FLORIDA LIFE AND HEALTH
INSURANCE EXAM QUESTIONS &
ANSWERS PASSED ALREADY
GRADED A+
Insured - CORRECT ANSWER The person covered by the insurance policy.
Rider - CORRECT ANSWER A written modification attached to a policy that increases
or decreases coverage and/or premiums.
What is a unilateral contract? - CORRECT ANSWER A contract in which only one of
the parties is legally bound to fulfill its obligations.
What law protects consumers from the circulation of inaccurate or obsolete information?
- CORRECT ANSWER The Fair Credit Reporting Act.
What are the three types of agent authority? - CORRECT ANSWER Implied, Express,
and Apparent.
Agent - CORRECT ANSWER An individual who is licensed to sell, negotiate, or effect
insurance contracts on behalf of the insurer.
What is name of the process that insurance companies use to determine whether or not
an applicant is insurable? - CORRECT ANSWER Underwriting
The requirement that agents must account for and promptly remit all insurance funds
collected is known as what type of agent responsibility? - CORRECT ANSWER
Fiduciary
What is a third-party ownership? - CORRECT ANSWER An insurance arrangement in
which the policy owner and the insured are not the same person.
Suitability - CORRECT ANSWER Factors that determine if an insurance product is
appropriate for a particular customer.
Premium - CORRECT ANSWER A payment by the policy owner to the insurance
company to keep the policy in force.
Disclosure - CORRECT ANSWER Providing sufficient information to help someone
make informed decision.
,An agent offer a client free tickets to a sporting event in exchange for the purchase of
an insurance policy. What is the agent guilty of? - CORRECT ANSWER Rebating
If an insurer meets the states financial requirements and is approved to transact
business in the state, it is considered what type of insurer? - CORRECT ANSWER
Authorized
What information are the members of the medical information bureau required to
report? - CORRECT ANSWER Adverse medical information about the applicants or
insureds.
What type of beneficiary can be changed at any point by the policy owner? -
CORRECT ANSWER Revocable
What document describes the specific information about a policy? - CORRECT
ANSWER Policy Summary
What is the term for the causes of loss insured against in an insurance policy? -
CORRECT ANSWER Peril
Whom does an insurance agent represent? - CORRECT ANSWER Insurance
Company
What is an unfair trade practice? - CORRECT ANSWER Any fraudulent, deceptive, or
dishonest business practice that is prohibited by statutes and regulations.
Insurer - CORRECT ANSWER The company that issues an insurance policy.
Peril - CORRECT ANSWER Cause of loss
Contract of Adhesion - CORRECT ANSWER A contract prepared by one party that
must be accepted as written or be rejected by the other party.
What are the four elements of an insurance contract? - CORRECT ANSWER
Agreement (Offer and Acceptance), consideration, competent parties, and legal
purpose.
Policy Provision - CORRECT ANSWER A clause that stipulates the rights and
obligations under an insurance contract.
Fiduciary - CORRECT ANSWER A producer who handles insurer's funds in a trust
capacity.
Who is considered a nonresident agent? - CORRECT ANSWER An agent who resides
and is licensed in another state, but is authorized to transact insurance in Florida.
, What is underwriting? - CORRECT ANSWER The risk selection and classification
process.
What is the best way to handle incomplete insurance applications? - CORRECT
ANSWER Return the application to the applicant for completion.
What are the five characteristics of an ideally insurable risk? - CORRECT ANSWER
Loss must be:
1. Due to Change
2. Definite and measurable
3. Statistically predictable
4. Not catastrophic
5. Coverage cannot be mandatory.
What type of policy issues certificates of insurance to the insurance? - CORRECT
ANSWER Group Policy
What is the purpose of a free-look period? - CORRECT ANSWER To allow the insured
to return the policy and get a full refund (if done during the free-look period)
Whose responsibility is it to determine that all of the questions on an insurance
application are answered? - CORRECT ANSWER The Agent's
What types of licensee represents the insurance company? - CORRECT ANSWER
Agent
Who must be notified of the producers change of address? - CORRECT ANSWER The
department of Insurance
Certificate of Insurance - CORRECT ANSWER A document issued to insureds under a
group plan that states the coverage being issued, and indicates the coverage type and
amounts.
Nonrenewal - CORRECT ANSWER Termination of a policy by an insurer on the
anniversary or renewal date.
Representation - CORRECT ANSWER A statement made by the applicant on the
insurance application that is believed to be true.
What is a warranty? - CORRECT ANSWER An absolutely true statement that, if
breached, may viod an insurance contract.
In insurance, when is the offer usually made on a contract? - CORRECT ANSWER
When the insurance application is submitted.
INSURANCE EXAM QUESTIONS &
ANSWERS PASSED ALREADY
GRADED A+
Insured - CORRECT ANSWER The person covered by the insurance policy.
Rider - CORRECT ANSWER A written modification attached to a policy that increases
or decreases coverage and/or premiums.
What is a unilateral contract? - CORRECT ANSWER A contract in which only one of
the parties is legally bound to fulfill its obligations.
What law protects consumers from the circulation of inaccurate or obsolete information?
- CORRECT ANSWER The Fair Credit Reporting Act.
What are the three types of agent authority? - CORRECT ANSWER Implied, Express,
and Apparent.
Agent - CORRECT ANSWER An individual who is licensed to sell, negotiate, or effect
insurance contracts on behalf of the insurer.
What is name of the process that insurance companies use to determine whether or not
an applicant is insurable? - CORRECT ANSWER Underwriting
The requirement that agents must account for and promptly remit all insurance funds
collected is known as what type of agent responsibility? - CORRECT ANSWER
Fiduciary
What is a third-party ownership? - CORRECT ANSWER An insurance arrangement in
which the policy owner and the insured are not the same person.
Suitability - CORRECT ANSWER Factors that determine if an insurance product is
appropriate for a particular customer.
Premium - CORRECT ANSWER A payment by the policy owner to the insurance
company to keep the policy in force.
Disclosure - CORRECT ANSWER Providing sufficient information to help someone
make informed decision.
,An agent offer a client free tickets to a sporting event in exchange for the purchase of
an insurance policy. What is the agent guilty of? - CORRECT ANSWER Rebating
If an insurer meets the states financial requirements and is approved to transact
business in the state, it is considered what type of insurer? - CORRECT ANSWER
Authorized
What information are the members of the medical information bureau required to
report? - CORRECT ANSWER Adverse medical information about the applicants or
insureds.
What type of beneficiary can be changed at any point by the policy owner? -
CORRECT ANSWER Revocable
What document describes the specific information about a policy? - CORRECT
ANSWER Policy Summary
What is the term for the causes of loss insured against in an insurance policy? -
CORRECT ANSWER Peril
Whom does an insurance agent represent? - CORRECT ANSWER Insurance
Company
What is an unfair trade practice? - CORRECT ANSWER Any fraudulent, deceptive, or
dishonest business practice that is prohibited by statutes and regulations.
Insurer - CORRECT ANSWER The company that issues an insurance policy.
Peril - CORRECT ANSWER Cause of loss
Contract of Adhesion - CORRECT ANSWER A contract prepared by one party that
must be accepted as written or be rejected by the other party.
What are the four elements of an insurance contract? - CORRECT ANSWER
Agreement (Offer and Acceptance), consideration, competent parties, and legal
purpose.
Policy Provision - CORRECT ANSWER A clause that stipulates the rights and
obligations under an insurance contract.
Fiduciary - CORRECT ANSWER A producer who handles insurer's funds in a trust
capacity.
Who is considered a nonresident agent? - CORRECT ANSWER An agent who resides
and is licensed in another state, but is authorized to transact insurance in Florida.
, What is underwriting? - CORRECT ANSWER The risk selection and classification
process.
What is the best way to handle incomplete insurance applications? - CORRECT
ANSWER Return the application to the applicant for completion.
What are the five characteristics of an ideally insurable risk? - CORRECT ANSWER
Loss must be:
1. Due to Change
2. Definite and measurable
3. Statistically predictable
4. Not catastrophic
5. Coverage cannot be mandatory.
What type of policy issues certificates of insurance to the insurance? - CORRECT
ANSWER Group Policy
What is the purpose of a free-look period? - CORRECT ANSWER To allow the insured
to return the policy and get a full refund (if done during the free-look period)
Whose responsibility is it to determine that all of the questions on an insurance
application are answered? - CORRECT ANSWER The Agent's
What types of licensee represents the insurance company? - CORRECT ANSWER
Agent
Who must be notified of the producers change of address? - CORRECT ANSWER The
department of Insurance
Certificate of Insurance - CORRECT ANSWER A document issued to insureds under a
group plan that states the coverage being issued, and indicates the coverage type and
amounts.
Nonrenewal - CORRECT ANSWER Termination of a policy by an insurer on the
anniversary or renewal date.
Representation - CORRECT ANSWER A statement made by the applicant on the
insurance application that is believed to be true.
What is a warranty? - CORRECT ANSWER An absolutely true statement that, if
breached, may viod an insurance contract.
In insurance, when is the offer usually made on a contract? - CORRECT ANSWER
When the insurance application is submitted.
