1
214 FLORIDA INSURANCE EXAM 160
QUESTIONS AND CORRECT
ANSWERS GRADED A+ 2024
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? -
✔✔ ANSWER- Errors and Omissions Insurance
Which of the following terms is known as the voluntary relinquishment of a given
right or privilege? - ✔✔ ANSWER- 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? -
✔✔ ANSWER- 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? - ✔✔ ANSWER- 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? -
✔✔ ANSWER- 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: - ✔✔ ANSWER- Life Income Option
pg. 1
,2
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? - ✔✔ ANSWER-
Waiver of premium and Disability Income Riders
In a contributory group plan, what percentage of eligible employees must be
covered? - ✔✔ ANSWER- 75%
Which statement regarding annuities is CORRECT? - ✔✔ ANSWER-
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. - ✔✔
ANSWER- 6
Social security is also known as: - ✔✔ ANSWER- Old Age Survivors and
Disability Insurance (OASDI)
Insurance is not intended to protect against? - ✔✔ ANSWER- Speculative Risk
Under a family plan life insurance policy, coverage on the breadwinner is often
provided by which of the following insurance types? - ✔✔ ANSWER- Whole
Life
Which of the following statements regarding annuity settlement or payout options
is NOT true? - ✔✔ ANSWER- 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.
pg. 2
, 3
The following statements regarding 401(k) retirement plans are correct EXCEPT: -
✔✔ ANSWER- Plans rarely have a matching contribution component by an
employer
All of the statements below pertaining to group life insurance are correct EXCEPT:
- ✔✔ ANSWER- If 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: - ✔✔
ANSWER- Coercion
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? - ✔✔ ANSWER- The 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? - ✔✔ ANSWER- Within 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
pg. 3
214 FLORIDA INSURANCE EXAM 160
QUESTIONS AND CORRECT
ANSWERS GRADED A+ 2024
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? -
✔✔ ANSWER- Errors and Omissions Insurance
Which of the following terms is known as the voluntary relinquishment of a given
right or privilege? - ✔✔ ANSWER- 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? -
✔✔ ANSWER- 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? - ✔✔ ANSWER- 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? -
✔✔ ANSWER- 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: - ✔✔ ANSWER- Life Income Option
pg. 1
,2
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? - ✔✔ ANSWER-
Waiver of premium and Disability Income Riders
In a contributory group plan, what percentage of eligible employees must be
covered? - ✔✔ ANSWER- 75%
Which statement regarding annuities is CORRECT? - ✔✔ ANSWER-
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. - ✔✔
ANSWER- 6
Social security is also known as: - ✔✔ ANSWER- Old Age Survivors and
Disability Insurance (OASDI)
Insurance is not intended to protect against? - ✔✔ ANSWER- Speculative Risk
Under a family plan life insurance policy, coverage on the breadwinner is often
provided by which of the following insurance types? - ✔✔ ANSWER- Whole
Life
Which of the following statements regarding annuity settlement or payout options
is NOT true? - ✔✔ ANSWER- 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.
pg. 2
, 3
The following statements regarding 401(k) retirement plans are correct EXCEPT: -
✔✔ ANSWER- Plans rarely have a matching contribution component by an
employer
All of the statements below pertaining to group life insurance are correct EXCEPT:
- ✔✔ ANSWER- If 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: - ✔✔
ANSWER- Coercion
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? - ✔✔ ANSWER- The 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? - ✔✔ ANSWER- Within 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
pg. 3
