Florida 2-15 Life, Health & Annuity Practice Test

Answer choices

1. A. Whether the expense is a qualified medical expense under the HSA rules and the distribution is otherwise properly substantiated.
2. B. Whether the insurer first denied the medical claim.
3. C. Whether the expense exceeded the health plan's annual deductible.
4. D. Whether Florida DFS approved the HSA withdrawal in advance.

Wrong-answer review

• B. Whether the insurer first denied the medical claim.: An insurance claim denial is not the federal HSA tax test.
• C. Whether the expense exceeded the health plan's annual deductible.: The expense need not exceed the plan deductible to be an HSA-qualified expense.
• D. Whether Florida DFS approved the HSA withdrawal in advance.: DFS preapproval is not part of the federal HSA distribution rule.

Answer choices

1. A. The assignment transfers ownership rights according to its terms, but it does not by itself change David's beneficiary designation; any later beneficiary change must follow the policy's provisions.
2. B. David must consent to every ownership assignment because he is a revocable beneficiary.
3. C. The assignment automatically makes Sofia both owner and beneficiary even though the beneficiary designation was not changed.
4. D. Florida DFS must approve the assignment before the insurer may recognize it.

Answer choices

1. A. Treat the producer's conduct as proper annuity best-interest documentation rather than a misleading replacement comparison.
2. B. Twisting through misleading comparisons used to induce a policy change or replacement.
3. C. A routine claim-settlement negotiation.
4. D. A permitted assignment of policy ownership.

Answer choices

1. A. Permissible replacement because the client may choose a different insurer.
2. B. Twisting, because a knowingly false comparison induces surrender and purchase from another insurer.
3. C. Churning solely because the transaction occurs within twelve months, regardless of the insurers or representations involved.
4. D. Sliding, because every annuity replacement necessarily adds an undisclosed ancillary product.

Answer choices

1. A. The original face amount automatically remains unchanged after premium default.
2. B. Only the cash surrender value is payable because all insurance ended.
3. C. The reduced paid-up death benefit, less applicable policy indebtedness.
4. D. Nothing is payable unless the original premium-paying policy was reinstated.

Answer choices

1. A. Have the producer question the customer about whether a Suspicious Activity Report will be filed.
2. B. Ignore the pattern because life insurance companies are not subject to federal AML requirements.
3. C. Escalate the activity immediately through the insurer’s AML compliance program so the insurer can investigate and make any required regulatory filing without tipping off the customer.
4. D. Approve the policy first and review the payment pattern only if a claim is later filed.

Answer choices

1. A. Twisting, because the producer made a false comparison to replace an existing policy.
2. B. Rebating, because the producer returned part of the commission to the buyer.
3. C. Sliding.
4. D. Churning, because existing policy values were used to fund a new policy.

Answer choices

1. A. The insurer must pay immediately because every life policy becomes incontestable after one year.
2. B. The insurer may investigate the material application statement because the policy is still within its two-year contestability period.
3. C. The insurer may deny solely because the insured died during the contestability period, without investigating the application statement.
4. D. The insurer may ignore the application and decide the claim only from the beneficiary designation.

Answer choices

1. A. The policy necessarily lapsed on the original due date despite the grace provision.
2. B. Payment received during grace can keep the policy in force.
3. C. The insurer must require a brand-new application for any payment received after the due date.
4. D. The payment can be accepted only after the beneficiary signs a new designation.

Answer choices

1. A. The policy pays 100% because every accidental injury is treated as accidental death.
2. B. No benefit is payable unless the insured later dies from the accident.
3. C. The policy pays 50% of the principal sum for the covered dismemberment loss.
4. D. The insurer must transfer ownership of the policy to the beneficiary before paying.