Life insurance #1
C is a key employee at ABC Incorporated. If a Key Employee life policy is purchased on her life, which of these statements would be true?
C is the policyowner, the insured, and the beneficiary
ABC is the policyowner, C is the insured, and ABC is the beneficiary
C is the policyowner and the insured, and ABC is the beneficiary
ABC is the policyowner, C is the insured, and her husband is the beneficiary
Which of these needs is satisfied by Adjustable Life insurance? '
Insured's need for flexible premiums
Insured's need for level premiums
Insured's need for flexible nonforfeiture options
Insured's need for level death benefits
Many small business owners worry how their business would survive financially if the owner becomes disabled. The policy which BEST addresses this concern is:
Disability Income
Business Overhead Expense
Contributory
Key Employee Life
Term insurance has which of the following characteristics?
Endows at the end of the policy period
Expires at the end of the policy period
Has nonforfeiture options
Builds cash value
Insurers/agents must, in Florida, offer and issue all small employer health plans on a basis:
€˘fair
Nonrenewal
Discounted
Guaranteed-issue
Which entity approves the insurance policy forms used in Florida?
Financial Services Commission (FSC)
Office of Insurance Regulation (OIR)
Department of Financial Services (DFS)
National Association of Insurance Commissioners (NAIC)
An insurance company would MOST likely pay benefits under an Accidental Death and Dismemberment policy for which of the following losses'
Loss of life due to a heart attack
Loss of eyesight due to an accidental injury
Loss of the spleen due to an accidental injury
Partial paralvsis due to a stroke
K is an agent who made an improper sale of an annuity to a client. Which of the following corrective actions would the Department of Financial Services likely order K to take?
Sell the client a more appropriate annuity
Pay monetary restitution to the client
Pay a penalty of three times the client's loss
€˘Provide a written apology letter
Which of these require an offer, acceptance, and consideration?
Warranty
Estoppel
Contract
Representation
An insurance company must act on an Accident and Health insurance application for reinstatement within days.
90
60
75
45
B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of
Additional Term Life coverage at any time
Additional Term Life coverage at specified intervals
Additional Whole Life coverage at any time
Additional Whole Life coverage at specified times
Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following contractual elements?
Consideration
Competent parties
Offer| assistance
Legal purpose
K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true?
Proceeds will be paid to P's estate
Proceeds will be divided equally between K's and P's estate
€˘Proceeds will be payable to K's estate if P dies within a specified time
The courts will decide who will receive death benefits
Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called:
Representations
Warranties
Consideration
Guarantees
Who owns a stock company?
It’s policy owners
Stockholders
Board of directors
CEO
T is an employee covered under a Group Life policy. If T's employment is terminated, the conversion privilege gives T the right to convert
To an individual policy, only by providing evidence of insurability
To an individual policy, only if the employer pays the premiums
To an individual policy upon employment termination
To an individual policy with a higher amount of coverage
An example of an unfair claims settlement practice is
Making it mandatory that proof of loss be provided for each claim
Requiring a time limit for submitting a claim
Paying a claim in a timely matter
Turning down a claim without providing the basis of denial
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?
Request will be accepted only if in writing by the insured
Change will be made only if premiums are paid current
Change will be made immediately
Request of the change will be refused
A person insured under a health policy is required to give the insurance company a Notice of Claim within how many days after a covered loss?
Five
Twenty
Ten
Thirty
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?
Interest only
Fixed amount
Life income
Fixed period
A 66 year-old is covered under a group health plan while employed with a business that has 40 employees. If she injures herself while walking in the park, what coverage would be considered primary?
Medicaid
Long term care
Medicare
Her group health plan
The provision in a Group Health policy that allows the insurer to postpone coverage for a covered illness 30 days after the policy's effective date is referred to as the:
Grace period
Waiting period
Postponements period
Elimination period
T sends proof of loss to her insurer for an acceptable medical expense claim under her individual Health Insurance policy. Upon receipt, the insurer must pay the benefits
Immediately
Within 6 months
At the insurer’s discretion
Within 3 months
An individual covered under a Group Life insurance policy is considered to be a(n)
Annuitant
Certificate holder
Policy owners
Contingent
According to Florida's life insurance replacement laws, a policyowner must be provided with a written Comparison and Summary Statement when it's requested by
The policyowner
The insurer
The Chief Financial Officer
The Financial Services Commission
P is blinded in an industrial accident. Which provision of his life insurance policy will pay a stated benefit amount?
Accelerated Benefits provision
Entire Contract
Accidental Death and Dismemberment clause
Consideration clause
What is considered a valid reason for small businesses to insure the lives of its major shareholders?
To provide an income for the surviving dependents
Reduce the company's tax liability
To pay for final expenses
Fund a buy-sell agreement
K purchased a Life insurance policy in 1986 which paid 10% interest in the early years of the policy. Twenty years after the purchase, she received a notice from the insurer stating that the policy will soon terminate unless a much-higher premium is paid because of falling interest rates. This type of policy is known as a(n) life policy.
Whole
Universal,i
Graded
Increasing
Which of the following is considered an accurate statement of an unfair trade practice?
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
No more than 25% of an agent's insurance sales are allowed to come from controlled business
Coercion involves making a malicious statement about the financial condition of an insurance company
Rebating occurs when someone intentionally deceives another with the intent to gain financially
Which of these is an element of a Single Premium annuity?
Deferred payment
Lump-sum payments
Fix income
Tax-deductible
All of these are characteristics of an Adjustable Life policy, EXCEPT:
Face amount can be adjusted using policy dividends
Adjustable premiums
Adjustable premium payment period
Combination of term and whole life insurance
According to Florida Law, in which of the following situations would a dependent handicapped child NOT be covered under a Family Health policy?
The premiuns for the handicapped child are not paid
The handicapped child has reached the limiting age
The handicapped child becomes a full-time student
'The family moves outside the provider network
Question 34 Select the appropriate response J has an Accidental Death and Dismemberment policy with a principal sum of $50,000. While trimming the hedges, J cuts off one of his fingers. What is the MAXIMUM J will receive from his policy?
$25,000
$0
$100,000
$50,000
The entity whose sole purpose is sharing medical data among its member companies is called the
Medical Information Bereau (MIB)
€˘National Association of Insurance Commissioners (NAIC)
State government
State Underwriting Association
An insurance company receives E's application for an individual health policy. E did not complete all of the medical history questions because she could not remember the exact dates. E signed the policy and submitted it to the insurance company anyway. A few weeks later, E suffers a heart attack and is hospitalized without completing the medical history questions and paying the initial premium. E is not insured. Which of the following clauses details the conditions that E did not meet?
Entire Contract clause
MIB clause
Consideration clause
Insuring clause
Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested". How can this be interpreted?
If toms employment is terminated, 20% of his funds would be forfeited
20% of the funds are subject to taxes
80% of the funds are invested in a separate account
If Tom's employment is terminated, 80% of the funds would be forfeited
Under Florida law, a variable annuity policyowner must be notified of the accumulated value of the contract
One each year
Only when requested by the policyowner
Once each month
Twice each year
A Business Disability Buyout plan policy is designed:
To pay benefits to the corporation or other shareholders
As an incurred expense plan
With a very short Elimination period
To pay benefits to the insured's spouse
When an employee is terminated, which statement about a group term life conversion is true?
Emplovee must provide evidence of insurability for conversion
Policy proceeds will NOT be paid if the employee dies during the conversion period
Policy proceeds will be paid if the employee dies during the conversion period
Employee must convert group term life coverage into an individual term life policy
Which of these arrangements allows one to bypass insurable interest laws?
Investor originated life insurance
Concealment
L Indemnity contract
Contract of adhesion
Which of the following health insurance policy provisions specifies the health care services a policy will provide?
Insuring clause
Usual, Customary, and Reasonable clause
Consideration clause
Benefit clause
What is the purpose of the U.S.A. Patriot Act?
Defect and deter trerrorism
Detect and deter alien insurance companies
Detect and deter fraud
Detect and deter misrepresentations
The advantage of reinstating an original life policy is
The premiums are based on a younger age
€˘ the premiums are based on the current age of the insured
The interest charged on policy loans will be lowered
A new incontestible period will begin
The clause in an Accident and Health policy which defines the benefit amounts the insurer will pay is called the:
Insuring clause
Contestable clause
Consideration clause
Free-look provision
Which of the following documents must an agent submit to the replacing insurance company during the replacement of an existing life insurance policy?
Notice to existing and rep leaving insurers of intention to replace
A list of all policies the agent has replaced in the last 3 years
A copy of the agent's insurance license
A statement made by the agent that NAIC guidelines have been met during the replacement process
A life insurance policy would be considered a wagering contract WITHOUT:
Insurable interest
Premium payment
Agent solicitation
Constructive delivery
D is the policyowner and insured for a $50,000 life insurance policy. The beneficiary is D's wife. D and his wife divorce and D remarries, transferring ownership of his policy to his new wife. If D dies without making any further changes, to whom will the policy proceeds be paid to?
Ex-wife
Current wife
Estate
Split equally the ex-wife and current wife
A life insurance policyowner would like to file a complaint against a life insurance agent. In Florida, the entity that oversees these complaints is called the
Office of financial regulation
Department of Homeland Security
Securities Exchange Commission
Office of Insurance Regulation
What type of life insurance incorporates flexible premiums and an adjustable death benefit?
Universal Life
Endowment Policy
Decreasing Term
Modified Whole Life
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