FL LIFE AND HEALTH INSURANCE EXAM 150
QUESTIONS & CORRECT ANSWERS LATEST 2025
What is a fraternal benefit society? - ANSWER-Nonprofit religious, ethnic, or
charitable organizations that provide insurance solely to its members
What is a risk retention group? - ANSWER-Mutual companies formed by a group
of people in the same industry or profession
What does Social Security do? - ANSWER-Provides income benefits for the elderly,
survivors of those who died young, and those qualifying for federal disability
What's the other name for Social Security? - ANSWER-Old Age Survivor Disability
Insurance (OASDI)
Who benefits from Medicare? - ANSWER-Elderly
Who benefits from Medicaid? - ANSWER-Those that need financial assistance
What is the Fair Credit Reporting Act? - ANSWER-Provides individuals privacy
protection and fair and accurate credit reporting
,What is the Patriot Act? - ANSWER-Designed to detect and deter terrorists as well
as impose anti-money laundering requirements on brokerage firms and financial
institutions
What are the objectives of the National Association of Insurance Commissioners?
(NAIC) - ANSWER-1. Encourage uniformity in state insurance laws and regulations
2. Assists in the administration of those laws and regulations by promoting
efficiency
3. Protect the interest of policyowners and consumers
4. Preserve state regulation of the insurance business
What does a guaranty do? - ANSWER-Supports insurers and protects consumers
in case an insurer becomes insolvent
What are the 4 elements of a contract? - ANSWER-Consideration, legal purpose,
offer and acceptance, and competent parties
What does contract of adhesion mean? - ANSWER-The idea that the customer
must adhere to the insurer's contract without any input of their own
What does aleatory mean? - ANSWER-Unequal exchange
What is subrogation? - ANSWER-The right for an insurer to pursue a 3rd party that
caused an insurance loss to the insured
What are the characteristics of term life insurance? - ANSWER-1. Gives the
greatest amount of coverage for a limited period of time
, 2. Is often renewable and convertible
What are the characteristics of level term insurance? - ANSWER-1. Has a level face
amount and level premiums
2. Premiums increase at every renewal
3. Always expires at the end of the policy period
4. Provides a fixed, low premium in exchange for coverage which lasts for a
specified time period
What are the characteristics of decreasing term life insurance? - ANSWER-1.
Annually decreasing face amount over time with level premiums
2. Usually used for mortgage protection
3. A type of life policy which has a death benefit that adjusts periodically
What are the characteristics of convertible term insurance? - ANSWER-Allows
policyowners to convert their term insurance into permanent policies without
showing proof of insurability
What are the characteristics of renewable term insurance? - ANSWER-Guarantees
the insured the right to continue term coverage after expiration of the initial
policy period without having to prove insurability
What are the characteristics of whole life insurance? - ANSWER-1. Provides death
benefits for the entire life of the insured
2. Provides living benefits in the form of cash values
3. Matures at age 100 and normally has a level premium
QUESTIONS & CORRECT ANSWERS LATEST 2025
What is a fraternal benefit society? - ANSWER-Nonprofit religious, ethnic, or
charitable organizations that provide insurance solely to its members
What is a risk retention group? - ANSWER-Mutual companies formed by a group
of people in the same industry or profession
What does Social Security do? - ANSWER-Provides income benefits for the elderly,
survivors of those who died young, and those qualifying for federal disability
What's the other name for Social Security? - ANSWER-Old Age Survivor Disability
Insurance (OASDI)
Who benefits from Medicare? - ANSWER-Elderly
Who benefits from Medicaid? - ANSWER-Those that need financial assistance
What is the Fair Credit Reporting Act? - ANSWER-Provides individuals privacy
protection and fair and accurate credit reporting
,What is the Patriot Act? - ANSWER-Designed to detect and deter terrorists as well
as impose anti-money laundering requirements on brokerage firms and financial
institutions
What are the objectives of the National Association of Insurance Commissioners?
(NAIC) - ANSWER-1. Encourage uniformity in state insurance laws and regulations
2. Assists in the administration of those laws and regulations by promoting
efficiency
3. Protect the interest of policyowners and consumers
4. Preserve state regulation of the insurance business
What does a guaranty do? - ANSWER-Supports insurers and protects consumers
in case an insurer becomes insolvent
What are the 4 elements of a contract? - ANSWER-Consideration, legal purpose,
offer and acceptance, and competent parties
What does contract of adhesion mean? - ANSWER-The idea that the customer
must adhere to the insurer's contract without any input of their own
What does aleatory mean? - ANSWER-Unequal exchange
What is subrogation? - ANSWER-The right for an insurer to pursue a 3rd party that
caused an insurance loss to the insured
What are the characteristics of term life insurance? - ANSWER-1. Gives the
greatest amount of coverage for a limited period of time
, 2. Is often renewable and convertible
What are the characteristics of level term insurance? - ANSWER-1. Has a level face
amount and level premiums
2. Premiums increase at every renewal
3. Always expires at the end of the policy period
4. Provides a fixed, low premium in exchange for coverage which lasts for a
specified time period
What are the characteristics of decreasing term life insurance? - ANSWER-1.
Annually decreasing face amount over time with level premiums
2. Usually used for mortgage protection
3. A type of life policy which has a death benefit that adjusts periodically
What are the characteristics of convertible term insurance? - ANSWER-Allows
policyowners to convert their term insurance into permanent policies without
showing proof of insurability
What are the characteristics of renewable term insurance? - ANSWER-Guarantees
the insured the right to continue term coverage after expiration of the initial
policy period without having to prove insurability
What are the characteristics of whole life insurance? - ANSWER-1. Provides death
benefits for the entire life of the insured
2. Provides living benefits in the form of cash values
3. Matures at age 100 and normally has a level premium
