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FLORIDA LIFE INSURANCE EXAM
2026 QUESTIONS AND VERIFIED
ANSWERS | RATED A+ | NEW AND
REVISED
Mutual Insurance Companies - ANSWER- organized and incorporated
under state laws. No stockholders.
Mutual companies - ANSWER- Participating, they pay dividends.
Stock company - ANSWER- Owns Stock. Nonparticipating (no
dividends)
Risk Retention Group - ANSWER- Mutual company formed to insure
ppl in the same business, occupation, profession (pharmacists, dentists,
engineers)
Fraternal Benefit Societies - ANSWER- Non profit organization, lodge
system that includes ritualistic work, and maintain a rep form of gov
with elected officers.
FICA - ANSWER- Made up of Social Security and Medicare
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Variable Product - ANSWER- Dual license. One license issued by
FINRA & the other Life & Annuity (issued by the state)
Fair Credit Reporting Act - ANSWER- Consumers have the right to
question what is on their credit report
Domestic insurer - ANSWER- company doing business in the state in
which it is incorporated
Foreign insurer - ANSWER- company licensed & doing business in
states other than the one in which it is incorporated
Buyers Guides - ANSWER- generic (explain various types of life
insurance products, including variable annuities)
Policy Summaries - ANSWER- 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
National Association of Ins Commissioners (NAIC) - ANSWER-
Encourage Uniformity, Assist in admin of laws & regs, Protect interest
of policy owners, Preserve state regulation
Warranty - ANSWER- a statement guaranteed to be true
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Representation - ANSWER- statement by client (best of their
knowledge). We give the client the benefit of the doubt
Concealment - ANSWER- failure by applicant to disclose a known
material fact at time of application
Insurable interest - ANSWER- Interest must exist at the inception of the
policy
Fiduciary - ANSWER- a person holds a special FINANCIAL trust and
confidence (agent)
Producer - ANSWER- Broker or agent
Professional Liability Ins - ANSWER- protect against legal liability (like
malpractice ins)
Fraud - ANSWER- Insurer reason to void a contract (2 years from date
insurance issued)
Fudiciary - ANSWER- special financial trust
Twisting - ANSWER- External - Illegal if not in the best interest for the
client
FLORIDA LIFE INSURANCE EXAM
2026 QUESTIONS AND VERIFIED
ANSWERS | RATED A+ | NEW AND
REVISED
Mutual Insurance Companies - ANSWER- organized and incorporated
under state laws. No stockholders.
Mutual companies - ANSWER- Participating, they pay dividends.
Stock company - ANSWER- Owns Stock. Nonparticipating (no
dividends)
Risk Retention Group - ANSWER- Mutual company formed to insure
ppl in the same business, occupation, profession (pharmacists, dentists,
engineers)
Fraternal Benefit Societies - ANSWER- Non profit organization, lodge
system that includes ritualistic work, and maintain a rep form of gov
with elected officers.
FICA - ANSWER- Made up of Social Security and Medicare
,2|Page
Variable Product - ANSWER- Dual license. One license issued by
FINRA & the other Life & Annuity (issued by the state)
Fair Credit Reporting Act - ANSWER- Consumers have the right to
question what is on their credit report
Domestic insurer - ANSWER- company doing business in the state in
which it is incorporated
Foreign insurer - ANSWER- company licensed & doing business in
states other than the one in which it is incorporated
Buyers Guides - ANSWER- generic (explain various types of life
insurance products, including variable annuities)
Policy Summaries - ANSWER- 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
National Association of Ins Commissioners (NAIC) - ANSWER-
Encourage Uniformity, Assist in admin of laws & regs, Protect interest
of policy owners, Preserve state regulation
Warranty - ANSWER- a statement guaranteed to be true
, 3|Page
Representation - ANSWER- statement by client (best of their
knowledge). We give the client the benefit of the doubt
Concealment - ANSWER- failure by applicant to disclose a known
material fact at time of application
Insurable interest - ANSWER- Interest must exist at the inception of the
policy
Fiduciary - ANSWER- a person holds a special FINANCIAL trust and
confidence (agent)
Producer - ANSWER- Broker or agent
Professional Liability Ins - ANSWER- protect against legal liability (like
malpractice ins)
Fraud - ANSWER- Insurer reason to void a contract (2 years from date
insurance issued)
Fudiciary - ANSWER- special financial trust
Twisting - ANSWER- External - Illegal if not in the best interest for the
client
