215 EXAM Flashcards
What is considered a valid reason for small businesses to insure the lives of its major shareholders?
Fund a buy-sell agreement
Which of these require an offer, acceptance, and consideration?
Contract
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
Which of these do NOT constitute policy delivery?
Policy issued with a rating
What kind of life insurance product covers children under their parent’s policy?
A Term rider
Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?
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
Which of these arrangements allows one to bypass insurable interest laws?
Investor Originated Life Insurance
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.
Which of the following situations does NOT apply to the Florida Replacement Rule?
An existing policyholder purchases a additional policy from the same insurer.
Which of the following phrases refers to the fees charged by a healthcare professional?
usual, customary, and reasonable expenses.
To be eligible for social security disability benefits, an employee must be unable to perform
Any occupation
All of these are considered sources of underwriting information about an applicant except
Rating services
Which life insurance rider typically appears on a juvenile life insurance policy?
Payor Benefit rider
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?
The cost
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?
Waiver of premium rider
A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has hat kind of rider attached?
Waiver of premium
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
During the application process, the agent’s primary responsibility is to
the insurance company
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?
Variable Whole Life
According to Florida Law, in which of the following situations would a dependent handicapped child NOT be covered under a Family Health policy?
The premiums for the handicapped child are not paid
What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability?
Conversion
What is the initial source of underwriting for an insurance policy?
Application containing statements from the insured
What is Florida’s definition of Life insurance replacement?
A transaction in which a new policy is bought and a old policy is terminated
The ____ has the right to change a life insurance policy’s beneficiary
policyowner
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?
$1,250
