Florida Life and Health Insurance/ 228 Quizzes
& Correct Ans.
Whom does an insurance agent represent? - Answer: Insurance Company
What is an unfair trade practice? - Answer: Any fraudulent, deceptive, or
dishonest business practice that is prohibited by statutes and regulations.
Insurer - Answer: The company that issues an insurance policy.
Peril - Answer: Cause of loss
Contract of Adhesion - Answer: A contract prepared by one party that must be
accepted as written or be rejected by the other party.
What are the four elements of an insurance contract? - Answer: Agreement (Offer
and Acceptance), consideration, competent parties, and legal purpose.
Page 1 of 22
,Policy Provision - Answer: A clause that stipulates the rights and obligations under
an insurance contract.
Fiduciary - Answer: A producer who handles insurer's funds in a trust capacity.
Who is considered a nonresident agent? - Answer: An agent who resides and is
licensed in another state, but is authorized to transact insurance in Florida.
What is underwriting? - Answer: The risk selection and classification process.
What is the best way to handle incomplete insurance applications? - Answer:
Return the application to the applicant for completion.
What are the five characteristics of an ideally insurable risk? - Answer: Loss must
be:
1. Due to Change
2. Definite and measurable
3. Statistically predictable
4. Not catastrophic
5. Coverage cannot be mandatory.
What type of policy issues certificates of insurance to the insurance? - Answer:
Group Policy
What is the purpose of a free-look period? - Answer: To allow the insured to
return the policy and get a full refund (if done during the free-look period)
Whose responsibility is it to determine that all of the questions on an insurance
application are answered? - Answer: The Agent's
What types of licensee represents the insurance company? - Answer: Agent
Page 2 of 22
, Who must be notified of the producers change of address? - Answer: The
department of Insurance
Certificate of Insurance - Answer: A document issued to insureds under a group
plan that states the coverage being issued, and indicates the coverage type and
amounts.
Nonrenewal - Answer: Termination of a policy by an insurer on the anniversary or
renewal date.
Representation - Answer: A statement made by the applicant on the insurance
application that is believed to be true.
What is a warranty? - Answer: An absolutely true statement that, if breached,
may viod an insurance contract.
In insurance, when is the offer usually made on a contract? - Answer: When the
insurance application is submitted.
When a change needs to be made on the application for insurance, which is the
best method for correcting the information? - Answer: Complete a new
application or ask the applicant to initial the correction on the original application.
A situation in which a person can only experience a loss and no gain represents
what type of risk? - Answer: Pure Risk
Who is responsible for the contents of insurance advertisements? - Answer: The
Insurance Company
What is the entire contract in health insurance underwriting? - Answer: The policy
with riders and endorsements, plus a copy of the application.
Page 3 of 22
& Correct Ans.
Whom does an insurance agent represent? - Answer: Insurance Company
What is an unfair trade practice? - Answer: Any fraudulent, deceptive, or
dishonest business practice that is prohibited by statutes and regulations.
Insurer - Answer: The company that issues an insurance policy.
Peril - Answer: Cause of loss
Contract of Adhesion - Answer: A contract prepared by one party that must be
accepted as written or be rejected by the other party.
What are the four elements of an insurance contract? - Answer: Agreement (Offer
and Acceptance), consideration, competent parties, and legal purpose.
Page 1 of 22
,Policy Provision - Answer: A clause that stipulates the rights and obligations under
an insurance contract.
Fiduciary - Answer: A producer who handles insurer's funds in a trust capacity.
Who is considered a nonresident agent? - Answer: An agent who resides and is
licensed in another state, but is authorized to transact insurance in Florida.
What is underwriting? - Answer: The risk selection and classification process.
What is the best way to handle incomplete insurance applications? - Answer:
Return the application to the applicant for completion.
What are the five characteristics of an ideally insurable risk? - Answer: Loss must
be:
1. Due to Change
2. Definite and measurable
3. Statistically predictable
4. Not catastrophic
5. Coverage cannot be mandatory.
What type of policy issues certificates of insurance to the insurance? - Answer:
Group Policy
What is the purpose of a free-look period? - Answer: To allow the insured to
return the policy and get a full refund (if done during the free-look period)
Whose responsibility is it to determine that all of the questions on an insurance
application are answered? - Answer: The Agent's
What types of licensee represents the insurance company? - Answer: Agent
Page 2 of 22
, Who must be notified of the producers change of address? - Answer: The
department of Insurance
Certificate of Insurance - Answer: A document issued to insureds under a group
plan that states the coverage being issued, and indicates the coverage type and
amounts.
Nonrenewal - Answer: Termination of a policy by an insurer on the anniversary or
renewal date.
Representation - Answer: A statement made by the applicant on the insurance
application that is believed to be true.
What is a warranty? - Answer: An absolutely true statement that, if breached,
may viod an insurance contract.
In insurance, when is the offer usually made on a contract? - Answer: When the
insurance application is submitted.
When a change needs to be made on the application for insurance, which is the
best method for correcting the information? - Answer: Complete a new
application or ask the applicant to initial the correction on the original application.
A situation in which a person can only experience a loss and no gain represents
what type of risk? - Answer: Pure Risk
Who is responsible for the contents of insurance advertisements? - Answer: The
Insurance Company
What is the entire contract in health insurance underwriting? - Answer: The policy
with riders and endorsements, plus a copy of the application.
Page 3 of 22
