Florida Insurance Exam Questions And Answers, Latest Updated 2024/2025 (100% Solved)

Which type of insurance protects an agent and even pays claims if a lawsuit is brought against the agent as a result of failing to provide a service to a client? - Errors and Omissions Insurance Which of the following terms is known as the voluntary relinquishment of a given right or privilege? - Waiver This Supreme Court case placed the regulation of insurance within the authority of the federal government by defining insurance as a form of interstate commerce? - United States v. Southeastern Underwriters Association (1944) 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? - Probationary period, he can sign up after 90 days 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? - The date of his application or the day he completed any required medical exam When dividends are issued, the policyowner has the following dividend options in utilizing a return EXCEPT: - Life Income Option 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? - Waiver of premium and Disability Income Riders In a contributory group plan, what percentage of eligible employees must be covered? - 75% Which statement regarding annuities is CORRECT? - Variable annuity units are fixed but the annuity payment will vary according to the value of the annuity unit. In order to be considered currently insured and thus eligible for limited survivor benefits from Social Security, a worker must have earned ___ credits during the 13-quarter period ending with the quarter in which the worker died. - 6 Social security is also known as: - Old Age Survivors and Disability Insurance (OASDI) Insurance is not intended to protect against? - Speculative Risk Florida Insurance Exam Questions And Answers Latest Updated 2024/2025(100% Solved) Under a family plan life insurance policy, coverage on the breadwinner is often provided by which of the following insurance types? - Whole Life Which of the following statements regarding annuity settlement or payout options is NOT true? - If the annuitant dies before the principal sum is depleted, the Refund Life Annuity Option will pay the entire annuity amount to the beneficiary in a lump sum payment or over scheduled installments. The following statements regarding 401(k) retirement plans are correct EXCEPT: - Plans rarely have a matching contribution component by an employer All of the statements below pertaining to group life insurance are correct EXCEPT: - If the insurance coverage is less than $75,000, employees do not have to report the employerpaid premiums as income According to Florida Statues, entering into any agreement to commit any act of intimidation resulting in the business of insurance is known as: - Coercion William, age 67, has owned his life insurance policy for the past 15 years and has mailed his monthly premiums to his life insurance company. Last month he failed to mail the monthly payment on his premium due date as well as during his policy's grace period. As a result, which of the following scenarios will MOST likely occur? - The insurer will provide notification of impending lapse in coverage, and allow at least 21 additional days beyond the grace period to make a payment to prevent the policy from lapse Before executing an exchange of an annuity contract resulting from a recommendation to a senior consumer, an insurance agent should make reasonable efforts to obtain information from the applicant concerning the suitability of the recommendation on an approved form, which upon completion, must be signed by the applicant and agent. Within what period of time must an agent submit this form to the insurer once it is complete? - Within 10 days Shelly is considered to be terminally ill and has decided to sell her life insurance policy in exchange for living benefits to fulfill some final comforts and expenses before her death. In selling her life insurance policy, Shelly is referred to as a(n)_________and she will receive a percentage of her life policy's face amount in exchange for ownership of her policy. - Viator Which of the following is NOT a type of speculative risk? - Unemployment Which agency collects and provides reliable medical information regarding an applicant's health history? - The MIB Tonya failed to pay her life policy's premium on the date in which it is normally due and is currently 23 days late. As a result of her policy's grace period provision, which outcome will occur? - Tonya is within her grace period and can pay her premium up to 30 or 31 days after the date in which the premium is normally due; however, she does not need to pay back any outstanding loans to the insurer. Which type of E&O policy provides permanent coverage for the actions of an agent during which time he or she was covered under such policy, regardless of when a lawsuit is filed against the agent? - Occurrence Policy In a group life contract, evidence of insurability is - Required only after the enrollment period ends. Peril - For purposes of insurance, which of the following is NOT considered a hazard? The loss must be speculative - All of the following are characteristics of pure risk EXCEPT Twisting - When an agent persuades a client to cancel his or her current coverage for a policy from an entirely different company solely to produce another first year commission is called? Grace Period Provision - In the event a policy's premium is paid late, which of the following provisions will keep the policy in force for a short period of time thereafter to allow the policyowner to submit payment? Payor Rider - 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? 30-31 days - According to the NAIC Model Group Life Insurance Provisions, what is the standard grace period? 50% - 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)? Interest is not taxed upon withdrawal due its funding from post-tax dollars - Which of the following statements is CORRECT in regards to a Roth IRA? Fails the 7-Pay Test - An insurance contract becomes a Modified Endowment Contract (MEC) if which of the following occurs? Buy-Sell agreement - Which type of business life insurance 'buyout' agreement is used to purchase the interest of a deceased partner so that the business can continue to operate without financial interruption? The death of the insured due to an accident - In order for a beneficiary to receive double indemnity, which of the following scenarios must occur? Agents selling insurance products for an agency are not required to be individually licensed, as long as the agency itself is. - Which of the following statements regarding insurance agencies in Florida is INCORRECT? 100% - When an employee makes contributions into a pension plan, what percentage of his or her own contributions are vested? Cash value - Which of the following is NOT associated with a term life policy? Pre-texting - As a provision of the Financial Services Modernization Act of 1999, attempts to obtain non-public personal information from consumers and customers under false pretenses is referred to as Extended Term option - Which of the following is NOT considered to be a life policy settlement option? Interest earned will be taxed, but premiums paid into the policy will not be taxed. - In the event that a policyowner surrenders his or her individual whole life policy, which outcome will likely occur? Occurence Policy - Which type of E&O policy provides permanent coverage for the actions of an agent during which time he or she was covered under such policy, regardless of when a lawsuit is filed against the agent? Deferred Vesting - Which of the following is NOT a retirement vesting schedule? Spendthrift Clause - Which of the following life policy clauses or provisions protects a life policy's proceeds against a beneficiary's creditors? Reviewing the applicants MIB file - A paramedical exam includes all of the following EXCEPT The employer - In an employer-related group life contract, an employee may choose any of the following individuals or entities to serve as his or her policy's beneficiary EXCEPT A broker - Raymond, a licensed insurance producer, solicits insurance through more than one insurer and negotiates on behalf of his clients; therefore, he is considered to be Non-Medical - Referred to as a _________ application, it is common for a health or life insurance policy to be issued to an applicant based solely on the medical information gathered from the application that is submitted by the applicant to the insurer. National Association of Insurance Commissioners (NAIC) - Which agency has influenced the insurance industry by introducing uniform regulation 'models' for states to follow in an attempt to standardize multiple-state insurance laws? A beneficiary - Which of the following does not have the responsibility of acting as a fiduciary? The ratio between company losses and company revenue that determines an insurance company's revenues that must be maintained to cover annual claims by its policyowners. - Loss ratio is defined as