FLORIDA 2-14 LIFE AND VARIABLE ANNUITY LICENSE EXAM 2024/2025 | 2
ACCURATE REAL EXAM CURRENTLY TESTING VERSIONS WITH ACTUAL QUESTIONS
AND DETAILED ANSWERS WITH RATIONALES AND A STUDY GUIDE | EXPERT
VERIFIED FOR GUARANTEED PASS | LATEST UPDATE
Which of the following best describes the function of insurance?
- --ANSWER---It spreads financial risk over a large group to
minimize the loss to any one individual.
Which of the following statements is CORRECT? - --
ANSWER---Only pure risks are insurable.
The owner of a camera store is worried that her new employees
may help themselves to items from inventory without paying for
them. What kind of hazard is described? - --ANSWER---Moral
hazard
A tornado is an example of a - --ANSWER---peril
Tom buys his wife Mary a $50,000 diamond ring. When she is
not wearing the ring, she keeps it in a safe deposit box at a local
bank. This is an example of risk - --ANSWER---reduction
Which of the following statements does NOT describe an
element of an insurable risk? - --ANSWER---The loss must not
be due to chance.
,Which of the following statements regarding types of insurers is
NOT correct? - --ANSWER---Reinsurers usually deal with
group policy owners.
A reinsurer is a company that - --ANSWER---assumes a portion
of the risk from another insurer
Which of the following is not true concerning a Risk Retention
Group? - --ANSWER---it insures a group of separate businesses
Which of the following is not a service provider? - --ANSWER-
--Lloyd's of London
In an insurance transaction, licensed agents legally represent
which of the following? - --ANSWER---insurer
In Florida, properly licensed and appointed agents may act as
brokers in insurance transactions, in which case they may legally
represent - --ANSWER---the applicant and insured
All of the following methods support the sale of insurance
through agents and brokers EXCEPT - --ANSWER---direct
selling system
Regarding landmark cases and laws involving the regulation of
insurance, which of the following statements is NOT correct? - -
-ANSWER---the Federal Trade Commission (FTC) directly
supervises all insurance marketing activities.
,The head of a state office of insurance regulation is generally
responsible for all the following EXCEPT - --ANSWER---
making insurance laws
A life insurance company, organized in Illinois, with its home
office in Philadelphia, is licensed to conduct business in Florida.
In Florida, this company is classified as a(n) - --ANSWER---
foreign company
An insurance company organized and headquartered in Florida
can be described as what type of company in Florida? - --
ANSWER---Domestic
The Buyer's Guide is intended to accomplish all of the following
EXCEPT - --ANSWER---ensures that buyers obtain the lowest
price for insurance
Which of the following statements regarding the National
Association of Insurance Commissioners (NAIC) is NOT
correct? - --ANSWER---the NAIC is empowered to prosecute
and punish criminal violators in the insurance industry.
The State Guaranty Association guarantees - --ANSWER---that
the claim will be paid if the insurer becomes insolvent
Which of the following is a distinguishing element of an
insurance contract? - --ANSWER---Conditional
"An insurance contract is prepared by one party, the insurer,
rather than by negotiation between the contracting parties."
Which of the following statements explains this characteristic of
, insurance contracts? - --ANSWER---The insurance contract is a
contract of adhesion.
A life insurance policy paid $500,000 to a beneficiary and the
total premiums paid were $2500. Which of the following terms
defines this type of contract? - --ANSWER---Aleatory
With life and health contracts, when must an insurable interest
exist? - --ANSWER---At the inception of the policy
Which of the following statements describes an insurable
interest? - --ANSWER---The policy owner must expect to suffer
a loss when the insured dies or becomes disabled.
Which of the following statements regarding insurable interest is
NOT correct? - --ANSWER---A policy obtained by a person
without an insurable interest in the insured can be enforced.
All statements on an application are considered to be - --
ANSWER---representations
Which of the following statements regarding the utmost good
faith in insurance contracts is CORRECT? - --ANSWER---Most
state insurance laws consider statements made in an application
for an insurance policy to be representations, not warranties.
Which of the following terms is used for the voluntary
relinquishment of a known right? - --ANSWER---Waiver
ACCURATE REAL EXAM CURRENTLY TESTING VERSIONS WITH ACTUAL QUESTIONS
AND DETAILED ANSWERS WITH RATIONALES AND A STUDY GUIDE | EXPERT
VERIFIED FOR GUARANTEED PASS | LATEST UPDATE
Which of the following best describes the function of insurance?
- --ANSWER---It spreads financial risk over a large group to
minimize the loss to any one individual.
Which of the following statements is CORRECT? - --
ANSWER---Only pure risks are insurable.
The owner of a camera store is worried that her new employees
may help themselves to items from inventory without paying for
them. What kind of hazard is described? - --ANSWER---Moral
hazard
A tornado is an example of a - --ANSWER---peril
Tom buys his wife Mary a $50,000 diamond ring. When she is
not wearing the ring, she keeps it in a safe deposit box at a local
bank. This is an example of risk - --ANSWER---reduction
Which of the following statements does NOT describe an
element of an insurable risk? - --ANSWER---The loss must not
be due to chance.
,Which of the following statements regarding types of insurers is
NOT correct? - --ANSWER---Reinsurers usually deal with
group policy owners.
A reinsurer is a company that - --ANSWER---assumes a portion
of the risk from another insurer
Which of the following is not true concerning a Risk Retention
Group? - --ANSWER---it insures a group of separate businesses
Which of the following is not a service provider? - --ANSWER-
--Lloyd's of London
In an insurance transaction, licensed agents legally represent
which of the following? - --ANSWER---insurer
In Florida, properly licensed and appointed agents may act as
brokers in insurance transactions, in which case they may legally
represent - --ANSWER---the applicant and insured
All of the following methods support the sale of insurance
through agents and brokers EXCEPT - --ANSWER---direct
selling system
Regarding landmark cases and laws involving the regulation of
insurance, which of the following statements is NOT correct? - -
-ANSWER---the Federal Trade Commission (FTC) directly
supervises all insurance marketing activities.
,The head of a state office of insurance regulation is generally
responsible for all the following EXCEPT - --ANSWER---
making insurance laws
A life insurance company, organized in Illinois, with its home
office in Philadelphia, is licensed to conduct business in Florida.
In Florida, this company is classified as a(n) - --ANSWER---
foreign company
An insurance company organized and headquartered in Florida
can be described as what type of company in Florida? - --
ANSWER---Domestic
The Buyer's Guide is intended to accomplish all of the following
EXCEPT - --ANSWER---ensures that buyers obtain the lowest
price for insurance
Which of the following statements regarding the National
Association of Insurance Commissioners (NAIC) is NOT
correct? - --ANSWER---the NAIC is empowered to prosecute
and punish criminal violators in the insurance industry.
The State Guaranty Association guarantees - --ANSWER---that
the claim will be paid if the insurer becomes insolvent
Which of the following is a distinguishing element of an
insurance contract? - --ANSWER---Conditional
"An insurance contract is prepared by one party, the insurer,
rather than by negotiation between the contracting parties."
Which of the following statements explains this characteristic of
, insurance contracts? - --ANSWER---The insurance contract is a
contract of adhesion.
A life insurance policy paid $500,000 to a beneficiary and the
total premiums paid were $2500. Which of the following terms
defines this type of contract? - --ANSWER---Aleatory
With life and health contracts, when must an insurable interest
exist? - --ANSWER---At the inception of the policy
Which of the following statements describes an insurable
interest? - --ANSWER---The policy owner must expect to suffer
a loss when the insured dies or becomes disabled.
Which of the following statements regarding insurable interest is
NOT correct? - --ANSWER---A policy obtained by a person
without an insurable interest in the insured can be enforced.
All statements on an application are considered to be - --
ANSWER---representations
Which of the following statements regarding the utmost good
faith in insurance contracts is CORRECT? - --ANSWER---Most
state insurance laws consider statements made in an application
for an insurance policy to be representations, not warranties.
Which of the following terms is used for the voluntary
relinquishment of a known right? - --ANSWER---Waiver
