Exam Simulator: Florida Life and Health State Exam

Eligibility for coverage under the Florida Healthy Kids Corporation requires a family to be within ___ of the federal poverty level

200%

Agents that have been licensed for less than six years must complete __ hours of continuing education every two years.

24

A life insurance policy's grace period entitles the insured a period of no less than ___ days to make the premium payment

30

A ____ day notice to the policyholder is required for any health insurer that wishes to cancel a health insurance policy

45

The insured must wait __ days after written proof of loss before legal action can be brought against the company

60

The individual most likely to buy a Medicare Supplement policy would be a(n)

68-year old male covered by Medicare

The Consideration clause in a life insurance contract contains what pertinent information?

Amount of premium payments and when they are due

The situation in which a group of physicians are salaried employees and conduct business in an HMO facility is called a(n)

Closed panel

On august 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial premium. On Aug 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. the life policy was delivered by the producer on aug 20 and D explains what had recently taken place with the doctor. What action should the producer then take?

Collect initial premium along with a signed health statement

T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage as of the date of the application or medical examination, whichever is later, provided that T is an acceptable risk. What item is given to T?

Conditional receipt

if its employees share in the cost of insurance, what type of group life insurance plan would corporative have?

Contributory

Which of the following features of a group Term Life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability?

Conversion privilege

The combination of Whole Life and ___ Term insurance is referred to as Family Income Policy

Decreasing

Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it?

Decreasing Term

P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase?

Deferred

In Florida, which agency is responsible for the rehabilitation or liquidation of insurers?

Department of Financial Services (DFS)

Two partners own equal shares in a business worth a total of $1,000,000. If they both commit to the purchase of a life insurance policy that will fund a Buy-Sell Agreement, which of the following is TRUE?

Each partner owns a $500,000 policy on their partner's life

Which of these statement is INCORRECT regarding the federal income tax treatment of life insurance?

Entire cash surrender value is taxable

S wants to open a tax-exempt Health Savings Account. To qualify for this type of account, Federal law dictates that S must be enrolled in a

High-deductible heath plan

A 55 year old recently received a $30,000 distribution from a previous employer's 401k plan, minus $6,000 withholding. Which federal taxes apply if non of the funds were rolled over?

Income taxes plus a 10% penalty tax on $30,000

A catastrophic illness would be best covered by which of the following health insurance plans?

Major Medical

Asset protection can be provided by a long-term care partnership policy if the policyholder qualifies for

Medicaid

When a life insurance policy exceeds certain IRS table values, the result would create which of the following?

Modified Endowment Contract (MEC)

What is considered to be a characteristic of a Conditionally Renewable Health Insurance policy?

Premiums may increase at time of renewal

What determines the full amount of Social Security Retirement benefits a qualified individual is entitled to receive

Primary Insurance Amount (PIA)

Which of these is NOT a type of agent authority

Principle

Which of these Nonforfeiture Options continue a build- up of cash value

Reduced Paid-up

J let her life insurance policy lapse 8 moths ago due to nonpayment. She can reestablish coverage under which of the following provision?

Reinstatement provision

P is producer who notices 5 questions on a life application were not answered. What actions should P take?

Set up a meeting with the applicant to answer the remaining questions

P is an employee who quits her job and wants to convert her group health coverage to an individual policy. After the expiration of COBRA laws, which of the following statements is TRUE?

She DOES need to provide evidence of insurability

Which mode of payment is NOT used by health insurance policies?

Single premium

the percentage of an individual's Primary Insurance Amount (PIA) determines the benefits paid in which of the following programs?

Social security disability income

Which type of plan allows an employer to give money to an employee for buying a life insurance policy and also permits the employee to select the beneficiary?

Split-dollar plan

Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party?

Subrogation

An agent selling Medicare Supplement policies must provide every applicant with a(n)

Suitability form

Which of the following is true if the owner of an IRA names their spouse as beneficiary, bu then dies before any distributions are made?

The account can be rolled into the surviving spouse's IRA

A disability income policy owner recently submitted a claim for a chronic neck problem that has now resulted in total liability. The original neck injury occurred before the application was taken 5 years prior. The neck injury was never disclosed to the insurer at the time of application. How will the insurer handle this claim?

The claim will be paid and covered will remain in force (after a policy has been in force for 2 years, it enter the incontestable period)

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 monthly payment mode as compared to being paid annually

The provision in a health insurance policy that suspends premiums being paid to the insurer while the insured is disabled is called the

Waiver of Premium

At what point does a Whole Life Insurance policy endow?

When the cash value equals to death benefit

All students attending a large university could be covered by

a blanket policy

Florida's 14-day free-look period for life insurance policies begins a the

date of delivery

The Department may requests all of these during the licensing application process EXCEPT

drug test

The sections of an insurance contract which limit coverage are called

exclusions

the act of an insurance company publishing misleading information about its policy's provision is called

false advertising

In Florida, an insurer licensed to conduct business in Florida, but domiciled in New Jersey is called a(n)

foreign company

A nonforfeiture clause gives the policy owner

guaranteed values even if the policy has lapsed

insurers/agent must, in Florida, offer and issue all small employer health plans on a __________ basis:

guaranteed-issue

A policy owner's rights are limited under which beneficiary designation?

irrevocable

Convincing a prospective insured to buy an insurance policy based on exaggerations is called

misrepresentation

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

The reason for backdating a policy is

to obtain a premium rate based on an earlier age

Q is hospitalized for 3 days and receives a bill for $10,100. Q has a Major Medical Policy with a $100 deductible and 80/20 coinsurance. How much will Q be responsible for paying on this claim?

$2,100 ($10,000 x 20% coinsurance + $100 deductible)

___ of personal life insurance premiums is usually deductible for federal income tax purposes

0%

The minimum age at which a person can sign a life insurance application is

15

Employers with less than __ employees are affected by Florida's Health Insurance Coverage Continuation Act (Mini COBRA)

20

A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct?

20-Pay Life accumulates cash value faster than Straight Life

Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company?

Annuity

What action can a policy owner take if an application for a bank loan requires collateral?

Assign policy ownership to the bank

Accidental Death coverage is provided to commercial airline passengers in which of the following types of policies

Blanket Accident policy

A variable life insurance agent must be licensed and appointed as a life and variable contract agent, as well as a (n)

Broker dealer

P loses an arm is a farm accident and is paid $10k from his Accidental Death and Dismemberment policy. This benefit is known as the

Capital Sum

Which of the following is NOT included in the policy face? (first page)

Exclusions

Which Federal law allows an insurer to obtain an inspection report on a potential insured?

Fair Credit Reporting Act

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

All of these Settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death EXCEPT

Interest Only

Which of these arrangements allows one to bypass insurable interest laws?

Investor-Originated Life Insurance

K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable?

Level

Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?

Life Income

K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this?

Modified Whole Life

Which of the following statements is CORRECT about accelerated death benefit

Must have a terminal illness to qualify

A Disability Income policy that only the policy owner can terminate and which the rates will never go up is considered to be

Noncancellable

Which of these statements concerning an individual Disability Income policy is TRUE

Normally includes an Elimination period

Which department oversees "Market Conduct Examinations" in Florida

Office of Insurance regulation

What does Medicare Part A and B cover?

Part A covers hospitalization; Part B covers doctor's services

Which of these statements concerning an Individual Straight Life annuity is accurate?

Payments are made to an annuitant for life

the provision that defines to whom the insurer will pay benefits to is called

Payments of Claims

A provision in a life insurance policy that pays the policy owner an amount that doesn't surpass the guaranteed cash value is called the

Policy Loan provision

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 *they conduct business in Florida *they provide a service to their members *they require a certain level of member participation

They are insured by an authorized insurer

which of the following considered an accurate statement of unfair trade practice ?

Twisting involves an agent using misrepresentation to convince a policy owner to cancel their current policy so that they can purchase a new life insurance policy with another company

K purchased a Life insurance policy in 1986 which paid 10% interest in the early years of the policy. Twenty years after the purchase, she received a notice from the insurer stating that the policy will soon terminate unless a much-higher premium is paid because of falling interest rates. This type of policy is known as a(n) ______life policy

Universal

A _____ annuity pays benefits based on units rather than stated dollar amount

Variable

which of these types of life insurance allows the policy owner to have level premiums and to also choose from a selection of investment options?

Variable Life

Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options?

Variable life

A Cost of Living rider gives the insured

additional death benefits

In Florida, the underwriting and insurance of a master group health policy requires that all employees

are eligible to participate, regardless of their individual health history

All of the following are Nonforfeiture Options EXCEPT

automatic premium loan option

The coordination of benefits (COB) provision exists in order to

avoid duplication of benefit payment

Which of these is NOT a source of funding for Social Security benefits? a. Self employed individuals b. employees c. Federal government d. Employers

c. Federal government

Under an interest sensitive whole life policy

cash values are determined by interest rates

According in Florida law, a Group Life insurance policy requires a minimum of how many insureds?

no minimum

T is covered by AD&D policy that has an irrevocable beneficiary. what action will the insurance company take if T requests a change of beneficiary?

request of the change will be refused

A long-term care lapse notice must be delivered to both the applicant and

secondary addressee

An immediate annuity consists of a

single premium

The most important factor to consider when determining whether to convert term insurance at the insured's attained age or the insured's original age is

the cost

In a Key Employee life insurance policy, the third-party owner can be all of the following EXCEPT:

the insured

when replacing or exchanging an annuity, the agent must disclose to the annuitant

the possible tax ramification as a result of the transaction

W gave W's age as 50 when W purchased a Life policy. At the time of W's death seven years later, the company discovered W's true age at issue had been 59. What would the normal procedure be under the misstatement of age provision in regard to the payment of the death claim?

the proceeds would be reduced based on whatever the premium would have been if purchased at age 59

Stranger-Owned Life Insurance (STOLI) is when a person purchases life insurance only to sell to a(n):

third-party with no insurable interest

An agent's license can be suspended or revoked by

writing primarily controlled business