Florida 2-15 Insurance License Exam Real Exam 155 Questions With Correct Verified Answers |Agrade

What is the name of the law that requires insurers to disclose information gathering practices and where the information was obtained? ANS- Fair Credit Reporting Act A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of members is known as: ANS- A fraternal benefit society What type of reinsurance contract involves two companies automatically sharing their risk exposure? ANS- Treaty Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated: ANS- 1970 Fair Credit Reporting Act What year was the McCarran-Ferguson Act enacted? ANS- 1945 Who elects the governing body of a mutual insurance company? ANS- Policyholders A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a: ANS- Risk retention group The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called: ANS- Reserves An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the: ANS- Fair Credit Reporting Act At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? ANS- Upon completion of the application Accumulation units are converted into annuity units: ANS- at the time of annuity payout. A group life insurance plan in which the employer pays the entire premium is known as a ________________ plan. ANS- noncontributory If a disabled worker covered under Social Security disability benefits recovers and then is disabled again within five years, a new waiting period is required before benefits begin again. ANS- FALSE Robert had an accident and qualified for Social Security disability. Given the waiting period, when will Robert begin to receive benefits? ANS- After 5 months The Insuring Clause includes all of the following EXCEPT the ANS- beneficiaryMutualization occurs when a stock company turns to a __________ company. ANSmutual To provide a safeguard for insureds, most major medical policies contain a ____________ feature that limits the insured's out-of-pocket expenses. ANS- stop-loss Tom is a newly appointed life, health and variable annuity agent with Acme Insurance Agency. He is writing his first insurance policy on his brother-in-law's life. Who does Tom legally represent in this transaction? ANS- Acme Insurance Agency An insurance clause is a distinct article in a formal document that establishes the rules in the contract that _____________________ must adhere to. ANS- both the insurer and the insured "ACC" refers to the type of disability that prevents someone from performing the job he was performing prior to the disability. ANS- FALSE Which statement is CORRECT about the Departm