weighted exam

A life insurance policy's grace period entitles the insured a period of no less than ____________ days to make the premium payment:
Click the card to flip 👆
1 / 152
Terms in this set (152)
A life insurance policy's grace period entitles the insured a period of no less than ____________ days to make the premium payment:
30
A contract owner terminates an annuity before the income payment period begins. The owner will then receive:
The current contract surrender value
S filed a written Proof of Loss for a Disability Income claim on September 1. The insurance company did not respond to the claim. S can take legal action against the insurer beginning:
November 1
What action should a producer take if the initial premium is NOT submitted with the application?
Forward the application to the insurer without the initial premium.
Variable Whole Life Insurance can be described as:
Both an insurance and securities product
The Financial Services Commission may hold hearings:
For any reason deemed necessary
P is a new employee and will be obtaining non-contributory group Major Medical insurance from her employer. Which of the following actions must she take during the open enrollment period?
Sign an enrollment card
A Nonforfeiture clause gives the policyowner
Guaranteed values even if the policy has lapsed
Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called:
Representations
Advertising gifts not to exceed are allowed to be given by an agent to a prospective client.
$25
What is issued to each employee of an employer health plan?CertificateUnder which of the following circumstances will the benefits under COBRA continuation coverage end?All group health plans are terminated by the employerP 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?An intermediate annuityAll of these are considered sources of underwriting information about an applicant, EXCEPT:Rating servicesUnder Florida law, which of the following provisions is NOT required in a Medicare Supplement policy?Limitation on pre-existing conditions for up to 12 monthsThe coordination of benefits (COB) provision exists in order to:Avoid duplication of benefits paymentsIn the event of an illness , a(n) _______ __________earnings . policy would reimburse an insured for loss of:Disability incomeK made a fraudulent statement on her health insurance policy applicationIn the event of a this policy, the insurance company is required to payNothingT has Disability Income policy that pays a monthly benefit of $5000. If T becomes partially disabled what can he likely expect ?Less than $5,000 per month benefit regardless of the clauseThe purpose of the ________ Períod clause is to avoid an unintentional lapse of a life insurance policyGraceWhich of the following employer tasks does a Professional Employer Organization normally handle?Administration tasksIf its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?ContributoryHow long is the typical free look period for Long Term care insurance policies?30 daysWhat must an insurer obtain to conduct an HIV test?Written consentWhich of these types of policies may NOT have the Automatic Premium Loan provision attached to it?Decreasing TermIn Florida, a health policy that is paid on a quarterly basis requires a grace period of:31 daysA noncontributory group term life plan is characterized by:The entire cost of the plan is paid for by the employerWhat kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?Family Maintenance PolicyThe payments on Q's annuity are no less than $250 quarterly. Which of the following annuities does Q own?Flexible Installment DeferredThe policy summary contains specific information on all of the following, EXCEPT:CommissionsAccording to Florida law, an additional lapse notice must be issued after the standard grace period has expired for policyowners age:64 years or olderAccording to Florida law, a Group Life insurance policy requires a minimum of how many insureds?No minimumWhich of the following statements is CORRECT about accelerated death benefits?Must have terminal illness to qualifyIn a Key Employee life insurance policy, the third-party owner can be all of the following, EXCEPT:The insuredWhich of the following phrases refers to the fees charged by a healthcare professional?Usual, customary, and reasonable expensesUnder an Individual Disability policy in Florida, what is the minimum schedule of time in which claims must be made to an insured:MonthlyThe reason for a business having a Business Overhead Expense Disability Plan is to cover:Fixed business expensesA 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?Income taxes plus a 10% penalty tax on $30,000Under a life insurance policy , the_________.has the authority to name the beneficiaryPolicy ownerWhich of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE?Taxes as ordinary incomeGroup Life policies in Florida are required to contain a conversion privilege that allows for conversionTo an individual policy for a stated period of timeT has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this?Life annuity period certainA license may be denied, suspended, or revoked if the licenseeIs found guilty of misrepresentationWhich two entities regulate variable annuities?Department of Financial Services; and Securities Exchange CommissionHow do life insurance companies handle cases where the insured commits suicide within the contract's stated Contestable period ?Claims are denied under the Suicide clause of the policyS would like to use dividends from her life insurance policy to purchase paid-up additions. All of would be factors that determine how much coverage can be purchased EXCEPTBeneficiary's ageAccording to Florida law, group life insurance conversion privileges must NOTRequire evidence of insurabilityA _____ day notice to the policyholder is required for any health insurer that wishes to cancel a health insurance policy:30Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine :Probability of making timely premium paymentsWhich of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale of a business?Business owner becoming disabledAn employee of 20 years recently retired at age 59 1/2This employee's group life contract can be:Converted to an individual permanent policy at an individual rateIf the insured and primary beneficiary are both killed in the same accident and it cannot be determine who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act?Insured's contingent beneficiaryWhat type of policy would offer a 40-year old the quickest accumulation of cash value?20-pay lifeA life policy loan in Florida cannot charge a fixed rate of interest higher than:10%All individuals covered under a group contract will receive a(n)CertificateWhich of these is NOT an element of Life insurance premiums?Morbidity rateThe Florida Employee Health Care Access Act was established to makeGroup health insurance available to employers with up to 50 employeesDuring the course of an insurance transaction, an agent makes a false or incomplete statement he/she could be found guilty ofMisrepresentationS owns a life insurance policy with cash values that fluctuate according to the underlying investment performance of common stocks. Which of these policies does own?EndowmentT is the policyowner for a Life insurance policy with an Irrevocable beneficiary designation. If T wishes to change the beneficiary, T must obtain permission from the:BeneficiaryA policy that becomes a Modified Endowment Contract (MEC) :Will lose many of its tax advantagesP, age 50, purchased an annuity that P will fund with $ 500 / m * onth for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase?DeferredAll of the following are Nonforfeiture Options EXCEPTReduced Paid-Up OptionAccording to the Mandatory Uniform Policy Provisions, what is the maximum amount of time after the premium due date during which the policy remains in force even though the premium has not been paid?31 daysAt what point does an informal agreement become a binding contractWhen one party makes an offer and the other party accepts that offerWhich of the following is NOT required on every insurance application sold in Florida?Address and phone number of the agentWhat is the MINIMUM number of Activities of Daily Living (ADL) an insured must be unable to perform to qualify for Long Term Care benefits?2P 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:P onlyUnder which circumstance may a licensed agent in Florida represent an unauthorized entity?NeverUnder what system do a group of doctors and hospitals in a designated area contract with an insurer to provide services at a prearranged cost to the insured?PPOC is trying to determine whether to convert her convertible term lite policy to whole life insurance using her original age or attained ageWhat factor would affect her decision the most?The costWhat is the required minimum percentage of employee participation for a noncontributory group health insurance plan according Florida Law?0%A policyowner would like to change the beneficiary on a Life Insurance policy and make the change permanentWhich type of designation would fulfill this need?IrrevocableWhich of these is an element of a Variable Life policy?A fixed, level premiumUnder the USA Patriot Act insurers are required to report receipt of cash payments in excess of:$10,000The advantage of reinstating an original life policy is:The premiums are based on a younger ageK 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?Pay monetary restitution to the clientWhat is being delivered during a policy delivery?Insurance contract to the proposed insuredWhat does a Guaranteed Insurability rider provide a Disability Income policyowner?The ability to periodically increase the amount of coverage without evidence of insurabilityWhat do Dread Disease policies cover?A specific disease or illnessWhich of these actions should a producer take when submitting an insurance application to an insurer?Inform insurer of relevant information not included on the applicationWhich product would best şerve a retired individual looking to invest a lump-sum of money through an insurance company ?AnnuityA 15-year mortgage is best protected by what kind of life policy?15-year decreasing termThe clause in an Accident and Health policy which defines the benefit amounts the insurer will pay is called the:Insuring clauseG purchased a Family Income policy at age 40. The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive an income?10 yearsQualified 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.6A primary beneficiary has died before the insured in a life insurance policyA contingent beneficiary also named in the policyWhich of the following will occur when the insured dies?Proceeds will go to the contingent beneficiaryan agent combines premiums collected with their personal funds, they have engaged inComminglingThis type of deductible provision waives the deductible for all family members after some of them have satisfied individual deductibles within the same year:Common accident deductibleWhich premium schedule results in the lowest cost to the policyowner?AnnualAn individual who purchases a Life annuity is given protection against:The risk of living longer than expectedA 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:Office of Financial RegulationWith Disability Income insurance, an insurance company may limit the monthly benefit amount a prospective policy holder may obtain because of the insured's:Gross income at the time of purchaseWhich of the following is a standard provision of the conversion privileges in a Group Life policy:Group life coverage can be converted to an individual policy at regular rates on an attained-age basisVariable Life products a producer toHold a Life insurance license and a securities licenseWhat type of group insurance plan involves employees sharing the cost?Contributory planK is an annuitant currently receiving payments. she were to die before receiving payments equal to the correct value, a beneficiary will continue receiving payments until an amount equal to the contract value has been paid. This is called a(n):Installment refund annuityThe entity whose sole purpose is sharing medical data among its member companies is called the:Medical information bureau (MIB)The federal treatment of employer provided Medical Expense insurance accurately described as:Employee's premiums paid by the employer is tax-deductible to the employer as a business expenditureD is an architect receiving Disability Income benefits who is not able to return to work full time, but work on a part-time basisWhich of these features would allow D to continue receiving benefits?Residual benefits clauseTwo partners own equal shares in a business worth a total of \$1,000,000 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 lifeHow does a typical variable life policy investment account grow?Through mutual funds, stocks, bondsThe part of a life insurances policy guaranteed to be true is called a(n)WarrantyWhich of the following is the best description of "insurer"?Any person, corporation, association, or society that writes insurance contractsE and F are business partners. Each takes out a $500,000 life insurance policy on the other, naming himself as primary beneficiary E and F eventually terminate their business, and four months later E dies. Although E was married with three children at the time of death, the primary beneficiary is still F. However, an insurable interest no longer exists. Where will the proceeds from E's life insurance policy be directed to?FWhat provision in a life insurance policy states that the application is considered part of the contract?Entire contract provisionA Medical Information Report (MIB) report may disclose which of the following:Prior use of marijuanaA Return of Premium life insurance policy is:A Whole life ins. with death benefit rider of increasing term ins. equal to an amount of premiums paid./ Non forfeiture optionWithin how many days must a licensee notity the Department of Financial Services of a change in address?30Florida's 14-day free-look period for insurance policies begins at the:Date of deliveryBasic Medical Expense insurance:Normally has a deductible and coinsuranceAn application for Medicare Supplement coverage may NOT be denied by the insurer the application was submitted within _______ month(s) after the applicant reaches the age of 65:6Whole Life insurance policies are contractually guaranteed to provide each of the followingEXCEPTPartial withdrawal features beyond a surrender charge periodWhat benefit does the Payer clause on a Juvenile Life policy provide ?Premiums are waived if payor becomes disabledAccording 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 paidHow would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy?If the primary beneficiary dies before the insuredA retirement that part of the company's net income for distributions to employees is called a:Profit-sharingWhich action could result in a hearing being ordered by the Department of Financial Services?Performing insurance actions without a licenseT covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiaryWhat action will the insurance company take if T requests a change of beneficiary:Request of the change will be refusedWhich of these would be considered a Limited-Pay Life policyLife paid up at age 70Employers with less than employees are affected by Florida's Health Insurance Coverage Continuation Act (Mini COBRA):20Insurers/agents must, in Florida, offer and issue all small employer health plans on a _______ basis:Guaranteed issueAll of the following entries are classified under the four principal areas of Florida insurance law EXCEPT:An agents commissionA life insurance policy which ensures that the premium will be paid if the insured becomes disabled has what kind of rider attached?Waiver of premiumAll of the following are eligibility requirements for an association group EXCEPT:Must have been organized for some reason other than to obtain insuranceThe reason for backdating a policy is:To obtain a premium rate based on an earlier ageInformation obtained from a phone conversation to the proposed insured can be found in which of these reports ?Inspection reportAn insurance company must act on an Accident and Health insurance application for reinstatement within ______ days:45G is involved in an automobile accident as a result of driving while intoxicated and suffers numerous injuries. According to the Intoxicants and Narcotics exclusion in G's policy, who is responsible for paying the medical bills?The insuredW is a 39-year old female who just purchased an annuity to provide income for life starting at age 60 All of these would be acceptable annuity choices, EXCEPT a(n) :Immediate annuityM is insured under a basic HospitalSurgical Expense policyA physician performs surgery on M. What determines the claim M is eligible for?Determined by the terms of the policyIn an insurance contract, the insurer is the only party who makes a legally enforceable promiseWhat kind of contract is this?UnilateralAn insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses?Loss if eyesight due to an accidental injuryWhich Unfair Trade Practice involves making a false statement on an insurance application in order to receive money from an insurer?MisrepresentationWhat are adjustable rates for life policy loans in Florida based on?Moody's corporate bond indexA pilot applies for Life insurance. The insurer approves the application with a $10 additional monthly premium modification due to the risk involved. The pilot declines the additional premium modification The insurer will then likely issue the coverage with a(n)Aviation ExclusionThe Accelerated Death Benefit provision in a life insurance policy is also known as a(n):Living benefitCompany XYZ offers a group Term Life insurance plan to its employees. What does each employee covered under this plan receive?Certificate of insuranceWhat is Florida's definition of Insurance replacement?A transaction in which a new policy is bought and an old policy is terminatedWhich of the following is considered to be misrepresentation?An agent guaranteeing a policy's dividendsA(n) _______term life policy is normally used when covering an insured's mortgage balance.DecreasingAssociation Plans that are designed to provide health benefits to their members are regulated by the state because:They are insured by an authorized insurerA company that owns a life insurance policy on one of its key employees may do all of the following EXCEPT:Change the policy's interest ratesT is an employee covered under a Group Life policy. T's employment is terminated, the conversion privilege gives T the right to convert:To an individual policy upon employment terminationAdditional coverage can be added to a Whole Life policy by adding a(n)Decreasing term riderJ has an Accidental Death and Dismemberment policy with a principal sum of \$50,000 While trimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will receive from his policy?$25000How are Roth IRA distributions normally taxed?Distributions are received tax-freeWhich of the following MUST be included in a Medicare Supplement policy's Outline of Coverage?The policy's limitations and exceptionsWhich policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling ?Variable life"A producer does not have the authority to change a policy or waive any of its provisions". The health provision that best describes this statement is called theEntire contractJ, an Accidental Death and Dismemberment (AD&D) policy holder, dies after injuries sustained in an accident. J's age, as stated on the application five years ago, was found to be understated by ten yearsWhich of the following actions will the insurance company take?The insurer will adjust the benefit to what the premiums paid would have purchased at the insured's actual ageWhat kind of life policy either pays the face value upon the death of the insured or when the insured reaches age 100?Whole life