FLORIDA LIFE AND HEALTH INSURANCE EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS ) ALREADY GRADED A+
Insured - ANSWERS-The person covered by the insurance policy.
Rider - ANSWERS-A written modification attached to a policy that increases or decreases
coverage and/or premiums.
What is a unilateral contract? - ANSWERS-A contract in which only one of the parties is legally
bound to fulfill its obligations.
What law protects consumers from the circulation of inaccurate or obsolete information? -
ANSWERS-The Fair Credit Reporting Act.
What are the three types of agent authority? - ANSWERS-Implied, Express, and Apparent.
Agent - ANSWERS-An individual who is licensed to sell, negotiate, or effect insurance contracts
on behalf of the insurer.
What is name of the process that insurance companies use to determine whether or not an
applicant is insurable? - ANSWERS-Underwriting
The requirement that agents must account for and promptly remit all insurance funds collected
is known as what type of agent responsibility? - ANSWERS-Fiduciary
,What is a third-party ownership? - ANSWERS-An insurance arrangement in which the policy
owner and the insured are not the same person.
Suitability - ANSWERS-Factors that determine if an insurance product is appropriate for a
particular customer.
Premium - ANSWERS-A payment by the policy owner to the insurance company to keep the
policy in force.
Disclosure - ANSWERS-Providing sufficient information to help someone make informed
decision.
An agent offer a client free tickets to a sporting event in exchange for the purchase of an
insurance policy. What is the agent guilty of? - ANSWERS-Rebating
If an insurer meets the states financial requirements and is approved to transact business in the
state, it is considered what type of insurer? - ANSWERS-Authorized
What information are the members of the medical information bureau required to report? -
ANSWERS-Adverse medical information about the applicants or insureds.
What type of beneficiary can be changed at any point by the policy owner? - ANSWERS-
Revocable
What document describes the specific information about a policy? - ANSWERS-Policy Summary
What is the term for the causes of loss insured against in an insurance policy? - ANSWERS-Peril
, Whom does an insurance agent represent? - ANSWERS-Insurance Company
What is an unfair trade practice? - ANSWERS-Any fraudulent, deceptive, or dishonest business
practice that is prohibited by statutes and regulations.
Insurer - ANSWERS-The company that issues an insurance policy.
Peril - ANSWERS-Cause of loss
Contract of Adhesion - ANSWERS-A contract prepared by one party that must be accepted as
written or be rejected by the other party.
What are the four elements of an insurance contract? - ANSWERS-Agreement (Offer and
Acceptance), consideration, competent parties, and legal purpose.
Policy Provision - ANSWERS-A clause that stipulates the rights and obligations under an
insurance contract.
Fiduciary - ANSWERS-A producer who handles insurer's funds in a trust capacity.
Who is considered a nonresident agent? - ANSWERS-An agent who resides and is licensed in
another state, but is authorized to transact insurance in Florida.
What is underwriting? - ANSWERS-The risk selection and classification process.
What is the best way to handle incomplete insurance applications? - ANSWERS-Return the
application to the applicant for completion.
QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS ) ALREADY GRADED A+
Insured - ANSWERS-The person covered by the insurance policy.
Rider - ANSWERS-A written modification attached to a policy that increases or decreases
coverage and/or premiums.
What is a unilateral contract? - ANSWERS-A contract in which only one of the parties is legally
bound to fulfill its obligations.
What law protects consumers from the circulation of inaccurate or obsolete information? -
ANSWERS-The Fair Credit Reporting Act.
What are the three types of agent authority? - ANSWERS-Implied, Express, and Apparent.
Agent - ANSWERS-An individual who is licensed to sell, negotiate, or effect insurance contracts
on behalf of the insurer.
What is name of the process that insurance companies use to determine whether or not an
applicant is insurable? - ANSWERS-Underwriting
The requirement that agents must account for and promptly remit all insurance funds collected
is known as what type of agent responsibility? - ANSWERS-Fiduciary
,What is a third-party ownership? - ANSWERS-An insurance arrangement in which the policy
owner and the insured are not the same person.
Suitability - ANSWERS-Factors that determine if an insurance product is appropriate for a
particular customer.
Premium - ANSWERS-A payment by the policy owner to the insurance company to keep the
policy in force.
Disclosure - ANSWERS-Providing sufficient information to help someone make informed
decision.
An agent offer a client free tickets to a sporting event in exchange for the purchase of an
insurance policy. What is the agent guilty of? - ANSWERS-Rebating
If an insurer meets the states financial requirements and is approved to transact business in the
state, it is considered what type of insurer? - ANSWERS-Authorized
What information are the members of the medical information bureau required to report? -
ANSWERS-Adverse medical information about the applicants or insureds.
What type of beneficiary can be changed at any point by the policy owner? - ANSWERS-
Revocable
What document describes the specific information about a policy? - ANSWERS-Policy Summary
What is the term for the causes of loss insured against in an insurance policy? - ANSWERS-Peril
, Whom does an insurance agent represent? - ANSWERS-Insurance Company
What is an unfair trade practice? - ANSWERS-Any fraudulent, deceptive, or dishonest business
practice that is prohibited by statutes and regulations.
Insurer - ANSWERS-The company that issues an insurance policy.
Peril - ANSWERS-Cause of loss
Contract of Adhesion - ANSWERS-A contract prepared by one party that must be accepted as
written or be rejected by the other party.
What are the four elements of an insurance contract? - ANSWERS-Agreement (Offer and
Acceptance), consideration, competent parties, and legal purpose.
Policy Provision - ANSWERS-A clause that stipulates the rights and obligations under an
insurance contract.
Fiduciary - ANSWERS-A producer who handles insurer's funds in a trust capacity.
Who is considered a nonresident agent? - ANSWERS-An agent who resides and is licensed in
another state, but is authorized to transact insurance in Florida.
What is underwriting? - ANSWERS-The risk selection and classification process.
What is the best way to handle incomplete insurance applications? - ANSWERS-Return the
application to the applicant for completion.
