214 Florida Insurance Exam 100%
Correct Answers
Which type of insurance protects an agent and even pays claims if a lawsuit is brought
against the agent as a result of failing to provide a service to a client? - ANSWER-Errors
and Omissions Insurance
Which of the following terms is known as the voluntary relinquishment of a given right or
privilege? - ANSWER-Waiver
This Supreme Court case placed the regulation of insurance within the authority of the
federal government by defining insurance as a form of interstate commerce? -
ANSWER-United States v. Southeastern Underwriters Association (1944)
Tim was just hired today by MAB INC and wants to join the company's group insurance
policy. What period of time is he currently in and when can he join the plan? -
ANSWER-Probationary period, he can sign up after 90 days
If Justin submitted an initial premium with his life insurance application, was provided a
conditional receipt by the insurance company and was ultimately issued a policy as
applied for, when would his insurance policy be considered in force? - ANSWER-The
date of his application or the day he completed any required medical exam
When dividends are issued, the policyowner has the following dividend options in
utilizing a return EXCEPT: - ANSWER-Life Income Option
Which two life insurance riders can Bill purchase to guarantee that his policy will
continue without further commitment from him and that income will be paid to him if he
becomes totally and permanently disabled? - ANSWER-Waiver of premium and
Disability Income Riders
In a contributory group plan, what percentage of eligible employees must be covered? -
ANSWER-75%
Which statement regarding annuities is CORRECT? - ANSWER-Variable annuity units
are fixed but the annuity payment will vary according to the value of the annuity unit.
In order to be considered currently insured and thus eligible for limited survivor benefits
from Social Security, a worker must have earned ___ credits during the 13-quarter
period ending with the quarter in which the worker died. - ANSWER-6
, Social security is also known as: - ANSWER-Old Age Survivors and Disability Insurance
(OASDI)
Insurance is not intended to protect against? - ANSWER-Speculative Risk
Under a family plan life insurance policy, coverage on the breadwinner is often provided
by which of the following insurance types? - ANSWER-Whole Life
Non-contributory plans - ANSWER-Group insurance plans that do not require
employees to pay a portion of policy premiums are referred to as:
4 credits - ANSWER-What is the maximum number of Social Security credits an
individual can earn per year?
An annuity contract exchanged for a life insurance policy - ANSWER-Under the 1035
policy exchange provision, which of the following will NOT receive favorable tax
treatment?
Stock - ANSWER-Which of the following insurers is best defined as a non-participating
company?
100% - ANSWER-A non-contributory group policy requires which percentage of eligible
employees to be covered?
Revocable Designation - ANSWER-Carla has named her husband Jeffrey as the
beneficiary to her life insurance policy. Under which beneficiary designation does she
remains in control of the policy and can make any changes she sees fit in the future?
Graded premium whole life - ANSWER-Which type of whole life insurance policy is
characterized by affordable premiums in its initial years, then gradually increasing over
the next few years until finally leveling off at a slightly higher rate than a standard whole
life policy?
Cash surrender option, reduced paid-up option and extended term option - ANSWER-In
the event that a whole life insurance policy lapses due to nonpayment or it is
intentionally cancelled, which of the following nonforfeiture options are available to the
policyowner?
1000x24 months = ? - ANSWER-Carl purchased an Immediate Annuity with a 5-year
'life with period certain option,' which pays him $1,000 per month. Exactly 3 years after
his policy start date Carl dies. How much money will his beneficiary receive for the
remainder of the policy?
His distribution payment amount will fluctuate depending on the return of interest at the
time of each distribution payment - ANSWER-Leon currently receives $650 per month
from his variable annuity. Since he is scheduled to receive payments from his variable
Correct Answers
Which type of insurance protects an agent and even pays claims if a lawsuit is brought
against the agent as a result of failing to provide a service to a client? - ANSWER-Errors
and Omissions Insurance
Which of the following terms is known as the voluntary relinquishment of a given right or
privilege? - ANSWER-Waiver
This Supreme Court case placed the regulation of insurance within the authority of the
federal government by defining insurance as a form of interstate commerce? -
ANSWER-United States v. Southeastern Underwriters Association (1944)
Tim was just hired today by MAB INC and wants to join the company's group insurance
policy. What period of time is he currently in and when can he join the plan? -
ANSWER-Probationary period, he can sign up after 90 days
If Justin submitted an initial premium with his life insurance application, was provided a
conditional receipt by the insurance company and was ultimately issued a policy as
applied for, when would his insurance policy be considered in force? - ANSWER-The
date of his application or the day he completed any required medical exam
When dividends are issued, the policyowner has the following dividend options in
utilizing a return EXCEPT: - ANSWER-Life Income Option
Which two life insurance riders can Bill purchase to guarantee that his policy will
continue without further commitment from him and that income will be paid to him if he
becomes totally and permanently disabled? - ANSWER-Waiver of premium and
Disability Income Riders
In a contributory group plan, what percentage of eligible employees must be covered? -
ANSWER-75%
Which statement regarding annuities is CORRECT? - ANSWER-Variable annuity units
are fixed but the annuity payment will vary according to the value of the annuity unit.
In order to be considered currently insured and thus eligible for limited survivor benefits
from Social Security, a worker must have earned ___ credits during the 13-quarter
period ending with the quarter in which the worker died. - ANSWER-6
, Social security is also known as: - ANSWER-Old Age Survivors and Disability Insurance
(OASDI)
Insurance is not intended to protect against? - ANSWER-Speculative Risk
Under a family plan life insurance policy, coverage on the breadwinner is often provided
by which of the following insurance types? - ANSWER-Whole Life
Non-contributory plans - ANSWER-Group insurance plans that do not require
employees to pay a portion of policy premiums are referred to as:
4 credits - ANSWER-What is the maximum number of Social Security credits an
individual can earn per year?
An annuity contract exchanged for a life insurance policy - ANSWER-Under the 1035
policy exchange provision, which of the following will NOT receive favorable tax
treatment?
Stock - ANSWER-Which of the following insurers is best defined as a non-participating
company?
100% - ANSWER-A non-contributory group policy requires which percentage of eligible
employees to be covered?
Revocable Designation - ANSWER-Carla has named her husband Jeffrey as the
beneficiary to her life insurance policy. Under which beneficiary designation does she
remains in control of the policy and can make any changes she sees fit in the future?
Graded premium whole life - ANSWER-Which type of whole life insurance policy is
characterized by affordable premiums in its initial years, then gradually increasing over
the next few years until finally leveling off at a slightly higher rate than a standard whole
life policy?
Cash surrender option, reduced paid-up option and extended term option - ANSWER-In
the event that a whole life insurance policy lapses due to nonpayment or it is
intentionally cancelled, which of the following nonforfeiture options are available to the
policyowner?
1000x24 months = ? - ANSWER-Carl purchased an Immediate Annuity with a 5-year
'life with period certain option,' which pays him $1,000 per month. Exactly 3 years after
his policy start date Carl dies. How much money will his beneficiary receive for the
remainder of the policy?
His distribution payment amount will fluctuate depending on the return of interest at the
time of each distribution payment - ANSWER-Leon currently receives $650 per month
from his variable annuity. Since he is scheduled to receive payments from his variable
