Florida Life and Health Insurance Questions and asnswers

Florida Life and Health Insurance Questions
and asnswers.

Insured - (correct answer) - The person covered by the insurance policy.
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Rider - (correct answer) - gh gh gh gh




A written modification attached to a policy that increases or decreases coverage and/or premiums.
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What is a unilateral contract? - (correct answer) -
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A contract in which only one of the parties is legally bound to fulfill its obligations.
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What law protects consumers from the circulation of inaccurate or obsolete information? -
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(correct answer) - The Fair Credit Reporting Act.
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What are the three types of agent authority? - (correct answer) - Implied, Express, and Apparent.
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Agent - (correct answer) - gh gh gh gh




An individual who is licensed to sell, negotiate, or effect insurance contracts on behalf of the insurer.
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What is name of the process that insurance companies use to determine whether or not an applicant i
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s insurable? - (correct answer) - Underwriting
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The requirement that agents must account for and promptly remit all insurance funds collected is kno
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wn as what type of agent responsibility? - (correct answer) - Fiduciary
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What is a third-party ownership? - (correct answer) -
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An insurance arrangement in which the policy owner and the insured are not the same person.
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Suitability - (correct answer) - gh gh gh gh




Factors that determine if an insurance product is appropriate for a particular customer.
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Premium - (correct answer) - gh gh gh gh




A payment by the policy owner to the insurance company to keep the policy in force.
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Disclosure - (correct answer) - gh gh gh gh




Providing sufficient information to help someone make informed decision.
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An agent offer a client free tickets to a sporting event in exchange for the purchase of an insurance pol
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icy. What is the agent guilty of? - (correct answer) - Rebating
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If an insurer meets the states financial requirements and is approved to transact business in the state,
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it is considered what type of insurer? - (correct answer) - Authorized
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, What information are the members of the medical information bureau required to report? -
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(correct answer) - Adverse medical information about the applicants or insureds.
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What type of beneficiary can be changed at any point by the policy owner? - (correct answer) -
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Revocable
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What document describes the specific information about a policy? - (correct answer) - Policy Summary
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What is the term for the causes of loss insured against in an insurance policy? - (correct answer) -
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Peril
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Whom does an insurance agent represent? - (correct answer) - Insurance Company
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What is an unfair trade practice? - (correct answer) -
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Any fraudulent, deceptive, or dishonest business practice that is prohibited by statutes and regulation
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s.

Insurer - (correct answer) - The company that issues an insurance policy.
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Peril - (correct answer) - Cause of loss
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Contract of Adhesion - (correct answer) - gh gh gh gh gh gh




A contract prepared by one party that must be accepted as written or be rejected by the other party.
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What are the four elements of an insurance contract? - (correct answer) -
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Agreement (Offer and Acceptance), consideration, competent parties, and legal purpose.
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Policy Provision - (correct answer) -
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A clause that stipulates the rights and obligations under an insurance contract.
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Fiduciary - (correct answer) - A producer who handles insurer's funds in a trust capacity.
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Who is considered a nonresident agent? - (correct answer) -
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An agent who resides and is licensed in another state, but is authorized to transact insurance in Flori
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da.

What is underwriting? - (correct answer) - The risk selection and classification process.
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What is the best way to handle incomplete insurance applications? - (correct answer) -
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Return the application to the applicant for completion.
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What are the five characteristics of an ideally insurable risk? - (correct answer) - Loss must be:
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1. Due to Change
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2. Definite and measurable
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3. Statistically predictable
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