FL Life, Health and Annuities Licensing 2-15 Study Questions with Correct Answers 100% Verified and Graded A+

FL Life, Health and Annuities Licensing 2-15 Study Questions with Correct Answers 100% Verified and Graded A+ 3 ways insurance contracts are different than other legally binding documents - Correct Answer Number one. They are aleatory. Meaning the insured pays a premium but may not receive anything back. Number 2. They are contracts of adhesion meaning the contract was prepared by one party. number 3. They are unilateral meaning only the insurance company promises anything in the contract How long life insurance has to challenge the validity of a contract due to fraud - Correct Answer Typically 2 years. Can't contest- after if found out fraud occurred during application. Fiduciary - Correct Answer A person who holds a position of special trust and confidence. Example: when they accept premium payments on behalf of the insurer that person is a fiduciary. Express authority - Correct Answer The intended power given by the principal to the agent. Granted by the agency contract. Ex: agent has the express authority to solicit applications for insurance on behalf of the company. Legal purpose - Correct Answer For a contract to be enforceable in court the object of it and its intent must be legal. Consideration - Correct Answer in exchange for a member's premium the insurer promises to pay when there is a loss. Perils, hazard, risk - Correct Answer A peril is the cause of a risk. A peril is the immediate specific event causing loss and giving rise to risk. When a building burns, fire is the peril. A hazard is the source of danger. The hazard is the underlying factor behind the peril that leads to the probability of a particular loss to the insurer. It is the active ingredient that could create a peril, which could then lead to a particular loss event Independent agents - Correct Answer Cell all plans, Blue Cross Blue Shield, Humana, etc Captive or career agent - Correct Answer Can only sell one companies insurance policies Agent vs broker - Correct Answer Both are known as producers. Agent: tied to an insurance company.