FLORIDA LIFE AND HEALTH INSURANCE
EXAM Questions and Answers
1. Insured: The person covered by the insurance policy.
2. Rider: A written modification attached to a policy that increases or decreases coverage and/or
premiums.
3. What is a unilateral contract?: 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?: The Fair Credit Reporting Act.
5. What are the three types of agent authority?: Implied, Express, and
Apparent.
6. Agent: An individual who is licensed to sell, negotiate, or effect 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?: 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?: Fiduciary
9. What is a third-party ownership?: An insurance arrangement in which the policy
owner and the insured are not the same person.
10. Suitability: Factors that determine if an insurance product is appropriate for a particular
customer.
11. Premium: A payment by the policy owner to the insurance company to keep the policy in
force.
12. Disclosure: 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?: 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?: Authorized
15. What information are the members of the medical
, information bureau re- quired to report?: Adverse medical information about the
applicants or insureds.
16. What type of beneficiary can be changed at any point by the
policy owner?-
: Revocable
17. What document describes the specific information about a
policy?: Policy Sum- mary
18. What is the term for the causes of loss insured against in
an insurance policy?: Peril
19. Whom does an insurance agent represent?: Insurance Company
20. What is an unfair trade practice?: Any fraudulent, deceptive, or dishonest
business practice that is prohibited by statutes and regulations.
21. Insurer: The company that issues an insurance policy.
22. Peril: Cause of loss
23. Contract of Adhesion: 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?: Agreement
(Otter and Accep- tance), consideration, competent parties, and legal purpose.
EXAM Questions and Answers
1. Insured: The person covered by the insurance policy.
2. Rider: A written modification attached to a policy that increases or decreases coverage and/or
premiums.
3. What is a unilateral contract?: 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?: The Fair Credit Reporting Act.
5. What are the three types of agent authority?: Implied, Express, and
Apparent.
6. Agent: An individual who is licensed to sell, negotiate, or effect 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?: 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?: Fiduciary
9. What is a third-party ownership?: An insurance arrangement in which the policy
owner and the insured are not the same person.
10. Suitability: Factors that determine if an insurance product is appropriate for a particular
customer.
11. Premium: A payment by the policy owner to the insurance company to keep the policy in
force.
12. Disclosure: 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?: 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?: Authorized
15. What information are the members of the medical
, information bureau re- quired to report?: Adverse medical information about the
applicants or insureds.
16. What type of beneficiary can be changed at any point by the
policy owner?-
: Revocable
17. What document describes the specific information about a
policy?: Policy Sum- mary
18. What is the term for the causes of loss insured against in
an insurance policy?: Peril
19. Whom does an insurance agent represent?: Insurance Company
20. What is an unfair trade practice?: Any fraudulent, deceptive, or dishonest
business practice that is prohibited by statutes and regulations.
21. Insurer: The company that issues an insurance policy.
22. Peril: Cause of loss
23. Contract of Adhesion: 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?: Agreement
(Otter and Accep- tance), consideration, competent parties, and legal purpose.
