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Life Insurance Exam > Life insurance > Flashcards

Life insurance Flashcards

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1
Q

What kind of life policy either pays the face value upon the death of the insured or when the insured reaches age 100?

A

WHOLE LIFE

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2
Q

In Florida, which of the following is considered an Unfair Trade Practice?

A

COERCION

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3
Q

Who is NOT required to sign a life insurance application?

A

BENEFICIARY

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4
Q

Under a Guaranteed Renewable health insurance policy, the insurer:

A

MAY CANCEL THE POLICY FOR NONPAYMENT ONLY

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5
Q

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

A

DRUG TEST

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6
Q

Which of the following statements about noncontributory employee group life insurance is FALSE?

A

A minimum number of employees is required to participate

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7
Q

An insurer must provide an insured with claim forms within days after receiving notice of a loss.

A

15 DAYS

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8
Q

Term insurance has which of the following characteristics?

A

EXPIRES AT THE END OF THE OF THE POLICY PERIOD

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9
Q

Who makes the legally enforceable promises in a unilateral insurance policy?

A

INSURANCE COMPANY

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10
Q

A Business Overhead Expense policy would cover which of the following if a business owner becomes disabled?

A

UTILITIES AND OFFICE RENT

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11
Q

Which of the following statements is correct regarding an employer/employee group health plan?

A

The employer receives a master copy and the employee receives certificates.

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12
Q

Periodic health claim payments MUST be made at least:

A

MONTHLY

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13
Q

M had an annual life insurance premium payment due January 1. She died January 10 without making the premium payment. What action will the insurer take?

A

PAY FACE AMOUNT MINUS PAST DUE PREMIUM

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14
Q

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:

A

TO AN INDIVIDUAL POLICY UPON EMPLOYMENT TERMINATION

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15
Q

Which of these do NOT constitute policy delivery?

A

POLICY ISSUED WITH A RATING

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16
Q

Under a life insurance policy, the _____has the authority to name the beneficiary.

A

Owner

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17
Q

When does a Probationary Period provision become effective in a health insurance contract?

A

At the policies inception

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18
Q

The cash value in a(n) ______ life policy may fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense factors.

A

Universal

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19
Q

An insurance company can contest a life insurance contract due to application fraud within:

A

2 Years

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20
Q

An accident policy will most likely pay a benefit for a(n):

A

Off-the-job accident

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21
Q

S is the policyowner of a Major Medical policy. The premiums are paid monthly and due on the 1st of each month. S fails to make September’s payment and is hospitalized October 15th. When S files the claim for this hospitalization, the insurer will likely:

A

Deny the Claim

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22
Q

Which of these statements is INCORRECT regarding a Preferred Provider Organization (PPO)?

A

PPO’s are NOT a type of managed care system

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23
Q

Which of these types of coverage is best described as a short term medical policy?

A

Interim Coverage

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24
Q

S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?

A

Full benefits are payable under the master contract

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25
Q

Florida requires that coverage for newborns begins “from the moment of birth” and continues for:

A

18 months

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26
Q

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

A

Modified Endowment Contract (MEC)

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27
Q

A Medical Information Report (MIB) report may disclose which of the following:

A

Prior use of marijuana

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28
Q

What type of life insurance incorporates flexible premiums and an adjustable death benefit?

A

Universal Life

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29
Q

P and Q are married and have three children. P is the primary beneficiary on Q’s Accidental Death and Dismemberment (AD&D) policy and Q’s sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to:

A

P Only

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30
Q

Which of the following statements is CORRECT about an agent who is taking an insurance application?

A

The agent should have the applicant initial any changes made on the application.

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31
Q

The fundamental reason for regulation of insurance is to:

A

Protect consumers

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32
Q

Which of the following unfair trade practices involves an agent who makes malicious statements about another person’s financial condition?

A

Defamation

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33
Q

Which of the following statements BEST describes dental care indemnity coverage?

A

Services are reimbursed after insurer receives the invoice

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34
Q

C was injured while deep sea diving and requires a hospital stay. C has a Major Medical policy with a 80/20 coinsurance clause and a $400 deductible. What is the MAXIMUM C will pay if the covered medical expenses are $2000?

A

$720 ($400 deductible + 20% of the remaining medical)

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35
Q

Comprehensive Major Medical policies usually combine:

A

Major medical with Basic Hospital/Surgical Coverage

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36
Q

Which of these needs is satisfied by Adjustable Life insurance?

A

Insured’s need for flexible premiums

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37
Q

When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take?

A

Void the policy only if it is discovered during the constable period and proved to be material

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38
Q

S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation?

A

Single Premium

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39
Q

Credit Life insurance is:

A

Issued in an amount not to exceed the amount of the loan

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40
Q

The difference between group insurance and blanket health policies is:

A

Blanket health policies do not issue certificates

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41
Q

Which of the following provisions guarantees that premiums will be waived if a Juvenile Life policyowner becomes disabled?

A

Payor Clause

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42
Q

Which of the following types of Term Life policies most likely contains a Renewability feature?

A

10 year convertible term

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43
Q

T files a claim on his Accident and Health policy after being treated for an illness. The insurance company believes that T misrepresented his actual health on the initial insurance application and is, therefore, disputing the claim’s validity. The provision that limits the time period during which the company may dispute a claim’s validity is called:

A

Time Limit on Certain Defenses

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44
Q

As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of?

A

Coercion

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45
Q

When an employee is terminated, which statement about a group term life conversion is true?

A

Policy proceeds will be paid if the employee dies during the conversion period

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46
Q

K is an agent who made an improper sale of an annuity to a client. Which of the following corrective actions would the Department of Financial Services likely order K to take?

A

Pay monetary restitution to the client

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47
Q

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 none of the funds were rolled over?

A

Income taxes plus a 10% penalty on 30,000

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48
Q

Which of the following employer tasks does a Professional Employer Organization normally handle?

A

Administration tasks

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49
Q

T is an agent and when hired, is reminded that he has a responsibility to handle clients’ funds in an honest and ethical manner. This responsibility is referred to as:

A

Fiduciary Responsibility

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50
Q

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

A

The insurance company

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51
Q

What should an insured do if the insurer does not send claims forms within the time period set forth in a health policy’s Claims Forms provision?

A

Submit the claim in any form

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52
Q

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?

A

20-Pay Life accumulates cash value faster than straight life.

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53
Q

Omitting information that affects the issuance or the rate of an insurance contract is called:

A

Concealment

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54
Q

Which of the following consists of an offer, acceptance, and consideration?

A

Contract

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55
Q

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

A

68-year old male covered by Medicare

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56
Q

Basic Hospital and Surgical policy benefits are:

A

Lower than actual expenses occurred

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57
Q

Which provision allows a portion of any used medical benefits to be restored following a particular amount of benefit has been used, or after the policy has been in effect for a particular period of time?

A

Restoration of used benefits

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58
Q

K has inherited a large sum of money. K purchases an annuity with this sum on July 1, and starts receiving payments August 1. These payments will continue for as long as she and her spouse lives.

Which type of annuity did K purchase?

A

Single Premium Immediate Joint with Survivor Annuity

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59
Q

A Variable Annuity has which of the following characteristics?

A

Underlying equity investments

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60
Q

Which of the following are NOT managed care organizations?

A

Medical Information Bureau (MIB)

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61
Q

Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features?

A

Aleatory

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62
Q

An employee with $25,000 group term life coverage was recently fired. This employee’s group coverage may be converted to a:

A

25,000 individual whole life policy

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63
Q

Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following
contractual elements?

A

Legal Purpose (Insurable Interest)

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64
Q

An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning at what age?

A

59 1/2

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65
Q

P purchases a $50,000 whole life insurance policy in 2005. One of the questions on the application asks if P engages in scuba diving, to which P answers “No”. The policy is then issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related accident in 2011. What will the insurer pay to P’s beneficiary?

A

50,000 minus any outstanding policy loans

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66
Q

All of the following are Nonforfeiture Options EXCEPT:

A

Automatic Premium Loan Option

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67
Q

K’s whole life insurance policy lapsed two months ago due to nonpayment. She would now like to reinstate the policy. All of these statements are correct about the policy’s reinstatement EXCEPT?

A

K will forfeit the right to use the automatic loan provision upon reinstatement

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68
Q

An example of rebating would be?

A

Offering a client something of value not stated in the contract in exchange for their business

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69
Q

T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?

A
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70
Q

Which of these actions is taken when a policyowner uses a Life Insurance policy as collateral for a bank loan?

A

Collateral assignment

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71
Q

In Florida, monthly-premium health insurance policies must provide a grace period of at least?

A

10 Days

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72
Q

S would like to use dividends from her life insurance policy to purchase paid-up additions. All of these would be factors that determine how much coverage can be purchased EXCEPT?

A

Beneficiary’s age

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73
Q

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?

A

Waiver of premium rider

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74
Q

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?

A

Split-dollar plan

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75
Q

Whole Life insurance policies are contractually guaranteed to provide each of the following, EXCEPT:

A

Partial withdrawal features beyond a surrender charge period

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76
Q

What type of renewability guarantees premium rates and renewability?

A

Noncancellable

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77
Q

A license may be denied, suspended, or revoked if the licensee?

A

Is found guilty of misrepresentation

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78
Q

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

A

Suitability Form

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79
Q

What type of life insurance gives the greatest amount of coverage for a limited period of time?

A

Term Life

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80
Q

The Accelerated Death Benefit provision in a life insurance policy is also known as a(n):

A

Living Benefit

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81
Q

The amount of coverage on a group credit life policy is limited to:

A

The insured’s total loan value

82
Q

A(n) _____ annuity pays benefits based on units rather than stated dollar amounts?

A

Variable

83
Q

What is the purpose of the Insurance Guaranty Fund Association?

A

Protects policyowners against insolvent insurance companies

84
Q

The advantage of reinstating an original life policy is:

A

The premiums are based on a younger age

85
Q

Tis covered by an Acidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?

A

Request of change will be refused

86
Q

Which of these would be considered a Limited-Pay Life policy?

A

Life Paid-Up at Age 70

87
Q

An example of sliding would be:

A

Charging for an additional product without the applicants consent

88
Q

According to Florida’s rules on disclosure, a life insurance applicant is expected to be provided with?

A

Buyer’s guide and policy summary

89
Q

An incomplete life insurance application submitted to an insurer will result in which of these actions?

A

Application will be returned to the writing agent

90
Q

With a medical discount plan, how often would a person generally pay a fee to get discounts on specific services?

A

Monthly

91
Q

Which of the following does Social Security NOT provide benefits for?

A

Dismemberment

92
Q

According to Florida law, group life insurance conversion privileges must NOT:

A

Require evidence of insurability

93
Q

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

A

Payments are made to an annuitant for life

94
Q

S, age 40, is looking to buy a Life Insurance policy that will allow for increases or decreases in coverage as his needs change. The policy best suited for S would be?

A

Universal Life

95
Q

)P and Q are married and have three children. P is the primary beneficiary on Q’s Accidental Death and Dismemberment (AD&D) policy and Q’s sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to:

A

P Only

96
Q

In a life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be the recipient of any financial benefits from the policy?

A

Owners’ rights

97
Q

Typically a life insurance death benefit is paid by a lump-sum payment. A(n)
method of distributing a Life Insurance policy’s death benefit OTHER than by a lump sum payment.

A

Settlement

98
Q

Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale of a business?

A

Business owner becoming disabled

99
Q

Who is a mutual insurance company owned by?

A

Its policyholders

100
Q

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

A

Conversion

101
Q

Whole Life insurance is sometimes referred to as “Straight Life”. What does the word “Straight” indicate when using this phrase?

A

The Duration of premium payments

102
Q

What do Dread Disease policies cover?

A

A specific disease or illness

103
Q

A term life insurance policy matures:

A

upon the insured’s death during the term of the policy

104
Q

Upon reaching the limiting age, a disabled child may extend their health insurance coverage as a dependent?

A

Only if the child is incapable of employment and chiefly dependent on the policy owner

105
Q

A person insured under a health policy is required to give the insurance company a Notice of Claim within how many days after a covered loss?

A

Twenty (20)

106
Q

Y purchased $100,000 worth of permanent protection on himself and $50;000 worth of 10-year Term coverage for his wife on the same policy. Which of these policies did Y purchase?

A

While life with an other insured rider

107
Q

An agent who makes misleading statements that lead to the termination of an existing insurance policy so that a new policy with another insurer can be taken out has committed?

A

Twisting

108
Q

When can a policyowner change a revocable beneficiary?

A

Anytime

109
Q

A life insurance policyowner would like to file a complaint against a life insurance agent. In Florida, the entity that oversees these complaints is called the?

A

Office of Financial Regulation

110
Q

Life and health insurance policies are:

A

Unilateral Contracts

111
Q

The investment gains from a Universal Life Policy usually go toward:

A

The cash value

112
Q

The USA Patriot Act was enacted in:

A

2001

113
Q

Which of the following statements does NOT accurately describe the tax treatment of premiums and benefits of individual Accident and Health insurance?

A

Disability income policy premiums are tax-deductible

114
Q

Under Florida law, which of the following provisions is NOT required in a Medicare Supplement policy?

A

Limitation on pre-existing conditions for up to 12 months

115
Q

P is a forty-year-old woman and would like to purchase an annuity that will provide a lifetime income stream beginning at age sixty. Which of the following did she NOT buy?

A

An immediate annuity

116
Q

The act of an insurance company publishing misleading information about its policy’s provisions is called?

A

False advertising

117
Q

How are Roth IRA distributions normally taxed?

A

Distributions are received tax free

118
Q

The health insurance program which is administered by each state and funded by both the federal and state governments is called:

A

Medicaid

119
Q

According to Florida law, an additional lapse notice must be issued after the standard grace period has expired for policyowners age?

A

64 years or older

120
Q

Who does an agent represent during the solicitation of insurance?

A

The insurance company

121
Q

Upon policy delivery, a signed good health statement is requested from the applicant. Why would this be necessary?

A

The initial premium was NOT submitted with the application

122
Q

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

A

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

123
Q

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?

A

Modified Whole Life

124
Q

Which of the following would be a likely candidate for disability income insurance on a key employee?

A

Company executive

125
Q

Employers with less than _____ employees are affected by Floridas Health Insurance coverage continuation act (mini COBRA)?

A

20

126
Q

The insuring clause:

A

States the scope and limits of the coverage

127
Q

B receives yearly dividends and interest from a participating life insurance policy. Which of these should B include as gross income for federal income tax purposes?

A

Interest only

128
Q

N is covered under an individual Disability policy with a 30-day Elimination period and a monthly benefit of $500. N is totally disabled for 3 1/2 months. N’s total benefit received on this claim is:

A

$1,250

129
Q

In Florida, when agents recommend changes be made for existing coverage, the agent must follow established procedures. The name of this rule is called the?

A

Florida Replacement Law

130
Q

K made a fraudulent statement on her health insurance policy application: In the event of a claim on this policy, the insurance company is required to pay?

A

Nothing

131
Q

Towns an Accident & Health policy and notifies her insurance company that she has chosen a less hazardous occupation. Under the Change of Occupation provision, which of the following actions may her insurance company take?

A

Increase her policy’s coverage amount

132
Q

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

A

Secondary Addressee

133
Q

Medicare is intended for all of the following groups, EXCEPT:

A

Those enrolled as a full-time student

134
Q

T is given a receipt after completing a life insurance application and paying the initial premium. Under this situation, T’s coverage is?

A

Conditional, depending on the insurers underwriting guidelines

135
Q

Why must an insurance applicant answer all questions on the application?

A

Statements and representations on the application are part of the consideration for issuing a policy

136
Q

K is the insured and P is the sole beneficiary on an Accidental Death and Dismemberment (AD&D) insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true?

A

Proceeds will be paid to P’s estate

137
Q

What provision in a life insurance policy states that the application is considered part of the contract?

A

Entire Contract Provision

138
Q

A policy of adhesion can only be modified by whom?

A

The insurance company

139
Q

Which of the following is TRUE about a qualified retirement that is “top heavy”?

A

More than 60% of plan assets are key employee accounts

140
Q

Which of the following policy provisions prohibits an insurance company from incorporating external documents into an insurance policy?

A

Entire contract

141
Q

According to Florida law, when must an agent deliver the Outline of Coverage to a Medicare Supplement applicant?

A

At the time of application

142
Q

A Universal Life policy is sometimes referred to as an unbundled Life Policy because the owner can see the interest earned, expense charges, and the?

A

Cost of insurance

143
Q

A policy of adhesion can only be modified by whom?

A

The insurance company

144
Q

A life policy loan in Florida cannot charge a fixed rate of interest higher than?

A

10%

145
Q

A qualified profit-sharing plan is designed to:

A

Allow employees to participate in the profits of the company

146
Q

If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?

A

Contributory

147
Q

All of these statements about the Waiver of Premium provision are correct, EXCEPT:

A

Insured must be eligible for social security disability for claim to be accepted

148
Q

All of these are characteristics of a Health Reimbursement Arrangement (HRA) EXCEPT?

A

HRA is entirely funded by the employee

149
Q

Before a life insurance policy is issued, which of these components of the contract is required?

A

Applicants signature on application

150
Q

Taking receipts of premiums and holding them for the insurance company is an example of:

A

Fiduciary responsibility

151
Q

Qualified Long-Term Care policies may take into consideration an applicant’s pre-existing conditions for a maximum of not more than _____ month(s) prior to the effective date of coverage.

A

6

152
Q

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?

A

Deferred

153
Q

What kind of life insurance policy pays a specified monthly beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years?

A

Family Maintenance Policy

154
Q

The waiting period for a pre-existing condition under Medicare Supplement policy may NOT go beyond:

A

6 months

155
Q

An example of false advertising would be?

A

An insurer exaggerating its dividends in a magazine advertisement

156
Q

Which of the following employee’s may NOT be excluded from a group life plan?

A

Full-time employers after the probationary period

157
Q

Which of the following is a standard provision of the conversion privileges in a Group Life Policy?

A

Group Life coverage can be converted to an individual policy at regular rates on an attained-age basis.

158
Q

Which of the following claims are typically excluded from medical expense policies?

A

Intentionally self-inflicted injuries

159
Q

Why is an applicant’s signature required on a life insurance application?

A

To attest that the statements on the application are accurate to the best of the applicant’s knowledge.

160
Q

Which of the following types of health coverage frequently uses a deductible?

A

Major Medical Policy

161
Q

An individual covered under Group Life Insurance policy is considered to be a(n)?

A

Certificate Holder

162
Q

In Florida, a health policy that is paid on a quarterly basis has a grace period of?

A

31 days

163
Q

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

A

Payor Benefit Rider

164
Q

The benefits under a Disability Buy-Out are:

A

Payable to the company or another shareholder

165
Q

The reason for backdating a policy is?

A

To obtain a premium rate based on an earlier age

166
Q

The consideration clause of an insurance includes:

A

The schedule and amounts of premium payments

167
Q

According to the Mandatory Uniform Policy Provisions, what is the maximum amount of time after the premium due date which the policy remains in force even though the premium has not been paid?

A

31 days

168
Q

A life insurance policy’s grace period entitles the insured period of no less than _____ days to make the premium payment?

A

30 days

169
Q

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

A

Subrogation

170
Q

Which of these options can an individual use their medical flexible spending account to pay for?

A

Prescription drugs

171
Q

An insurer may normally delay the payment of a cash value loan or surrender value for up to?

A

6 months

172
Q

A(n) _______ of benefits of a Health Policy transfers payments to someone other than the policyowner.

A

Assignment

173
Q

A Term Life Rider offers the insured?

A

Additional life coverage

174
Q

A potential client, age 40, would like to purchase a Whole life Policy 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?

A

20-Pay Life accumulates cash value faster than straight life.

175
Q

Insurance companies that are organized in countries outside the United States are referred to as?

A

Alien

176
Q

M is insured under a basic Hospital/Surgical Expense Policy. A physician performs surgery on M. What determines the claim M is eligible for?

A

Determined by the terms of the policy

177
Q

A Comprehensive major medical health insurance policy contains an Eligible Expense provision which identifies the types of health care services that are covered. All of the following health care services are typically covered, EXCEPT for?

A

Experimental and investigative services

178
Q

Under an individual Disability policy in Florida, what is the minimum schedule of time in which claims must be made to an insured?

A

Monthly

179
Q

Traditional individual retirement annuity (IRA) distributions must start by?

A

April 1st of the year following the year of the participant attains age 70 1/2

180
Q

A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following?

A

Aviation exclusion

181
Q

Which of the following MUST be included in a Medicare Supplement policy’s outline of coverage?

A

The Policy’s limitations and exceptions

182
Q

Which of these is NOT a reason for purchasing life insurance on the life of a minor?

A

If both parents were to die, it would provide death benefits to the child.

183
Q

Which of the following does Social Security NOT provide benefits for?

A

Dismemberment

184
Q

Common exclusions of the continuation of a group coverage include?

A

All of the above (Dental, Vision, and other prescription Drugs)

185
Q

Which statement is true regarding minor beneficiary?

A

Normally, a guardian is required to be appointed in the Beneficiary cause of the contract.

186
Q

The policy summary contains specific information on all of the following, EXCEPT?

A

Commission

187
Q

W is a 39-year-old female who purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices, EXCEPT a(n)?

A

Immediate Annuity

188
Q

What type of life policy covers two lives and pays face amount after the first ones dies?

A

Joint Life Policy

189
Q

S buys a $50,000 whole life policy with an Accidental Death and Dismemberment Rider. S dies 1 year later of natural causes. How much will the insurer pay the beneficiary?

A

$50,000

190
Q

Which required disclosure helps a buyer chose the amount and type of insurance to buy, and how to save money by comparing cost of similar policies?

A

Buyers Guide

191
Q

N is a student pilot with a large life insurance policy. Which of these features would limit the insurers obligation in the event N was killed while flying as a student polit?

A

Exclusion

192
Q

Which of the following statements BEST describes the intent of a coinsurance clause in a major medical policy?

A

Discourages overutilization of the insurance coverage.

193
Q

Florida’s 14 day free-look period of life insurance policies begins at:

A

Date of delivery

194
Q

Who is normally considered to be the owner of a 403(b)-tax sheltered annuity.

A

The employee

195
Q

Which of these is considered a statement that is assured to be true in every respects?

A

Warranty

196
Q

J has disability income policy that does NOT provide benefits for losses occurring as the result of his employment. What kind of coverage is this?

A

Non-Occupational Coverage

197
Q

Additional coverage can be added to a whole life policy by adding a(n):

A

Decreasing term rider

198
Q

At what point does an informal agreement become a binding contract?

A

When consideration is provided by one of the parties to the contract

199
Q

Which of these is NOT a legal entity for selling life insurance in FL?

A

Risk Management Advisors

200
Q

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?

A

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

201
Q

What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?

A

Decreasing Term

Life Insurance Exam (1 decks)

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