Florida Life and Health Insurance
Insured - ANSThe person covered by the insurance policy.
Rider - ANSA written modification attached to a policy that increases or decreases coverage
and/or premiums.
What is a unilateral contract? - ANSA 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? -
ANSThe Fair Credit Reporting Act.
What are the three types of agent authority? - ANSImplied, Express, and Apparent.
Agent - ANSAn 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? - ANSUnderwriting
The requirement that agents must account for and promptly remit all insurance funds collected
is known as what type of agent responsibility? - ANSFiduciary
What is a third-party ownership? - ANSAn insurance arrangement in which the policy owner and
the insured are not the same person.
Suitability - ANSFactors that determine if an insurance product is appropriate for a particular
customer.
Premium - ANSA payment by the policy owner to the insurance company to keep the policy in
force.
Disclosure - ANSProviding 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? - ANSRebating
If an insurer meets the states financial requirements and is approved to transact business in the
state, it is considered what type of insurer? - ANSAuthorized
,What information are the members of the medical information bureau required to report? -
ANSAdverse medical information about the applicants or insureds.
What type of beneficiary can be changed at any point by the policy owner? - ANSRevocable
What document describes the specific information about a policy? - ANSPolicy Summary
What is the term for the causes of loss insured against in an insurance policy? - ANSPeril
Whom does an insurance agent represent? - ANSInsurance Company
What is an unfair trade practice? - ANSAny fraudulent, deceptive, or dishonest business
practice that is prohibited by statutes and regulations.
Insurer - ANSThe company that issues an insurance policy.
Peril - ANSCause of loss
Contract of Adhesion - ANSA 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? - ANSAgreement (Offer and Acceptance),
consideration, competent parties, and legal purpose.
Policy Provision - ANSA clause that stipulates the rights and obligations under an insurance
contract.
Fiduciary - ANSA producer who handles insurer's funds in a trust capacity.
Who is considered a nonresident agent? - ANSAn agent who resides and is licensed in another
state, but is authorized to transact insurance in Florida.
What is underwriting? - ANSThe risk selection and classification process.
What is the best way to handle incomplete insurance applications? - ANSReturn the application
to the applicant for completion.
What are the five characteristics of an ideally insurable risk? - ANSLoss must be:
1. Due to Change
2. Definite and measurable
3. Statistically predictable
4. Not catastrophic
5. Coverage cannot be mandatory.
, What type of policy issues certificates of insurance to the insurance? - ANSGroup Policy
What is the purpose of a free-look period? - ANSTo allow the insured to return the policy and get
a full refund (if done during the free-look period)
Whose responsibility is it to determine that all of the questions on an insurance application are
answered? - ANSThe Agent's
What types of licensee represents the insurance company? - ANSAgent
Who must be notified of the producers change of address? - ANSThe department of Insurance
Certificate of Insurance - ANSA document issued to insureds under a group plan that states the
coverage being issued, and indicates the coverage type and amounts.
Nonrenewal - ANSTermination of a policy by an insurer on the anniversary or renewal date.
Representation - ANSA statement made by the applicant on the insurance application that is
believed to be true.
What is a warranty? - ANSAn absolutely true statement that, if breached, may viod an insurance
contract.
In insurance, when is the offer usually made on a contract? - ANSWhen the insurance
application is submitted.
When a change needs to be made on the application for insurance, which is the best method for
correcting the information? - ANSComplete a new application or ask the applicant to initial the
correction on the original application.
A situation in which a person can only experience a loss and no gain represents what type of
risk? - ANSPure Risk
Who is responsible for the contents of insurance advertisements? - ANSThe Insurance
Company
What is the entire contract in health insurance underwriting? - ANSThe policy with riders and
endorsements, plus a copy of the application.
What is the main purpose for requiring a person to be licensed to transact insurance? - ANSTo
protect the general public.
Who is an insurance agent? - ANSA person authorized to sell, solicit, and negotiate insurance
contracts.
Insured - ANSThe person covered by the insurance policy.
Rider - ANSA written modification attached to a policy that increases or decreases coverage
and/or premiums.
What is a unilateral contract? - ANSA 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? -
ANSThe Fair Credit Reporting Act.
What are the three types of agent authority? - ANSImplied, Express, and Apparent.
Agent - ANSAn 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? - ANSUnderwriting
The requirement that agents must account for and promptly remit all insurance funds collected
is known as what type of agent responsibility? - ANSFiduciary
What is a third-party ownership? - ANSAn insurance arrangement in which the policy owner and
the insured are not the same person.
Suitability - ANSFactors that determine if an insurance product is appropriate for a particular
customer.
Premium - ANSA payment by the policy owner to the insurance company to keep the policy in
force.
Disclosure - ANSProviding 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? - ANSRebating
If an insurer meets the states financial requirements and is approved to transact business in the
state, it is considered what type of insurer? - ANSAuthorized
,What information are the members of the medical information bureau required to report? -
ANSAdverse medical information about the applicants or insureds.
What type of beneficiary can be changed at any point by the policy owner? - ANSRevocable
What document describes the specific information about a policy? - ANSPolicy Summary
What is the term for the causes of loss insured against in an insurance policy? - ANSPeril
Whom does an insurance agent represent? - ANSInsurance Company
What is an unfair trade practice? - ANSAny fraudulent, deceptive, or dishonest business
practice that is prohibited by statutes and regulations.
Insurer - ANSThe company that issues an insurance policy.
Peril - ANSCause of loss
Contract of Adhesion - ANSA 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? - ANSAgreement (Offer and Acceptance),
consideration, competent parties, and legal purpose.
Policy Provision - ANSA clause that stipulates the rights and obligations under an insurance
contract.
Fiduciary - ANSA producer who handles insurer's funds in a trust capacity.
Who is considered a nonresident agent? - ANSAn agent who resides and is licensed in another
state, but is authorized to transact insurance in Florida.
What is underwriting? - ANSThe risk selection and classification process.
What is the best way to handle incomplete insurance applications? - ANSReturn the application
to the applicant for completion.
What are the five characteristics of an ideally insurable risk? - ANSLoss must be:
1. Due to Change
2. Definite and measurable
3. Statistically predictable
4. Not catastrophic
5. Coverage cannot be mandatory.
, What type of policy issues certificates of insurance to the insurance? - ANSGroup Policy
What is the purpose of a free-look period? - ANSTo allow the insured to return the policy and get
a full refund (if done during the free-look period)
Whose responsibility is it to determine that all of the questions on an insurance application are
answered? - ANSThe Agent's
What types of licensee represents the insurance company? - ANSAgent
Who must be notified of the producers change of address? - ANSThe department of Insurance
Certificate of Insurance - ANSA document issued to insureds under a group plan that states the
coverage being issued, and indicates the coverage type and amounts.
Nonrenewal - ANSTermination of a policy by an insurer on the anniversary or renewal date.
Representation - ANSA statement made by the applicant on the insurance application that is
believed to be true.
What is a warranty? - ANSAn absolutely true statement that, if breached, may viod an insurance
contract.
In insurance, when is the offer usually made on a contract? - ANSWhen the insurance
application is submitted.
When a change needs to be made on the application for insurance, which is the best method for
correcting the information? - ANSComplete a new application or ask the applicant to initial the
correction on the original application.
A situation in which a person can only experience a loss and no gain represents what type of
risk? - ANSPure Risk
Who is responsible for the contents of insurance advertisements? - ANSThe Insurance
Company
What is the entire contract in health insurance underwriting? - ANSThe policy with riders and
endorsements, plus a copy of the application.
What is the main purpose for requiring a person to be licensed to transact insurance? - ANSTo
protect the general public.
Who is an insurance agent? - ANSA person authorized to sell, solicit, and negotiate insurance
contracts.
