Life and Health Insurance (Florida) ExamFX Simulation Questions

What is an important feature of a dental expense insurance plan that is NOT typically found in a medical expense insurance plan? a) A low monthly premium b) Low cost deductibles c) Diagnostic and preventive care d) A broad coverage area

c) Diagnostic and preventive care

Which of the following would be an example of an unfair claims settlement practice? a) Suggesting negotiations in settling the claim b) Denying a claim within 10 day of receipt of proof of loss c) Failing to acknowledge a claim within 30 days d) Offering a quick settlement of a claim

c) Failing to acknowledge a claim within 30 days

Under which of the following provisions does the insured have the right to renew the policy for the life of the contract, while the insurance company may increase the premiums on a class basis only? a) Comprehensive b) Blanket coverage c) Guaranteed renewable d) Noncancelable

c) Guaranteed renewable

Which of the following is an example of a limited-pay life policy? a) Level Term Life b) Straight Life c) Life Paid-up at Age 65 d) Renewable Term to Age 70

c) Life Paid-up at Age 65

. All of the following are true regarding insurance policy loans EXCEPT a) The policy will terminate if the loan plus interest equals or exceeds the cash value of the policy. b) Policyowners can borrow up to the full amount of their whole life policy's cash value. c) Policy loans can be made on policies that do not accumulate cash value. d) The amount of the outstanding loan and interest will be deducted from the policy proceeds when the insured dies.

c) Policy loans can be made on policies that do not accumulate cash value.

Most policies will pay the accident death benefits as long as the death is caused by the accident and occurs within

90 days.

Which of the following would be an example of an insurer participating in the unfair trade practice of discrimination?

Charging the insured higher premiums based on her race

The two types of assignments are a) Absolute and collateral. b) Absolute and partial. c) Complete and partial. d) Complete and proportionate.

a) Absolute and collateral.

Which agreement specifies how a business will transfer hands when one of the owners dies or becomes disabled? a) Disability Buy-Sell b) Proprietary Transfer c) Absolute assignment d) Transfer of Ownership

a) Disability Buy-Sell

All of the following are correct about life insurance policy loan interest rate EXCEPT a) There are no restrictions or limitations on policy loan rates. b) An adjustable rate of interest can be charged. c) An insurance company may charge a fixed rate of up to 10%. d) A policy will be terminated if the loan and accrued interest exceed the loan value.

a) There are no restrictions or limitations on policy loan rates.

According to the rights of renewability rider for cancellable policies, all of the following are correct about the cancellation of an individual insurance policy EXCEPT a) Unearned premiums are retained by the insurance company. b) The insurer must provide the insured a written notice of the cancellation. c) Claims incurred before cancellation must be honored. d) An insurance company may cancel the policy at any time.

a) Unearned premiums are retained by the insurance company.

An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize? a) Viatical settlement b) Estate liquidation c) Nonpayment of premium d) Change of beneficiary

a) Viatical settlement

An applicant for an agent's Life only license must complete a minimum of how many hours of prelicensing education?

40 hours of prelicensing education for single life or health insurance license.

What Florida insurance regulation established an outline of appropriate and inappropriate business behavior for life insurance agents?

The Code of Ethics of the Florida Association of Insurance and Financial Advisors

What does "liquidity" refer to in a life insurance policy? a) The insured receives payments each month in retirement. b) Cash values can be borrowed at any time. c) The death benefit replaces the assets that would have accumulated if the insured had not died. d) The policyowner receives dividend checks each year.

b) Cash values can be borrowed at any time.

Which of the following types of LTC is NOT provided in an institutional setting? a) Intermediate care b) Home health care c) Custodial care d) Skilled nursing care

b) Home health care

Variable Life insurance is based on what kind of premium? a) Graded b) Level fixed c) Increasing d) Decreasing

b) Level fixed

An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called a) Reduction of premiums. b) Paid-up additions. c) One-year term purchase. d) Accumulation at interest.

b) Paid-up additions.

Who examines the books and records of insurance companies in Florida? a) The Governor b) The Chief Financial Officer c) The NAIC d) The Commissioner of Insurance

b) The Chief Financial Officer

When an insurer issues an individual health insurance policy that is guaranteed renewable, the insurer agrees a) To renew the policy indefinitely. b) To renew the policy until the insured has reached age 65. c) To charge a lower premium every year the policy is renewed. d) Not to change the premium rate for any reason.

b) To renew the policy until the insured has reached age 65

How are state Insurance Guaranty Associations funded? a) By NAIC b) By the Government c) By their members - authorized insurers d) By the Department of Insurance

c) By their members - authorized insurers

Participants under a group life insurance plan are issued? a) Participant identification numbers. b) Master policies. c) Certificates of insurance. d) Both policies and certificates.

c) Certificates of insurance.

An individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. What type of annuity is it? a) Flexible premium b) Immediate c) Deferred d) Fixed

c) Deferred

S is a sole business proprietor who owns a medical expense plan. What percentage of the cost of the plan may he deduct? a) 25% b) 50% c) 75% d) 100%

d) 100%

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? a) 7 years b) 1 year c) 3 years d) 5 years

d) 5 years

Another term used to describe "no deductible" is a) Comprehensive. b) Total coverage. c) Immediate cooperative d) First-dollar basis.

d) First-dollar basis.

What kind of policy does NOT typically require proof of insurability? a) Variable universal life b) Term insurance c) Individual insurance d) Group insurance

d) Group insurance

The mode of premium payment a) Is the factor that determines the amount of dividends in a policy. b) Is the method used to compute the cash surrender value of the policy. c) Does not affect the amount of premium paid. d) Is defined as the frequency and the amount of the premium payment.

d) Is defined as the frequency and the amount of the premium payment.

An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries? a) The beneficiary will receive 2/3 of the lump sum up front, and the remaining 1/3 will be paid over time. b) The beneficiary will receive 2/3 of the total benefit, with the final 1/3 payable when the first beneficiary dies. c) One of the beneficiaries will receive 1/3 and the other 2/3 of the proceeds when the insured dies. d) The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.

d) The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive.

Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated? a) Those who have worked in the company for at least 3 years b) Those who have dependents c) Those who have no history of claims d) Those who have been insured under the plan for at least 5 years

d) Those who have been insured under the plan for at least 5 years

What is the only difference between blanket insurance and group health insurance?

the insured members are not named.