FLORIDA INSURANCE EXAM

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FLORIDA INSURANCE EXAM

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

-Format: Multiple-choice / Flashcard

Question 1: Upon reaching the limiting age, a handicapped child can extend their health insurance coverage as a dependent

Answer:

only if the child is incapable of employment and chiefly dependent on the policyowner Question 2: P completes an application for a $10,000 life policy, but does not give the producer

the initial premium. P's coverage becomes effective when:

Answer:

P receives the policy and pays the premium Question 3: The Accelerated Death Benefit provision in a life insurance policy is also known as

a(n):

Answer:

Living Benefit Question 4: Which organization was established to provide funds to protect an insured in the event of an insurer's insolvency?

Answer:

Florida Life and Health Insurance Guaranty Association

Question 5: Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy?

Answer:

Reimbursement Question 6: When replacing or exchanging an annuity, the agent must disclose to the annuitant

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the possible tax ramifications as a result of the transaction Question 7: A life insurance policyowner may sell their policy to a(n) _____ in order to receive a percentage of the policy's face value.

Answer:

viatical settlement provider Question 8: The Accidental Death and Dismemberment (AD&D) provision in a life insurance

policy would pay additional benefits if the insured:

Answer:

is blinded in an accident Question 9: 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?

Answer:

Split-dollar plan Question 10: Which of these characteristics is consistent with a Straight Life policy?

Answer:

Premiums are payable for as long as there is insurance coverage in force Question 11: An insured pays premiums on an annual basis for an individual health insurance policy. What is the MINIMUM number of days for the Grace Period provision?

Answer:

31

Question 12: A term life insurance policy matures:

Answer:

upon the insured's death during the term of the policy Question 13: Which of the following policy provisions prohibits an insurance company from incorporating external documents into an insurance policy?

Answer:

Entire Contract

Question 14: How does a typical Variable Life Policy investment account grow?

Answer:

Through mutual funds, stocks, bonds

Question 15: The Life and Health Insurance Guaranty Association is

Answer:

funded by admitted insurance companies through assessments Question 16: P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount?

Answer:

Accidental Death and Dismemberment clause Question 17: J's Major Medical policy has a $2,000 deductible and an 80/20 Coinsurance clause.

If J is hospitalized and receives a bill for $10,000, J would pay:

Answer:

$3,600

Question 18: The clause in an Accident and Health policy which defines the benefit amounts the

insurer will pay is called the:

Answer:

Insuring clause Question 19: How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy?

Answer:

If the primary beneficiary dies before the insured

Question 20: According to the Time Payment of Claims provision, the insurer must pay Disability Income benefits no less frequently than which of the following options?

Answer:

Monthly Question 21: What is the maximum Social Security Disability benefit amount an insured can receive?

Answer:

100% of the insured's Primary Insurance Amount (PIA)

Question 22: If a policyowner does not pay the premium by the due date, the

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policyowner can make the premium payment during the grace period Question 23: The automatic premium loan provision is designed to:

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avoid a policy lapse

Question 24: A license may be denied, suspended, or revoked if the licensee

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is found guilty of misrepresentation Question 25: Which of the following is considered an accurate statement of an unfair trade practice?

Answer:

Twisting involves an agent using misrepresentation to convince a policyowner to cancel their current policy so that they can purchase a new life insurance policy with another company Question 26: Which of the following statements is true about most Blue Cross/Blue Shield organizations?

Answer:

They are nonprofit organizations