FL Insurance Practice test

Which of the following would help prevent a universal life policy from lapsing?

Target premium.

In a case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to

The contingent beneficiary.

If an agent does not notify the insurer of an address change, what is the maximum penalty that can be imposed for a one-time offense?

$250 If the department is not notified within the required time period, a maximum fine of $250 will be imposed for the first offense; for subsequent offenses, either a minimum fine of $500 will be imposed or the agent's license will be suspended or revoked.

In a direct rollover, how is the money transferred from one plan to the new one?

From trustee to trustee.

The Medical Information Bureau (MIB) was created to protect

Insurance companies from adverse selection by high risk persons.

Julie pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. Julie has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?

Reduction of premium option.

Which of the following dates must be contained in a policy summary?

The date the summary was prepared.

An insured buys a 5-year level premium term policy with a face amount of $100,000. The policy also contains renewability and convertibility options. When the insured renews the policy in five years.

The premium will increase because the insured will be 5 years older than when the policy was originally purchased.

All of the following are dividend options EXCEPT

Fixed-period installments.

What are the members of the Medical Information Bureau required to report?

Adverse medical information about individuals.

Which of the following documents must be provided to the policyowner or applicant during policy replacement?

Notice Regarding Replacement. During policy replacement, the replacing producer must present to the applicant a Notice Regarding Replacement that is signed by both the applicant and the producer.

In the state of Florida, it is illegal for a licensee's commissions from controlled business to exceed what percentage of the total in a given year?

50% A license will not be permitted to exist if the department finds that during any 12-month period, aggregate commissions or other compensation accruing in favor of the licensee's insurable interest have exceeded 50% of the aggregate amount of commissions and compensation accruing in the licensee's favor during the same period as to all insurance coverages procured through him/her.

When a group policy terminates, every individual insured under the policy will be entitled to have an individual policy if the insured has been insured by the group policy for at least how many years prior to policy termination?

5 years. When a group policy terminates, every individual insured under the policy at the date of such termination who has been so insured for at least 5 years prior to such termination date will be entitled to have issued to him by the insurer an individual policy of life insurance.

All of the following actions can be described as twisting EXCEPT

Explaining to client the advantages of permanent insurance over term and suggesting changing policies.

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the

Insuring clause.

An applicant signs an application for a $25,000 life insurance policy, pays the initial premium, and receives a conditional receipt. If the applicant is killed in an automobile accident the next day,

The beneficiary would receive $25,000 if it was determined that the insured qualified for the policy applied for.

A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?

The premiums will become tax deductible until the insured's 18th birthday.

What is the minimum number of participants in group life policies in this state?

There is no minimum.

Which of the following is NOT a responsibility of the Office of Insurance Regulation?

Enacting new insurance laws.

Which of the following would be an example of an unfair claims settlement practice?

Failing to acknowledge a claim within 30 days.