FLORIDA STATE AGENT 240 LIFE & HEALTH
INSURANCE LICENSING EXAM 220+ QUESTIONS &
CORRECT ANSWERS LATEST 2025
One of the state purposes of the Life and Health Insurance Guaranty Association
is - ANSWER-to assist in the prevention of insurer insolvencies
The Life and Health Insurance Guaranty Association is funded by - ANSWER-
assessments on member companies
The purpose of the Guaranty Fund is to - ANSWER-ensure that claims filed against
insolvent insurance companies will be paid
The rules and regulations of the Life and Health Insurance Guaranty Association
apply to - ANSWER-Life and Health policies issued by companies authorized in
that particular state
The fund that assures policyholders payment of benefits on Life and Health
policies, if the company is insolvent at the time of the claim, is called the -
ANSWER-Life and Health Insurance Guaranty Association
A stock life insurance company that issues both participating and nonparticipating
policies is doing business on - ANSWER-a mixed plan
A stock insurance company is owned by - ANSWER-it's stockholders
,A mutual insurance company is owned by - ANSWER-its policyholders
Which type of insurance company allows their policyowners to elect a governing
body? - ANSWER-mutual
What percentage of eligible persons must a policy cover in a noncontributory
group? - ANSWER-100%
Which employer tasks does a Professional Employer Organization normally
handle? - ANSWER-administration tasks
The coordination of benefits (COB) provision exists in order to - ANSWER-avoid
duplication of benefit payments
M completes an application for health insurance, but does not pay the initial
premium. All of these actions must occur before M's policy goes into effect
EXCEPT - ANSWER-Free-Look period has expired
Q applied for life insurance and submitted the initial premium on January 1. The
policy was issued February 1, but it was not delivered by the agent until February
7. Q is dissatisfied and returns the policy February 13. How will the insurer handle
this situation? - ANSWER-Policy was returned within the free-look period,
premium will be fully refunded
What act is an agent NOT authorized to do on behalf of an insurer? - ANSWER-
Authorize claim payments
,According to State insurance law, while transacting insurance business, agents act
as representatives of - ANSWER-the insurer
An insurance broker is a representative of - ANSWER-the insured
T is an agent and when hired, is reminded that he has a responsibility to handle
clients' funds in an honest and ethical manner. This responsibility is referred to as
- ANSWER-Fiduciary responsibility
Insurance companies that are organized in countries outside of the United States
are referred to as - ANSWER-Alien companies
An insurance company incorporated under the laws of the state in which its home
office is located is called - ANSWER-Domestic company
If an insurance company is organized under the laws of New Jersey and licensed
to do business here, it is considered what in Texas? - ANSWER-Foreign company
An insurance company that is incorporated in New Hampshire and does business
in Florida is defined in Florida as - ANSWER-Foreign insurer
A foreign insurance company is one that is incorporated - ANSWER-under the
laws of another state
In order for a domestic, foreign, or alien insurance company to conduct business,
it must be authorized by whom? - ANSWER-The state where they are conducting
business
, A certificate of authority does what? - ANSWER-Permits an insurance company to
transact business in that state
Before approving an application for a business entity acting as an agent, the
Commissioner or Director must find that the business entity has - ANSWER-
Designate an agent to be responsible for compliance with insurance laws
If an insured sustains a loss on a policy sold by an agent through an insurance
company that is not authorized to do business in that particular state, who would
be liable? - ANSWER-The agent and the company
Which of the following is NOT a consequence for placing business with an
unauthorized insurer? - ANSWER-First degree misdemeanor
What is one of many acts an agent is NOT authorized to do on behalf of an
insurer? - ANSWER-Authorize claim payments
Advertising gifts given by an agent to a prospective client are not allowed to
exceed - ANSWER-$25
An agent may legally share commissions with only - ANSWER-Another agent who
is licensed in the same line of business
An insurance company will not compensate - ANSWER-Licensed agent not
appointed by the company
INSURANCE LICENSING EXAM 220+ QUESTIONS &
CORRECT ANSWERS LATEST 2025
One of the state purposes of the Life and Health Insurance Guaranty Association
is - ANSWER-to assist in the prevention of insurer insolvencies
The Life and Health Insurance Guaranty Association is funded by - ANSWER-
assessments on member companies
The purpose of the Guaranty Fund is to - ANSWER-ensure that claims filed against
insolvent insurance companies will be paid
The rules and regulations of the Life and Health Insurance Guaranty Association
apply to - ANSWER-Life and Health policies issued by companies authorized in
that particular state
The fund that assures policyholders payment of benefits on Life and Health
policies, if the company is insolvent at the time of the claim, is called the -
ANSWER-Life and Health Insurance Guaranty Association
A stock life insurance company that issues both participating and nonparticipating
policies is doing business on - ANSWER-a mixed plan
A stock insurance company is owned by - ANSWER-it's stockholders
,A mutual insurance company is owned by - ANSWER-its policyholders
Which type of insurance company allows their policyowners to elect a governing
body? - ANSWER-mutual
What percentage of eligible persons must a policy cover in a noncontributory
group? - ANSWER-100%
Which employer tasks does a Professional Employer Organization normally
handle? - ANSWER-administration tasks
The coordination of benefits (COB) provision exists in order to - ANSWER-avoid
duplication of benefit payments
M completes an application for health insurance, but does not pay the initial
premium. All of these actions must occur before M's policy goes into effect
EXCEPT - ANSWER-Free-Look period has expired
Q applied for life insurance and submitted the initial premium on January 1. The
policy was issued February 1, but it was not delivered by the agent until February
7. Q is dissatisfied and returns the policy February 13. How will the insurer handle
this situation? - ANSWER-Policy was returned within the free-look period,
premium will be fully refunded
What act is an agent NOT authorized to do on behalf of an insurer? - ANSWER-
Authorize claim payments
,According to State insurance law, while transacting insurance business, agents act
as representatives of - ANSWER-the insurer
An insurance broker is a representative of - ANSWER-the insured
T is an agent and when hired, is reminded that he has a responsibility to handle
clients' funds in an honest and ethical manner. This responsibility is referred to as
- ANSWER-Fiduciary responsibility
Insurance companies that are organized in countries outside of the United States
are referred to as - ANSWER-Alien companies
An insurance company incorporated under the laws of the state in which its home
office is located is called - ANSWER-Domestic company
If an insurance company is organized under the laws of New Jersey and licensed
to do business here, it is considered what in Texas? - ANSWER-Foreign company
An insurance company that is incorporated in New Hampshire and does business
in Florida is defined in Florida as - ANSWER-Foreign insurer
A foreign insurance company is one that is incorporated - ANSWER-under the
laws of another state
In order for a domestic, foreign, or alien insurance company to conduct business,
it must be authorized by whom? - ANSWER-The state where they are conducting
business
, A certificate of authority does what? - ANSWER-Permits an insurance company to
transact business in that state
Before approving an application for a business entity acting as an agent, the
Commissioner or Director must find that the business entity has - ANSWER-
Designate an agent to be responsible for compliance with insurance laws
If an insured sustains a loss on a policy sold by an agent through an insurance
company that is not authorized to do business in that particular state, who would
be liable? - ANSWER-The agent and the company
Which of the following is NOT a consequence for placing business with an
unauthorized insurer? - ANSWER-First degree misdemeanor
What is one of many acts an agent is NOT authorized to do on behalf of an
insurer? - ANSWER-Authorize claim payments
Advertising gifts given by an agent to a prospective client are not allowed to
exceed - ANSWER-$25
An agent may legally share commissions with only - ANSWER-Another agent who
is licensed in the same line of business
An insurance company will not compensate - ANSWER-Licensed agent not
appointed by the company
