Florida Insurance Exam Chapter 1 Accurate 100%

Life Insurance - ANSWER is insurance against loss due to the death of a particular person (the insured) upon whose death the insurance company agrees to pay a stated sum or income to the beneficiary. In its purist form, life insurance states, "We will pay this amount when this person dies." Term Life Insurance - ANSWER is a protection for a set number of year; expiring without value if the insured survives the state period, which may be one or more years. Term life is designed to provide temporary protection in case a person dies during a set period of time. Whole Life Insurance - ANSWER is a permanent level insurance protection for a person's "whole of life", from policy issue to the death of the insured. Characterized by level premiums, level benefits, and cash values. Group Life Insurance - ANSWER is a type of life insurance in which a single contract covers an entire group of people. Most often, the group is an employer-employee group. Those covered under a group life policy may or may not pay a portion of the premium and can usually choose their beneficiary. However, the insured typically does NOT own the policy, the group (employer) owns and controls the policy. Consideration - ANSWER is the part of an insurance contract setting for the amount of initial and renew premiums and frequency of future payments. Consideration is often said to include the initial premium and completed application for insurance. In other words, the applicant is saying, " please CONSIDER me for insurance, her is my initial premium, my completed application, and how much/how often i agree to pay in the future. Please CONSIDER me". The Insuring Agreement (Insuring Clause, Insurance Provision) - ANSWER is the portion of the insurance policy in which the insurer promises to make payment to or on behalf of the insured. It states the scope and limits of coverage. The insuring agreement is usually contained in a coverage form from which a policy is constructed. In other words, it is the insurance company saying, "We ensure to INSURE you under these conditions for this amount."