214 FLORIDA INSURANCE EXAM 2024-2025 ACTUAL EXAM 150 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES (VERIFIED ANSWERS)
Which type of insurance protects an agent and even pays claims if a lawsuit is
brought against the agent as a result of failing to provide a service to a client? -
correct answerErrors and Omissions Insurance
Which of the following terms is known as the voluntary relinquishment of a given
right or privilege? - correct answerWaiver
This Supreme Court case placed the regulation of insurance within the authority
of the federal government by defining insurance as a form of interstate
commerce? - correct answerUnited States v. Southeastern Underwriters
Association (1944)
Tim was just hired today by MAB INC and wants to join the company's group
insurance policy. What period of time is he currently in and when can he join the
plan? - correct answerProbationary period, he can sign up after 90 days
If Justin submitted an initial premium with his life insurance application, was
provided a conditional receipt by the insurance company and was ultimately
issued a policy as applied for, when would his insurance policy be considered in
force? - correct answerThe date of his application or the day he completed any
required medical exam
When dividends are issued, the policyowner has the following dividend options in
utilizing a return EXCEPT: - correct answerLife Income Option
Which two life insurance riders can Bill purchase to guarantee that his policy will
continue without further commitment from him and that income will be paid to
him if he becomes totally and permanently disabled? - correct answerWaiver of
premium and Disability Income Riders
In a contributory group plan, what percentage of eligible employees must be
covered? - correct answer75%
Which statement regarding annuities is CORRECT? - correct answerVariable
annuity units are fixed but the annuity payment will vary according to the value of
the annuity unit.
,214 FLORIDA INSURANCE EXAM 2024-2025 ACTUAL EXAM 150 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES (VERIFIED ANSWERS)
In order to be considered currently insured and thus eligible for limited survivor
benefits from Social Security, a worker must have earned ___ credits during the
13-quarter period ending with the quarter in which the worker died. - correct
answer6
Social security is also known as: - correct answerOld Age Survivors and Disability
Insurance (OASDI)
Insurance is not intended to protect against? - correct answerSpeculative Risk
Under a family plan life insurance policy, coverage on the breadwinner is often
provided by which of the following insurance types? - correct answerWhole Life
Which of the following statements regarding annuity settlement or payout
options is NOT true? - correct answerIf the annuitant dies before the principal
sum is depleted, the Refund Life Annuity Option will pay the entire annuity
amount to the beneficiary in a lump sum payment or over scheduled installments.
The following statements regarding 401(k) retirement plans are correct EXCEPT: -
correct answerPlans rarely have a matching contribution component by an
employer
All of the statements below pertaining to group life insurance are correct EXCEPT:
- correct answerIf the insurance coverage is less than $75,000, employees do not
have to report the employer-paid premiums as income
According to Florida Statues, entering into any agreement to commit any act of
intimidation resulting in the business of insurance is known as: - correct
answerCoercion
William, age 67, has owned his life insurance policy for the past 15 years and has
mailed his monthly premiums to his life insurance company. Last month he failed
to mail the monthly payment on his premium due date as well as during his
policy's grace period. As a result, which of the following scenarios will MOST likely
occur? - correct answerThe insurer will provide notification of impending lapse in
coverage, and allow at least 21 additional days beyond the grace period to make a
payment to prevent the policy from lapse
, 214 FLORIDA INSURANCE EXAM 2024-2025 ACTUAL EXAM 150 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES (VERIFIED ANSWERS)
Before executing an exchange of an annuity contract resulting from a
recommendation to a senior consumer, an insurance agent should make
reasonable efforts to obtain information from the applicant concerning the
suitability of the recommendation on an approved form, which upon completion,
must be signed by the applicant and agent. Within what period of time must an
agent submit this form to the insurer once it is complete? - correct answerWithin
10 days
Shelly is considered to be terminally ill and has decided to sell her life insurance
policy in exchange for living benefits to fulfill some final comforts and expenses
before her death. In selling her life insurance policy, Shelly is referred to as
a(n)_________and she will receive a percentage of her life policy's face amount in
exchange for ownership of her policy. - correct answerViator
Which of the following is NOT a type of speculative risk? - correct
answerUnemployment
Which agency collects and provides reliable medical information regarding an
applicant's health history? - correct answerThe MIB
Tonya failed to pay her life policy's premium on the date in which it is normally
due and is currently 23 days late. As a result of her policy's grace period provision,
which outcome will occur? - correct answerTonya is within her grace period and
can pay her premium up to 30 or 31 days after the date in which the premium is
normally due; however, she does not need to pay back any outstanding loans to
the insurer.
Which type of E&O policy provides permanent coverage for the actions of an
agent during which time he or she was covered under such policy, regardless of
when a lawsuit is filed against the agent? - correct answerOccurrence Policy
In a group life contract, evidence of insurability is - correct answerRequired only
after the enrollment period ends.
Peril - correct answerFor purposes of insurance, which of the following is NOT
considered a hazard?
ANSWERS WITH RATIONALES (VERIFIED ANSWERS)
Which type of insurance protects an agent and even pays claims if a lawsuit is
brought against the agent as a result of failing to provide a service to a client? -
correct answerErrors and Omissions Insurance
Which of the following terms is known as the voluntary relinquishment of a given
right or privilege? - correct answerWaiver
This Supreme Court case placed the regulation of insurance within the authority
of the federal government by defining insurance as a form of interstate
commerce? - correct answerUnited States v. Southeastern Underwriters
Association (1944)
Tim was just hired today by MAB INC and wants to join the company's group
insurance policy. What period of time is he currently in and when can he join the
plan? - correct answerProbationary period, he can sign up after 90 days
If Justin submitted an initial premium with his life insurance application, was
provided a conditional receipt by the insurance company and was ultimately
issued a policy as applied for, when would his insurance policy be considered in
force? - correct answerThe date of his application or the day he completed any
required medical exam
When dividends are issued, the policyowner has the following dividend options in
utilizing a return EXCEPT: - correct answerLife Income Option
Which two life insurance riders can Bill purchase to guarantee that his policy will
continue without further commitment from him and that income will be paid to
him if he becomes totally and permanently disabled? - correct answerWaiver of
premium and Disability Income Riders
In a contributory group plan, what percentage of eligible employees must be
covered? - correct answer75%
Which statement regarding annuities is CORRECT? - correct answerVariable
annuity units are fixed but the annuity payment will vary according to the value of
the annuity unit.
,214 FLORIDA INSURANCE EXAM 2024-2025 ACTUAL EXAM 150 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES (VERIFIED ANSWERS)
In order to be considered currently insured and thus eligible for limited survivor
benefits from Social Security, a worker must have earned ___ credits during the
13-quarter period ending with the quarter in which the worker died. - correct
answer6
Social security is also known as: - correct answerOld Age Survivors and Disability
Insurance (OASDI)
Insurance is not intended to protect against? - correct answerSpeculative Risk
Under a family plan life insurance policy, coverage on the breadwinner is often
provided by which of the following insurance types? - correct answerWhole Life
Which of the following statements regarding annuity settlement or payout
options is NOT true? - correct answerIf the annuitant dies before the principal
sum is depleted, the Refund Life Annuity Option will pay the entire annuity
amount to the beneficiary in a lump sum payment or over scheduled installments.
The following statements regarding 401(k) retirement plans are correct EXCEPT: -
correct answerPlans rarely have a matching contribution component by an
employer
All of the statements below pertaining to group life insurance are correct EXCEPT:
- correct answerIf the insurance coverage is less than $75,000, employees do not
have to report the employer-paid premiums as income
According to Florida Statues, entering into any agreement to commit any act of
intimidation resulting in the business of insurance is known as: - correct
answerCoercion
William, age 67, has owned his life insurance policy for the past 15 years and has
mailed his monthly premiums to his life insurance company. Last month he failed
to mail the monthly payment on his premium due date as well as during his
policy's grace period. As a result, which of the following scenarios will MOST likely
occur? - correct answerThe insurer will provide notification of impending lapse in
coverage, and allow at least 21 additional days beyond the grace period to make a
payment to prevent the policy from lapse
, 214 FLORIDA INSURANCE EXAM 2024-2025 ACTUAL EXAM 150 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES (VERIFIED ANSWERS)
Before executing an exchange of an annuity contract resulting from a
recommendation to a senior consumer, an insurance agent should make
reasonable efforts to obtain information from the applicant concerning the
suitability of the recommendation on an approved form, which upon completion,
must be signed by the applicant and agent. Within what period of time must an
agent submit this form to the insurer once it is complete? - correct answerWithin
10 days
Shelly is considered to be terminally ill and has decided to sell her life insurance
policy in exchange for living benefits to fulfill some final comforts and expenses
before her death. In selling her life insurance policy, Shelly is referred to as
a(n)_________and she will receive a percentage of her life policy's face amount in
exchange for ownership of her policy. - correct answerViator
Which of the following is NOT a type of speculative risk? - correct
answerUnemployment
Which agency collects and provides reliable medical information regarding an
applicant's health history? - correct answerThe MIB
Tonya failed to pay her life policy's premium on the date in which it is normally
due and is currently 23 days late. As a result of her policy's grace period provision,
which outcome will occur? - correct answerTonya is within her grace period and
can pay her premium up to 30 or 31 days after the date in which the premium is
normally due; however, she does not need to pay back any outstanding loans to
the insurer.
Which type of E&O policy provides permanent coverage for the actions of an
agent during which time he or she was covered under such policy, regardless of
when a lawsuit is filed against the agent? - correct answerOccurrence Policy
In a group life contract, evidence of insurability is - correct answerRequired only
after the enrollment period ends.
Peril - correct answerFor purposes of insurance, which of the following is NOT
considered a hazard?
