Worksheetsfinal course EXAM part1
Total questions: 82
Worksheet time: 41mins
WHICH of these life insurance policies is referred to as an "unbundled" contract?
Interest sensitive life
Term life
Universal life
Whole life
David purchased an indexed annuity with a participation rate of 80 percent. The index grew by $10,000. How much will David's account increase?
10000
2000
8000
9000
What are the parties to an annuity contract?
The annuitant, the beneficiary, the annuity owner, and the issuer
The annuitant, the insured, and the estate of the annuitant
The insurance company, the insured, and the annuitant
There are only two parties to an annuity: the annuitant and the insurance company
An insured owns an Option Two, or Option B Universal Life policy, with a face amount of 500,000andacashvalueaccumulationof 200,000. WHAT is the death benefit of this policy?
200000
300000
500000
700000
WHAT kind of term insurance policy starts out with a higher amount of coverage and then will lessen over time and end up at zero coverage?
Level term insurance
Increasing term insurance
A decreasing term policy
A Universal Life insurance Option A policy
Candice buys a policy that insured her and her husband, but will not pay the death benefit until they both die. WHAT policy did Candice buy?
A Survivorship, or Joint and Survivor policy
A Joint Life policy
A family term insurance policy
Corridor insurance
What are the potential problems associated with a variable annuity?
The guaranteed rate paid on the cash value could decrease
There are no problems related to variable annuities, as they are guaranteed to grow in value
The buyer is not familiar with investment markets and makes poor investment choices
The annuity could lose its cash value if the separate account decreases in value
Life insurance policies that cover more than one person and pay the death benefit when the first insured dies are:
Dual insured policies
Universal life insurance
Joint and Survivor life insurance
Joint life policies
All of the following are premium payment methods for whole life insurance EXCEPT:
Monthly electronic funds transfer from a bank account
Life paid up at 125
Single premium
Limited payment and continuous payment premiums
WHAT is considered adjustable in a Universal Life insurance policy?
The death benefit
The premium
The interest rate payable to the cash value
The endowment age
If a person has a convertible term policy, WHICH of these statements would be correct?
Universal life may be converted to term insurance
Only permanent insurance policies allow conversion
Conversion requires health proof and can be converted to any other kind of life insurance policy
Conversion is without proof of health, and the policy changes to a permanent policy
WHICH receipt provides coverage either on the date of application or at completion of any required medical exam if the insured is subsequently insurable?
The approval receipt
The insurability receipt, which is a conditional receipt
A proof of purchase receipt
An unconditional receipt
An insurance policy is a contract between:
The insured and the carrier
The insurance company and the policyowner
The insurance company and the claims department
The insurance company, the insured, and all financial institutions who hold loans with the insured
A contract in which only one party makes any promises is known as a:
Bilateral contract
Unilateral contract
Aleatory contract
Adhesive contract
WHAT rule states that any ambiguities in a contract of adhesion are ruled against the party that had the contract drawn up?
Rule of insurable interest
Rule of seven
Rule of valued contracts
Rule of strict construction
WHAT source of information is used by insurers to check medical issues and to prevent fraud?
Personal interviews with persons who know the insured
HIPAA
The Medical Information Bureau
Credit reports
If a person wants to know the scope and nature of a credit inquiry, the information must be provided within HOW many days of the request?
Three days
14 days
Five days
30 days
When an insurer delegates the authority to deliver a policy to another person, say the agent, and the insurer has relinquished that authority, that is known as:
Policy acceptance authority
Actual policy delivery
Transfer of Authority
Constructive delivery of the policy
Information that would have altered an issuance decision if the insurer had received the correct information is referred to as WHAT?
An immaterial misrepresentation
A material misrepresentation
An error and omission
This is, without question, fraud
WHICH of the following statements would best define insurable interest?
Insurable interest is required in order to have a claim investigated if it has been denied
It is the interest a person has regarding taking an insurance policy out on another person
It is a relationship between the parties to the contract based on a financial or emotional connection with the insured
Insurable interest is the interest the insurance company has regarding issuing the policy
WHEN must an insurable interest exist in a health insurance policy?
Insurable interest is only required at the time of death, and only for policies that provide a death benefit
At the time of purchase
Health insurance does not have insurable interest requirements
At the time of the loss
A statement that is made to the best of one’s knowledge is called a:
Warranty
Sworn statement
Representation
Misrepresentation
Insurers who are selling health insurance are not allowed to deliver or renew a policy until the insurer has filed a copy of WHICH of the following, when applicable, with the OIR?
All of these
Rating schedule
Change in rating manual
Rating manual
If the licensee fails to respond on time to a written request from the DFS concerning a consumer complaint, WHAT is the maximum fine per violation?
1000
250
500
2500
Regarding market conduct examinations, the OIR is required to examine each domestic insurer at least every...
One year (annually)
Two years
Five years
Four years
An insurance company that is formed outside of the United States is known as WHICH of the following?
An alien company
A domestic company
None of these
A foreign company
WHAT does an appointment do?
Gives the licensed agent the authority to transact insurance on behalf of an insurer
Gives the insurer the authority to transact health insurance in Florida
Gives unaffiliated agents authority to transact insurance on behalf of an insurer
Gives the insurer authority to operate in Florida
It is required to file a policy with the OIR for policy approval HOW many days before the use of the policy?
25 days
60 days
20 days
30 days
WHICH of the following is NOT a general duty of the DFS?
Employ actuaries as at-will employees
Use existing resources to develop and implement an outreach program to encourage entry of additional insurers into the Florida market
Use existing resources to expend funds for the purpose of its employees’ professional development
Enforce the provisions of the Insurance Code
WHICH of the following is NOT an agency action of the OIR?
Licensing and organizing companies
Continuing the regulation of insurance company activities
Issue injunctions in regard to violations of the financial institutions codes
Keeping watch to guard against unauthorized insurance activities
WHICH of the following license types cannot be issued after October 1, 2014?
All of these
Service representative
Limited customer representative
Customer representative
An incorporated supreme lodge would fall under the definition of WHICH of the following terms?
Alien company
Foreign company
Fraternal benefit society
Mutual company
WHAT is the difference between an authorized insurer and an unauthorized insurer?
An authorized insurer has received a Letter of Authorization from the DFS
An authorized insurer is one with a certificate of authority and six appointed agents
An authorized insurer is one that has been issued a certificate of authority by the OIR
An authorized insurer is one with a certificate of authority and four appointed agents
WHAT does it mean for a licensee to receive trust funds in a fiduciary capacity?
It means the licensee is the "trustee" or "custodian" of the funds, and not the owner - and that they are in a special position of trust and confidence
It means the licensee is acting as both "owner" and "custodian" of the funds - and that they are in a special position of trust and confidence
A licensee will never receive funds in a "fiduciary capacity"
It means the licensee may keep the funds and use as they see fit
ABC Lending required that Barry buy his credit insurance through XYZ insurer. Is this allowed?
Yes, but only if the lender owns or controls the insurance company
No, a lender cannot require that the insurance be purchased from any particular insurer
Yes, as long as the lender has no financial interest in the insurer
No, lenders cannot require that insurance be purchased in order to approve any credit transaction
Licensees are required to notify the DFS when they change WHICH of the following?
All of these
The address of their residence
Their email address
Their name
A terminally ill person who sells their life insurance policy for a specific amount has entered into WHAT kind of agreement?
A viatical, or structured settlement agreement
An early payout agreement
An irrevocable beneficiary designation
A prearranged death benefit
Every licensee must preserve these books, accounts, and records pertaining to premium payments for at least HOW many years after payment?
Five
Three
Two
Four
WHICH of the following names would most likely NOT be acceptable as an insurance agency name?
Sunshine Insurance Agency
Insurance Group of Florida
United States Insurance of Florida
Fellowship Insurance Services
WHICH of the following is the term for knowingly making any misleading representations or incomplete or fraudulent comparisons for the purpose of inducing any person to lapse their insurance policy in favor of a new one?
Rebating
Churning
Twisting
Sliding
WHICH of the following is NOT a prerequisite for being issued a health insurance agent's license?
Must take and pass the required examination
Must be a natural person of at least 18 years of age
Must be a US citizen or legal alien and resident of Florida
Must have received a letter of recommendation from the DFS
Agencies must maintain policy records other than premium payment records for HOW LONG?
Three years in all cases
For as long as the agency remains in business
There is no requirement to keep policy records once they have been submitted to the insurance company
For five years after the policy has expired
HOW MUCH in value can a licensee legally gift to a client during a given year?
No more than 100 dollars per person
Gifting is not allowed under any circumstances
A maximum of 500 dollars per year per insured
Up to 50 dollars per year
Are agents allowed to share commissions?
Never, sharing commissions is a felony offense in Florida
Not unless both agents agree to continue to share commissions for at least the length of the appointment by the insurer
Yes, as long as the person the commission is shared with holds the same kind of insurance license
It is allowed, but only with the express written permission of the Office of Insurance Regulation
WHAT is the specified purpose of the Buyer’s Guide?
To aid the life insurance agent in understanding the differences between policies
To provide a list of rules and requirements the insurance agent must follow when working with potential purchasers
To serve as a foundation for conversations the insurance agent can have with a potential purchaser
To aid the buyer in their search for the most appropriate insurance plan for their specific needs
Under Florida rules for replacement, each agent must submit to the insurer with, or as part of the application for life insurance, WHICH of the following?
A signed statement that discloses that the agent does not know whether or not replacement will be involved in the transactions
A statement signed by the insurance company that states that they take responsibility for an agent’s recommendation for replacement
A signed statement as to whether or not the agent knows replacement is or may be involved in the transactions
A statement signed by the applicant that states they acknowledge replacement may or may not be involved in the transactions
WHICH of the following is NOT included in the definition for "life insurance," in the context of policy replacement?
Life insurance policies that qualify under the definition for tax sheltered annuities
Annuities
All of these
Tax sheltered annuities
WHICH of the following is the term for the practice whereby policy values in an existing life insurance policy are directly or indirectly used to purchase another insurance policy with the same insurer in a deceptive fashion, for the purpose of earning additional commission?
Churning
Sliding
Rebating
Twisting
An annuity contract issued to a senior consumer age 65 or older may not contain a surrender or deferred sales charge for a withdrawal of money from an annuity exceeding WHAT percent of the amount withdrawn?
0.08
0.05
0.15
0.1
WHEN may a life agent place or modify individual contract life insurance coverage with a life insurer covering the life of a person who is NOT a family member?
When the life agent has an insurable interest in the life of the person
When the modification names the life agent as the named beneficiary
Any of these
When the life agent is the named beneficiary under the life insurance policy
In a standard grace period provision for group insurance, every insurance contract must provide that the insured is entitled to a grace period of not less than HOW many days?
21
31
14
30
If someone were to non-willfully engage in the act of churning, what is the maximum administrative fine they may incur?
75000
5000 (as of 2023 $12,500)
45000
25000
What is the rule of thumb when considering whether or not a replacement is right for a client?
Seek replacement in every case, in order to always find the best coverage for your client
Only recommend replacement if your client makes it clear they are not satisfied with their current coverage
Recommendations for replacement should be made annually, to ensure that the client’s coverage is up to date
Avoid replacement in every case, unless it’s so clearly appropriate that you cannot in good conscience leave an existing policy in force
If a person submits fraudulent signatures on an application, they may be subject to an administrative fine up to what amount for each non-willful violation?
25000
45000
5000
75000
The definition for the term "suitability information" means information that is related to the consumer which is reasonably appropriate to determine the suitability of a recommendation. WHICH of the following is information that would meet this definition?
All of these
Financial objectives
Liquidity needs
Tax status
Twisting is the deceptive and unfair trade practice of:
Convincing a client to buy a new policy so the agent can earn a new business commission
A person making public statements that a competing agency charges higher premium that what is allowed by the insurer and is breaking the law
Convincing a policyholder to drop an in-force policy in favor of a replacement policy without fully disclosing the positive and negative facts regarding the replacement
Twisting is the practice of altering the statements of a client on an application to make the proposed insured more attractive to underwriting
Disability insurance claims must be paid:
Daily
Quarterly
Weekly
Not less frequently than monthly
The act of damaging the good reputation of another person is:
Property damage liability, if done via written media
Comprehensive personal liability
Defamation, including slander and libel
Negative advertising
If an insured wants to sue his insurance company for failure to pay a claim, they must wait for HOW LONG after proof of loss was submitted to the insurer?
120 days
60 days
90 days
30 days
Florida Health Insurance Coverage Continuation Act provides that the policyholder has a choice of deductible for a converted policy. WHAT are those choices?
500, 1,000, or 2,500 dollar deductibles
2,500, 5,000, or 10,000 dollar deductibles
250, 500, or 1,000 dollar deductibles
1,000, 2,500, or 5,000 dollar deductibles
If a policy provision does not meet minimum state requirements, WHAT provision will amend the policy to meet the minimum requirements?
Incontestability provision
Time limit on certain defenses provision
Conformity with State Statutes
Entire contract and changes provision
Under the Affordable Care Act, insurance plans may be WHICH of the following?
ACA compliant or NON-ACA compliant plans
Grandfathered or nongrandfathered plans
Compliant or noncompliant plans
Approved plans or unapproved plans
Sliding is best defined as:
Persuading an existing customer to replace an existing policy with a new policy
Convincing a client to buy a new policy so the agent can earn a new business commission
Switching the client to a product that does not suit their needs
The illegal act or practice of telling a client that ancillary coverage or benefits must be purchased at the same time as the policy
WHAT disability income insurance provision prevents over insurance and considers the insured’s current earnings at the time of the loss?
The Insurance with Other Insurers provision
The comparative coverage coordination provision
The over insurance exclusion provision
The relation of earnings to insurance provision
Mammography is a test for WHICH of the following?
Sickle cell anemia
Breast cancer and abnormalities of the breast tissue
Colon cancer
Diabetes
Advertisements must be maintained in an insurer’s files for HOW long?
Four years, or until the next examination by the Office, whichever is longer
For as long as the policy being advertised is still able to be sold by the carrier’s agent force
Four years or until approved by the state, whichever period is shorter
For only as long as the advertisement is actually being used. Once it has been discontinued, the insurer is no longer required to keep files on the ads
Medicare has been standardized in WHICH of the following ways?
There is no standardization, as each insurer can make up its own policy language
Each state standardizes its own policies
There are 10 standardized policies with the letters A - N
The policies are now required to cover all medical conditions in all states
Small employers are required to provide at least HOW MANY days as an initial open enrollment period for group benefits?
10 days
20 days
30 days
60 days
Dread disease policies are also called all of the following EXCEPT:
Minor disease policies
Critical illness policies
Specified disease policies
Limited risk policies
All health benefit plans sold to small employers must have WHICH of the following renewal provisions?
Guaranteed renewable
Optionally renewable
Conditionally renewable
Cancelable
When is a Contingent Benefit Upon Lapse provision triggered in a long term care policy?
If a LTC policy lapses due to non payment, the insurer will provide the insured with a fully paid up policy
This is a benefit available to LTC insureds that provides for continued coverage in the event the insurer goes bankrupt
This provision only exists in Medicare Supplement policies
If an insurer increases the premium on a LTC policy that causes the policy to lapse within 120 days of the increase
Can a person have more than one Medicare Supplement policy?
Yes, there is no problem having more than one Medicare Supplement policy
No, it is prohibited to sell a person a second Medigap policy
Yes, as long as the proper forms have been signed by the applicant
No, unless the insured has received permission in writing from all insurers
If a person has a Medicare Supplement policy, and qualifies for Medicaid, what can the insured do with the Medigap contract?
Keep paying the premiums to make sure the Medigap policy stays in force, or lose the Medicaid coverage
Nothing, Medicaid and the Medigap issuer will coordinate benefits
Have it suspended for up to two years while on Medicaid
Ask the insurer to put the Medigap policy in suspension for up to one year
For tax qualified LTC policies, payments under the policy are conditioned by:
A determination that the insured is chronically ill or being cognitively impaired
A physician certifying that the insured needs nursing home care
The taxpayer’s income and tax bracket
An inability to perform at least one of the Activities of Daily Living
WHAT legislative act is intended to promote the availability of health insurance to small employers?
The Centers for Medicare and Medicaid Services
Florida Healthy Kids Corporation
Employee Health Care Access Act
Long-term care partnership programs
Long term care insurance policies have a free look period of HOW LONG?
30 days
60 days
90 days
180 days
For long term care insurance, WHAT are the two nonforfeiture options that are available if a policy lapses?
Extended term and nursing home coverage
A fully paid policy and a loss of benefit rider
A three year benefit period or a return of premium
Reduced paid up and a shortened benefit period
If an insured misstated their age on an application for insurance, what is the result?
The insurance company will retroactively charge the insured for the past due premiums based on the insured’s correct age
The death benefit will only be a return of premiums paid and not the face amount of the policy
The insurer will cancel the policy
Any death benefit paid would be what the premium would have purchased had the insurer known the correct age
WHICH nonforfeiture option provides the longest period of coverage?
Reduced paid up
Extended term
Cash loans
Cash surrender
The promise to pay the benefits cited in the policy is the:
Face amount of the life insurance policy
Insurer's consideration
Applicant's consideration
State rule that requires that the death benefit be paid to the designated beneficiary
WHAT is a policy rider?
A separate life insurance policy that is attached to another life policy
Riders are not available in life insurance policies, and are only available for health insurance.
A rider is an addition to the policy that decreases the premium for the first five years of the contract
A supplement to the policy that modifies coverage under the contract in some manner
WHICH of these statements best describes a collateral assignment?
The insurance policy cash value can be used as security for a loan or other monetary pledge
The policyowner pledges their equity in their home on a policy loan
The insurer places a lien on the policyowner's bank account as collateral on a loan
The owner of the policy irrevocably assigned ownership of the policy to another person
