Florida 214 Exam Prep | 100% Correct
Answers | Verified | Latest 2024 Version
What is required by the Fair Credit Reporting Act of 1970? - ✔✔If an applicant is rejected due to findings
in a report, the applicant must be provided with the names and address of the reporting agency.
An applicant has the right to know anyone questioned regarding the report.
An applicant must be notified a report has been requested.
Insurable interest exists between all of the following - ✔✔Husband and wife
Blood relatives (parent, grandparent, children and grandchildren)
Business partners
Which of the following terms is known as the voluntary relinquishment of a given right or privilege? -
✔✔Waiver
Which type of contract is considered to never have been legally binding? - ✔✔Void contract
In the event an insurance company becomes insolvent, this type of association ensures unpaid claims
will be paid for covered policyowners? - ✔✔State Guaranty Association
In regards to group insurance, which of the following statements below is correct? - ✔✔A master
contract is issued by the insurer to the employer, while employees are given certificates of insurance
Which of the following sets of fundamental principles is insurance based? - ✔✔Pooling of risks and the
law of large numbers
,Solution: Insurance is based on the pooling of risks, also known as risk 'pooling,' and the law of large
numbers.
Which type of risk is considered insurable? - ✔✔Pure risk
Overstating promises, using inaccurate or misleading information and guaranteeing insurance are types
of: - ✔✔misrepresentation
The part of a premium set aside by the insurance company to be used for future claims is known as: -
✔✔Reserves
All of the following are sources for obtaining information regarding an applicant's insurability - ✔✔When
applying for insurance, a medical report is often required by an underwriter to approve an applicant
along with the application. The insurer will also review the applicant's medical records obtained through
the Medical Information Bureau (MIB).
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
Richard has worked at J&J Printing Inc. for the past three months and wants to join the company's
contributory group insurance plan. Which answer BEST describes the period is he entering and how long
does he have to apply without proof of insurability? - ✔✔Enrollment period; 30-31 days
Benefits that are passed to a beneficiary's child or children in equal shares in the event that the
beneficiary dies is known as the: - ✔✔Per stirpes rule
Charles has a $85,000 25-year mortgage and wants to purchase a life insurance policy that would cover
any outstanding balance on the mortgage if he were to pre-maturely die, which of the following policies
would be the most logical for him to purchase? - ✔✔25-year $85,000 Decreasing Term Life policy
, describing term life insurance - ✔✔Term life insurance does not build cash value and is only valid for a
specified period of time. Term life insurance benefits are only payable if the insured dies during the
policy's term and is considered to be basic death insurance.
According to the NAIC Life Insurance Solicitation Model, when soliciting life insurance, a producer is
required to provide a prospect with a ______ and a _______ specific to the product being marketed. -
✔✔general buyer's guide; policy summary
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
Which of the following reasons would justify a policy replacement? - ✔✔The policy no longer meets the
needs of the client
Mr. Baker has named his son as the beneficiary to his life insurance policy, but he is worried about his
son's spending habits and the money his son might already owe when he receives the death benefit.
Which policy provision, clause or rider best fits his situation? - ✔✔A Spendthrift Provision:
protects the proceeds of a life insurance policy from the beneficiary's spending habits or any redirection
of proceeds to any of the beneficiary's creditors.
Which rider, also known as an 'insurance protection' rider, states that at certain dates in the future, the
insured can purchase additional insurance without evidence of insurability? - ✔✔Guaranteed insurability
rider
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 the event that a parent dies or becomes disabled, which rider allows surviving child coverage to
continue until the child reaches a specified age? - ✔✔Payor Rider
Which life rider allows for care in a convalescent or nursing home? - ✔✔Long-Term Care rider
Answers | Verified | Latest 2024 Version
What is required by the Fair Credit Reporting Act of 1970? - ✔✔If an applicant is rejected due to findings
in a report, the applicant must be provided with the names and address of the reporting agency.
An applicant has the right to know anyone questioned regarding the report.
An applicant must be notified a report has been requested.
Insurable interest exists between all of the following - ✔✔Husband and wife
Blood relatives (parent, grandparent, children and grandchildren)
Business partners
Which of the following terms is known as the voluntary relinquishment of a given right or privilege? -
✔✔Waiver
Which type of contract is considered to never have been legally binding? - ✔✔Void contract
In the event an insurance company becomes insolvent, this type of association ensures unpaid claims
will be paid for covered policyowners? - ✔✔State Guaranty Association
In regards to group insurance, which of the following statements below is correct? - ✔✔A master
contract is issued by the insurer to the employer, while employees are given certificates of insurance
Which of the following sets of fundamental principles is insurance based? - ✔✔Pooling of risks and the
law of large numbers
,Solution: Insurance is based on the pooling of risks, also known as risk 'pooling,' and the law of large
numbers.
Which type of risk is considered insurable? - ✔✔Pure risk
Overstating promises, using inaccurate or misleading information and guaranteeing insurance are types
of: - ✔✔misrepresentation
The part of a premium set aside by the insurance company to be used for future claims is known as: -
✔✔Reserves
All of the following are sources for obtaining information regarding an applicant's insurability - ✔✔When
applying for insurance, a medical report is often required by an underwriter to approve an applicant
along with the application. The insurer will also review the applicant's medical records obtained through
the Medical Information Bureau (MIB).
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
Richard has worked at J&J Printing Inc. for the past three months and wants to join the company's
contributory group insurance plan. Which answer BEST describes the period is he entering and how long
does he have to apply without proof of insurability? - ✔✔Enrollment period; 30-31 days
Benefits that are passed to a beneficiary's child or children in equal shares in the event that the
beneficiary dies is known as the: - ✔✔Per stirpes rule
Charles has a $85,000 25-year mortgage and wants to purchase a life insurance policy that would cover
any outstanding balance on the mortgage if he were to pre-maturely die, which of the following policies
would be the most logical for him to purchase? - ✔✔25-year $85,000 Decreasing Term Life policy
, describing term life insurance - ✔✔Term life insurance does not build cash value and is only valid for a
specified period of time. Term life insurance benefits are only payable if the insured dies during the
policy's term and is considered to be basic death insurance.
According to the NAIC Life Insurance Solicitation Model, when soliciting life insurance, a producer is
required to provide a prospect with a ______ and a _______ specific to the product being marketed. -
✔✔general buyer's guide; policy summary
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
Which of the following reasons would justify a policy replacement? - ✔✔The policy no longer meets the
needs of the client
Mr. Baker has named his son as the beneficiary to his life insurance policy, but he is worried about his
son's spending habits and the money his son might already owe when he receives the death benefit.
Which policy provision, clause or rider best fits his situation? - ✔✔A Spendthrift Provision:
protects the proceeds of a life insurance policy from the beneficiary's spending habits or any redirection
of proceeds to any of the beneficiary's creditors.
Which rider, also known as an 'insurance protection' rider, states that at certain dates in the future, the
insured can purchase additional insurance without evidence of insurability? - ✔✔Guaranteed insurability
rider
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 the event that a parent dies or becomes disabled, which rider allows surviving child coverage to
continue until the child reaches a specified age? - ✔✔Payor Rider
Which life rider allows for care in a convalescent or nursing home? - ✔✔Long-Term Care rider
