214 Florida Insurance
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? correct answersErrors and Omissions Insurance
Which of the following terms is known as the voluntary relinquishment of a
given right or privilege? correct answersWaiver
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? correct answersUnited 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? correct answersProbationary 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? correct answersThe 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: correct answersLife 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? correct
answersWaiver of premium and Disability Income Riders
In a contributory group plan, what percentage of eligible employees must
be covered? correct answers75%
Which statement regarding annuities is CORRECT? correct
answersVariable 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. correct answers6
, Social security is also known as: correct answersOld Age Survivors and
Disability Insurance (OASDI)
Insurance is not intended to protect against? correct
answersSpeculative Risk
Under a family plan life insurance policy, coverage on the breadwinner is
often provided by which of the following insurance types? correct
answersWhole Life
Which of the following statements regarding annuity settlement or payout
options is NOT true? correct answersIf 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: correct answersPlans rarely have a matching contribution
component by an employer
All of the statements below pertaining to group life insurance are correct
EXCEPT: correct answersIf the insurance coverage is less than $75,000,
employees do not have to report the employer-paid premiums as income
According to Florida Statues, entering into any agreement to commit any act
of intimidation resulting in the business of insurance is known as: correct
answersCoercion
William, age 67, has owned his life insurance policy for the past 15 years and
has mailed his monthly premiums to his life insurance company. Last month
he failed to mail the monthly payment on his premium due date as well as
during his policy's grace period. As a result, which of the following scenarios
will MOST likely occur? correct answersThe insurer will provide notification of
impending lapse in coverage, and allow at least 21 additional days beyond
the grace period to make a payment to prevent the policy from lapse
Before executing an exchange of an annuity contract resulting from a
recommendation to a senior consumer, an insurance agent should make
reasonable efforts to obtain information from the applicant concerning the
suitability of the recommendation on an approved form, which upon
completion, must be signed by the applicant and agent.
Within what period of time must an agent submit this form to the
insurer once it is complete? correct answersWithin 10 days
Shelly is considered to be terminally ill and has decided to sell her life
insurance policy in exchange for living benefits to fulfill some final comforts
and expenses before her death. In selling her life insurance policy, Shelly is
referred to as a(n) and
she will receive a percentage of her life policy's face amount in exchange for
ownership of her policy. correct answersViator
Which of the following is NOT a type of speculative risk? correct
answersUnemployment
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? correct answersErrors and Omissions Insurance
Which of the following terms is known as the voluntary relinquishment of a
given right or privilege? correct answersWaiver
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? correct answersUnited 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? correct answersProbationary 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? correct answersThe 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: correct answersLife 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? correct
answersWaiver of premium and Disability Income Riders
In a contributory group plan, what percentage of eligible employees must
be covered? correct answers75%
Which statement regarding annuities is CORRECT? correct
answersVariable 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. correct answers6
, Social security is also known as: correct answersOld Age Survivors and
Disability Insurance (OASDI)
Insurance is not intended to protect against? correct
answersSpeculative Risk
Under a family plan life insurance policy, coverage on the breadwinner is
often provided by which of the following insurance types? correct
answersWhole Life
Which of the following statements regarding annuity settlement or payout
options is NOT true? correct answersIf 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: correct answersPlans rarely have a matching contribution
component by an employer
All of the statements below pertaining to group life insurance are correct
EXCEPT: correct answersIf the insurance coverage is less than $75,000,
employees do not have to report the employer-paid premiums as income
According to Florida Statues, entering into any agreement to commit any act
of intimidation resulting in the business of insurance is known as: correct
answersCoercion
William, age 67, has owned his life insurance policy for the past 15 years and
has mailed his monthly premiums to his life insurance company. Last month
he failed to mail the monthly payment on his premium due date as well as
during his policy's grace period. As a result, which of the following scenarios
will MOST likely occur? correct answersThe insurer will provide notification of
impending lapse in coverage, and allow at least 21 additional days beyond
the grace period to make a payment to prevent the policy from lapse
Before executing an exchange of an annuity contract resulting from a
recommendation to a senior consumer, an insurance agent should make
reasonable efforts to obtain information from the applicant concerning the
suitability of the recommendation on an approved form, which upon
completion, must be signed by the applicant and agent.
Within what period of time must an agent submit this form to the
insurer once it is complete? correct answersWithin 10 days
Shelly is considered to be terminally ill and has decided to sell her life
insurance policy in exchange for living benefits to fulfill some final comforts
and expenses before her death. In selling her life insurance policy, Shelly is
referred to as a(n) and
she will receive a percentage of her life policy's face amount in exchange for
ownership of her policy. correct answersViator
Which of the following is NOT a type of speculative risk? correct
answersUnemployment
