214 Florida Insurance Exam Study Guide
| 100% Correct Answers | Verified |
Latest 2024 Version
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
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 employer-paid 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
| 100% Correct Answers | Verified |
Latest 2024 Version
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
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 employer-paid 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
