FLORIDA LIFE AND HEALTH
INSURANCE 230 QUESTION
AND ANSWERS 2025
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
,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
contracts on behalf of the insurer.
7. What is the 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
insurance funds collected is known as what type of agent responsibility?
Answer: Fiduciary.
9. What is 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 an informed
decision.
, 13. An agent offers 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 state's financial requirements and is approved to
transact business in the state, it is considered what type of insurer?
Answer: Authorized.
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 owner?
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.
INSURANCE 230 QUESTION
AND ANSWERS 2025
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
,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
contracts on behalf of the insurer.
7. What is the 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
insurance funds collected is known as what type of agent responsibility?
Answer: Fiduciary.
9. What is 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 an informed
decision.
, 13. An agent offers 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 state's financial requirements and is approved to
transact business in the state, it is considered what type of insurer?
Answer: Authorized.
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 owner?
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.
