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Florida Life Insurance Questions with
Detailed Verified Answers
Question: Mutual Insurance Companies
Ans: organized and incorporated under state laws. No stockholders.
Question: Mutual companies
Ans: Participating, they pay dividends.
Question: Stock company
Ans: Owns Stock. Nonparticipating (no dividends)
Question: Risk Retention Group
Ans: Mutual company formed to insure ppl in the same business, occupation,
profession (pharmacists, dentists, engineers)
Question: Fraternal Benefit Societies
Ans: Non profit organization, lodge system that includes ritualistic work, and
maintain a rep form of gov with elected officers.
Question: FICA
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Ans: Made up of Social Security and Medicare
Question: Variable Product
Ans: Dual license. One license issued by FINRA & the other Life & Annuity
(issued by the state)
Question: Fair Credit Reporting Act
Ans: Consumers have the right to question what is on their credit report
Question: Domestic insurer
Ans: company doing business in the state in which it is incorporated
Question: Foreign insurer
Ans: company licensed & doing business in states other than the one in which
it is incorporated
Question: Buyers Guides
Ans: generic (explain various types of life insurance products, including
variable annuities)
Question: Policy Summaries
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Ans: Specific to the Policy - ids the agent, insurer, policy, each rider, and
includes info about premiums, dividends, benefit amounts, cash surrender
values, policy loan interest rates, and life insurance cost indexes of the specific
policy being considered
Question: National Association of Ins Commissioners (NAIC)
Ans: Encourage Uniformity, Assist in admin of laws & regs, Protect interest of
policy owners, Preserve state regulation
Question: Warranty
Ans: a statement guaranteed to be true
Question: Representation
Ans: statement by client (best of their knowledge). We give the client the
benefit of the doubt
Question: Concealment
Ans: failure by applicant to disclose a known material fact at time of
application
Question: Insurable interest
Ans: Interest must exist at the inception of the policy
Question: Fiduciary
Florida Life Insurance Questions with
Detailed Verified Answers
Question: Mutual Insurance Companies
Ans: organized and incorporated under state laws. No stockholders.
Question: Mutual companies
Ans: Participating, they pay dividends.
Question: Stock company
Ans: Owns Stock. Nonparticipating (no dividends)
Question: Risk Retention Group
Ans: Mutual company formed to insure ppl in the same business, occupation,
profession (pharmacists, dentists, engineers)
Question: Fraternal Benefit Societies
Ans: Non profit organization, lodge system that includes ritualistic work, and
maintain a rep form of gov with elected officers.
Question: FICA
, Page | 2
Ans: Made up of Social Security and Medicare
Question: Variable Product
Ans: Dual license. One license issued by FINRA & the other Life & Annuity
(issued by the state)
Question: Fair Credit Reporting Act
Ans: Consumers have the right to question what is on their credit report
Question: Domestic insurer
Ans: company doing business in the state in which it is incorporated
Question: Foreign insurer
Ans: company licensed & doing business in states other than the one in which
it is incorporated
Question: Buyers Guides
Ans: generic (explain various types of life insurance products, including
variable annuities)
Question: Policy Summaries
, Page | 3
Ans: Specific to the Policy - ids the agent, insurer, policy, each rider, and
includes info about premiums, dividends, benefit amounts, cash surrender
values, policy loan interest rates, and life insurance cost indexes of the specific
policy being considered
Question: National Association of Ins Commissioners (NAIC)
Ans: Encourage Uniformity, Assist in admin of laws & regs, Protect interest of
policy owners, Preserve state regulation
Question: Warranty
Ans: a statement guaranteed to be true
Question: Representation
Ans: statement by client (best of their knowledge). We give the client the
benefit of the doubt
Question: Concealment
Ans: failure by applicant to disclose a known material fact at time of
application
Question: Insurable interest
Ans: Interest must exist at the inception of the policy
Question: Fiduciary
