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214 Florida Insurance Questions with
Detailed Verified Answers
Question: Which type of insurance protects an agent and even pays claims if a
lawsuit is brought against the agent as a result of failing to provide a service to
a client?
Ans: Errors and Omissions Insurance
Question: Which of the following terms is known as the voluntary
relinquishment of a given right or privilege?
Ans: Waiver
Question: This Supreme Court case placed the regulation of insurance within
the authority of the federal government by defining insurance as a form of
interstate commerce?
Ans: United States v. Southeastern Underwriters Association (1944)
Question: Tim was just hired today by MAB INC and wants to join the
company's group insurance policy. What period of time is he currently in and
when can he join the plan?
Ans: Probationary period, he can sign up after 90 days
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Question: If Justin submitted an initial premium with his life insurance
application, was provided a conditional receipt by the insurance company and
was ultimately issued a policy as applied for, when would his insurance policy
be considered in force?
Ans: The date of his application or the day he completed any required
medical exam
Question: When dividends are issued, the policyowner has the following
dividend options in utilizing a return EXCEPT:
Ans: Life Income Option
Question: Which two life insurance riders can Bill purchase to guarantee that
his policy will continue without further commitment from him and that
income will be paid to him if he becomes totally and permanently disabled?
Ans: Waiver of premium and Disability Income Riders
Question: In a contributory group plan, what percentage of eligible
employees must be covered?
Ans: 75%
Question: Which statement regarding annuities is CORRECT?
Ans: Variable annuity units are fixed but the annuity payment will vary
according to the value of the annuity unit.
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Question: In order to be considered currently insured and thus eligible for
limited survivor benefits from Social Security, a worker must have earned ___
credits during the 13-quarter period ending with the quarter in which the
worker died.
Ans: 6
Question: Social security is also known as:
Ans: Old Age Survivors and Disability Insurance (OASDI)
Question: Insurance is not intended to protect against?
Ans: Speculative Risk
Question: Under a family plan life insurance policy, coverage on the
breadwinner is often provided by which of the following insurance types?
Ans: Whole Life
Question: Which of the following statements regarding annuity settlement or
payout options is NOT true?
Ans: If the annuitant dies before the principal sum is depleted, the Refund
Life Annuity Option will pay the entire annuity amount to the beneficiary in a
lump sum payment or over scheduled installments.
Question: The following statements regarding 401(k) retirement plans are
correct EXCEPT:
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Ans: Plans rarely have a matching contribution component by an employer
Question: All of the statements below pertaining to group life insurance are
correct EXCEPT:
Ans: If the insurance coverage is less than $75,000, employees do not have to
report the employer-paid premiums as income
Question: According to Florida Statues, entering into any agreement to
commit any act of intimidation resulting in the business of insurance is known
as:
Ans: Coercion
Question: William, age 67, has owned his life insurance policy for the past 15
years and has mailed his monthly premiums to his life insurance company.
Last month he failed to mail the monthly payment on his premium due date as
well as during his policy's grace period. As a result, which of the following
scenarios will MOST likely occur?
Ans: The insurer will provide notification of impending lapse in coverage, and
allow at least 21 additional days beyond the grace period to make a payment
to prevent the policy from lapse
Question: Before executing an exchange of an annuity contract resulting
from a recommendation to a senior consumer, an insurance agent should
make reasonable efforts to obtain information from the applicant concerning
the suitability of the recommendation on an approved form, which upon
214 Florida Insurance Questions with
Detailed Verified Answers
Question: Which type of insurance protects an agent and even pays claims if a
lawsuit is brought against the agent as a result of failing to provide a service to
a client?
Ans: Errors and Omissions Insurance
Question: Which of the following terms is known as the voluntary
relinquishment of a given right or privilege?
Ans: Waiver
Question: This Supreme Court case placed the regulation of insurance within
the authority of the federal government by defining insurance as a form of
interstate commerce?
Ans: United States v. Southeastern Underwriters Association (1944)
Question: Tim was just hired today by MAB INC and wants to join the
company's group insurance policy. What period of time is he currently in and
when can he join the plan?
Ans: Probationary period, he can sign up after 90 days
, Page | 2
Question: If Justin submitted an initial premium with his life insurance
application, was provided a conditional receipt by the insurance company and
was ultimately issued a policy as applied for, when would his insurance policy
be considered in force?
Ans: The date of his application or the day he completed any required
medical exam
Question: When dividends are issued, the policyowner has the following
dividend options in utilizing a return EXCEPT:
Ans: Life Income Option
Question: Which two life insurance riders can Bill purchase to guarantee that
his policy will continue without further commitment from him and that
income will be paid to him if he becomes totally and permanently disabled?
Ans: Waiver of premium and Disability Income Riders
Question: In a contributory group plan, what percentage of eligible
employees must be covered?
Ans: 75%
Question: Which statement regarding annuities is CORRECT?
Ans: Variable annuity units are fixed but the annuity payment will vary
according to the value of the annuity unit.
, Page | 3
Question: In order to be considered currently insured and thus eligible for
limited survivor benefits from Social Security, a worker must have earned ___
credits during the 13-quarter period ending with the quarter in which the
worker died.
Ans: 6
Question: Social security is also known as:
Ans: Old Age Survivors and Disability Insurance (OASDI)
Question: Insurance is not intended to protect against?
Ans: Speculative Risk
Question: Under a family plan life insurance policy, coverage on the
breadwinner is often provided by which of the following insurance types?
Ans: Whole Life
Question: Which of the following statements regarding annuity settlement or
payout options is NOT true?
Ans: If the annuitant dies before the principal sum is depleted, the Refund
Life Annuity Option will pay the entire annuity amount to the beneficiary in a
lump sum payment or over scheduled installments.
Question: The following statements regarding 401(k) retirement plans are
correct EXCEPT:
, Page | 4
Ans: Plans rarely have a matching contribution component by an employer
Question: All of the statements below pertaining to group life insurance are
correct EXCEPT:
Ans: If the insurance coverage is less than $75,000, employees do not have to
report the employer-paid premiums as income
Question: According to Florida Statues, entering into any agreement to
commit any act of intimidation resulting in the business of insurance is known
as:
Ans: Coercion
Question: William, age 67, has owned his life insurance policy for the past 15
years and has mailed his monthly premiums to his life insurance company.
Last month he failed to mail the monthly payment on his premium due date as
well as during his policy's grace period. As a result, which of the following
scenarios will MOST likely occur?
Ans: The insurer will provide notification of impending lapse in coverage, and
allow at least 21 additional days beyond the grace period to make a payment
to prevent the policy from lapse
Question: Before executing an exchange of an annuity contract resulting
from a recommendation to a senior consumer, an insurance agent should
make reasonable efforts to obtain information from the applicant concerning
the suitability of the recommendation on an approved form, which upon
