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FLORIDA LIFE AND HEALTH 2-15 FINAL EXAM
300+ QUESTIONS AND CORRECT DETAILED
ANSWERS 2023-2024 UPDATE ALREADY A
GRADED VERIFID BY EXPERTS BRAND NEW!!
What is a fraternal benefit society? - CORRECT ANSWER>>Nonprofit religious, ethnic, or charitable
organizations that provide insurance solely to its members
What is a risk retention group? - CORRECT ANSWER>>Mutual companies formed by a group of people in
the same industry or profession
What does Social Security do? - CORRECT ANSWER>>Provides income benefits for the elderly, survivors
of those who died young, and those qualifying for federal disability
What's the other name for Social Security? - CORRECT ANSWER>>Old Age Survivor Disability Insurance
(OASDI)
Who benefits from Medicare? - CORRECT ANSWER>>Elderly
Who benefits from Medicaid? - CORRECT ANSWER>>Those that need financial assistance
What is the Fair Credit Reporting Act? - CORRECT ANSWER>>Provides individuals privacy protection and
fair and accurate credit reporting
What is the Patriot Act? - CORRECT ANSWER>>Designed to detect and deter terrorists as well as impose
anti-money laundering requirements on brokerage firms and financial institutions
What are the objectives of the National Association of Insurance Commissioners? (NAIC) - CORRECT
ANSWER>>1. Encourage uniformity in state insurance laws and regulations
2. Assists in the administration of those laws and regulations by promoting efficiency
3. Protect the interest of policyowners and consumers
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4. Preserve state regulation of the insurance business
What does a guaranty do? - CORRECT ANSWER>>Supports insurers and protects consumers in case an
insurer becomes insolvent
What are the 4 elements of a contract? - CORRECT ANSWER>>Consideration, legal purpose, offer and
acceptance, and competent parties
What does contract of adhesion mean? - CORRECT ANSWER>>The idea that the customer must adhere
to the insurer's contract without any input of their own
What does aleatory mean? - CORRECT ANSWER>>Unequal exchange
What is subrogation? - CORRECT ANSWER>>The right for an insurer to pursue a 3rd party that caused an
insurance loss to the insured
What are the characteristics of term life insurance? - CORRECT ANSWER>>1. Gives the greatest amount
of coverage for a limited period of time
2. Is often renewable and convertible
What are the characteristics of level term insurance? - CORRECT ANSWER>>1. Has a level face amount
and level premiums
2. Premiums increase at every renewal
3. Always expires at the end of the policy period
4. Provides a fixed, low premium in exchange for coverage which lasts for a specified time period
What are the characteristics of decreasing term life insurance? - CORRECT ANSWER>>1. Annually
decreasing face amount over time with level premiums
2. Usually used for mortgage protection
3. A type of life policy which has a death benefit that adjusts periodically
, 3
What are the characteristics of convertible term insurance? - CORRECT ANSWER>>Allows policyowners
to convert their term insurance into permanent policies without showing proof of insurability
What are the characteristics of renewable term insurance? - CORRECT ANSWER>>Guarantees the
insured the right to continue term coverage after expiration of the initial policy period without having to
prove insurability
What are the characteristics of whole life insurance? - CORRECT ANSWER>>1. Provides death benefits
for the entire life of the insured
2. Provides living benefits in the form of cash values
3. Matures at age 100 and normally has a level premium
What is straight whole life insurance? - CORRECT ANSWER>>Is a basic whole life insurance with a level
face amount and fixed premiums payable over the insured's entire life
What is limited pay whole life insurance? - CORRECT ANSWER>>-Whole life insurance where premiums
are paid for a limited time
-As the premium payment period shortens, cash values increase faster and the fixed premiums are
higher
What is single premium whole life insurance? - CORRECT ANSWER>>Allows the insured to pay the entire
premium in one lump sum and have coverage for the entire life of the insured
What is modified whole life? - CORRECT ANSWER>>Low premiums in the early years and jumps to a
higher premium in the later years, then remains fixed
What is graded whole life? - CORRECT ANSWER>>Premium increases yearly for a stated # of years, then
remains level
What are the characteristics of universal life insurance? - CORRECT ANSWER>>1. Investment gains go
towards cash value
FLORIDA LIFE AND HEALTH 2-15 FINAL EXAM
300+ QUESTIONS AND CORRECT DETAILED
ANSWERS 2023-2024 UPDATE ALREADY A
GRADED VERIFID BY EXPERTS BRAND NEW!!
What is a fraternal benefit society? - CORRECT ANSWER>>Nonprofit religious, ethnic, or charitable
organizations that provide insurance solely to its members
What is a risk retention group? - CORRECT ANSWER>>Mutual companies formed by a group of people in
the same industry or profession
What does Social Security do? - CORRECT ANSWER>>Provides income benefits for the elderly, survivors
of those who died young, and those qualifying for federal disability
What's the other name for Social Security? - CORRECT ANSWER>>Old Age Survivor Disability Insurance
(OASDI)
Who benefits from Medicare? - CORRECT ANSWER>>Elderly
Who benefits from Medicaid? - CORRECT ANSWER>>Those that need financial assistance
What is the Fair Credit Reporting Act? - CORRECT ANSWER>>Provides individuals privacy protection and
fair and accurate credit reporting
What is the Patriot Act? - CORRECT ANSWER>>Designed to detect and deter terrorists as well as impose
anti-money laundering requirements on brokerage firms and financial institutions
What are the objectives of the National Association of Insurance Commissioners? (NAIC) - CORRECT
ANSWER>>1. Encourage uniformity in state insurance laws and regulations
2. Assists in the administration of those laws and regulations by promoting efficiency
3. Protect the interest of policyowners and consumers
,2
4. Preserve state regulation of the insurance business
What does a guaranty do? - CORRECT ANSWER>>Supports insurers and protects consumers in case an
insurer becomes insolvent
What are the 4 elements of a contract? - CORRECT ANSWER>>Consideration, legal purpose, offer and
acceptance, and competent parties
What does contract of adhesion mean? - CORRECT ANSWER>>The idea that the customer must adhere
to the insurer's contract without any input of their own
What does aleatory mean? - CORRECT ANSWER>>Unequal exchange
What is subrogation? - CORRECT ANSWER>>The right for an insurer to pursue a 3rd party that caused an
insurance loss to the insured
What are the characteristics of term life insurance? - CORRECT ANSWER>>1. Gives the greatest amount
of coverage for a limited period of time
2. Is often renewable and convertible
What are the characteristics of level term insurance? - CORRECT ANSWER>>1. Has a level face amount
and level premiums
2. Premiums increase at every renewal
3. Always expires at the end of the policy period
4. Provides a fixed, low premium in exchange for coverage which lasts for a specified time period
What are the characteristics of decreasing term life insurance? - CORRECT ANSWER>>1. Annually
decreasing face amount over time with level premiums
2. Usually used for mortgage protection
3. A type of life policy which has a death benefit that adjusts periodically
, 3
What are the characteristics of convertible term insurance? - CORRECT ANSWER>>Allows policyowners
to convert their term insurance into permanent policies without showing proof of insurability
What are the characteristics of renewable term insurance? - CORRECT ANSWER>>Guarantees the
insured the right to continue term coverage after expiration of the initial policy period without having to
prove insurability
What are the characteristics of whole life insurance? - CORRECT ANSWER>>1. Provides death benefits
for the entire life of the insured
2. Provides living benefits in the form of cash values
3. Matures at age 100 and normally has a level premium
What is straight whole life insurance? - CORRECT ANSWER>>Is a basic whole life insurance with a level
face amount and fixed premiums payable over the insured's entire life
What is limited pay whole life insurance? - CORRECT ANSWER>>-Whole life insurance where premiums
are paid for a limited time
-As the premium payment period shortens, cash values increase faster and the fixed premiums are
higher
What is single premium whole life insurance? - CORRECT ANSWER>>Allows the insured to pay the entire
premium in one lump sum and have coverage for the entire life of the insured
What is modified whole life? - CORRECT ANSWER>>Low premiums in the early years and jumps to a
higher premium in the later years, then remains fixed
What is graded whole life? - CORRECT ANSWER>>Premium increases yearly for a stated # of years, then
remains level
What are the characteristics of universal life insurance? - CORRECT ANSWER>>1. Investment gains go
towards cash value
