AGENT LICENSE FLORIDA 2-20 ACTUAL EXAM REAL
QUESTIONS AND WELL ELABORATED ANNSWERS
(VERIFIED SOLUTIONS) LATEST UPDATED VERSION |
ALREADY GRADED A+ (REVISED EXAM)
Which of the following documents must an agent deliver to a policyowner who buys
a life insurance policy that replaces another? - ANSWER: Notice Regarding
Replacement
The Office of Insurance Regulation can examine the business transactions, accounts,
and records of domestic insurers as often as necessary, but must do so at least once
every how many years? - ANSWER: five years
ABC Life Insurance Co. sells term and whole life insurance policies through agents. If
it sells a policy, it must give the customer the right to examine the policy for at least
how long? - ANSWER: 14 days
When holding insurance premiums and other funds, agents must act in a what role?
- ANSWER: a fiduciary capacity
An agent's license can be suspended or revoked for all of the following reasons
EXCEPT: - ANSWER: paying commissions to a licensed agency
Genevieve wants to renew her Florida insurance agent's license. Which of the
following is not a condition for renewal? - ANSWER: report of insurance sales made
in the last two years
Sasha, Kendall, Adam, and Julio are licensed agents in Florida. The Department of
Financial Services would NOT be able to suspend or revoke which agent's license for
engaging in the following acts? - ANSWER: Sasha, who sold insurance policies to
family members and friends this year
Agents and insurers must maintain records of their insurance transactions for at
least how long?
five years
three years
one year
two years - ANSWER: Five years
When selling individual life insurance, Mary tells prospects that Florida law requires
them to purchase a long-term care rider, even though this is not true. Which unfair
trade practice has Mary committed?
discrimination
,sliding
rebating
churning - ANSWER: sliding
Due to a significant drop in sales this year, Agent Smith has been soliciting current
clients and encouraging them to use the policy values in their existing life insurance
policies to purchase new policies in order to increase his commissions. Which unfair
trade practice has Agent Smith committed? - ANSWER: churning
Sandy and Cindy are healthy, 45 years old, and have similar life expectancies. Though
they are insured by the same company, Sandy's life insurance premiums are
considerably lower than Cindy's. What may this indicate a case of?
unfair discrimination
false advertising
misrepresentation
twisting - ANSWER: unfair discrimination
To boost her sales at the end of the year, Trudy started offering potential clients a
$250 cash gift card in exchange for purchasing a life insurance policy. Which
unethical sales practice has Trudy committed? - ANSWER: Rebating
Under the Patient Protection and Affordable Care Act, the terms platinum level, gold
level, silver level, and bronze level refer to a classification of health insurance plans
that differ by:
the deductible and coinsurance requirements of the plan.
the number of essential health benefits (EHBs) covered under the plan.
the percentage of essential health benefit (EHB) costs in the general population
funded by the plan
the underwriting classification assigned to the insured. - ANSWER: the percentage of
essential health benefit (EHB) costs in the general population funded by the plan.
Which statement about health insurance is correct? - ANSWER: A group plan is
usually offered through employers or associations.
Under the Patient Protection and Affordable Care Act, dependent children may be
covered under their parent's group medical insurance policy until what age?
22
19
30
, 26 - ANSWER: 26
Which health insurance policy supports and improves Medicare coverage? -
ANSWER: Medicare supplement policy
A married couple's health coverage is provided by their employer. On what basis is
their insurance provided?
on a group basis - ANSWER: on a group basis
An insured's health insurance plan pays 80 percent of the covered loss. The fact that
it is a reimbursement contract relates to which characteristic of health insurance? -
ANSWER: The benefit is based on the loss suffered.
How does health insurance differ from life insurance? - ANSWER: Health insurance
protects against risks that may arise more than once in a lifetime.
(Unlike the risk of death, a person may face health risks many times during his or her
life.)
Which health insurance policy pays a benefit if the insured dies or is dismembered
because of an accident? - ANSWER: accidental death and dismemberment (AD&D)
policy
(Accidental death and dismemberment policies provide a benefit if the insured dies
or is severely injured because of an accident.)
A ____________________(or temporary insurance agreement) gives the applicant
coverage during the underwriting period. Coverage takes effect when the application
is signed. - ANSWER: binding receipt
A ______________gives the applicant coverage from the date of the medical exam
(if required) or the signed application—whichever is later - ANSWER: conditional
receipt
The customer can return the policy during the ________ -_________ _______ and
receive a full refund of the premium. This period lasts for at least TEN days after the
policy is delivered. - ANSWER: free-look period
Which activity is NOT an error or omission that makes an agent or producer legally
liable to both the insured and the insurer? - ANSWER: placing insurance with an
approved surplus lines insurer
When an applicant applies for a health insurance policy, a producer is NOT required
to: - ANSWER: determine the premium rate
QUESTIONS AND WELL ELABORATED ANNSWERS
(VERIFIED SOLUTIONS) LATEST UPDATED VERSION |
ALREADY GRADED A+ (REVISED EXAM)
Which of the following documents must an agent deliver to a policyowner who buys
a life insurance policy that replaces another? - ANSWER: Notice Regarding
Replacement
The Office of Insurance Regulation can examine the business transactions, accounts,
and records of domestic insurers as often as necessary, but must do so at least once
every how many years? - ANSWER: five years
ABC Life Insurance Co. sells term and whole life insurance policies through agents. If
it sells a policy, it must give the customer the right to examine the policy for at least
how long? - ANSWER: 14 days
When holding insurance premiums and other funds, agents must act in a what role?
- ANSWER: a fiduciary capacity
An agent's license can be suspended or revoked for all of the following reasons
EXCEPT: - ANSWER: paying commissions to a licensed agency
Genevieve wants to renew her Florida insurance agent's license. Which of the
following is not a condition for renewal? - ANSWER: report of insurance sales made
in the last two years
Sasha, Kendall, Adam, and Julio are licensed agents in Florida. The Department of
Financial Services would NOT be able to suspend or revoke which agent's license for
engaging in the following acts? - ANSWER: Sasha, who sold insurance policies to
family members and friends this year
Agents and insurers must maintain records of their insurance transactions for at
least how long?
five years
three years
one year
two years - ANSWER: Five years
When selling individual life insurance, Mary tells prospects that Florida law requires
them to purchase a long-term care rider, even though this is not true. Which unfair
trade practice has Mary committed?
discrimination
,sliding
rebating
churning - ANSWER: sliding
Due to a significant drop in sales this year, Agent Smith has been soliciting current
clients and encouraging them to use the policy values in their existing life insurance
policies to purchase new policies in order to increase his commissions. Which unfair
trade practice has Agent Smith committed? - ANSWER: churning
Sandy and Cindy are healthy, 45 years old, and have similar life expectancies. Though
they are insured by the same company, Sandy's life insurance premiums are
considerably lower than Cindy's. What may this indicate a case of?
unfair discrimination
false advertising
misrepresentation
twisting - ANSWER: unfair discrimination
To boost her sales at the end of the year, Trudy started offering potential clients a
$250 cash gift card in exchange for purchasing a life insurance policy. Which
unethical sales practice has Trudy committed? - ANSWER: Rebating
Under the Patient Protection and Affordable Care Act, the terms platinum level, gold
level, silver level, and bronze level refer to a classification of health insurance plans
that differ by:
the deductible and coinsurance requirements of the plan.
the number of essential health benefits (EHBs) covered under the plan.
the percentage of essential health benefit (EHB) costs in the general population
funded by the plan
the underwriting classification assigned to the insured. - ANSWER: the percentage of
essential health benefit (EHB) costs in the general population funded by the plan.
Which statement about health insurance is correct? - ANSWER: A group plan is
usually offered through employers or associations.
Under the Patient Protection and Affordable Care Act, dependent children may be
covered under their parent's group medical insurance policy until what age?
22
19
30
, 26 - ANSWER: 26
Which health insurance policy supports and improves Medicare coverage? -
ANSWER: Medicare supplement policy
A married couple's health coverage is provided by their employer. On what basis is
their insurance provided?
on a group basis - ANSWER: on a group basis
An insured's health insurance plan pays 80 percent of the covered loss. The fact that
it is a reimbursement contract relates to which characteristic of health insurance? -
ANSWER: The benefit is based on the loss suffered.
How does health insurance differ from life insurance? - ANSWER: Health insurance
protects against risks that may arise more than once in a lifetime.
(Unlike the risk of death, a person may face health risks many times during his or her
life.)
Which health insurance policy pays a benefit if the insured dies or is dismembered
because of an accident? - ANSWER: accidental death and dismemberment (AD&D)
policy
(Accidental death and dismemberment policies provide a benefit if the insured dies
or is severely injured because of an accident.)
A ____________________(or temporary insurance agreement) gives the applicant
coverage during the underwriting period. Coverage takes effect when the application
is signed. - ANSWER: binding receipt
A ______________gives the applicant coverage from the date of the medical exam
(if required) or the signed application—whichever is later - ANSWER: conditional
receipt
The customer can return the policy during the ________ -_________ _______ and
receive a full refund of the premium. This period lasts for at least TEN days after the
policy is delivered. - ANSWER: free-look period
Which activity is NOT an error or omission that makes an agent or producer legally
liable to both the insured and the insurer? - ANSWER: placing insurance with an
approved surplus lines insurer
When an applicant applies for a health insurance policy, a producer is NOT required
to: - ANSWER: determine the premium rate
