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Free Life Insurance Basics Practice Questions

Florida Life including Variable Annuity (2-14) exam (series 2-14) — 39 practice questions.

Subtopics: Buyer's guide and policy summary, Life settlement broker, Replacement notice, Recommendation to surrender, Insurable interest, Insurable interest parties, Personal uses, Liquidity, Human life value, Needs approach, Buy-sell funding, Key person, Term vs permanent, Participating policies, Separate account, Variable products licensing, Premium factors, Mortality, Interest assumption, Premium mode, Advertising, Field underwriting, Application accuracy, Sources of underwriting, Risk classification, Substandard risk, Effective date, Statement of good health, Backdating, MIB, Unfair discrimination underwriting, Group vs individual, Warranties vs representations, Disclosure statement, Estate conservation, Executive compensation, Expense factor, Declined risk, Surrender comparison index

Sample questions & answers

1. Florida requires that a prospective life insurance purchaser be given a buyer's guide and a policy summary:

Before accepting the initial premium, unless the policy provides at least a 14-day unconditional refund

The insurer must deliver a buyer's guide and policy summary before accepting the initial premium unless the policy provides at least a 14-day unconditional refund.

2. A person who negotiates a viatical or life settlement between a policyowner and a third-party purchaser in Florida must hold a:

Life settlement (viatical settlement) broker license

Florida requires a viatical (life) settlement broker license to negotiate the sale of an existing life policy to a third party.

3. When a Florida life sale will replace an existing policy, the producer generally must:

Provide the applicant the required replacement notice and notify the existing insurer

Florida replacement rules require giving the applicant a replacement notice and notifying the existing insurer so the consumer can compare coverage.

4. Before a Florida producer recommends that a consumer surrender an annuity or life policy to buy another, the producer must:

Provide a written disclosure comparing values and consequences of the surrender

Florida requires a written comparative disclosure when recommending the surrender of an annuity or life policy, so the consumer can evaluate the consequences.

All Life including Variable Annuity (2-14) topics

Practice: Life Insurance Basics

Take a randomized, timed-style practice test. Answer choices are shuffled and your results are scored instantly with an explanation for every question.

Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Pennsylvania Insurance Department and the exam administrator before relying on it.