Florida Life Insurance
Mutual Insurance Companies correct answersorganized and incorporated
under state laws. No stockholders.
Mutual companies correct answersParticipating, they pay dividends.
Stock company correct answersOwns Stock. Nonparticipating (no
dividends)
Risk Retention Group correct answersMutual company formed to insure ppl in
the same business, occupation, profession (pharmacists, dentists, engineers)
Fraternal Benefit Societies correct answersNon profit organization, lodge
system that includes ritualistic work, and maintain a rep form of gov with
elected officers.
FICA correct answersMade up of Social Security and Medicare
Variable Product correct answersDual license. One license issued by FINRA &
the other Life & Annuity (issued by the state)
Fair Credit Reporting Act correct answersConsumers have the right to
question what is on their credit report
Domestic insurer correct answerscompany doing business in the state in
which it is incorporated
Foreign insurer correct answerscompany licensed & doing business in states
other than the one in which it is incorporated
Buyers Guides correct answersgeneric (explain various types of life
insurance products, including variable annuities)
Policy Summaries correct answersSpecific to the Policy - ids the agent,
insurer, policy, each rider, and includes info about premiums, dividends,
benefit amounts, cash surrender values, policy loan interest rates, and life
insurance cost indexes of the specific policy being considered
National Association of Ins Commissioners (NAIC) correct
answersEncourage Uniformity, Assist in admin of laws & regs, Protect
interest of policy owners, Preserve state regulation
Warranty correct answersa statement guaranteed to be true
, Representation correct answersstatement by client (best of their
knowledge). We give the client the benefit of the doubt
Concealment correct answersfailure by applicant to disclose a known
material fact at time of application
Insurable interest correct answersInterest must exist at the inception of
the policy
Fiduciary correct answersa person holds a special FINANCIAL trust and
confidence (agent)
Producer correct answersBroker or agent
Professional Liability Ins correct answersprotect against legal liability (like
malpractice ins)
Fraud correct answersInsurer reason to void a contract (2 years from date
insurance issued)
Fudiciary correct answersspecial financial trust
Twisting correct answersExternal - Illegal if not in the best interest for the
client
Churning correct answersInternal - replacing policies within the same
company. Illegal if not in the best interest for the client
Coercion correct answersapply physical or mental force or threat to
persuade (the mafia)
Unfair Discrimination correct answersmaking a distinction, in sales,
underwriting, pricing, claims handling, or other ins applicant function,
between 2 diff individuals of substantially the same classification
Term Life Insurance correct answerssimplest type of life ins plan. Provides
protection for a specified period (term) & pays a benefit only if the insured
dies during that period
Level Term Ins correct answersprovides a level amount of protection for a
specified period, after which the policy expires.
Decreasing Coverage Level Premium correct answerscharacterized by benefit
amts that decrease gradually over the term of protection (cover debt or
mortgage)
Whole Life correct answersOrdinary Straight Life - cash values & maturity @
age 100
Mutual Insurance Companies correct answersorganized and incorporated
under state laws. No stockholders.
Mutual companies correct answersParticipating, they pay dividends.
Stock company correct answersOwns Stock. Nonparticipating (no
dividends)
Risk Retention Group correct answersMutual company formed to insure ppl in
the same business, occupation, profession (pharmacists, dentists, engineers)
Fraternal Benefit Societies correct answersNon profit organization, lodge
system that includes ritualistic work, and maintain a rep form of gov with
elected officers.
FICA correct answersMade up of Social Security and Medicare
Variable Product correct answersDual license. One license issued by FINRA &
the other Life & Annuity (issued by the state)
Fair Credit Reporting Act correct answersConsumers have the right to
question what is on their credit report
Domestic insurer correct answerscompany doing business in the state in
which it is incorporated
Foreign insurer correct answerscompany licensed & doing business in states
other than the one in which it is incorporated
Buyers Guides correct answersgeneric (explain various types of life
insurance products, including variable annuities)
Policy Summaries correct answersSpecific to the Policy - ids the agent,
insurer, policy, each rider, and includes info about premiums, dividends,
benefit amounts, cash surrender values, policy loan interest rates, and life
insurance cost indexes of the specific policy being considered
National Association of Ins Commissioners (NAIC) correct
answersEncourage Uniformity, Assist in admin of laws & regs, Protect
interest of policy owners, Preserve state regulation
Warranty correct answersa statement guaranteed to be true
, Representation correct answersstatement by client (best of their
knowledge). We give the client the benefit of the doubt
Concealment correct answersfailure by applicant to disclose a known
material fact at time of application
Insurable interest correct answersInterest must exist at the inception of
the policy
Fiduciary correct answersa person holds a special FINANCIAL trust and
confidence (agent)
Producer correct answersBroker or agent
Professional Liability Ins correct answersprotect against legal liability (like
malpractice ins)
Fraud correct answersInsurer reason to void a contract (2 years from date
insurance issued)
Fudiciary correct answersspecial financial trust
Twisting correct answersExternal - Illegal if not in the best interest for the
client
Churning correct answersInternal - replacing policies within the same
company. Illegal if not in the best interest for the client
Coercion correct answersapply physical or mental force or threat to
persuade (the mafia)
Unfair Discrimination correct answersmaking a distinction, in sales,
underwriting, pricing, claims handling, or other ins applicant function,
between 2 diff individuals of substantially the same classification
Term Life Insurance correct answerssimplest type of life ins plan. Provides
protection for a specified period (term) & pays a benefit only if the insured
dies during that period
Level Term Ins correct answersprovides a level amount of protection for a
specified period, after which the policy expires.
Decreasing Coverage Level Premium correct answerscharacterized by benefit
amts that decrease gradually over the term of protection (cover debt or
mortgage)
Whole Life correct answersOrdinary Straight Life - cash values & maturity @
age 100
