Florida Life and Health Insurance
Questions and Answers
1.Insured
Answer The person covered by the insurance policy.
2.Rider
Answer A written modification attached to a policy that increases or
decreases coverage and/or premiums.
3.What is a unilateral contract?
Answer A contract in which only one of the parties is legally bound to
fulfill its obligations.
4.What law protects consumers from the circulation of inaccurate or
obsolete information?
Answer The Fair Credit Reporting Act.
5.What are the three types of agent authority?
Answer Implied, Express, and Apparent.
6.Agent
Answer An individual who is licensed to sell, negotiate, or effect
insurance con- tracts on behalf of the insurer.
,7.What is name of the process that insurance companies use to
determine whether or not an applicant is insurable?
Answer Underwriting
8.The requirement that agents must account for and promptly remit all
insur- ance funds collected is known as what type of agent responsibility?
Answer Fiduciary
9.What is a third-party ownership?
Answer An insurance arrangement in which the policy owner and the
insured are not the same person.
10.Suitability
Answer Factors that determine if an insurance product is appropriate
for a particular customer.
11.Premium
Answer A payment by the policy owner to the insurance company to
keep the policy in force.
12.Disclosure
Answer Providing sufficient information to help someone make
informed decision.
,13.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?
Answer Rebating
14.If an insurer meets the states financial requirements and is approved to
transact business in the state, it is considered what type of insurer?
Answer Autho- rized
15.What information are the members of the medical information bureau
required to report?
Answer Adverse medical information about the applicants or insureds.
16.What type of beneficiary can be changed at any point by the policy
own- er?
Answer Revocable
17.What document describes the specific information about a policy?
Answer Policy Summary
18.What is the term for the causes of loss insured against in an
insurance policy?
Answer Peril
19.Whom does an insurance agent represent?
Answer Insurance Company
, 20.What is an unfair trade practice?
Answer Any fraudulent, deceptive, or dishonest business practice
that is prohibited by statutes and regulations.
21.Insurer
Answer The company that issues an insurance policy.
22.Peril
Answer Cause of loss
23.Contract of Adhesion
Answer A contract prepared by one party that must be accepted as
written or be rejected by the other party.
24.What are the four elements of an insurance contract?
Answer Agreement (Offer and Acceptance), consideration, competent
parties, and legal purpose.
25.Policy Provision
Answer A clause that stipulates the rights and obligations under an
insurance contract.
26.Fiduciary
Questions and Answers
1.Insured
Answer The person covered by the insurance policy.
2.Rider
Answer A written modification attached to a policy that increases or
decreases coverage and/or premiums.
3.What is a unilateral contract?
Answer A contract in which only one of the parties is legally bound to
fulfill its obligations.
4.What law protects consumers from the circulation of inaccurate or
obsolete information?
Answer The Fair Credit Reporting Act.
5.What are the three types of agent authority?
Answer Implied, Express, and Apparent.
6.Agent
Answer An individual who is licensed to sell, negotiate, or effect
insurance con- tracts on behalf of the insurer.
,7.What is name of the process that insurance companies use to
determine whether or not an applicant is insurable?
Answer Underwriting
8.The requirement that agents must account for and promptly remit all
insur- ance funds collected is known as what type of agent responsibility?
Answer Fiduciary
9.What is a third-party ownership?
Answer An insurance arrangement in which the policy owner and the
insured are not the same person.
10.Suitability
Answer Factors that determine if an insurance product is appropriate
for a particular customer.
11.Premium
Answer A payment by the policy owner to the insurance company to
keep the policy in force.
12.Disclosure
Answer Providing sufficient information to help someone make
informed decision.
,13.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?
Answer Rebating
14.If an insurer meets the states financial requirements and is approved to
transact business in the state, it is considered what type of insurer?
Answer Autho- rized
15.What information are the members of the medical information bureau
required to report?
Answer Adverse medical information about the applicants or insureds.
16.What type of beneficiary can be changed at any point by the policy
own- er?
Answer Revocable
17.What document describes the specific information about a policy?
Answer Policy Summary
18.What is the term for the causes of loss insured against in an
insurance policy?
Answer Peril
19.Whom does an insurance agent represent?
Answer Insurance Company
, 20.What is an unfair trade practice?
Answer Any fraudulent, deceptive, or dishonest business practice
that is prohibited by statutes and regulations.
21.Insurer
Answer The company that issues an insurance policy.
22.Peril
Answer Cause of loss
23.Contract of Adhesion
Answer A contract prepared by one party that must be accepted as
written or be rejected by the other party.
24.What are the four elements of an insurance contract?
Answer Agreement (Offer and Acceptance), consideration, competent
parties, and legal purpose.
25.Policy Provision
Answer A clause that stipulates the rights and obligations under an
insurance contract.
26.Fiduciary
