FLORIDA 215 LIFE, HEALTH, INSURANCE LAW PRACTICE

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FLORIDA 215 LIFE, HEALTH, INSURANCE LAW PRACTICE

EXAM Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: M completes an application for life insurance but does not pay the initial premium. This action must occur before M's policy goes into effect?

Answer:

Except when the free-look period has expired Question 2: When does a Guaranteed Insurability Rider allow the insured to buy additional coverage?

Answer:

At future dates specified in the contract with no evidence of insurability required

Question 3: Which of these describe a participating insurance policy?

Answer:

Policy owners are entitled to receive dividends Question 4: An employee with $25,000 group term life coverage was recently fired. This

employee's group coverage may be converted to a:

Answer:

$25,000 whole life policy( A terminated employee may convert to a $25,000 individual whole life policy)

Question 5: Q purchase $500k 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 insurance contract features?

Answer:

Aleatory Question 6: A company that owns a life insurance policy on one of its key employees can't?

Answer:

Change the policy's interest rate Question 7: The following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?

Answer:

Complete the application and review the information with the customer prior to obtaining the customers signature, then send the application off to the insurance company Question 8: An individual who purchases a life annuity is given protection against:

Answer:

The risk living longer than expected Question 9: When a misrepresentation on a life insurance policy application is discovered, what action may an insurance company take?

Answer:

Void the policy only if it is discovered during the contestable period and proven to be material Question 10: The consideration clause in life insurance policy indicates that a policy owner's consideration consists of a completed application and?

Answer:

The initial premium Question 11: An employee of 20 years recently retired at age 59 1/2. This employee's group life

contract can be:

Answer:

Converted to an individual permanent policy at an individual rate

Question 12: This 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:

Conversion Privilege Question 13: P is the insured on a participating life policy. This statement is true if P's premiums are waived due to a disability?

Answer:

P will still receive declared dividends Question 14: At what point does an informal agreement become a binding contract?

Answer:

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

Question 15: When is the face amount of a Whole policy paid?

Answer:

When the insured dies or at the policy maturity date, whichever happens first Question 16: Who makes the legally enforceable promise in a unilateral insurance policy?

Answer:

The Insurance Company

Question 17: In regards to representation or warranties?

Answer:

If material to the RISK, false representations will void a policy Question 18: An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the?

Answer:

1970 Fair credit reporting act Question 19: An incomplete life insurance application submitted to an insurer will result in what?

Answer:

Application will be returned to the writing agent, it usually returns to the producer

Question 20: What is the initial source of underwriting for an insurance policy?

Answer:

Application containing statements from the insured Question 21: What type of insurance offers permanent life coverage with premiums that are payable for life?

Answer:

Whole Life Question 22: B owns a Whole life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, state amounts of?

Answer:

Additional whole life coverage at specified times Question 23: A policy owner is able to choose the frequent of premiums payments through what policy feature?

Answer:

Premium Mode

Question 24: What is the purpose of the U.S.A Patriotic Act?

Answer:

Detect and Deter Terrorism Question 25: When does a life insurance contract become effective if the initial premium is not collected during the application process?

Answer:

When the producer delivers the policy and collects initial premium Question 26: Whose Life is covered on a life insurance policy that contains a payor benefit clause?

Answer:

The Child