215 EXAM

Question 1

What is considered a valid reason for small businesses to insure the lives of its major shareholders?

Answer 1

Fund a buy-sell agreement

Question 2

Which of these require an offer, acceptance, and consideration?

Answer 2

Contract

Question 3

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?

Answer 3

Conversion privilege

Question 4

Which of these do NOT constitute policy delivery?

Answer 4

Policy issued with a rating

Question 5

What kind of life insurance product covers children under their parent’s policy?

Answer 5

A Term rider

Question 6

Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?

Answer 6

Complete the application and review the information with the customer prior to obtaining the customer’s signature, then send the application off to the insurance company

Question 7

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

Answer 7

Investor Originated Life Insurance

Question 8

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?

Answer 8

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

Question 9

Which of the following situations does NOT apply to the Florida Replacement Rule?

Answer 9

An existing policyholder purchases a additional policy from the same insurer.

Question 10

Which of the following phrases refers to the fees charged by a healthcare professional?

Answer 10

usual, customary, and reasonable expenses.

Question 11

To be eligible for social security disability benefits, an employee must be unable to perform

Answer 11

Any occupation

Question 12

All of these are considered sources of underwriting information about an applicant except

Answer 12

Rating services

Question 13

Which life insurance rider typically appears on a juvenile life insurance policy?

Answer 13

Payor Benefit rider

Question 14

C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most?

Answer 14

The cost

Question 15

What type of rider would be added to an accident and health policy if the policyowner wants to ensure the policy will continue if he/she ever becomes totally disabled?

Answer 15

Waiver of premium rider

Question 16

A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has hat kind of rider attached?

Answer 16

Waiver of premium

Question 17

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

Answer 17

to an individual policy upon employment termination

Question 18

During the application process, the agent’s primary responsibility is to

Answer 18

the insurance company

Question 19

S owns a life insurance policy with cash values that fluctuate according to the underlying investment performance of common stocks. Which of theses policies does S own?

Answer 19

Variable Whole Life

Question 20

According to Florida Law, in which of the following situations would a dependent handicapped child NOT be covered under a Family Health policy?

Answer 20

The premiums for the handicapped child are not paid

Question 21

What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?

Answer 21

Conversion

Question 22

What is the initial source of underwriting for an insurance policy?

Answer 22

Application containing statements from the insured

Question 23

What is Florida’s definition of Life insurance replacement?

Answer 23

A transaction in which a new policy is bought and a old policy is terminated

Question 24

The ____ has the right to change a life insurance policy’s beneficiary

Answer 24

policyowner

Question 25

An isured owns an individual Disability Income policy with a 30 Day Elimination Period for sickness and accidents and a monthly indemnity benefit of $500. If the insured is disabled for 3 1/2 months, what is the MAXIMUM amount he would receive for an approved claim?

Answer 25

$1,250