FLORIDA LIFE INSURANCE EXAM QUESTIONS

PDF Download

FLORIDA LIFE INSURANCE EXAM QUESTIONS

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

-Format: Multiple-choice / Flashcard

Question 1: How are benefits determined

Answer:

Flat benefit Employment position Earnings

Question 2: Underwriting

Answer:

term for risk selection, process of reviewing the characteristics that make up the risk profile of an applicant

Question 3: Twisting

Answer:

External - Illegal if not in the best interest for the client

Question 4: Policy Riders

Answer:

policy owners can customize policy to meet their needs

Question 5: Florida

Answer:

no min # of participants as long as the organization is eligible for group ins

Question 6: Mutual Insurance Companies

Answer:

organized and incorporated under state laws. No stockholders.

Question 7: Equity indexed annuities (EIA)

Answer:

a type of fixed annuity that offers the potential for higher credited rates of return than the traditional counterparts and also guarantee the owner's pricipal

Question 8: OASDI

Answer:

Old Age, Survivors, and Disability Insurance.SS prog enacted in 1935 & administered at the federal level.

Question 9: Churning

Answer:

Internal - replacing policies within the same company. Illegal if not in the best interest for the client

Question 10: ERISA

Answer:

protect the rights of workers covered under an employer sponsored plan

Question 11: Policy loan provision

Answer:

if policy is surrendered for cash, the cv avail to policy owner is reduced by amt of outstanding loan plus int

Question 12: Policy Summaries

Answer:

Specific to the Policy - ids the agent, insurer, policy, each rider, and includes info about premiums, dividends, benefit amounts, cash surrender values, policy loan interest rates, and life insurance cost indexes of the specific policy being considered

Question 13: Noncontributory plan

Answer:

employer pays all premiums of group insurance

Question 14: Coercion

Answer:

apply physical or mental force or threat to persuade (the mafia)

Question 15: Primary beneficiary

Answer:

the party designated to receive the proceeds of a life ins policy when they become payable

Question 16: Assignment Provision

Answer:

life ins contract sets forth the procedure necessary for ownership transfer.

Question 17: Basic Forms of Life Insurance

Answer:

Straight whole life, limited pay whole life, single premium whole life

Question 18: Conditional contract

Answer:

the applicant and the company from this contract, contingent upon conditions that exist at the time the application is signed (or when the medical exam is completed, if req)

Question 19: Misstatement of Age or Sex

Answer:

Adjust, cross out with pen, fix and have insured initial

Question 20: Decreasing Coverage Level Premium

Answer:

characterized by benefit amts that decrease gradually over the term of protection (cover debt or mortgage)

Question 21: Flexible Premium Deferred Annuities (FPDA)

Answer:

periodic payment annuities

Question 22: Concealment

Answer:

failure by applicant to disclose a known material fact at time of application

Question 23: Universal Life

Answer:

-Premiums can be decreased by insured -Death benefit can be changed -Cash Value used to pay the premium -No new policy needs to be issued for policy changes

Question 24: Tax treatment

Answer:

Death benefit paid under a life insurance policy to a named beneficiary are FREE of federal income taxation

Question 25: Secondary beneficiary

Answer:

may also be named and stands second in line to receive the proceeds of a life ins policy if the primary beneficiary dies before the insured

Question 26: Free-Look Provision

Answer:

14 days from policy delivery to rescind the contract

Question 27: Annuity periods involved

Answer:

accumulation period and payout or annuity period