FLORIDA LIFE INSURANCE TEST

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FLORIDA LIFE INSURANCE TEST

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -43 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Information obtained from a phone conversation to the proposed insured can be found in which of these reports?

Answer:

Inspection report Question 2: What action can a policyholder take if an application for a bank loan requires collateral?

Answer:

Assign policy ownership to the bank Question 3: A life insurance policy which ensures that the premiums will be paid if the insured becomes disabled has what kind of rider attached?

Answer:

Waiver of premium

Question 4: What does the Medical Information Bureau (MIB) identify?

Answer:

Existing life insurance coverage with other carriers

Question 5: An insured covered by life insurance has just died. What will happen if the primary beneficiary had already died before the insured and contingent beneficiary?

Answer:

Proceeds will go to the contingency beneficiary Question 6: S would like to use dividends from her life insurance policy to purchase paid-up additions. All of these would be factors that determine how much coverage can be purchased

EXCEPT

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Beneficiary's age Question 7: B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of

Answer:

Additional Whole Life coverage at specified times Question 8: On January 8, an applicant filled out an application for life insurance policy but did not include the initial premium. The insurance company approved the application on January 14 and issued the policy January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective?

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January 26 Question 9: When an insurance application is taken by a producer, which of these statements is true?

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Any changes made on the application require the applicants initials Question 10: All of these statements about the Waiver of Premium provision are correct

EXCEPT

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Insured must be eligible for Social Security disability for claim to be excepted Question 11: T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage as of the date of the application or medical examination, whichever is later. Assuming that he is an acceptable risk, what item is given to T?

Answer:

Binding receipt

Question 12: What is the purpose of the U.S.A. Patriot Act?

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Detect and deter terrorism Question 13: A provision in a life insurance policy that pays the policyholder an amount that does not surpass the guaranteed cash value is called the

Answer:

Policy Loan provision Question 14: S buys $100,000 whole life policy in 2003 and pays an annual premium of $100. S dies five years later in 2008 and the insured pays the beneficiary $10,500. What kind of writer did S include on the policy?

Answer:

A Return of permium rider

Question 15: Which of these do NOT constitute policy delivery

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Policy issued with a rating Question 16: How are surrender charges deducted in a life policy with a rear-end loaded provision?

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Deducted when the policy is discontinued Question 17: K has a life insurance policy where her husband is the beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where will the death proceeds be directed?

Answer:

Daughter

Question 18: Which statement is true in the regards to a policy loan?

Answer:

Past-due interest on a policy loan is added to the total debt

Question 19: When does the life insurance contract become affective of the initial premium is not collected during the application process?

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When producer delivers policy and collects initial premium Question 20: Which statement regarding the Change of Beneficiary provision is true?

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The policy owner can change the beneficiary Question 21: C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most?

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The cost Question 22: Why is an applicant signature required on the life insurance application?

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To attest that the statements on the application are accurate to the best of the applicants knowledge Question 23: How do life insurance companies handle cases where the insured commit suicide with in the contract's stated Contestable period?

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Claims are denied under the Suicide clause of the policy Question 24: A policy owner is able to choose the frequency of premium payments through what policy feature?

Answer:

Premium Mode Question 25: 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 provision