Insurance Exam

Front 1

Which is true concerning a variable universal life policy?

Back 1

Policy owner controls where the investment will go and selects the amount of premium payment.

Front 2

How many months must one be disabled before applying for Social Security disability benefits?

Back 2

5 months

Front 3

In a key employee life insurance policy the third party owner can be all of the following except?

Back 3

The insured

Front 4

Florida requires that an insurance agent must complete how many hours of Education every two years?

Back 4

5 hours

Front 5

Which of the following statements does not accurately describe the tax treatment of premiums and benefits of individual accident and health insurance?

Back 5

Premiums paid for disability income policies are tax-deductible.

Front 6

On the second options involve the systematic liquidation of the death proceeds in the event of the insurance death except?

Back 6

Interest-only

Front 7

Which of the following statements regarding a tax-sheltered annuity TSA is incorrect?

Back 7

The income from the TSA is received income tax free

Front 8

What does a 401 k plan generally provide its participants?

Back 8

Salary deferral contributions

Front 9

What are adjustable rates for life policy loans in Florida based on?

Back 9

Moody's corporate bond index.

Front 10

On delivery of a policy a signed statement of good health is typically requested if?

Back 10

The application was submitted without the initial premium.

Front 11

Which of the following policy features allows an insured to defer current health charges to the following year the ductable instead of the current Year's deductible?

Back 11

The carryover provision

Front 12

An employee with 25,000 group term life coverage was recently fired the employees group coverage may be converted to a...

Back 12

25000 individual whole life policy

Front 13

Under an individual Disability Policy in Florida, what is the minimum schedule of time in which claims must be made to insured?

Back 13

Claims must be made monthly at minimum

Front 14

Which of the following is the most important factor when deciding how much disability income coverage an applicant should purchase?

Back 14

Applicants monthly income.

Front 15

42 year old executive wants to purchase life insurance that will allow for increases and decreases to cover as his needs change. Which of the following policies will best meet need?

Back 15

Universal life insurance is characterized by flexible premiums and adjustable death benefit.

Front 16

What is considered a valid reason for small business to insure the lives of its major shareholders?

Back 16

fund a buy sell agreement

Front 17

The reason for a business having a Business Overhead Expense Disability plan is to cover

Back 17

Fixed business expenses

Front 18

S is covered by a whole life policy. Which insurance product would cover his child?

Back 18

Child term rider

Front 19

K pays on a $20,000 20-Year Endowment policy for 10 years and dies from and dies from an automobile accident. How much will the insurance company pay the beneficiary?

Back 19

$20,000 death benefit

Front 20

A person with whole life insurance policy wants to increase the death benefit to protect against inflation what dividend option do they have?

Back 20

Paid-up additional insurance

Front 21

Association plans that are designed to provide health benefits to their members are regulated by the state because

Back 21

They are insured by an authorized insurer

Front 22

Which of the following statements about accumulated interest earned on dividends from an insurance policy it's true?

Back 22

Taxed as ordinary income.

Front 23

Which of the following is not an example of a Nonforfeiture option?

Back 23

Life income

Front 24

A has a major medical policy that pays only a portion of A's medical expenses and is responsible for paying the remaining balance. This revision is known as

Back 24

Coinsurance

Front 25

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

Back 25

Inspection report

Front 26

When an employee is terminated which statement about a group term life conversion is true?

Back 26

Policy will be paid if owner dies during conversion period.

Front 27

Back 27

Front 28

Back 28

Front 29

Back 29

Front 30

Back 30

Front 31

A licensed agent must be appointed by an insurance company to solicit insurance in Florida. The agent's license will terminate if a certain. Of time elapses without being appointed how long is that time?

Back 31

48 months

Front 32

Individual has a major medical policy with a $5,000 deductible and an 80/20 coinsurance clause. How much will be insured have to pay if the total payment is $15,000?

Back 32

$7,000

Front 33

Back 33

Front 34

Back 34

Front 35

Back 35

Front 36

What type of policy would pay an employee salary if they were in a bicycle accident and we're out of work for 6 weeks?

Back 36

Business overhead expense

Front 37

Back 37

Front 38

The phrase "This policy will only pay for a semi-private room" is an example of an...

Back 38

Internal limit

Front 39

Which of the following factors affects the amount of monthly disability benefits payable under Social Security?

Back 39

The amount of benefits available from other sources

Front 40

According to Florida law when must an agent deliver the outline of coverage to a Medicare supplement applicant?

Back 40

At the time of application

Front 41

Back 41

Front 42

N is covered under an individual Disability Policy with a 30-day elimination period and a monthly benefit of $500. N's totally disabled for three and a half months. N's total benefit received on this claim is...

Back 42

$1,250. After the 30-day elimination period has been satisfied the total benefit on this claim is $1,250 ( 500 + 500 + 250)

Front 43

All of these statements about the waiver of premium provision are correct except

Back 43

Insured must be eligible for Social Security disability for claim to be accepted this is an accurate receiving Social Security benefits is not a requirement for the eligibility for the waiver of premium.

Front 44

Back 44

Front 45

Which of the following professional organizations has its code of ethics incorporated into Florida law?

Back 45

The naifa or National Association of insurance and financial advisors.

Front 46

J has an accidental death and dismemberment policy with a principal sum of $50,000. While trimming the hedges, Jacob cuts off one of his fingers. What's the maximum J will receive from his policy?

Back 46

$25,000 is the maximum sum payable to the capital sum.

Front 47

A reimbursement policy pays what amount of covered long-term care expenses?

Back 47

Actual cover expenses up to the daily maximum

Front 48

A family income policy is a combination of whole life and

Back 48

Decreasing term insurance

Front 49

What does the legal actions provision of the accident and health policy require?

Back 49

That an insured must wait 60 days after proof of loss has been submitted before a lawsuit can be filed

Front 50

Who benefits in investor originated life insurance when the insured dies?

Back 50

The policy owner.

Front 51

Insurance policies are considered aleatory contracts because

Back 51

Performance is conditioned upon a future occurrence

Front 52

In an insurance contract the insurer is the only party who makes a legally enforceable promise. What kind of contract is this?

Back 52

Unilateral

Front 53

What action will an insurer take if an interest payment on a policy loan is not made on time?

Back 53

Automatically add the amount of Interest due to the loan balance

Front 54

When funds are shifted straight from one Ira to another Ira what percentage of tax is withheld?

Back 54

None

Front 55

N purchases and annuity by making payments and then amounts no less than $100 quarterly. This describes which of the following annuities?

Back 55

Flexible installment deferred

Front 56

The percentage of an individual's primary Insurance amount determines the benefits paid in which of the following programs?

Back 56

Social Security disability income

Front 57

Which type of life insurance incorporates flexible premiums and an adjustable death benefit?

Back 57

Universal life

Front 58

which of these is considered a true statement regarding Medicaid?

Back 58

funded by both state and federal governments

Front 59

What's the tax treatment regarding a lump sum payment paid to a life insurance policies premium beneficiary?

Back 59

All proceeds are income tax free in the year they are received.

Front 60

How are surrender charges deducted in a life policy with a rear end loaded version

Back 60

Deducted when the policy is disconnected

Front 61

Which of these statements concerning an individual disability income policy is true?

Back 61

Normally includes an Elimination period.

Front 62

What does the Department of Financial Services not to consider when determining if an agent's home is an insurance agency?

Back 62

The amount of Premium collected at the location.

Front 63

A 55 year old recently received a $30,000 contribution from a previous employers 401K plan, minus $6,000 withholding. Which federal taxes apply if none of the funds were rolled over?

Back 63

Income taxes plus a 10% penalty tax on $30,000.

Front 64

When is the face amount paid under a joint life and Survivor policy?

Back 64

Upon death of the last insured

Front 65

What is considered to be a characteristic of a conditionally renewable health insurance policy?

Back 65

Premiums may increase at time of renewal

Front 66

When is the face amount of a whole life policy paid?

Back 66

When the insured dies or at the policies maturity date whichever happens first.

Front 67

The Bureau of unclaimed property is overseen by the...

Back 67

Chief Financial Officer

Front 68

In a qualified retirement plan the yearly contributions to an employee's account...

Back 68

Are restricted to maximum levels set by the IRS

Front 69

Which of the following Provisions guarantees that premiums will be waived if a juvenile life policy owner becomes disabled?

Back 69

Payor Clause

Front 70

Which health policy Clause specifies the amount of benefits to be paid?

Back 70

Insuring clause

Front 71

When a life insurance policy exceeds certain IRS table values the result would create which of the following

Back 71

Modified endowment contract

Front 72

Which of the following situations does a critical illness plan cover?

Back 72

Leukemia

Front 73

Medicare Part C is

Back 73

Available to those who are enrolled in Medicare part A and Part B Medicare Part C is offered by private insurance and available to those enrolled in part A and B

Front 74

What is the income tax withholding requirement for eligible rollover funds from a profit sharing plan

Back 74

20% is withheld from income taxes

Front 75

T is receiving $3,000 a month from a disability income policy and which teas employer had paid the premiums. How are the $3,000 benefit payments taxable?

Back 75

Benefits of talks about the T

Front 76

Which of the following employees may not be excluded from a group Life Plan?

Back 76

Full-time employees after the probationary period.

Front 77

Traditional IRA distributions must start by

Back 77

April 1st of the year following the year the participant attained age 70 and a half

Front 78

Which mode of payment is not used by health insurance policies?

Back 78

Single premium

Front 79

Want to policy on the cash surrender is a universal life insurance policy in its early years this may be considered a red flag for an

Back 79

Anti-money laundering violation

Front 80

Which statement is true regarding a variable whole life policy?

Back 80

A minimum guaranteed death benefit is provided

Front 81

An insured's inability to perform two or more activities of daily living may Trigger which type of Policy rider?

Back 81

Long term care

Front 82

What is the consideration given by an insurer in the consideration Clause of a life policy?

Back 82

Promise to pay a death benefit to a named beneficiary.

Front 83

Medicare Part B does not cover

Back 83

Inpatient Hospital services

Front 84

In a life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be the recipient of any financial benefits from the policy?

Back 84

OWNER'S RIGHTS

Front 85

When third-party ownership is involved applicants who also happen to be stated primary beneficiary required to have

Back 85

Insurable interest in the proposed insured.

Front 86

Association plans that are designed to provide health benefits to their members are regulated by the state because

Back 86

They are insured by an authorized insurer

Front 87

Which type of life policy contains a monthly charge as well as self directed investment choices?

Back 87

Variable Universal Life

Front 88

S is covered by a whole life policy. Which insurance product can cover his children?

Back 88

Child term rider

Front 89

How long is the typical free look period for long Term care insurance policies?

Back 89

30 days

Front 90

A life insurance policy would be considered a wagering contract without?

Back 90

Insurable interest

Front 91

Which of the following statements is true about accelerated benefits?

Back 91

Must have a terminal illness to qualify

Front 92

If a contract of adhesion contains complicated language, to whom would the interpretation be in favor of ?

Back 92

THE INSURED

Front 93

Which of the following types of health coverage frequently uses deductibles?

Back 93

Major Medical Insurance

Front 94

An insurer must provide an insured with claims forms within--days after receiving notice of a loss.

Back 94

15

Front 95

Which of the following is not a limited Benefit Plan?

Back 95

Life insurance policies

Front 96

What following action requires a policy owner to provide proof of insurability in an adjustable life policy?

Back 96

An increase of the face amount

Front 97

Which of these Life Products is not considered interest-sensitive?

Back 97

Modified whole life

Front 98

What action can a policyowner take if an application for a bank loan requires collateral?

Back 98

Assign policy ownership to the bank