FLORIDA LIFE AND HEALTH INSURANCE QUESTIONS WELL
ANSWERED AND UPDATED
What life insurance policy provision prevents an insurer form disputing or denying a claim due to
misstatements on the application after a certain period of time? - CORRECT ANSWERS-
Incontestability
In annually renewable term policies, what is the annual premium based upon? - CORRECT
ANSWERS-The insured's attained age.
In what type of life insurance policy can the policy owner skip premium payments without the
policy lapsing? - CORRECT ANSWERS-Universal Life
What type of life insurance policy offers pure death protection? - CORRECT ANSWERS-Term
At what point does coverage begin when an agent issues a conditional insurability receipt for a
life insurance policy? - CORRECT ANSWERS-Either on the date of the application or the date
of the medical exam, whichever occurs last.
What are the three main factors that determine the premium for a life insurance policy? -
CORRECT ANSWERS-Mortality, Interest, and Expense.
Qualified Plan - CORRECT ANSWERS-A retirement plan that meets the IRS guidelines for
receiving favorable tax treatment.
Face Amount - CORRECT ANSWERS-The amount of benefit stated in the life insurance policy.
What is the penalty for excessive contributions to a traditional IRA? - CORRECT ANSWERS-6%
What are the two phases of an Annuity? - CORRECT ANSWERS-Accumulation and
Annuitization (Pay-in and Pay-out)
,What annuity settlement option provides income payments to the annuitant for the duration of
his or his life, and also guarantees payment for a specified number of years? - CORRECT
ANSWERS-Life income with period certain.
Insured - CORRECT ANSWERS-The person covered by the insurance policy.
Rider - CORRECT ANSWERS-A written modification attached to a policy that increases or
decreases coverage and/or premiums.
What is a unilateral contract? - CORRECT ANSWERS-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 ANSWERS-The Fair Credit Reporting Act.
What are the three types of agent authority? - CORRECT ANSWERS-Implied, Express, and
Apparent.
Agent - CORRECT ANSWERS-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 ANSWERS-Underwriting
The requirement that agents must account for and promptly remit all insurance funds collected
is known as what type of agent responsibility? - CORRECT ANSWERS-Fiduciary
What is a third-party ownership? - CORRECT ANSWERS-An insurance arrangement in which
the policy owner and the insured are not the same person.
Suitability - CORRECT ANSWERS-Factors that determine if an insurance product is appropriate
for a particular customer.
, Premium - CORRECT ANSWERS-A payment by the policy owner to the insurance company to
keep the policy in force.
Disclosure - CORRECT ANSWERS-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 ANSWERS-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 ANSWERS-Authorized
What information are the members of the medical information bureau required to report? -
CORRECT ANSWERS-Adverse medical information about the applicants or insureds.
What type of beneficiary can be changed at any point by the policy owner? - CORRECT
ANSWERS-Revocable
What document describes the specific information about a policy? - CORRECT ANSWERS-
Policy Summary
What is the term for the causes of loss insured against in an insurance policy? - CORRECT
ANSWERS-Peril
Whom does an insurance agent represent? - CORRECT ANSWERS-Insurance Company
What is an unfair trade practice? - CORRECT ANSWERS-Any fraudulent, deceptive, or
dishonest business practice that is prohibited by statutes and regulations.
Insurer - CORRECT ANSWERS-The company that issues an insurance policy.
Peril - CORRECT ANSWERS-Cause of loss
ANSWERED AND UPDATED
What life insurance policy provision prevents an insurer form disputing or denying a claim due to
misstatements on the application after a certain period of time? - CORRECT ANSWERS-
Incontestability
In annually renewable term policies, what is the annual premium based upon? - CORRECT
ANSWERS-The insured's attained age.
In what type of life insurance policy can the policy owner skip premium payments without the
policy lapsing? - CORRECT ANSWERS-Universal Life
What type of life insurance policy offers pure death protection? - CORRECT ANSWERS-Term
At what point does coverage begin when an agent issues a conditional insurability receipt for a
life insurance policy? - CORRECT ANSWERS-Either on the date of the application or the date
of the medical exam, whichever occurs last.
What are the three main factors that determine the premium for a life insurance policy? -
CORRECT ANSWERS-Mortality, Interest, and Expense.
Qualified Plan - CORRECT ANSWERS-A retirement plan that meets the IRS guidelines for
receiving favorable tax treatment.
Face Amount - CORRECT ANSWERS-The amount of benefit stated in the life insurance policy.
What is the penalty for excessive contributions to a traditional IRA? - CORRECT ANSWERS-6%
What are the two phases of an Annuity? - CORRECT ANSWERS-Accumulation and
Annuitization (Pay-in and Pay-out)
,What annuity settlement option provides income payments to the annuitant for the duration of
his or his life, and also guarantees payment for a specified number of years? - CORRECT
ANSWERS-Life income with period certain.
Insured - CORRECT ANSWERS-The person covered by the insurance policy.
Rider - CORRECT ANSWERS-A written modification attached to a policy that increases or
decreases coverage and/or premiums.
What is a unilateral contract? - CORRECT ANSWERS-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 ANSWERS-The Fair Credit Reporting Act.
What are the three types of agent authority? - CORRECT ANSWERS-Implied, Express, and
Apparent.
Agent - CORRECT ANSWERS-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 ANSWERS-Underwriting
The requirement that agents must account for and promptly remit all insurance funds collected
is known as what type of agent responsibility? - CORRECT ANSWERS-Fiduciary
What is a third-party ownership? - CORRECT ANSWERS-An insurance arrangement in which
the policy owner and the insured are not the same person.
Suitability - CORRECT ANSWERS-Factors that determine if an insurance product is appropriate
for a particular customer.
, Premium - CORRECT ANSWERS-A payment by the policy owner to the insurance company to
keep the policy in force.
Disclosure - CORRECT ANSWERS-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 ANSWERS-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 ANSWERS-Authorized
What information are the members of the medical information bureau required to report? -
CORRECT ANSWERS-Adverse medical information about the applicants or insureds.
What type of beneficiary can be changed at any point by the policy owner? - CORRECT
ANSWERS-Revocable
What document describes the specific information about a policy? - CORRECT ANSWERS-
Policy Summary
What is the term for the causes of loss insured against in an insurance policy? - CORRECT
ANSWERS-Peril
Whom does an insurance agent represent? - CORRECT ANSWERS-Insurance Company
What is an unfair trade practice? - CORRECT ANSWERS-Any fraudulent, deceptive, or
dishonest business practice that is prohibited by statutes and regulations.
Insurer - CORRECT ANSWERS-The company that issues an insurance policy.
Peril - CORRECT ANSWERS-Cause of loss
