Florida Life and Health Insurance
Exam-Graded A
Insured - ANSWER-The person covered by the insurance policy.
Rider - ANSWER-A written modification attached to a policy that increases or decreases
coverage and/or premiums.
What is a unilateral contract? - ANSWER-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?
- ANSWER-The Fair Credit Reporting Act.
What are the three types of agent authority? - ANSWER-Implied, Express, and
Apparent.
Agent - ANSWER-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? - ANSWER-Underwriting
The requirement that agents must account for and promptly remit all insurance funds
collected is known as what type of agent responsibility? - ANSWER-Fiduciary
What is a third-party ownership? - ANSWER-An insurance arrangement in which the
policy owner and the insured are not the same person.
Suitability - ANSWER-Factors that determine if an insurance product is appropriate for a
particular customer.
Premium - ANSWER-A payment by the policy owner to the insurance company to keep
the policy in force.
Disclosure - ANSWER-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? - ANSWER-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? - ANSWER-Authorized
What information are the members of the medical information bureau required to
report? - ANSWER-Adverse medical information about the applicants or insureds.
What type of beneficiary can be changed at any point by the policy owner? - ANSWER-
Revocable
What document describes the specific information about a policy? - ANSWER-Policy
Summary
What is the term for the causes of loss insured against in an insurance policy? -
ANSWER-Peril
Whom does an insurance agent represent? - ANSWER-Insurance Company
What is an unfair trade practice? - ANSWER-Any fraudulent, deceptive, or dishonest
business practice that is prohibited by statutes and regulations.
Insurer - ANSWER-The company that issues an insurance policy.
Peril - ANSWER-Cause of loss
Contract of Adhesion - ANSWER-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? - ANSWER-Agreement (Offer and
Acceptance), consideration, competent parties, and legal purpose.
When would a 20-pay whole life policy endow? - ANSWER-When the insured reaches
age 100.
Who owns a group life insurance contract? - ANSWER-The employer.
In a joint life policy, when is the death benefit paid? - ANSWER-Upon the first death (if
first-to-die policy), or upon the second death (if survivor ship policy)
What is the blackout period for Social Security Benefits? - ANSWER-A period of time
during which the surviving spouse does not receive social security benefits.
What are the personal uses of life insurance? - ANSWER-Survivor protection, estate
creation and conservation, cash accumulation and liquidity.
, Non-forfeiture Options - ANSWER-Methods of distribution of guaranteed values in a life
insurance policy.
With the interest-only settlement option, what happens to the policy's death benefit? -
ANSWER-Policy proceeds are retained by the insurance company; only the interest is
paid to the beneficiary.
If there is no named beneficiary for the annuity benefits, where do the benefits go? -
ANSWER-Annuitant's estate
What is the general taxation rule for death benefits payable to the beneficiary of a life
insurance policy? - ANSWER-Death benefits are generally not subject to income taxes.
What is the purpose of the automatic premium loan provision? - ANSWER-To prevent
the unintentional lapse of a policy because of nonpayment of premium.
Which non-forfeiture option is automatically selected by the company if not chosen by
the policy owner? - ANSWER-Extended Term.
What life insurance policy provision prevents an insurer form disputing or denying a
claim due to misstatements on the application after a certain period of time? -
ANSWER-Incontestability
In annually renewable term policies, what is the annual premium based upon? -
ANSWER-The insured's attained age.
In what type of life insurance policy can the policy owner skip premium payments
without the policy lapsing? - ANSWER-Universal Life
What type of life insurance policy offers pure death protection? - ANSWER-Term
At what point does coverage begin when an agent issues a conditional insurability
receipt for a life insurance policy? - ANSWER-Either on the date of the application or
the date of the medical exam, whichever occurs last.
What are the three main factors that determine the premium for a life insurance policy? -
ANSWER-Mortality, Interest, and Expense.
Qualified Plan - ANSWER-A retirement plan that meets the IRS guidelines for receiving
favorable tax treatment.
Face Amount - ANSWER-The amount of benefit stated in the life insurance policy.
What is the penalty for excessive contributions to a traditional IRA? - ANSWER-6%
Exam-Graded A
Insured - ANSWER-The person covered by the insurance policy.
Rider - ANSWER-A written modification attached to a policy that increases or decreases
coverage and/or premiums.
What is a unilateral contract? - ANSWER-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?
- ANSWER-The Fair Credit Reporting Act.
What are the three types of agent authority? - ANSWER-Implied, Express, and
Apparent.
Agent - ANSWER-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? - ANSWER-Underwriting
The requirement that agents must account for and promptly remit all insurance funds
collected is known as what type of agent responsibility? - ANSWER-Fiduciary
What is a third-party ownership? - ANSWER-An insurance arrangement in which the
policy owner and the insured are not the same person.
Suitability - ANSWER-Factors that determine if an insurance product is appropriate for a
particular customer.
Premium - ANSWER-A payment by the policy owner to the insurance company to keep
the policy in force.
Disclosure - ANSWER-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? - ANSWER-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? - ANSWER-Authorized
What information are the members of the medical information bureau required to
report? - ANSWER-Adverse medical information about the applicants or insureds.
What type of beneficiary can be changed at any point by the policy owner? - ANSWER-
Revocable
What document describes the specific information about a policy? - ANSWER-Policy
Summary
What is the term for the causes of loss insured against in an insurance policy? -
ANSWER-Peril
Whom does an insurance agent represent? - ANSWER-Insurance Company
What is an unfair trade practice? - ANSWER-Any fraudulent, deceptive, or dishonest
business practice that is prohibited by statutes and regulations.
Insurer - ANSWER-The company that issues an insurance policy.
Peril - ANSWER-Cause of loss
Contract of Adhesion - ANSWER-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? - ANSWER-Agreement (Offer and
Acceptance), consideration, competent parties, and legal purpose.
When would a 20-pay whole life policy endow? - ANSWER-When the insured reaches
age 100.
Who owns a group life insurance contract? - ANSWER-The employer.
In a joint life policy, when is the death benefit paid? - ANSWER-Upon the first death (if
first-to-die policy), or upon the second death (if survivor ship policy)
What is the blackout period for Social Security Benefits? - ANSWER-A period of time
during which the surviving spouse does not receive social security benefits.
What are the personal uses of life insurance? - ANSWER-Survivor protection, estate
creation and conservation, cash accumulation and liquidity.
, Non-forfeiture Options - ANSWER-Methods of distribution of guaranteed values in a life
insurance policy.
With the interest-only settlement option, what happens to the policy's death benefit? -
ANSWER-Policy proceeds are retained by the insurance company; only the interest is
paid to the beneficiary.
If there is no named beneficiary for the annuity benefits, where do the benefits go? -
ANSWER-Annuitant's estate
What is the general taxation rule for death benefits payable to the beneficiary of a life
insurance policy? - ANSWER-Death benefits are generally not subject to income taxes.
What is the purpose of the automatic premium loan provision? - ANSWER-To prevent
the unintentional lapse of a policy because of nonpayment of premium.
Which non-forfeiture option is automatically selected by the company if not chosen by
the policy owner? - ANSWER-Extended Term.
What life insurance policy provision prevents an insurer form disputing or denying a
claim due to misstatements on the application after a certain period of time? -
ANSWER-Incontestability
In annually renewable term policies, what is the annual premium based upon? -
ANSWER-The insured's attained age.
In what type of life insurance policy can the policy owner skip premium payments
without the policy lapsing? - ANSWER-Universal Life
What type of life insurance policy offers pure death protection? - ANSWER-Term
At what point does coverage begin when an agent issues a conditional insurability
receipt for a life insurance policy? - ANSWER-Either on the date of the application or
the date of the medical exam, whichever occurs last.
What are the three main factors that determine the premium for a life insurance policy? -
ANSWER-Mortality, Interest, and Expense.
Qualified Plan - ANSWER-A retirement plan that meets the IRS guidelines for receiving
favorable tax treatment.
Face Amount - ANSWER-The amount of benefit stated in the life insurance policy.
What is the penalty for excessive contributions to a traditional IRA? - ANSWER-6%
