, TV came totally disabled. The insured be here making monthly benefit payments, but later discover that the fire was said by T and what was described as often. What actions will ensure take
The insure will resend the policy, deny the claim and recover all payments made
G is involved in an automobile accident as a result of driving while intoxicated and suffers numerous injuries. According to the in talks seconds in narcotics exclusion Angie's policy, who is responsible for paying the medical bills?
The insured
The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon and charge death is called
The insuring clause ✅✅✅✅
An individual who purchases a life annuity is given protection against
The risk of living longer than expected
Which of the following statements is true about most Blue Cross Blue Shield organizations?
They are nonprofit organizations
How does a typical Variable Life Policy investment account grow?
Through mutual funds, stocks, bonds
Which accident and health policy provision addresses pre-existing conditions
Time Limit on Certain Defenses✅✅
**** T filed a claim on his accident and health policy after being treated for an illness. The insurance company believes that he misrepresented his actual health on the initial insurance application and is therefore, disputing the claims validity. The provision that limits the time period during which the company may dispute claims validated validity is called
Time limit on certain defenses
Life insurance companies are required to establish and maintain an anti-money laundering compliance program according to which federal regulation?
USA Patriot Act
Which of the following types of care is typically not covered in a long-term care policy
acupuncture
***Variable Whole Life Insurance can be described as
both an insurance and securities product
Variable Whole Life Insurance can be described as
both an insurance and securities product
The fundamental reason for regulation of insurance is to
protect consumers✅✅✅✅
The legal actions provision of an insurance contract is designed to do all of the following Except
protect the producer
Major Medical Policy typically
provides benefits for reasonable and necessary medical expenses, subject to policy limits
****Which of the following is an example of a Nonforfeiture option
reduced paid-up option
According to Florida law, group life insurance conversion privileges must not
require evidence of insurability✅✅✅