Florida Life Insurance Exam Complete Questions and Guide
Answers, 100% Verified Graded A+
1. Mutual Insurance Companies
Answer: organized and incorporated under state laws. No stockholders.
2. Mutual companies
Answer: Participating, they pay dividends.
3. Stock company
Answer: Owns Stock. Nonparticipating (no dividends)
4. Risk Retention Group
Answer: Mutual company formed to insure ppl in the same business, occupation, profession
(pharmacists, dentists, engineers)
5. Fraternal Benefit Societies
Answer: Non profit organization, lodge system that includes ritualistic work, and maintain a rep form of gov
with elected oflcers.
6. FICA
, Answer: Made up of Social Security and Medicare
7. Variable Product
Answer: Dual license. One license issued by FINRA & the other Life & Annuity (issued by the state)
8. Fair Credit Reporting Act
Answer: Consumers have the right to question what is on their credit report
9. Domestic insurer
Answer: company doing business in the state in which it is incorporated
10. Foreign insurer
Answer: company licensed & doing business in states other than the one in which it is incorporated
11. Buyers Guides
Answer: generic (explain various types of life insurance products, including variable annuities)
12. 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
13. National Association of Ins Commissioners (NAIC)
Answer: Encourage Uniformity, Assist in admin
of laws & regs, Protect interest of policy owners, Preserve state regulation
, 14. Warranty
Answer: a statement guaranteed to be true
15. Representation
Answer: statement by client (best of their knowledge). We give the client the benefit of the doubt
16. Concealment
Answer: failure by applicant to disclose a known material fact at time of application
17. Insurable interest
Answer: Interest must exist at the inception of the policy
18. Fiduciary
Answer: a person holds a special FINANCIAL trust and confidence (agent)
19. Producer
Answer: Broker or agent
20. Professional Liability Ins
Answer: protect against legal liability (like malpractice ins)
21. Fraud
Answer: Insurer reason to void a contract (2 years from date insurance issued)
22. Fudiciary
Answer: special financial trust
Answers, 100% Verified Graded A+
1. Mutual Insurance Companies
Answer: organized and incorporated under state laws. No stockholders.
2. Mutual companies
Answer: Participating, they pay dividends.
3. Stock company
Answer: Owns Stock. Nonparticipating (no dividends)
4. Risk Retention Group
Answer: Mutual company formed to insure ppl in the same business, occupation, profession
(pharmacists, dentists, engineers)
5. Fraternal Benefit Societies
Answer: Non profit organization, lodge system that includes ritualistic work, and maintain a rep form of gov
with elected oflcers.
6. FICA
, Answer: Made up of Social Security and Medicare
7. Variable Product
Answer: Dual license. One license issued by FINRA & the other Life & Annuity (issued by the state)
8. Fair Credit Reporting Act
Answer: Consumers have the right to question what is on their credit report
9. Domestic insurer
Answer: company doing business in the state in which it is incorporated
10. Foreign insurer
Answer: company licensed & doing business in states other than the one in which it is incorporated
11. Buyers Guides
Answer: generic (explain various types of life insurance products, including variable annuities)
12. 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
13. National Association of Ins Commissioners (NAIC)
Answer: Encourage Uniformity, Assist in admin
of laws & regs, Protect interest of policy owners, Preserve state regulation
, 14. Warranty
Answer: a statement guaranteed to be true
15. Representation
Answer: statement by client (best of their knowledge). We give the client the benefit of the doubt
16. Concealment
Answer: failure by applicant to disclose a known material fact at time of application
17. Insurable interest
Answer: Interest must exist at the inception of the policy
18. Fiduciary
Answer: a person holds a special FINANCIAL trust and confidence (agent)
19. Producer
Answer: Broker or agent
20. Professional Liability Ins
Answer: protect against legal liability (like malpractice ins)
21. Fraud
Answer: Insurer reason to void a contract (2 years from date insurance issued)
22. Fudiciary
Answer: special financial trust
