pg. 1
215 FL LICENCE PRACTICE EXAM/ ACTUAL EXAM
QUESTIONS AND CORRECT VERIFIED ANSWERS/
DRADED A+
Which of the following documents must an agent submit to the replacing insurance company during the replacement of an existing life insurance policy? - Correct Answer - Notice to existing and replacing insurers of intention to replace
Who owns a stock company? - Correct Answer - stockholders
Which provision prevents an insurer from changing the terms of the contract with the policy owner by referring to documents not found within the policy itself? - Correct Answer - Entire contract provision
Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take? - Correct Answer - Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company
Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a contributory group Term Life plan to all its eligible employees? - Correct Answer - Portion of the premiums paid for by the employer may be a tax deduction
Which type of life policy contains a monthly mortality charge as well as self-directed investment choices? - Correct Answer - Variable Universal Life
A policyowner is able to choose the frequency of premium payments through what policy feature? - Correct Answer - Premium Mode 1 / 3
pg. 2
The policy provision that entitles the insurer to establish conditions the insured must meet while a claim is pending is - Correct Answer - Time Limit on Certain Defenses
What type of rider would be added to an Accident and Health policy if the policyowner wants to ensure the policy will continue if he/she ever becomes totally disabled? - Correct Answer - Waiver of premium rider
Which rider provides coverage for a child under a parent's life insurance policy? - Correct Answer - Child term rider
A renewable term policy is renewable at the option of the - Correct Answer - insured
According to the Time Payment of Claims provision, the insurer must pay Disability Income benefits no less frequently than which of the following options? - Correct Answer
- monthly
When an insurance company sends a policy to the insured with an attached application, the element that makes the application part of the contract between the insured and the insurer is called the - Correct Answer - Entire Contract provision
M is insured under a basic Hospital/Surgical Expense policy. A physician performs surgery on M. What determines the claim M is eligible for? - Correct Answer - Determined by the terms of the policy
Credit life insurance is - Correct Answer - issued in an amount not to exceed the amount of the loan
The USA Patriot Act was enacted in - Correct Answer - 2001
Which is true concerning a variable universal life policy? - Correct Answer - Policyowner controls where the investment will go and selects the amount of the premium payment 2 / 3
pg. 3
What is the required minimum percentage of employee participation for a non- contributory group health insurance plan according to Florida law? - Correct Answer - 0%
Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party? - Correct Answer - Subrogation
Coordination of Benefits (COB) provision exists in order to - Correct Answer - Avoid duplication of benefit payments
What should an insurer do if the insurer does not send claims forms within the time period set forth in a health policy's claims forms provision? - Correct Answer - Submit the claim in any form
A disability income policyowner recently submitted a claim for a chronic neck problem that has now resulted in totally disability. The original neck injury occurred before the application was taken 5 years prior. The neck injury was never disclosed to the insurer at the time of application. How will the insurer handle this claim? - Correct Answer - Claim will be paid in coverage will remain in force
When applied to Whole Life insurance, the word "straight" denotes - Correct Answer - The duration of premium payments
Which of the following is not considered rebating? - Correct Answer - Sharing commissions with an agent licensed in the same line of business
According to Florida law which of the following statements accurately describes an admitted mail order insurance company? - Correct Answer - It may solicit insurance business by mail without the assistance of a licensed agent
If an insurance company issues a disability income policy that it cannot cancel or for which it cannot increase premiums the type of renewability that best describes this policy is called - Correct Answer - noncancellable
- / 3