Questions from senora
81. A 30-year-old insured wants to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of the following statements would be The most appropriate response from the producer?
20 Pay Life will accumulate cash value faster.
205. A 30-year-old insured proposed plans to retire at age 60 and wants to buy life insurance that offers levelized premiums and AJ lifeline protection as well. wants the ball to be paid on Wednesday he retires they should buy
20 pays life
115. A 30-year-old insured wants to purchase a whole life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of the following Statements would be the producer's most appropriate response?
20-Pay Life will accumulate cash value faster
114. A potential 30-year-old insured is considering purchasing a life insurance policy. if all of the following policies have the same face value, which would require the largest-
20-Pay for life
165. Florida law requires a licensed agent to notify the Department of Financial Services in writing of any change in name, residential address, business address , address. Postal or the agent's email address, within how many days?
30
67. Florida law requires a licensed agent to notify the financial services department of any change in the agent's name, residential address, business address , address postal or email address written within how many days?
30 days
155. J, a proposed 30-year-old insured, plans to retire at age 60 and wants to purchase life insurance that offers level premiums and lifetime protection . If J also wants the policy paid when J retires, J should buy:
30-Pay Life
286. A retirement plan that may be stablished by an employee, regardless of any other retirement plan is called a(n):
401K plan
207. Under the Internal Revenue Code, a portion of the premiums paid by the employer for group term life insurance is taxable for an employee whose coverage exceeds what minimum amount?
50k
118 . Withdrawals from the Traditional Individual Retirement Account (IRA) are generally subject to a tax penalty if made before the insured reaches the minimum age.
59 ½
306. what minimum percentage of eligible employees must participate for a company to offer a contributory group life insurance plan?
75 %
216. For an enterprise to make a contributory group life insurance plan available to its employees. What minimum percentage of eligible employees must participate in the plan?
75%
187. Agents can help prospective policyholders understand and purchase the most appropriate product by delivering
A buyer's guide
199. Navigation by life insurance policy that is presented with the initial premium is considered legally
A consideration
139. Which of the following parts of a life policy is guaranteed to be CORRECT?
A guarantee
249. Which of the following parts of a life policy is guaranteed to be correct?
A guarantee
225. An annuity that allows a person to choose the amount of the annual premium payment is
A single premium
315. An immediate annuity will have:
A single premium
116. Which of the following contracts is purchased with a lump sum and pays a guaranteed income?
A single premium annuity
214. Which of the following contracts is purchased with a lump sum and pays a guaranteed income?
A single premium annuity
151. In a life assurance contract, the consideration given by the applicant in exchange for the promises of the insurance company consists of the statement of the insured person in the application. and which of the following?
A written promise to pay all premiums when due
145. A beneficiary who must consent to a change in the designation of the beneficiary in a life insurance policy is called:
An irrevocable beneficiary
226. A beneficiary who must consent to a change in the designation of the beneficiary in a life insurance policy is called a
An irrevocable beneficiary
121. The premium mode resulting in the lowest premium selling point is
Annually
223. The premium mode resulting in the lowest premium outlay is
Annually
143. If an insured person purchases a Life Annuity from which he receives income, the insured person is:
Annuitant
237. If an insured person purchases a life annuity from which he receives income, the insured person is:
Annuitant
5. Which of the following features of a group term policy allows an individual to leave the group and continue their insurance without providing evidence of insurability?
Conversion privilege
244. When an employee covered by a group life policy leaves the group, the conversion privilege gives the employee the right to
Convert to an individual policy anytime for up to six months
177. When an employee covered by a Group Life policy leaves the group, the conversion privilege gives the employee the right to
Convert to an individual policy at the end of employment.
170. In recommending a purchase or exchange of a annuity, the agent or insurer must have a reasonable basis to believe that a recommendation is appropriate on an all-based basis. the following facts disclosed by an applicant EXCEPT
Country of residence
78. When an employer provides non-contributory group term life insurance, which of the following statements is CORRECT?
Coverage for salaried employees must be different from coverage for hourly workers.
312. Which of the following statements is correct about the federal income tax law in relation to $100,000 worth of group term life insurance coverage through an employer sponsored plan?
Death benefits are income tax free to name beneficiaries
167. In Florida, the free review period for life insurance contracts is 14 days from the term of the policy.
Delivery
64 . In Florida, the free review period for life insurance contracts is 14 days from the policy.
Delivery
258. The signed document that starts the free look. Is the:
Delivery receipt
203. If an insured commits suicide when the suicide clause is in effect and the insurance company will take which of the following actions with the beneficiaries they claim
Deny the claim and return the premiums paid
144. If an insured commits suicide when a Suicide Clause is in effect, which of the following actions will an insurance company take with a beneficiary's claim?
Deny the claim and withhold the premium paid
87 . If an insured commits suicide when a Suicide Clause is in effect, which of the following actions will an insurance company take with a beneficiary's claim?
Deny the claim and withhold the premium paid
157. The agency responsible for rehabilitating or liquidating insurers where necessary is
Department of Financial Services
272. An insured who is unhappy with the marketing practices of their agent may file a complaint with the:
Department of financial services
274. Which Florida agency has the authority to investigate violations of securities transactions?
Department of financial services (DFS)
305. The purpose of the USA Patriot Act is to:
Detect criminal activity
311. Two equal partners in a business worth 100,000 dollars enter into a buy and sell agreement to assure continuation of the business in the event of death of the other partner. Which of the following funding arrangement best meets their needs?
Each partner purchases a $50,000 policy on the other
278. The department of financial services may open an investigation of an individual for:
Engaging in the business of insurance without a license
162. Which statement about conversion privileges in Group Life sold is CORRECT?
Evidence of insurability is a standard conversion requirement
123. The primary purpose of including a Suicide clause in a life insurance policy is:
Exclude suicide risk from coverage permanently
288. Which of the following items requires that an insurance application states that an investigate consumer report must be may be obtained on a prospective insured?
Fair credit reporting act
276. An institution which has responsibility for financial affairs on the property of others is known as a:
Fiduciary
265. in Florida, upon termination of an employee from a group life plan, the group insurance continues:
For 31 days
172 . Which of the following divisions of the Florida Department of Financial Services (DFS) investigates insurance fraud?
Forensic and Investigative Services Divisions
46. Each licensee must complete a refresher course in law and ethics of how many hours every two years?
Four
304. A policyowner return a newly issued policy one week after the policy was delivered by the producer and received a refund for all previous pay which of the following policy section covers the situation described:
Free look provision
25. A guaranteed insurability provision is best described as:
Guarantee to keep a policy in force if the premium is paid
135. A guaranteed insurability provision is best described as:
Guarantee to keep a policy in force if the premium is paid.
150. The dividends paid on a life insurance policy are:
Guaranteed at the prime rate
275. which of the following is not true regarding applicants for an insurance license?
Half of the fees must be paid in advance to the department.
60 Which of the following is NOT true with respect to applicants for an insurance license?
Half of the fees must be paid in advance to the department.
98 . Which of the following is NOT true with respect to applicants for an insurance license?
Half of the fees will be paid in advance to the departments.
18. A 30-year-old insured wants to purchase a whole life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of the following Statements would be the producer's most appropriate response?
"The life of 20 payments accumulates cash value faster"
298. Which of the following beneficiary designations may limit a policyowner's rights?
Irrevocable
152. which of the following statements is correct about the death benefit of a life insurance policy?
It can be assigned by the policy owner
112. Which of the following statements about a settlement option provision in a life insurance policy is correct?
It describes various methods of distributing death benefit to beneficiaries.
146. Which of the following statements is CORRECT with respect to variable whole life insurance?
It is an insurance and a product of securities.
185. Which of the following statements is CORRECT about the Life and Health Insurance Guaranty Association?
It is funded by insurance companies through evaluations.
132. Able Construction Company wants to take out an insurance policy for its president to offset the cost of replacing the president if the president dies prematurely. The type of policy that the company must buy is called:
Key employee
208. A construction company wants to take out an insurance policy on its president to offset the cost of replacing the president in the event of his death prematurely. What kind of Policy should the company buy?
Key employee
254. The accelerated death benefit of a life insurance policy is known as
Life Benefit
111. Which of the following policies insures two people and is designed to pay a benefit on the second death?
Life of survival
292. An example of a limited pay life policy is:
Life paid up at age 65
127. An accelerated death benefit from a life insurance policy is also known as:
Living benefit
198. The accelerated death benefit of a life insurance policy is known as
Living benefit
268. Florida law requires an agent who is recommending to a person the purchase of an annuity to obtain information regarding of all the following except the person's:
Marital status
136. On 8 May, a prospectus filled out an application for a life insurance policy but did not pay the premium. The insurer approved the application on May 14 and issued the policy on May 15. The producer turned in the policy on May 26 and collected the first premium. Coverage is effective on:
May 26
219. On 8 May, a prospectus filled out an application for a life insurance policy but did not pay the premium. The insurer approved the application on May 14 and issued the policy on May 15. The producer turned in the policy on May 26 and collected the first premium. The coverage went into effect on
May 26
3. On May 8 , an applicant filled out a life insurance policy application but did not include the initial premium. The insurer approved the application on May 14 and issued the policy on May 15. The producer turned over the policy on Jan. 26 and collected the first premium. When did the coverage take effect?
May 26
215 . Which of the following policy features allows an insured to pay premiums MORE than once a year?
Method of benefit of the premium
289. P is both the policy owner and the insured under a $100,000 whole life policy. The beneficiary is P's mother. When P marries, ownership of the policy is transferred to P' spouse. If P dies without making any other changes, the policy proceeds will be payable to:
Mother only
245. Which of the following is required of the branches?
Must be listed on the parent agency's registration with the financial services department
238. Which of the following will be considered a type of insurance company?
Mutual
267. the professional organization whose code of ethics is incorporated into Florida law and whose the responsibility it is to establish the activities of agents is the:
National Association of insurance and financial advisors (NAIFA)
182. A hardware store owner has a group life policy that covers 50 employees. If the homeowner decides not to renew the policy and stops paying premiums, which statement is CORRECT?
Neither the insurer nor the owner is obligated to do anything.
159. Which of the following documents must an agent submit to the replacement insurance company during the replacement of an existing life insurance policy?
Notice to existing and replacement insurers of intent to replace
240. Which regulatory body approves insurance contracts for insurers to be sold in Florida?
Office of Insurance Regulation
283. If an initial premium is not collected when a life insurance application is written the insurance become effective:
On delivery of the policy to the insured and payment of the initial premium to the producer
173. Which of the following documents issued by the Office of Insurance Regulation would allow a national insurance company to transact business in Florida?
One license
37. Is the insurance regulatory office NOT responsible for which of the following?
Organization and licensing of companies.
122. M underestimates his age in an application for a life insurance policy. Upon M's death, the company will most likely will:
Pay an amount based on what you would have purchased with M's premium payments if M had given his true age
133. Which of the following actions must an insured take to continue with a renewable term policy?
Pay for renewal request
282. A life insurance policyholder dies of heart failure shortly after the 10th policy anniversary. The insurer failed to disclose the condition and resulting medical consultations on the application. In this situation the insurer will most likely:
Pay the face amount.
224. Which of the following actions must an insured take to continue with a renewable term policy?
Pay the revolving premium
141. Which of the following policy features allows an insured to pay premiums MORE than once a year?
Payer Clause
284. In a life insurance policy, the consideration clause states that the policyowners consideration consists on completing the application and:
Paying the initial premium
220. Which of the following gestures is typical of term life insurance?
Policy expires at the end of the policy period
266. describing the elements of the policy is known as the:
Policy summary
147. An annuity that allows a person to choose the amount of the annual premium payment is:
Premium Level
310. Which of the following statements is correct about the limited pay whole life policy?
Premium payments must be made for a specified number of years, after which the policy lapses
296. A producer who discovers that answers to a series of questions on a life insurance application where omitted should take which of the following actions?
Schedule another appointment with the applicant to complete the unanswered questions
104. The USA Patriot Act became law in response to:
September 11, 2001 attack
14. The USA Patriot Act became law in response to:
September 11, 2001 attack
196. A 31-year-old insured to purchase a whole life policy that will accumulate cash value at a faster rate in the early years of the policy, which of the Following statements would be the most appropriate response from the producer?
Simple life and 20 pay life will accumulate cash value at the same rate
252. A 31-year-old insured to purchase a whole life policy that will accumulate cash value at a faster rate in the first few years of the policy, which of the Following statements would be the most appropriate response from the producer?
Simple life and 20 pay life will accumulate cash value at the same rate
291. which of the following policy provisions is designated to protect the insurance company from adverse selection by certain high-risk applicants?
Suicide clause
262. The office of insurance regulation is not responsible for which of the following?
Supervising all state financial institutions
193. Is the Office of Insurance Regulation NOT responsible for which of the following?
Surveillance in the event of unauthorized insurance activities
263. In an investigation conducted by the office of financial regulation, the office has the power to do which of the following?
Take testimony and depositions
287. Prospect, with limited financial resources, once the purchase a policy with the highest amount of protection for a temporary period. The producer show buys the prospect to purchase which of the following types of policies?
Term life
140. By which of the following methods can expedited death benefit be accessed in a life insurance contract?
That a licensed physician diagnoses a terminal illness to the carrier with a prognosis of less than one year of life expectancy
233. By which of the following methods can expedited death benefit be accessed in a life insurance contract?
That a licensed physician diagnoses a terminal illness to the carrier with a prognosis of less than one year of life expectancy
186. An agent must disclose a rentier when replacing or exchanging a annuity agreement
That there may be tax consequences as a result of the purchase
280. An agent must disclose to an annuitant when replacing or exchanging an annuity contract:
That there may be tax consequences as a result of the purchase
153 . In a third-party ownership agreement, which of the following persons is a party to the contract?
The applicant
227. A third-party ownership agreement, which of the following persons is a party to the contract?
The applicant
163. Can the Department of Financial Services refuse to issue a licence application for which of the following reasons?
The applicant has made significant misrepresentations in the application
174. The Department of Financial Services may refuse to issue a license application for which of the following statements about the applicant is CORRECT?
The applicant is not a citizen of the United States.
191. Which of the following is NOT true with respect to applicants for an insurance license?
The application must be completed under oath
251. Which of the following statements is correct about the amount of the group life benefit the beneficiary must report for federal income tax purposes?
The beneficiary does not need to report any amount
119. Which of the following statements is CORRECT about the amount of the collective life benefit the beneficiary must file for federal income tax purposes?
The beneficiary does not need to report any amount.
270. if an insurer dies during the grace period and the premium has not been paid, which scenario would be correct?
The death benefit will be paid less the premium due.
273. The department of financial services may deny an application for license for which of the following reasons?
The department has reasonable costs to believe that the applicant will write only controlled business
176 . Which of the following is true about dependent coverage in group life?
The dependent cannot be covered
241 . Which of the following is true about dependent coverage in group life?
The dependent may be covered for an amount not to exceed the amount of insurance for which the employee or member is insured.
211. When an employer provides non-contributory group term life insurance, which of the following statements is correct?
The employer pays the full cost of the plan.
129. When an employer provides non-contributory group term life insurance, which of the following statements is CORRECT?
The full cost of the plan is paid by the employer
261. which of the following is not an eligibility requirement for an association group?
The group must be a natural group (organized for some reason other than to obtain group insurance)
138. Under a unilateral life insurance policy, which of the following parties makes legally enforceable promises?
The insurance company
285. A convertible term policy offers which of the following advantages?
The insured does not have to provide evidence of insurability when requesting a conversion
66. An insurer is REQUIRED to notify the applicant for a life insurance policy of the right to designate a secondary recipient when
The insured is 64 years of age or older.
247. There is a group policy with 50 employees. If the homeowner decides not to renew the policy and stops paying premiums, which statement is correct?
The insurer must notify all employees of the cancellation of the policy and may do so through the cardholder
108. Which of the following persons is entitled to change the beneficiary designation on a life insurance policy?
The owner of the policy
197. Which of the following persons has the right to change the beneficiary designation of a life insurance policy?
The owner of the policy
253. Which of the following persons has the right to change the designation of beneficiary of a life insurance policy?
The owner of the policy
175. Which party has the power to appoint the beneficiary of a life assurance contract?
The payer
148. Which of the following features is typical of term insurance?
The policy expires at the end of the policy period.
Z said Z's age was 40 when Z bought a Life policy. At the time of Z's death, six years later, the company discovered that Z's true age in question was 49. What would be the normal procedure be under the misstatement of each provision in regard to the payment of the claim?
The proceeds will be reduced based on whatever the premium would have been purchased at age 49
232. Under a unilateral life insurance policy, which of the following parties makes legally enforceable promises?
The producer
313. which of the following statements is correct about a renewal term policy?
The renewal premium is calculated on the basis of the insured's attained age
107. If an insured dies during the contestable period of a life insurance policy, the insurance company will NOT pay the proceeds of the policy, in which of the following situations ?
There was a material misrepresentation in the application
204. If an insured person dies during the challenge. From a life insurance policy the insurance company will not pay the proceeds of the policy in which of the following events
There was a material misrepresentation in the application
103. Which of the following statements is CORRECT about the statements a proposed insured makes on a life insurance application?
They are representations and are considered true to the best of the applicant's knowledge and understanding.
209. Which of the following statements is correct about the statements made by a proposed insured on a life insurance application?
They are representations and are considered true to the best of the applicant's knowledge and understanding.
110 . For which of the following reasons is the applicant's signature required on a life insurance application?
To represent that the statements in the application are guarantees
295. A policy becomes a modified endowment contract (MEC) when:
Too much premium is paid in the initial policy years
206. Which of the following sections of a life insurance contract states that the application is part of the contract?
Total disposition of the contract
194. Which of the following parts of a life policy is guaranteed to be correct?
Una guarantee
234. Which statement about conversion privileges in group life policies is correct?
Usually, there are no conversion privileges.
33. All of the following areas of state regulation are protected by the savings clause in ERISA EXCEPT ?
Values
130. Which of the following types of policies offers the owner investment in money market funds, long-term bonds, or stocks?
Variable life
213. Which of the following types of policies offers the owner investment in money market funds, long-term bonds, or stocks?
Variable life
300. which of the following policies allows the policy owner to select where the cash values are invested?
Variable life
154. S and W are business partners. Each takes out a $100,000 life insurance policy for the other, naming itself as the primary beneficiary. S and W eventually dissolve their business and two months later S dies. Although S was married at the time of death, the primary beneficiary remains W. However, there is no longer an insurable interest. Proceeds from S's life insurance policy will go to:
W
134. An application for life insurance must be informed of your rights under the Fair Credit Reporting Act, at which of the following times?
When the producer completes the insured's application
228 . In which of the following lines should an applicant for life insurance be informed of his or her rights under the Fair Credit Reporting Act?
When the producer delivers the policy
161. What activity may result in the suspension or revocation of an agent's license?
Write primarily controlled businesses
277. which activity may result in suspension or revocation of an agents license?
Writing primarily controlled business
179. B has had a life insurance policy for one year. The insurer has discovered that b falsely answered the questions in the application. Can the insurer void the policy?
Yes, because the application is part of the insurance contract.
210. A client should know how the indexed annuity differs from the fixed annuity in that the indexed annuity:
You can receive credited interest based on fluctuations in the linked index
117. An insurance company accepts an application containing several unanswered questions and issues the policy. In this situation, the company:
You must obtain the missing information at a future date
76. An insurance company accepted an application containing several unanswered questions and issued the policy. In this situation, the company:
You must obtain the missing information at a future date
222. Which of the following policies insures two people and is designed to pay a benefit on the second death?
survival
303. The primary purpose of a limited pay life policy is to allow an:
Insured to pay premiums for a predetermined period of time
124. If a forty-five-year-old purchased an annuity to provide lifetime income starting at age five, the insurance did NOT purchase:
An immediate annuity
212. If a forty-five-year-old person purchased a life annuity to provide income from the age of sixty-five, the insured person did not purchase
An immediate annuity
294. In a life insurance policy, the promise by the insurer to pay certain benefits is the:
Insuring clause
301. An insurance company may change a higher total premium to an insurer who pays a policy quarterly rather than annually because the quarterly payment results in:
An increase in the company's loss experience
128. Which of the following statements is CORRECT about a policy loan versus a life insurance contract?
An insurer can defer granting a loan for up to 3 months
246. Florida law requires an entity to obtain which document from the office of insurance regulation before conducting commercial insurance transactions.
Certificate of authority
48. Florida law requires an entity to obtain which document from the Office of Insurance Regulation (OIR) before conducting commercial insurance transactions?
Certificate of authority
28. Which of the following is an example of slippage?
Charging for a complementary product without applicants' consent
156. Which of the following is an example of slippage?
Charging for a complementary product without the applicant's consent
259. If the contract values of an existing policy are used to purchase a new policy with the same insurer, this is known as:
Charming
164. Who is considered designated to accept notification service from an insurer in Florida?
Chief Financial Officer
183. Who oversees the division of unclaimed property?
Chief Financial Officer
239. Who oversees the division of unclaimed property?
Chief Financial officer
248. Who is considered designated to accept notification service from an insurer in Florida?
Chief financial officer
269. Who is deemed to be appointed to accept service of process for an insurer in Florida?
Chief financial officer
290. A payer benefit clause is generally added to a life policy that insures the life of a:
Child
255. If the initial premium does not accompany an application for insurance, the producer must take which of the following actions when delivering the policy?
Collect the initial premium in compliance with the provision of Federal Fair Credit Reporting Act
158. All of the following areas of state regulation are protected by the safeguard clause in ERISA EXCEPT
Commerce
299. W applies for life insurance on W's 5 years old child and submits the initial annual premium. The producer issues W a receipt and says that the coverage will be effective immediately if the application is approved, because no medical examination is required. Which of the following types of receive did the producer issue?
Conditional
109. Which of the following elements binds the insurer to coverage from the date of the request or medical examination, whichever is later, provided that the proposed insured is determined to be a risk acceptable?
Conditional receipt
180. What is normally given to an applicant who pays the initial premium at the time of application?
Conditional receipt
242. What is normally given to an applicant who pays the initial premium at the time of application?
Conditional receipt
281. Changing a beneficiary is a right reserved for the:
Contract owner.
308. Which of the following types of group term life insurance plans does a corporation offer, if the employees share the premium cost?
Contributory
201. Which of the following features of a life policy is used to restrict coverage?
An exclusion
171. In a non-contributory group, the policy must cover
100%
62 . In a non-contributory group, should the policy cover?
100% of eligible people
202. which of the following is the minimum age at which an individual can sign a life insurance application:
18
29. An agent takes out insurance only for immediate family members. Here is an example of:
Controlled business
105. Which of the following provisions could double the nominal amount of insurance if the death of an insured occurred as a result of an unintended and unforeseen event?
Accidental Death and Dismemberment (AD&D) Provision
125. Which of the following provisions of a life insurance policy will pay a set amount to an insured if the insured becomes blind in an accident?
Accidental Death and Dismemberment Clause
195. Which of the following provisions could double the nominal amount of insurance if an insured death occurred as a result of an unintentional and unforeseen event?
Accidental Death and Dismemberment Disposition
250. Which of the following provisions could double the nominal amount of insurance if an insured death occurred as a result of an unintentional and unforeseen event?
Accidental Death and Dismemberment Disposition
231. Which of the following provisions of a life insurance policy will pay a set amount to an insured if the insured becomes blind in an accident?
Accidental death and dismemberment clause
243. An insurance agent is permitted to replace an existing policy only if the agent
Acts strictly in the best interests of the insurer
188. Florida law requires that a written Comparative Information Form be provided when replacing an existing life policy, when requested by whom?
Agent
137. Is a policy that is overfunded according to the I.R.S. tables classified into which of the following types of policies?
Amended endowment contract
218 . Does a policy that is overfunded, according to IRS tables, rank into which of the following types of policies?
Amended endowment contract
256. A student airplane pilot may buy life insurance at a regular price if the policy that is purchased contains:
An aviation exclusion
131. Which of the following features of a life policy is used to restrict coverage?
An exclusion
142. Which of the following characteristics of a group term life policy allows a person to leave the group and continue with their insurance without providing evidence of insurability?
Conversion privilege
229. Which of the following characteristics of a group term life policy allows a person to leave the group and continue their insurance without providing evidence of insurability?
Conversion privilege
297. A customer surrenders a recently issued whole life policy and requests proceeds be made payable to an unrelated third party. This will be a red flag potential violation of the?
Anti money laundering rules
178. What does the term "Affiliated Party" mean?
Any person who directs or participates in the conduct of a licensee's affairs.
309. In a life policy, insurable interest must exist at which of the following times?
At the time the application is signed
189. The Office of Financial Regulation is primarily responsible for activities related to the regulation of:
Banks, credit unions and other financial industries
184. Which of the following is required of the branches?
Be based in the agent-in-charge home county
181. The Department of Financial Services may open an investigation into an individual for
Be licensed on multiple lines of authority
190. Florida law requires an entity to obtain which documents from the Office of Insurance Regulation (OIR) before conducting commercial insurance transactions.
Business License
257. A policy summary:
Highlight the critical parts of the policy issue and describes the coverages, riders, and exclusions.
293. A life insurer that accepts an incomplete application and issues of policy is obligated to:
Honor the contract
307. Which of the following statements about a 5 year old whole life policy is correct?
If a policy owner stops paying premiums, the policy owner may elect a Nonforfeiture option
302. which of the following statements is correct about conversion of group term life insurance on termination of employment
If death occurs during the conversion., the death benefits must be paid
168. Z indicated that Z's age was 40 when Z purchased a life policy. At the time of Z's death, six years later, the company discovered that Z's true age in question was 49. What would be the normal procedure according to the Provision on erroneous declaration of age with respect to the payment of the death claim?
Income will be reduced based on the premium that would have been purchased at age 49.
113. The holder of an Adjustable Life policy may take all of the following actions without providing proof of insurability EXCEPT
Increase the nominal quantity
230. The owner of an adjustable life policy may take all of the following actions without providing proof of insurability, except?
Increase the nominal quantity
106. One of the basic concepts of underwriting is that the holder of a life insurance policy must be the insured, a blood relative of the insured or someone who would suffer from a Economic loss if the insured dies. This concept is known as:
Insurable interest
264. Excluding commissions from prior sales, and affiliated insurance agents can only receive compensation from a(n):
Insurance company
316. the waiver of premium provision in a life policy guarantees that the:
Insurance company will waive premiums whenever the policies cash value is sufficient to cover its cost
271. the term-controlled business is most accurately described as:
Insurance placed by an agent on the agent's own life, property, or risk
192 . Who is considered to own a mutual insurance company?
Insured
120. An agent receives an unsolicited call from a potential customer who wants to purchase a large single premium life policy. When informed about early withdrawal penalties, the client does not seem concerned and is evasive when the agent asks about the origin of the funds. . In this situation, which of the following actions should the agent take?
Prepare a requested single-premium policy proposal to submit with the application
166. Which of the following would NOT be an example of a fraudulent act of insurance?
Presenting materially false information
221. The main purpose of inducing a suicide clause in a life insurance policy is
Protect the insurer against purchasing a suicide policy
149. All of the following options are examples of non-forfeiture options EXCEPT:
Renewability
314. Which of the following term policies guarantees the insured the right to continue term coverage after expiration of the initial policy period.
Renewable
160. Florida's insurance rule that establishes procedures for agents recommending changes to existing coverage is Florida
Replacement rule
260. The Florida insurance rule establishing procedures for agents recommending changes to existing coverage is the Florida:
Replacement rule
236. Which of the following would NOT be an example of a fraudulent act of insurance?
Replacing an existing insurance policy
126. An underwriter of an insurer uses medical information obtained from an applicant to determine:
Risk classification
217. An underwriter uses medical information obtained from an applicant to determine:
Risk classification
235. The concept of someone suffering an economic loss if the insured dies is known as
insurable interest
A potential 30-year-old insured is considering purchasing a life insurance policy. If all policies have the same nominal amount, which one would require the highest annual premium?
Whole life
65. What activity may result in the suspension or revocation of an agent's license
Write primarily controlled businesses
102. A client should know that the indexed annuity is different from the fixed annuity in that the indexed annuity
You can receive credited interest based on fluctuations in the linked index
27. An insurance company accepts an application containing several unanswered questions and issues the policy. In this situation, the company:
You should get information at an early date.
74. Under the Internal Revenue Code, a portion of the premiums paid by the group life insurance employer is taxable for an employee whose coverage exceeds What minimum amount?
$50,000
9. Under the Internal Revenue Code, a portion of the premiums paid by the employer for group term life insurance is taxable for an employee whose coverage exceeds what minimum amount?
$50,000
101. In order for a business to make a contributory group life insurance plan available to its employees, what minimum percentage of eligible employees must participate in the plan?
75
69. In order for a company to make a contributory group life insurance plan available to its employees, what minimum percentage of eligible employees must participate in the plan?
75%
In order for a company to make a contributory group life insurance plan available to its employees, what minimum percentage of eligible employees must participate in the plan?
75%
52. Agents can help prospective customers understand and purchase the most appropriate product by delivering ?
A buyer's guide
53. Agents can help prospective policyholders understand and purchase the most suitable product by delivery.
A buyer's guide
34. What if the following documents issued by the office of insurance regulation allowed a national insurance company to transact business in Florida?
A certificate of authority
71. An applicant for a life insurance policy who presents himself with the initial premium is legally regarded as
A consideration
6. Which of the following parts of a life policy is guaranteed to be CORRECT?
A guarantee
99. Which of the following parts of a life policy is guaranteed to be correct?
A guarantee
79. Which of the following contracts is purchased with a lump sum and pays a guaranteed income?
A single premium annuity
8. Which of the following contracts is purchased with a lump sum and pays guaranteed income?
A variable annuity
39. Which of the following divisions of the Florida Department of Financial Services (DFS) investigates insurance fraud?
Consumer Protection Division
88. In a life assurance contract, the consideration given by the applicant in exchange for the promises of the insurance company consists of the statement of the insured person in the application. and which of the following?
A written promise to pay all premiums when due.
Which of the following provisions of a life insurance policy will pay a set amount to an insured if the insured becomes blind in an accident?
Accidental Death and Dismemberment Clause
61. What does the term "affiliated party" mean?
Any person who directs or participates in the conduct of a licensee's directors and who is an officer, shareholder, owner or other person who directly controls a company
49. Florida law requires that a written comparison form be provided when replacing an existing life policy, when requested.
Applicant
55 . The financial regulatory office is primarily responsible for the regulatory activities of
Banks, credit unions and other financial industries
97. If an insured person buys a life annuity from which he receives income, the insured person is the.
Beneficiary
31. Who oversees the unclaimed property division?
Chief Financial Officer
56. Who is considered designated to accept notification service from an insurer in Florida?
Chief Financial Officer
83. R's life insurance policy expired because R did not pay the premium after 6 days. To reinstate the policy, R must take which of the following actions?
Complete a reinstatement application and submit all late premiums due.
42. An insurance agent is allowed to replace an existing policy only if the agent
Complies with replacement regulations
36. What is normally given to an applicant who pays the initial premium at the time of application?
Conditional receipt
91. An agent receives an unsolicited call from a potential customer who wants to purchase a large single-premium life policy. When informed about early withdrawal penalties, the client does not seem concerned and is evasive when the agent asks about the origin of the funds. . In this situation, which of the following actions should the agent take?
Contact the insurance company's compliance officer to spot a red flag about what's possible.
86 . On 3 January, an insured person accepts delivery of a whole life policy effective December 22 of the previous year. The policy contains a six-month premium waiver provision. If the insured becomes disabled on January 6 as a result of an accident, and the disability continues beyond July 6 , the insurance company:
Continue coverage and reimburse the insured for lost wages suffered during the period of disability.
41. Which agency does not regulate variable contracts in Florida?
Department of Financial Services
35. The agency responsible for rehabilitating or liquidating insurers where necessary is:
Department of Financial Services (DFS)
13. An agent receives an unsolicited call from a potential customer who wants to purchase a large single premium life policy. When informed about early withdrawal penalties, the client does not seem concerned and is evasive when the agent asked about the origin of the funds. In this situation, which of the following actions should the agent take?
Hire the insurance company official to report a red flag of possible money laundering.
47. Z said Z's age was 40 when Z bought a Life policy. At the time of Z's death, six years later, the company discovered that Z's true age in question was 49. What would be the normal procedure according to the Provision on erroneous declaration of age with respect to the payment of the death claim?
Income will be reduced based on the premium that would have been purchased at age 49.
82. One of the basic concepts of insurance underwriting is that the holder of a life insurance policy must be the insured, a blood relative of the insured or someone who He would suffer an economic loss if the insured died. This concept is known as:
Insurable interest
85. Which of the following types of policies offers the owner investment in money market funds, long-term bonds, or stocks?
Variable life
32. In recommending a purchase or exchange of a annuity, the agent or insurer must have a reasonable basis to believe that the recommendation is sustainable based on all following facts disclosed by an applicant EXCEPT applicants.
Intent for use
50. When an employee covered by a group life policy leaves the group, the conversion privilege gives the employee the right to ?
Invest in an individual policy upon termination of employment.
89. Which of the following statements about a settlement option provision in a life insurance policy is correct?
It allows a beneficiary to settle out of court if an insurance company contests a claim.
73. Which of the following statements is CORRECT with respect to variable whole life insurance?
It is an insurance and securities product
68. Which of the following statements is CORRECT about the life and health insurance guarantee association?
It is funded by insurance companies through evaluations.
94. Able Construction Company wants to take out an insurance policy for its president to offset the cost of replacing the president if the president dies prematurely. The type of policy that the company must buy is called:
Key employee
21. Which of the following policies insures two people and is designed to pay a benefit on the second death?
Life of survival
80. An accelerated death benefit from a life insurance policy is also known as:
Living benefit
93. On 8 May, a prospectus filled out an application for a life insurance policy but did not pay the premium. The insurer approved the application on May 14 and issued the policy on May 15. The producer turned in the policy on May 26 and collected the first premium. Coverage is effective on:
May 26
J, a proposed 30-year-old insured, plans to retire at age 60 and wants to purchase life insurance that offers level premiums and lifetime protection, if J He also wants the policy to be paid when J retires, J should buy:
Modified integer
40. Which of the following is required from the branches?
Must be included in the parent agency's registration with the Financial Services department
51. B has had a life insurance policy for one year. The insurer has discovered that B falsely answered the questions in the application. Can the insurer void the policy?
No, because the insured does not guarantee the veracity of all the data of the application.
63 . When replacing existing ordinary life insurance, an agent MUST submit the following documents to the replacement insurance company?
Notification to the existing insurer and the replacement insurer of intentions
45. Who considers himself the owner of a mutual society
Policyholder
20. Dividends paid on a life insurance policy are:
Projected but not guaranteed
70. The main purpose of including a suicide clause in a life insurance policy is:
Protect the insurer against purchasing a suicide policy
4. Which of the following actions must an insured take to continue with a renewable term policy?
Provide proof of insurability.
84. Which of the following actions must an insured take to continue with a renewable term policy?
Provide proof of insurability.
90. Which of the following provisions could double the nominal amount of insurance if the death of an insured occurred as a result of an unintentional and unforeseen event?
Provision for accidental death and dismemberment (AD&D).
At which of the following times should a life insurance applicant be educated about his or her rights under the Fair Credit Reporting Act?
When the producer completes the insured's application
15. All of the following options are examples of non-forfeiture options EXCEPT:
Renewability
58. Florida's insurance rule established procedures for agents recommending changes to existing coverage in Florida
Replacement
54. Which of the following would not be an example of a fraudulent act of insurance?
Replacing an existing insurance policy
95. An insurer's underwriter uses the medical information obtained in an application to determine:
Risk classification
92. The USA Patriot Act became law in response to:
September 11, 2001 attack
59. To process insurance in Florida, the licensee must be
Set
57. An agent must disclose a annuity beneficiary when replacing or exchanging a Annuity Agreement
That there may be tax consequences as a result of the purchase
44. The financial services department may refuse to issue a license application if which of the following statements about the applicant is CORRECT?
The applicant is not a U.S. citizen
26. Which of the following statements is CORRECT about the amount of the group life death benefit the beneficiary must file for federal income tax purposes?
The beneficiary does not need to report any amount
16. Which of the following statements is CORRECT about a Whole Life policy?
The designated beneficiary must provide evidence of the insurance's continued interest in the insured's life in order to collect the death benefit.
10. When an employer provides non-contributory group term life insurance, which of the following statements is CORRECT?
The employer pays the full cost of the plan.
30. A hardware store owner has a group life policy that converts 50 employees. If the cardholder decides not to renew the policy and stops paying the premiums, which statement is CORRECT?
The insurer must notify all employees of the cancellation of the policy and can do so through the owner.
43. Which party has the authority to appoint the beneficiary of a life insurance contract?
The owner
100. Which of the following features is typical of term insurance?
The policy expires at the end of the policy period.
7. Which of the following features is typical of term insurance?
The policy expires at the end of the policy period.
96. Which of the following persons is entitled to change the beneficiary designation on a life insurance policy?
The policy owner
11. If an insured dies during the contestable period of a life insurance policy, the proceeds of the insurance policy will NOT pay the proceeds of the policy, in which of the following situations?
There was a material misrepresentation in the application
77. If an insured dies during the contestable period of a life insurance policy, the insurance company will NOT pay the proceeds of the policy, in which of the following situations ?
There was a material misrepresentation in the application
75. Which of the following statements is correct about the statements a proposed insured makes on a life insurance application?
They are representations and are considered true to the best of the applicant's knowledge and understanding.
17. For which of the following reasons is the applicant's signature required on a life insurance application?
They represent that the statements in the application are true to the best of the knowledge and belief of the applicants.
72. For which of the following reasons is the applicant's signature required on a life insurance application?
To attest that the statements in the application are accurate to the applicant's best and best of the applicant's knowledge
38. Which statement about conversion privileges in sold group life policies is CORRECT?
Usually, there are no conversion privileges.