214 FLORIDA INSURANCE 2024 NEWEST EXAM 2
VERSIONS (VERSION A AND B) ACTUAL 350 EXAM
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100%
CORRECT) /ALREADY GRADED A+
What is required by the Fair Credit Reporting Act of 1970? - ANSWER: If an applicant
is rejected due to findings in a report, the applicant must be provided with the
names and address of the reporting agency.
An applicant has the right to know anyone questioned regarding the report.
An applicant must be notified a report has been requested.
Insurable interest exists between all of the following - ANSWER: Husband and wife
Blood relatives (parent, grandparent, children and grandchildren)
Business partners
Which of the following terms is known as the voluntary relinquishment of a given
right or privilege? - ANSWER: Waiver
Which type of contract is considered to never have been legally binding? - ANSWER:
Void contract
In the event an insurance company becomes insolvent, this type of association
ensures unpaid claims will be paid for covered policyowners? - ANSWER: State
Guaranty Association
In regards to group insurance, which of the following statements below is correct? -
ANSWER: A master contract is issued by the insurer to the employer, while
employees are given certificates of insurance
Which of the following sets of fundamental principles is insurance based? - ANSWER:
Pooling of risks and the law of large numbers
Solution: Insurance is based on the pooling of risks, also known as risk 'pooling,' and
the law of large numbers.
Which type of risk is considered insurable? - ANSWER: Pure risk
Overstating promises, using inaccurate or misleading information and guaranteeing
insurance are types of: - ANSWER: misrepresentation
,The part of a premium set aside by the insurance company to be used for future
claims is known as: - ANSWER: Reserves
All of the following are sources for obtaining information regarding an applicant's
insurability - ANSWER: When applying for insurance, a medical report is often
required by an underwriter to approve an applicant along with the application. The
insurer will also review the applicant's medical records obtained through the Medical
Information Bureau (MIB).
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? - ANSWER: Probationary period, he can sign up after 90 days
Richard has worked at J&J Printing Inc. for the past three months and wants to join
the company's contributory group insurance plan. Which answer BEST describes the
period is he entering and how long does he have to apply without proof of
insurability? - ANSWER: Enrollment period; 30-31 days
Benefits that are passed to a beneficiary's child or children in equal shares in the
event that the beneficiary dies is known as the: - ANSWER: Per stirpes rule
Charles has a $85,000 25-year mortgage and wants to purchase a life insurance
policy that would cover any outstanding balance on the mortgage if he were to pre-
maturely die, which of the following policies would be the most logical for him to
purchase? - ANSWER: 25-year $85,000 Decreasing Term Life policy
describing term life insurance - ANSWER: Term life insurance does not build cash
value and is only valid for a specified period of time. Term life insurance benefits are
only payable if the insured dies during the policy's term and is considered to be basic
death insurance.
According to the NAIC Life Insurance Solicitation Model, when soliciting life
insurance, a producer is required to provide a prospect with a ______ and a _______
specific to the product being marketed. - ANSWER: general buyer's guide; policy
summary
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? -
ANSWER: The date of his application or the day he completed any required medical
exam
Which of the following reasons would justify a policy replacement? - ANSWER: The
policy no longer meets the needs of the client
Mr. Baker has named his son as the beneficiary to his life insurance policy, but he is
worried about his son's spending habits and the money his son might already owe
, when he receives the death benefit. Which policy provision, clause or rider best fits
his situation? - ANSWER: A Spendthrift Provision:
protects the proceeds of a life insurance policy from the beneficiary's spending
habits or any redirection of proceeds to any of the beneficiary's creditors.
Which rider, also known as an 'insurance protection' rider, states that at certain
dates in the future, the insured can purchase additional insurance without evidence
of insurability? - ANSWER: Guaranteed insurability rider
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? - ANSWER: Waiver of premium and
Disability Income Riders
In the event that a parent dies or becomes disabled, which rider allows surviving
child coverage to continue until the child reaches a specified age? - ANSWER: Payor
Rider
Which life rider allows for care in a convalescent or nursing home? - ANSWER: Long-
Term Care rider
What is the most common type of employment-related group life insurance? -
ANSWER: Annual Renewable Term
According to the NAIC Model Group Life Insurance Provisions, what is the standard
grace period? - ANSWER: 30-31 days
Which of the following defines the period during which funds grow in an annuity? -
ANSWER: Accumulation period
Annuity policies written by dually licensed agents are monitored by which group? -
ANSWER: Securities and Exchange Commission (SEC)
For individuals who have reached their normal retirement age, their spouses are
entitled a retirement benefit that is equal to what percentage of the retired worker's
primary insurance amount (PIA)? - ANSWER: 50%
Social Security is also known as: - ANSWER: Old Age Survivors and Disability
Insurance (OASDI)
Due to the historical mismanagement of employee retirement plans, which federal
law did Congress pass to protect employee retirement plans against misuse? -
ANSWER: Employee Retirement Income Security Act (ERISA)
In a qualified employer retirement plan, an employee is entitled to what percentage
of the vested interest in benefits that accrue from his or her contributions? -
ANSWER: 100%
VERSIONS (VERSION A AND B) ACTUAL 350 EXAM
QUESTIONS WITH DETAILED VERIFIED ANSWERS (100%
CORRECT) /ALREADY GRADED A+
What is required by the Fair Credit Reporting Act of 1970? - ANSWER: If an applicant
is rejected due to findings in a report, the applicant must be provided with the
names and address of the reporting agency.
An applicant has the right to know anyone questioned regarding the report.
An applicant must be notified a report has been requested.
Insurable interest exists between all of the following - ANSWER: Husband and wife
Blood relatives (parent, grandparent, children and grandchildren)
Business partners
Which of the following terms is known as the voluntary relinquishment of a given
right or privilege? - ANSWER: Waiver
Which type of contract is considered to never have been legally binding? - ANSWER:
Void contract
In the event an insurance company becomes insolvent, this type of association
ensures unpaid claims will be paid for covered policyowners? - ANSWER: State
Guaranty Association
In regards to group insurance, which of the following statements below is correct? -
ANSWER: A master contract is issued by the insurer to the employer, while
employees are given certificates of insurance
Which of the following sets of fundamental principles is insurance based? - ANSWER:
Pooling of risks and the law of large numbers
Solution: Insurance is based on the pooling of risks, also known as risk 'pooling,' and
the law of large numbers.
Which type of risk is considered insurable? - ANSWER: Pure risk
Overstating promises, using inaccurate or misleading information and guaranteeing
insurance are types of: - ANSWER: misrepresentation
,The part of a premium set aside by the insurance company to be used for future
claims is known as: - ANSWER: Reserves
All of the following are sources for obtaining information regarding an applicant's
insurability - ANSWER: When applying for insurance, a medical report is often
required by an underwriter to approve an applicant along with the application. The
insurer will also review the applicant's medical records obtained through the Medical
Information Bureau (MIB).
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? - ANSWER: Probationary period, he can sign up after 90 days
Richard has worked at J&J Printing Inc. for the past three months and wants to join
the company's contributory group insurance plan. Which answer BEST describes the
period is he entering and how long does he have to apply without proof of
insurability? - ANSWER: Enrollment period; 30-31 days
Benefits that are passed to a beneficiary's child or children in equal shares in the
event that the beneficiary dies is known as the: - ANSWER: Per stirpes rule
Charles has a $85,000 25-year mortgage and wants to purchase a life insurance
policy that would cover any outstanding balance on the mortgage if he were to pre-
maturely die, which of the following policies would be the most logical for him to
purchase? - ANSWER: 25-year $85,000 Decreasing Term Life policy
describing term life insurance - ANSWER: Term life insurance does not build cash
value and is only valid for a specified period of time. Term life insurance benefits are
only payable if the insured dies during the policy's term and is considered to be basic
death insurance.
According to the NAIC Life Insurance Solicitation Model, when soliciting life
insurance, a producer is required to provide a prospect with a ______ and a _______
specific to the product being marketed. - ANSWER: general buyer's guide; policy
summary
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? -
ANSWER: The date of his application or the day he completed any required medical
exam
Which of the following reasons would justify a policy replacement? - ANSWER: The
policy no longer meets the needs of the client
Mr. Baker has named his son as the beneficiary to his life insurance policy, but he is
worried about his son's spending habits and the money his son might already owe
, when he receives the death benefit. Which policy provision, clause or rider best fits
his situation? - ANSWER: A Spendthrift Provision:
protects the proceeds of a life insurance policy from the beneficiary's spending
habits or any redirection of proceeds to any of the beneficiary's creditors.
Which rider, also known as an 'insurance protection' rider, states that at certain
dates in the future, the insured can purchase additional insurance without evidence
of insurability? - ANSWER: Guaranteed insurability rider
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? - ANSWER: Waiver of premium and
Disability Income Riders
In the event that a parent dies or becomes disabled, which rider allows surviving
child coverage to continue until the child reaches a specified age? - ANSWER: Payor
Rider
Which life rider allows for care in a convalescent or nursing home? - ANSWER: Long-
Term Care rider
What is the most common type of employment-related group life insurance? -
ANSWER: Annual Renewable Term
According to the NAIC Model Group Life Insurance Provisions, what is the standard
grace period? - ANSWER: 30-31 days
Which of the following defines the period during which funds grow in an annuity? -
ANSWER: Accumulation period
Annuity policies written by dually licensed agents are monitored by which group? -
ANSWER: Securities and Exchange Commission (SEC)
For individuals who have reached their normal retirement age, their spouses are
entitled a retirement benefit that is equal to what percentage of the retired worker's
primary insurance amount (PIA)? - ANSWER: 50%
Social Security is also known as: - ANSWER: Old Age Survivors and Disability
Insurance (OASDI)
Due to the historical mismanagement of employee retirement plans, which federal
law did Congress pass to protect employee retirement plans against misuse? -
ANSWER: Employee Retirement Income Security Act (ERISA)
In a qualified employer retirement plan, an employee is entitled to what percentage
of the vested interest in benefits that accrue from his or her contributions? -
ANSWER: 100%
