Florida Life and Health Insurance Exam
Complete Questions and Guide Answers
100% Verified Graded A+
1. Insured
Answer: The person covered by the insurance policy.
2. Rider
Answer: A written modification attached to a policy that increases or decreases coverage and/or premiums.
3. What is a unilateral contract?
Answer: A contract in which only one of the parties is legally bound to fulfill its obligations.
4. What law protects consumers from the circulation of inaccurate or obsolete
information?
Answer: The Fair Credit Reporting Act.
5. What are the three types of agent authority?
Answer: Implied, Express, and Apparent.
6. Agent
, Answer: An individual who is licensed to sell, negotiate, or ettect insurance contracts on behalf of the insurer.
7. What is name of the process that insurance companies use to determine
whether or not an applicant is insurable?
Answer: Underwriting
8. The requirement that agents must account for and promptly remit all insur-
ance funds collected is known as what type of agent responsibility?
Answer: Fiduciary
9. What is a third-party ownership?
Answer: An insurance arrangement in which the policy owner and the insured are not the same
person.
10. Suitability
Answer: Factors that determine if an insurance product is appropriate for a particular customer.
11. Premium
Answer: A payment by the policy owner to the insurance company to keep the policy in force.
12. Disclosure
Answer: Providing suflcient information to help someone make informed decision.
13. 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?
Answer: Rebating
,14. If an insurer meets the states financial requirements and is approved to
transact business in the state, it is considered what type of insurer?
Answer: Authorized
15. What information are the members of the medical information bureau re-
quired to report?
Answer: Adverse medical information about the applicants or insureds.
16. What type of beneficiary can be changed at any point by the policy owner?-
Answer: Revocable
17. What document describes the specific information about a policy?
Answer: Policy Sum- mary
18. What is the term for the causes of loss insured against in an insurance
policy?
Answer: Peril
19. Whom does an insurance agent represent?
Answer: Insurance Company
20. What is an unfair trade practice?
Answer: Any fraudulent, deceptive, or dishonest business practice that is prohibited by statutes and
regulations.
, 21. Insurer
Answer: The company that issues an insurance policy.
22. Peril
Answer: Cause of loss
23. Contract of Adhesion
Answer: A contract prepared by one party that must be accepted as written or be rejected by the other party.
24. What are the four elements of an insurance contract?
Answer: Agreement (Otter and Accep- tance), consideration, competent parties, and legal purpose.
25. Policy Provision
Answer: A clause that stipulates the rights and obligations under an insurance contract.
26. Fiduciary
Answer: A producer who handles insurer's funds in a trust capacity.
27. Who is considered a nonresident agent?
Answer: An agent who resides and is licensed in another state, but is authorized to transact insurance in
Florida.
28. What is underwriting?
Answer: The risk selection and classification process.
29. What is the best way to handle incomplete insurance applications?
Complete Questions and Guide Answers
100% Verified Graded A+
1. Insured
Answer: The person covered by the insurance policy.
2. Rider
Answer: A written modification attached to a policy that increases or decreases coverage and/or premiums.
3. What is a unilateral contract?
Answer: A contract in which only one of the parties is legally bound to fulfill its obligations.
4. What law protects consumers from the circulation of inaccurate or obsolete
information?
Answer: The Fair Credit Reporting Act.
5. What are the three types of agent authority?
Answer: Implied, Express, and Apparent.
6. Agent
, Answer: An individual who is licensed to sell, negotiate, or ettect insurance contracts on behalf of the insurer.
7. What is name of the process that insurance companies use to determine
whether or not an applicant is insurable?
Answer: Underwriting
8. The requirement that agents must account for and promptly remit all insur-
ance funds collected is known as what type of agent responsibility?
Answer: Fiduciary
9. What is a third-party ownership?
Answer: An insurance arrangement in which the policy owner and the insured are not the same
person.
10. Suitability
Answer: Factors that determine if an insurance product is appropriate for a particular customer.
11. Premium
Answer: A payment by the policy owner to the insurance company to keep the policy in force.
12. Disclosure
Answer: Providing suflcient information to help someone make informed decision.
13. 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?
Answer: Rebating
,14. If an insurer meets the states financial requirements and is approved to
transact business in the state, it is considered what type of insurer?
Answer: Authorized
15. What information are the members of the medical information bureau re-
quired to report?
Answer: Adverse medical information about the applicants or insureds.
16. What type of beneficiary can be changed at any point by the policy owner?-
Answer: Revocable
17. What document describes the specific information about a policy?
Answer: Policy Sum- mary
18. What is the term for the causes of loss insured against in an insurance
policy?
Answer: Peril
19. Whom does an insurance agent represent?
Answer: Insurance Company
20. What is an unfair trade practice?
Answer: Any fraudulent, deceptive, or dishonest business practice that is prohibited by statutes and
regulations.
, 21. Insurer
Answer: The company that issues an insurance policy.
22. Peril
Answer: Cause of loss
23. Contract of Adhesion
Answer: A contract prepared by one party that must be accepted as written or be rejected by the other party.
24. What are the four elements of an insurance contract?
Answer: Agreement (Otter and Accep- tance), consideration, competent parties, and legal purpose.
25. Policy Provision
Answer: A clause that stipulates the rights and obligations under an insurance contract.
26. Fiduciary
Answer: A producer who handles insurer's funds in a trust capacity.
27. Who is considered a nonresident agent?
Answer: An agent who resides and is licensed in another state, but is authorized to transact insurance in
Florida.
28. What is underwriting?
Answer: The risk selection and classification process.
29. What is the best way to handle incomplete insurance applications?
