Florida Life Insurance and Annuities Exam Questions With
Correct Answers.
Pre-licensing Education - accurate answers-Education required before
obtaining an insurance license
Annuities - accurate answers-Contracts sold by insurance companies designed
to provide an income
Stock Companies - accurate answers-Insurance companies organized to make
a profit for stockholders
Mutual Companies - accurate answers-Insurance companies owned by
policyholders and pay dividends
Mixed Insurer - accurate answers-Company offering both participating and
nonparticipating policies
Assessment Mutual Company - accurate answers-Operates based on loss-
sharing by group members with no advance premium
Advance Premium Assessment Mutual - accurate answers-Charges a premium
at the beginning of the policy period
Fraternal Benefit Societies - accurate answers-Nonprofit organizations
providing insurance to members
Risk Retention Groups - accurate answers-Mutual companies formed by
people in the same industry or profession
Service Providers - accurate answers-Offer benefits to subscribers in return
for premium payment
Reciprocal Insurers - accurate answers-Unincorporated groups providing
insurance for other members
Reinsurers - accurate answers-Companies that assume a portion of risk from
other insurance companies
, Captive Insurer - accurate answers-Insurer owned by the parent company to
cover its loss exposure
Home Service Insurers - accurate answers-Companies selling small face
amount life insurance with weekly premiums
Government Insurance - accurate answers-Insurance provided by federal and
state governments for social protection
Self-Insurers - accurate answers-Entities retaining risks and establishing self-
funded plans
Lloyd's of London - accurate answers-Association of members underwriting
unusual risks
Distribution Systems - accurate answers-Ways insurance products are
marketed and sold to the public
NAIC - accurate answers-Organization composed of insurance commissioners
from all states
Advertising Code - accurate answers-Specifies certain words and phrases
considered misleading in insurance advertising
Unfair Trade Practices Act - accurate answers-Gives chief financial officer the
power to investigate insurance companies and impose penalties
NAIFA and NAHU - accurate answers-Organizations dedicated to supporting
insurance professionals
Reserves - accurate answers-Accounting measurement of an insurer's future
obligations to policyholders
Liquidity - accurate answers-Insurer's ability to make unpredictable payouts
to policyholders
Guaranty Associations - accurate answers-Established by states to protect
consumers in case of insurer insolvency
Correct Answers.
Pre-licensing Education - accurate answers-Education required before
obtaining an insurance license
Annuities - accurate answers-Contracts sold by insurance companies designed
to provide an income
Stock Companies - accurate answers-Insurance companies organized to make
a profit for stockholders
Mutual Companies - accurate answers-Insurance companies owned by
policyholders and pay dividends
Mixed Insurer - accurate answers-Company offering both participating and
nonparticipating policies
Assessment Mutual Company - accurate answers-Operates based on loss-
sharing by group members with no advance premium
Advance Premium Assessment Mutual - accurate answers-Charges a premium
at the beginning of the policy period
Fraternal Benefit Societies - accurate answers-Nonprofit organizations
providing insurance to members
Risk Retention Groups - accurate answers-Mutual companies formed by
people in the same industry or profession
Service Providers - accurate answers-Offer benefits to subscribers in return
for premium payment
Reciprocal Insurers - accurate answers-Unincorporated groups providing
insurance for other members
Reinsurers - accurate answers-Companies that assume a portion of risk from
other insurance companies
, Captive Insurer - accurate answers-Insurer owned by the parent company to
cover its loss exposure
Home Service Insurers - accurate answers-Companies selling small face
amount life insurance with weekly premiums
Government Insurance - accurate answers-Insurance provided by federal and
state governments for social protection
Self-Insurers - accurate answers-Entities retaining risks and establishing self-
funded plans
Lloyd's of London - accurate answers-Association of members underwriting
unusual risks
Distribution Systems - accurate answers-Ways insurance products are
marketed and sold to the public
NAIC - accurate answers-Organization composed of insurance commissioners
from all states
Advertising Code - accurate answers-Specifies certain words and phrases
considered misleading in insurance advertising
Unfair Trade Practices Act - accurate answers-Gives chief financial officer the
power to investigate insurance companies and impose penalties
NAIFA and NAHU - accurate answers-Organizations dedicated to supporting
insurance professionals
Reserves - accurate answers-Accounting measurement of an insurer's future
obligations to policyholders
Liquidity - accurate answers-Insurer's ability to make unpredictable payouts
to policyholders
Guaranty Associations - accurate answers-Established by states to protect
consumers in case of insurer insolvency
