214 FLORIDA INSURANCE COMPLETE RETAKE EXAM STUDY SET

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? - Errors and Omissions Insurance Which of the following terms is known as the voluntary relinquishment of a given right or privilege? - 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? - 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? - 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? - 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: - 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? - Waiver of premium and Disability Income Riders In a contributory group plan, what percentage of eligible employees must be covered? - 75% Which statement regarding annuities is CORRECT? - 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. - 6 Social security is also known as: - Old Age Survivors and Disability Insurance (OASDI) Insurance is not intended to protect against? - Speculative Risk Under a family plan life insurance policy, coverage on the breadwinner is often provided by which of the following insurance types? - Whole Life Which of the following statements regarding annuity settlement or payout options is NOT true? - If the annuitant dies before the principal sum is depleted, the Refund Life Annuity Option will pay the entire annuity amount to the beneficiary in a lump sum payment or over scheduled installments. The following statements regarding 401(k) retirement plans are correct EXCEPT: - Plans rarely have a matching contribution component by an employer All of