Florida Life and Health Insurance Questions with Detailed Verified Answers

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Florida Life and Health Insurance
Questions with Detailed Verified
Answers

Question: Insured


Ans: The person covered by the insurance policy.


Question: Rider


Ans: A written modification attached to a policy that increases or decreases
coverage and/or premiums.


Question: What is a unilateral contract?


Ans: A contract in which only one of the parties is legally bound to fulfill its
obligations.


Question: What law protects consumers from the circulation of inaccurate or
obsolete information?


Ans: The Fair Credit Reporting Act.


Question: What are the three types of agent authority?

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Ans: Implied, Express, and Apparent.


Question: Agent


Ans: An individual who is licensed to sell, negotiate, or effect insurance
contracts on behalf of the insurer.


Question: What is name of the process that insurance companies use to
determine whether or not an applicant is insurable?


Ans: Underwriting


Question: The requirement that agents must account for and promptly remit
all insurance funds collected is known as what type of agent responsibility?


Ans: Fiduciary


Question: What is a third-party ownership?


Ans: An insurance arrangement in which the policy owner and the insured are
not the same person.


Question: Suitability


Ans: Factors that determine if an insurance product is appropriate for a
particular customer.


Question: Premium

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Ans: A payment by the policy owner to the insurance company to keep the
policy in force.


Question: Disclosure


Ans: Providing sufficient information to help someone make informed
decision.


Question: 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?


Ans: Rebating


Question: If an insurer meets the states financial requirements and is
approved to transact business in the state, it is considered what type of
insurer?


Ans: Authorized


Question: What information are the members of the medical information
bureau required to report?


Ans: Adverse medical information about the applicants or insureds.


Question: What type of beneficiary can be changed at any point by the policy
owner?


Ans: Revocable

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Question: What document describes the specific information about a policy?


Ans: Policy Summary


Question: What is the term for the causes of loss insured against in an
insurance policy?


Ans: Peril


Question: Whom does an insurance agent represent?


Ans: Insurance Company


Question: What is an unfair trade practice?


Ans: Any fraudulent, deceptive, or dishonest business practice that is
prohibited by statutes and regulations.


Question: Insurer


Ans: The company that issues an insurance policy.


Question: Peril


Ans: Cause of loss


Question: Contract of Adhesion