Life and Annuity License Practice Exam

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• Social Security was designed to protect against which of the following?
• What type of buy-sell agreement involves partners purchasing insurance on each other?
• Is it ever legal for an insurance company to limit coverage based on marital status?
• What regulation applies when an agent is aware that an applicant will cash in an existing policy to purchase new insurance?
• In an adjustable life policy, which element cannot be changed by the owner?
• Which organization typically oversees the operations of insurance companies at the state level?
• Which feature is unique to a return of premium life insurance policy?
• Under what condition would the payor benefits rider void the payment of premiums?
• What are some personal uses of life insurance?
• Which regulation should an insurance agent consult when a customer wants to exchange an old contract for a new one?
• If the owner of an annuity dies during the accumulation stage, what is true?
• What must a consumer reporting agency provide to individuals under the Fair Credit Reporting Act?
• What is typically included in the notice regarding replacement?
• When does the free look period begin on a life insurance policy?
• What term describes the policy owner's rights to change beneficiaries and receive proceeds of a policy?
• Which of the following is NOT a characteristic of group life insurance?
• What are the two types of assignments in life insurance policies?
• In the context of group insurance, who generally bears the cost of providing coverage?
• Under what conditions is proof of insurability not required for enrolling in group insurance?
• Why is it important for the agent to personally deliver the policy after the first premium is paid?
• What is the process of policy delivery after an application is approved?
• When an insured has a universal life policy, what can they do with the accumulated cash value?
• What is the primary purpose of a buyer's guide in insurance?
• In a business setting, which of the following is NOT a legitimate use of insurance?
• Which statement is true regarding equity indexed annuities?
• What is likely to happen if a policy owner withdraws money from their cash value policy?
• What is typically assessed when determining a couple's life insurance needs for adequate survivor protection?
• How are key person life insurance policy premiums and death benefits taxed?
• When does coverage begin for a life insurance policy if no initial premium is collected?
• What does reinsurance help insurers manage effectively?
• What feature is characteristic of a whole life policy?
• Which of the following is a requirement for maintaining a valid insurance license?
• What is the penalty for violating the Fair Credit Reporting Act?
• How often are consumers entitled to a free credit report from each credit reporting agency?
• Which of the following is NOT a general qualification for an agent's license?
• What is the primary aim of the Fair Credit Reporting Act?
• During the replacement of life insurance, what must the replacing insurer obtain?
• What is the primary purpose of the Insurance Guaranty Association?
• What occurs if the owner of an adjustable life policy wants to change the premium amount?
• Which law regulates the accuracy and privacy of information in consumer reports?
• Which of the following information does not typically appear in a consumer report?
• Which regulation is included in the Florida Replacement Rule?
• What type of insurance policy requires only a premium payment at its inception and matures when the insured reaches age 100?
• What does the seven pay test determine regarding an insurance policy?
• Under what conditions may an insurance company offer different premiums to similar applicants?
• When an insured receives an annual dividend check from their life insurance policy, what is this arrangement known as?
• Which policy type is generally designed to last for the insured's entire lifetime as opposed to a specific term?
• What regulation requires an insurance company to provide an applicant with the name and address of the consumer reporting company when an application is denied?
• What is a common feature of universal life insurance policies?
• A universal life insurance policy is best described as what?
• In terms of a contract, which does not describe a competent party?
• Which of the following does the Fair Credit Reporting Act require from users of consumer reports?
• What would typically happen to a license if a holder does not maintain an appointment with an insurance company?
• To qualify for an individual policy after a group policy terminates, how many years must an individual have been insured under the group policy?
• What is one primary purpose of the Fair Credit Reporting Act?
• What entity is responsible for agent licensing and administrative supervision?
• What term describes the benefit of a life insurance policy that is retained even if the policy lapses?
• What type of penalties can be assessed under the Fair Credit Reporting Act?
• Which statement is true regarding key person insurance?
• Which source provides underwriters with information about an applicant's medical history?
• What happens at the end of a 10-year level term life policy that is guaranteed renewable?
• What is the purpose of issuing certificates of coverage in a group plan?
• How should Bonnie name her husband in her life policy if she wants to retain all rights of ownership?
• An employee will be taxed on the cost of group life insurance paid by the employer if coverage exceeds what amount?
• Which of the following describes a common use of life insurance in estate planning?
• Who is responsible for all advertisements related to an insurance policy?
• If an insurance company claims its policies are guaranteed by the existence of the Insurance Guaranty Association, what is this considered?
• Which statement is incorrect regarding a noncontributory group life insurance plan?
• What type of insurance policy issues certificates of insurance to its insureds?
• The beneficiary of an annuity during the accumulation phase is entitled to receive what upon the owner's death?
• What type of life insurance policy likely allows the insured to withdraw cash value to pay medical bills?
• Why is it important for insurers to provide a summary statement during the replacement process?
• What is the tax status of death benefits payable to a beneficiary under a life insurance policy?
• What is specifically described by a Policy Summary?
• What is the primary purpose of key person insurance?
• If a 30-year-old man wants a life insurance policy that can be modified as his needs change, which type of policy is best suited for him?
• What is true about the cost of employer-offered group coverage?
• What is the primary function of the Insurance Guaranty Association?
• Which insurance policy allows the insured to adjust the premium and benefits over time?
• In the event of Walter's accidental death, what amount would the beneficiary receive under the double indemnity benefit?
• Which type of insurance policy is at risk of being classified as a Modified Endowment Contract?
• What is the effect on the face amount of a policy when the reduced paid up nonforfeiture option is chosen?
• At what age must the insured attain in order to receive the face amount of a whole life policy?
• What is the primary function of the accidental death rider in a life insurance policy?
• Which option typically provides the highest benefit payout to beneficiaries?
• What happens if an employee does not provide proof of insurability when not required?
• Which statement correctly compares business and personal life insurance?
• How is the Insurance Guaranty Association funded?
• Under the Fair Credit Reporting Act, individuals have the right to dispute inaccurate information in their credit reports. Which of the following is true about this right?
• In what type of insurance is the waiver of cost of insurance rider commonly found?
• When is a misrepresentation on an insurance application considered fraud?
• Which of the following best describes a revocable beneficiary?
• What is an example of an agent's fiduciary responsibilities?
• What is NOT true regarding a decreasing term policy?
• What factor is typically NOT considered when determining premiums for group life insurance?
• Who is responsible for examining the books and records of insurance companies in Florida?
• What characteristic is true about a spouse term rider?
• Which of the following is NOT a responsibility of the office of insurance regulation?
• Which individual would not receive a death benefit immediately after the insured's death?
• Which organization is not considered an insurer but provides benefits to members of an affiliated lodge or religious group?
• What type of life insurance policy is typically provided at no cost to employees?
• Insurance contracts are agreements between which two parties?
• Which option is not considered a personal benefit of life insurance?
• Which of the following statements about life insurance warranty is true?
• What happens if a life insurance policy lapses?
• Can a group formed solely for the purpose of obtaining group insurance qualify for group coverage?
• Which type of risk is associated with the highest insurance premium?
• When an agent’s client needs coverage that the agent's own insurer cannot provide, what is the additional coverage called?
• If an insured submits a proof of loss form within 10 days of a loss, but the insurer does not acknowledge the form for 3 months, what violation has occurred?
• What term describes advising an individual to switch policies in a way that benefits the agent at the expense of the insured?
• If the primary beneficiary of a life insurance policy does not see a settlement option stated in the policy, who gets to select the settlement option?
• What is true regarding branch agency licensing?
• What does the free look privilege allow an insured to do?
• In order to maintain ethical standards, what is paramount for an insurance agent?
• Which steps are involved in the underwriting process for life insurance?
• Which of the following is NOT an example of third party ownership of a life insurance policy?
• An applicant who receives a preferred risk classification is likely to receive what benefit?
• In a decreasing term insurance policy, which component decreases over time?
• What type of annuity would Ann select to ensure her return matches the performance of the Standard and Poor's 500 index?
• In what manner can an agent exemplify a high standard of ethics?
• Which type of policy allows the policy owner to skip premium payments if there is enough cash value to cover the premium?
• Which of the following is NOT a requirement for life insurance illustrations?
• Who has the right to receive insurance benefits upon the insured's death?
• Who qualifies as a third-party owner of a life insurance policy?
• What happens to the premiums of a policy if the insured is disabled and has a waiver of premium rider?
• Which of the following can negatively impact a consumer's credit score?
• What is Florida's requirement for continuing education to maintain an insurance license?
• Which of the following is typically included in a policy summary?
• If a consumer asks for additional information about an investigative consumer report, how long does the insurer have to respond?
• Which of the following statements is incorrect regarding insurance practices?
• A paid-up nonforfeiture benefit becomes effective as specified unless the person elects another option within how many days after the premium is in default?
• For individuals not covered by an employer-sponsored plan, what is true about IRA contributions?
• In a group insurance plan, which of the following is typically excluded from certificates of insurance?
• What is a nonforfeiture value in a life insurance policy?
• In a universal life policy, what component covers the cost of insurance and provides a cash value accumulation?
• Who does the secondary notice provision primarily protect?
• What is the primary purpose of a waiver of premium rider?
• Who is primarily responsible for enforcing the Fair Credit Reporting Act?
• The term "fixed" in fixed annuity does not refer to which of the following?
• What is the main purpose of a disclosure statement in life insurance policies?
• What can consumers do if they suspect their credit file has been accessed without authorization?
• Under what circumstances may continuing education requirements be extended?
• What is the main purpose of the "free look" period in life insurance?
• What term is used to describe the function of evaluating a couple's children's needs in the event of a parent's death?
• What method do insurers use to protect themselves against catastrophic losses?
• Which situation would be considered an example of unfair claims settlement practice?
• In the context of insurance, what does the term 'cash value' refer to?
• What is the minimum age for purchasing a life insurance policy in Florida?
• When does a 20 pay whole life policy endow?
• What is typically the consequence if an applicant does not submit the initial premium at the time of life insurance application?