FLORIDA 2-15 EXAM EXAM QUESTIONS

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FLORIDA 2-15 EXAM EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -49 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Which two life insurance riders can Bill purchase to guarantee that his policy will continue without further commitment from him and that income will be paid to him if he becomes totally and permanently disabled?

Answer:

Waiver of premium and Disability Income Riders Question 2: If an insurance company fails to provide proper claims forms to the insured within 15 days from the time the insurance company was notified of a claim, the insured:

Answer:

can submit proof of loss in any form, explaining the occurrence and extent of loss for which the claim is submitted

Question 3: Which of the following is NOT associated with a term life policy?

Answer:

Cash value vs. Conversion, Insuable interest, Step-up premiums Question 4: Mailing an issued policy either directly to the insured, or to the agent who then

mails or delivers the policy to the insured is a process known as:

Answer:

Constructive delivery

Question 5: In the event that a parent dies or becomes disabled, which rider allows surviving child coverage to continue until the child reaches a specified age?

Answer:

Payor Rider

Question 6: Per Stirpes Rule

Answer:

Death proceeds from an insurance policy are divided equally among the named beneficiaries. If a named beneficiary is deceased, his or her share then goes to the living descendants of that individual.Question 7: The following life policy settlement options are available to the policy's beneficiary

EXCEPT:

Answer:

Interest-Free Option Question 8: Which of the following is NOT considered to be a life policy settlement option?

Answer:

Extended Term option Question 9: n order to be considered currently insured and thus eligible for limited survivor benefits from Social Security, a worker must have earned ___ credits during the 13-quarter period ending with the quarter in which the worker died.

Answer:

6 Question 10: When pertaining to a defined contribution plan, all of the following are incorrect

EXCEPT:

Answer:

The final fund available to any one participant depends on total amounts contributed, plus interest and dividends earned

Question 11: Estate Conservation (Retention)

Answer:

Income is derived only from interest gained on the principal. Income is indefinite and creates a legacy for next of kin or for charity.

Question 12: In the event that an insured becomes disabled due to loss of limbs or vision as a result of an accident, what will an AD&D policy pay the insured?

Answer:

A lump-sum benefit called the 'capital sum' Question 13: Mr. Baker has named his son as the beneficiary to his life insurance policy, but he is worried about his son's spending habits and the money his son might already owe when he receives the death benefit. Which policy provision, clause or rider best fits his situation?

Answer:

Spendthrift Provision Question 14: Due to the historical mismanagement of employee retirement plans, which federal law did Congress pass to protect employee retirement plans against misuse?

Answer:

Employee Retirement Income Security Act (ERISA) Question 15: Susan has been paying premiums on her whole life policy for the past 14 years.Recently, she decided to stop making payments, but did not select a nonforfeiture option. Since she did not select such option, what actions will her insurer take?

Answer:

Her insurer will issue a paid-up term life policy with the same face value as the original whole life policy and a term length based on the amount of cash value that the forfeited whole life policy can purchase.

Question 16: Human Life Value Approach

Answer:

An individual's life in terms of earning potential is calculated to determine a life insurance value to replace such individual's earnings Question 17: All of the following statements are true in regards to the incontestability of a life insurance policy EXCEPT

Answer:

Once this period of time ends, an insurance company cannot contest the validity of a policy and must pay its death benefits, even if a policyowner had no insurable interest in the insured at the time of application.

Question 18: All of the statements below pertaining to group life insurance are correct EXCEPT:

Answer:

If the insurance coverage is less than $75,000, employees do not have to report the employer-paid premiums as income Question 19: The Incontestable Clause states that the insurer cannot contest the validity of a life insurance policy as long as it remains in force after what period of time?

Answer:

Usually 2 years, but in some states only 1 year Question 20: Justin, age 37, earned an adjusted gross income of $45,000 for the calendar year.After a short stint in the hospital, his individual health policy covered most of his medical expenses; however, Justin was still responsible for paying his deductible, doctor copays and coinsurance amounts equaling $6,000 in unreimbursed medical expenses. Of this $6,000, what amount can Justin deduct when he files his annual taxes?

Answer:

$1,500 - Solution: Since Justin was born after January 2, 1950, he can deduct expenses that exceed 10% of his adjusted gross annual income.

Math: 10% Threshold - $45,000 * 10% = $4,500

Justin exceeded his 10% threshold; therefore, he can deduct $1,500 of his $6,000 in medical expenses

($6,000 - $4,500 = $1,500).

Question 21: Variable annuities are characterized by:

Answer:

A variable rate of growth and a variable benefit payable to the annuitant

Question 22: Entity Plan (Several Partners)

Answer:

An entity plan is typically used if several partners exist within a company. Instead of each partner purchasing multiple life policies, the company itself purchases a life policy on each partner and serves as the policyowner of each policy.Question 23: Barbara is currently in her Social Security 'blackout' period. Which answer BEST describes this period?

Answer:

The period after a surviving spouse's youngest child is no longer eligible and before the surviving spouse turns age 60, or age 50 if he or she is disabled.