Florida Life and Health Insurance
Insured correct answersThe person covered by the insurance policy.
Rider correct answersA written modification attached to a policy that
increases or decreases coverage and/or premiums.
What is a unilateral contract? correct answersA 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? correct answersThe Fair Credit Reporting Act.
What are the three types of agent authority? correct answersImplied,
Express, and Apparent.
Agent correct answersAn 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? correct answersUnderwriting
The requirement that agents must account for and promptly remit all
insurance funds collected is known as what type of agent responsibility?
correct answersFiduciary
What is a third-party ownership? correct answersAn insurance
arrangement in which the policy owner and the insured are not the same
person.
Suitability correct answersFactors that determine if an insurance product is
appropriate for a particular customer.
Premium correct answersA payment by the policy owner to the insurance
company to keep the policy in force.
Disclosure correct answersProviding 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? correct
answersRebating
If an insurer meets the states financial requirements and is approved to
transact business in the state, it is considered what type of insurer? correct
answersAuthorized
,What information are the members of the medical information bureau
required to report? correct answersAdverse medical information about the
applicants or insureds.
What type of beneficiary can be changed at any point by the policy
owner? correct answersRevocable
What document describes the specific information about a
policy? correct answersPolicy Summary
What is the term for the causes of loss insured against in an insurance
policy? correct answersPeril
Whom does an insurance agent represent? correct answersInsurance
Company
What is an unfair trade practice? correct answersAny fraudulent,
deceptive, or dishonest business practice that is prohibited by
statutes and regulations.
Insurer correct answersThe company that issues an
insurance policy. Peril correct answersCause of loss
Contract of Adhesion correct answersA 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? correct
answersAgreement (Offer and Acceptance), consideration, competent
parties, and legal purpose.
Policy Provision correct answersA clause that stipulates the rights and
obligations under an insurance contract.
Fiduciary correct answersA producer who handles insurer's funds in a trust
capacity.
Who is considered a nonresident agent? correct answersAn agent who
resides and is licensed in another state, but is authorized to transact
insurance in Florida.
What is underwriting? correct answersThe risk selection and classification
process.
What is the best way to handle incomplete insurance
applications? correct answersReturn the application to the
applicant for completion.
What are the five characteristics of an ideally insurable risk? correct
answersLoss 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? correct answersGroup Policy
What is the purpose of a free-look period? correct answersTo 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? correct answersThe Agent's
What types of licensee represents the insurance company? correct
answersAgent
Who must be notified of the producers change of address? correct
answersThe department of Insurance
Certificate of Insurance correct answersA document issued to insureds
under a group plan that states the coverage being issued, and indicates
the coverage type and amounts.
Nonrenewal correct answersTermination of a policy by an insurer on the
anniversary or renewal date.
Representation correct answersA statement made by the applicant on the
insurance application that is believed to be true.
What is a warranty? correct answersAn absolutely true statement that, if
breached, may viod an insurance contract.
In insurance, when is the offer usually made on a contract? correct
answersWhen 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? correct
answersComplete 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? correct answersPure Risk
Who is responsible for the contents of insurance advertisements? correct
answersThe Insurance Company
What is the entire contract in health insurance underwriting? correct
answersThe policy with riders and endorsements, plus a copy of the
application.
Insured correct answersThe person covered by the insurance policy.
Rider correct answersA written modification attached to a policy that
increases or decreases coverage and/or premiums.
What is a unilateral contract? correct answersA 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? correct answersThe Fair Credit Reporting Act.
What are the three types of agent authority? correct answersImplied,
Express, and Apparent.
Agent correct answersAn 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? correct answersUnderwriting
The requirement that agents must account for and promptly remit all
insurance funds collected is known as what type of agent responsibility?
correct answersFiduciary
What is a third-party ownership? correct answersAn insurance
arrangement in which the policy owner and the insured are not the same
person.
Suitability correct answersFactors that determine if an insurance product is
appropriate for a particular customer.
Premium correct answersA payment by the policy owner to the insurance
company to keep the policy in force.
Disclosure correct answersProviding 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? correct
answersRebating
If an insurer meets the states financial requirements and is approved to
transact business in the state, it is considered what type of insurer? correct
answersAuthorized
,What information are the members of the medical information bureau
required to report? correct answersAdverse medical information about the
applicants or insureds.
What type of beneficiary can be changed at any point by the policy
owner? correct answersRevocable
What document describes the specific information about a
policy? correct answersPolicy Summary
What is the term for the causes of loss insured against in an insurance
policy? correct answersPeril
Whom does an insurance agent represent? correct answersInsurance
Company
What is an unfair trade practice? correct answersAny fraudulent,
deceptive, or dishonest business practice that is prohibited by
statutes and regulations.
Insurer correct answersThe company that issues an
insurance policy. Peril correct answersCause of loss
Contract of Adhesion correct answersA 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? correct
answersAgreement (Offer and Acceptance), consideration, competent
parties, and legal purpose.
Policy Provision correct answersA clause that stipulates the rights and
obligations under an insurance contract.
Fiduciary correct answersA producer who handles insurer's funds in a trust
capacity.
Who is considered a nonresident agent? correct answersAn agent who
resides and is licensed in another state, but is authorized to transact
insurance in Florida.
What is underwriting? correct answersThe risk selection and classification
process.
What is the best way to handle incomplete insurance
applications? correct answersReturn the application to the
applicant for completion.
What are the five characteristics of an ideally insurable risk? correct
answersLoss 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? correct answersGroup Policy
What is the purpose of a free-look period? correct answersTo 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? correct answersThe Agent's
What types of licensee represents the insurance company? correct
answersAgent
Who must be notified of the producers change of address? correct
answersThe department of Insurance
Certificate of Insurance correct answersA document issued to insureds
under a group plan that states the coverage being issued, and indicates
the coverage type and amounts.
Nonrenewal correct answersTermination of a policy by an insurer on the
anniversary or renewal date.
Representation correct answersA statement made by the applicant on the
insurance application that is believed to be true.
What is a warranty? correct answersAn absolutely true statement that, if
breached, may viod an insurance contract.
In insurance, when is the offer usually made on a contract? correct
answersWhen 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? correct
answersComplete 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? correct answersPure Risk
Who is responsible for the contents of insurance advertisements? correct
answersThe Insurance Company
What is the entire contract in health insurance underwriting? correct
answersThe policy with riders and endorsements, plus a copy of the
application.
