Life and Annuity License (bea)
An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds
$ 50,000
Walter purchased a 15 year level term life insurance with a face amount of 100,000$. The policy contained an accidental death rider, offering a double indemnity benefit. He was severely injured in auto accident and after 10 weeks of hospitalization he dies from injuries. What amount would beneficiary receive as settlement?
$200,000
An annuity contract is issued to consumer over age 65. What is maximum surrender charge for withdrawal of money allowed on this annuity?
10%
In order for debtor group to qualify for group life insurance what is the minimum number of participants joining the plan each year be?
100
The insured is the is the policy owner of a whole life policy. what age must insured attain in order to receive the policy's face amount?
100
Under special circumstances, continuing education requirements may be extended beyond the 2 year period for a maximum period of
12 months
The minimum age for purchasing life insurance policy in Florida is
15
In order to maintain an insurance license an agent will need to satisfy florida's continuing education requirement of
24 hours of continuing education in every 2-year period
If a consumer requests additional information concerning an investigative consumer report, how long does insurer or reporting agency have to comply?
5 days
When a group policy terminates, each individual insured under the policy will be entitled to have an individual policy if insured has been insured under group policy for at least how many years prior to policy termination?
5 years
An applicant for a life agent's license may obtain a temporary license for a maximum period of
6 months
A paid up nonforfeiture benefit will become effective as specified in the policy unless person entitled elects another available option within how many days after the due date of premium is in default?
60
If claim made on policy during grace period, an insurer is allowed to deduct overdue premium and to charge interest. What is maximum allowed interest?
8%
In life policies issued in this state, insurers are permitted to charge interest during the policy grace period for the number of days elapsing before the premium is paid. What is the maximum annual interest rate?
8%
Which of the following describes the process of policy delivery?
After the insurer receives application, it is forwarded to the underwriting department. After the application is approved and the policy is issued the policy is then delivered by person or by mail
Licensed Life insurance agents are expected to be familiar with what rules and regulations?
All of the insurance laws and regulations
Social security was created to protect against all the following except a.disability b.sickness in old age c.bad investment choice d.premature death
Bad investment choice
An applicant is denied insurance because of information found on consumer report. Which of the following requires that an insurance company supply the applicant with the name and address of the consumer reporting company?
Fair Credit Reporting Act
Which of the following entities is not an insurer but organization formed to provide insurance benefits for members of an affiliated lodge or religious organization?
Fraternal Benefit Society
What type of policy issues certificates of insurance to insureds?
Group Insurance
What kind of policy does not require proof of insurability?
Group insurance
When would a misrepresentation on an insurance be considered fraud?
If it is intentional and material
Which of the following entities protects policyowners, isureds and beneficiares under insurance contracts when insurer fails to perform contractual obligations due to financial impairment?
Insurance Guaranty Association
What is the main purpose of the seven pay test?
It determines if the insurance policy is an MEC
In which of the following situations is it legal to limit coverage based on marital status
It is never legal to limit coverage based on marital status
Can a group that's formed for the sole purpose of obtaining group insurance qualify for group coverage?
No. The group must be formed for a purpose other than obtaining group insurance
What term describes the benefit of life insurance policy that the policyowner does not automatically relinquish if policy lapses
Nonforfeiture Values
Which of the following documents must be provided to policy owner or applicant during policy replacement?
Notice regarding replacement
What describes specific information about a policy?
Policy Summary
Which of the following is correct concerning the taxation of a key person life insurance policy premiums and death benefit?
Premiums are not deductible as a business expense and the death benefit is not taxable to the company
Which is among regulations set forth by Florida Replacement Rule?
Providing written comparison and summary statement
In what way can an agent demonstrate a high standard of ethics?
Putting client's best interest before their own
Which rule would apply if an agent knew the applicant is going to cash in an old policy and use the funds to purchase new insurance?
Replacement Rule
Which is an incorrect statement?
Replacing insurance policies for purpose of making commissions is legal
An insurer is helping a married couple determine their children's needs assets and liabilities, in the event the one or both spouses die. What term means that?
Survivor Protection
Who examines the books and records of insurance companies in florida?
The Chief Financial Officer
A customer want to exchange an old contract for new one. What regulation should customer's insurance agent consult?
The Florida Replacement Rule
Which of the following would provide an underwriter with information concerning applicant's medical history?
The Medical Information Bureau
The annuity owner dies when annuity is still in accumulation stage. Which of the following is true?
The beneficiary will receive the greater of the money paid into the annuity or cash value.
Which of the following is incorrect concerning a noncontributory group plan
The employees receive individual policies
If a person accumulates more continuing education hours than is necessary to fulfill the requirements of the 2 year period which of the following will occur?
The extra hours may be continued into the next period
An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10 year term?
The insured may renew the policy for another 10 years, but at a higher premium rate
An insured is involved in car accident and disabled. If policy contains a waiver of premium rider which of the following is true regarding the policy premiums?
The insured will have to pay premium for 6 months, after which the premiums will be reimbursed and subsequent premiums will be waived.
Which of the following entities is responsible for agent licensing and administrative supervision?
The office of Insurance Regulation
If a life insurer holds proceeds of any policy it issues, which of the following is true.
The proceeds may be exempt from any creditor's claims against a beneficiary other than policy owner
Why should the agent personally deliver the policy when the first premium have been made?
To help insured understand all aspects of the contract
An agent and an applicant for a life insurance policy fill out and sign the application. However the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?
When the agent delivers the policy, collects initial premium and the applicant completes and acceptable statement of good health
When does free look period begin on a life insurance policy?
When the policy is delivered to the insured.
Which would not receive death benefit immediately after insured dies?
a minor son of the insured
Who is a third party owner?
a policyowner who is not insured
the two types of assignments are
absolute and collateral
at age 30 a man wants to start an insurance program, but realizing his insurance needs will likely change, he wants a policy that can be modified to accommodate those changes as they occur. Which of the following policies would most likely fit his needs?
adjustable life
Which of the following is true regarding branch agency licensing
agent in charge must be licensed
Rebating is an unfair trade practice and it's regulated by law. All of the following are rebating except
an agent uses misrepresentation to convince a person to cancel an existing policy and take a new policy from him
a universal life insurance policy is best described as
an annually renewable term policy with cash value account
All following are examples of third party ownership of life insurance policy except
an insured borrows money from the bank and makes a collateral assignment of a part of the death benefit to secure the loan
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
an unfair trade practice
which of the following accurately compares business and personal life insurance
both create immediate payment upon death of insured
How is the Insurance Guaranty association funded
by its members- authorized insurers
An insured receives an annual life insurance dividend check. What term best describes this arrangement?
cash option
Applications to the insurer must include all the following except: a.license identification number of agent b.name of insurer. c.name of agent d.credit history report
credit history report
a partnership buy-sell agreement in which each partner purchases insurance on the life of each of the other partners is called
cross-purchase plan
the term fixed in fixed annuity does not refer to
death benefit
Tim and Tom are twins. When they applied fo life insurance in company a, the insurance company found that while neither of them smoked and both had similar life style, tim was in a much stronger financial position than Tom. Because of this the company charged tim a higher rate for his insurance. This practice is
discrimination
Which of the following is not a responsibility of the office of insurance regulation?
enacting new insurance laws
The provision that states that both policy and copy of application form contract between policy owner and insurer is called the
entire contract
Ann is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the standard and poor's 500 index. she would purchase a
equity indexed annuity
An agent's client needs additional insurance in which the agent's own insurer cannot provide. The agent has to solicit additional coverage from another authorized insurer. This coverage is know as
excess
Failure of a licensee to maintain an appointment with an insurance company within 48 months after the date the license became effective will result in
expiration of the license
Which policy component decreases in decreasing term insurance?
face amount
Which of the following would be an example of unfair claims settlement practice
failing to acknowledge a claim within 30 days
the following are legitimate uses of insurance in business setting except
funding against general company financial loss
All of the following are general qualifications for an agent's license except: a.be a state resident b.pass a criminal background check c.have a high school diploma d.be found competent and worthy
have a high school diploma
Under what conditions will proof of insurability not required of an employee wanting to enroll in group insurance?
if employee enrolls within certain time period
A father purchases a life insurance policy on his teenage daughter and adds the payor benefits rider. In which of the following scenarios will the rider void the payment of premiums?
if the father is disabled for more than 6 months
A return of premium term life policy is written as what type of term coverage
increasing
All the advertisements, regardless of their source of creation are the responsibility of
insurer
Insurance contracts are agreements between which 2 parties?
insurer and insured
When a reduced paid up nonforfeiture option is chosen what happens to face amount of the policy?
it is reduced to the amount of what cash value would buy as a single premium
which apply to free look privilege
it permits the insured to reject the policy with full refund
An applicant who receives preferred risk classification qualifies for
lower premiums than a person who receives a standard risk
What's not a requirement for life insurance illustrations
must be part of the contract
death benefits payable to a beneficiary under a life insurance policy are generally
not subject to income taxation by the federal government
During a replacement of life insurance, the replacing insurer must
obtain a list of all life insurance policies that will be replaced
Which option for universal life allows beneficiary to collect both the death benefit and the cash value upon the death of the insured
option b
Which explains policy owner's rights to change beneficiaries, choose options and receives proceeds of a policy
owner's rights
Certificates of coverage are issued to
participants in a group plan
all of the following are characteristics of group life insurance except
premiums are determined by age, sex, and occupation of each individual certificate holder
which of the following is an example of an agent's fiduciary responsibilities?
promptly forwarding premiums to the insurance company
Which method insurers use to protect themselves against catastrophic losses?
reinsurance
One of applicants for life insurance missed a couple of questions on the application. What should insurer do with application?
return to applicant for completion
Bonnie wants to name her husband beneficiary of life policy. She also wishes to retain all rights of ownership.Bonnie should have her husband named as
revocable beneficiary
Which of the following best details the underwriting process for life insurance?
selection, classification and rating of risks
an insurance policy that only requires a payment of premium at its inception, and in addition to providing insurance protection for the life of the insured, matures at the insured's age 100, is called
single premium whole life
What type of risk results in highest premium
substandard risk
Which of the following will be included in policy summary? a. surrender values and premiums b.copies of illustration and application c.comparisons with similar policies d.primary and secondary beneficiary desginations
surrender values and premiums
What are personal uses of life insurance
survivor protection, estate creation, and conservation, cash accumulation and liquidity
Children's riders attached to whole life policies are usually issued as what type of insurance?
term
The primary beneficiary of her husband's life policy found no settlement option was stated in the policy on the date of her husband's death. who will select the settlement option in this case?
the beneficiary
What are liquid resources in a life insurance contract?
the cash value available to the insured
An employer offers group coverage of 10,000 to employees. What is true about cost?
the cost of coverage is deductible expense by the employer
what's not true about variable universal life policy
the death benefit is fixed
Who does the secondary notice provision protect?
the insured over the age of 64
Under a group plan, certificates of insurance must include all the following except
the name of the writing agent
What is not true regarding a decreasing term policy
the payable premium amount steadily declines throughout the duration of the contract
In terms of parties to a contract, which does not describe competent party
the person must have completed secondary education
All true of key person insurance except
the plan is funded by permanent insurance only
What is true about a spouse term rider
the rider is usually level term insurance
In an adjustable life policy what cannot be changed by the owner
the type of investment
What is the minimum number of participants in group life policies in this state?
there is no minimum
What is the purpose of buyer's guide?
to allow the consumer to compare the costs of different policies
What is the purpose of a disclosure statement in life insurance policies?
to explain features and benefits of a proposed policy to the consumer
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse switch policies from one to another?
twisting
An insured submits proof of loss form within 10 days of loss. The insurer however does not acknowledge the form for 3 months. Which of the following violations has the insurer committed?
unfair claims settlement
An insured owns a life insurance policy. In order to pay some of medical bills, she withdraws a portion of policy's cash value.There is a limit for withdrawal and insurer charges a fee. What type of policy does insured most likely have?
universal life
Which of the following types of policies allow policy owner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?
universal life
the waiver of cost of insurance rider is found in what type of insurance
universal life
Which of the following is a statement guaranteed to be true and if untrue may breach an insurance contract?
warranty
when would a 20 pay whole life policy endow?
when the insured reaches age 100
For individual not covered by employer sponsored plan, ira contributions
will be tax deductible