2024 FL LIFE, HEALTH AND
ANNUITIES LICENSING 2-15 EXAM
WITH CORRECT ANSWERS
3 ways insurance contracts are different than other legally binding
documents - CORRECT ANSWERS- 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 ANSWERS- Typically 2 years. Can't contest- after if found
out fraud occurred during application.
Express authority - CORRECT ANSWERS- 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.
Policy true effective date - CORRECT ANSWERS- Date the insurer accepts an
offer by the applicant as written
Insurable interest must exist at: - CORRECT ANSWERS- The time of
application
Mutual insurance company as corporation? - CORRECT ANSWERS- Yes.
Legally required to be incorporated to write business.
Fiduciary - CORRECT ANSWERS- 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.
How long does a company have to provide a summary of information used to
make an adverse determination? - CORRECT ANSWERS- 5 days.
, First dollar insurance - CORRECT ANSWERS- Aka basic medical expense
insurance. Pays benefits up from without the patient having to first pay
deductible.
Who governs workers comp laws - CORRECT ANSWERS- State government
Legal purpose - CORRECT ANSWERS- For a contract to be enforceable in
court the object of it and its intent must be legal.
Consideration - CORRECT ANSWERS- in exchange for a member's premium
the insurer promises to pay when there is a loss.
Perils, hazard, risk - CORRECT ANSWERS- 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 ANSWERS- Cell all plans, Blue Cross Blue
Shield, Humana, etc
Captive or career agent - CORRECT ANSWERS- Can only sell one companies
insurance policies
Agent vs broker - CORRECT ANSWERS- Both are known as producers.
Agent: tied to an insurance company.
Broker: represents the buyer and can sell many insurance carriers
HMOs are distinct because of what? - CORRECT ANSWERS- They provide the
insurance and the health care itself.
Reinsurers - CORRECT ANSWERS- Insurance for an insurance company
mutualization vs demutualization - CORRECT ANSWERS- Mutual: going from
stock insurance company to Mutual Insurance Company.
De mutual: the opposite
Aleatory contract - CORRECT ANSWERS- A contract that:
- there is an element of chance for both parties
- dollar values exchanged may not be equal.
Ex: member pays premium but may not receive benefit for a long time.
ANNUITIES LICENSING 2-15 EXAM
WITH CORRECT ANSWERS
3 ways insurance contracts are different than other legally binding
documents - CORRECT ANSWERS- 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 ANSWERS- Typically 2 years. Can't contest- after if found
out fraud occurred during application.
Express authority - CORRECT ANSWERS- 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.
Policy true effective date - CORRECT ANSWERS- Date the insurer accepts an
offer by the applicant as written
Insurable interest must exist at: - CORRECT ANSWERS- The time of
application
Mutual insurance company as corporation? - CORRECT ANSWERS- Yes.
Legally required to be incorporated to write business.
Fiduciary - CORRECT ANSWERS- 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.
How long does a company have to provide a summary of information used to
make an adverse determination? - CORRECT ANSWERS- 5 days.
, First dollar insurance - CORRECT ANSWERS- Aka basic medical expense
insurance. Pays benefits up from without the patient having to first pay
deductible.
Who governs workers comp laws - CORRECT ANSWERS- State government
Legal purpose - CORRECT ANSWERS- For a contract to be enforceable in
court the object of it and its intent must be legal.
Consideration - CORRECT ANSWERS- in exchange for a member's premium
the insurer promises to pay when there is a loss.
Perils, hazard, risk - CORRECT ANSWERS- 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 ANSWERS- Cell all plans, Blue Cross Blue
Shield, Humana, etc
Captive or career agent - CORRECT ANSWERS- Can only sell one companies
insurance policies
Agent vs broker - CORRECT ANSWERS- Both are known as producers.
Agent: tied to an insurance company.
Broker: represents the buyer and can sell many insurance carriers
HMOs are distinct because of what? - CORRECT ANSWERS- They provide the
insurance and the health care itself.
Reinsurers - CORRECT ANSWERS- Insurance for an insurance company
mutualization vs demutualization - CORRECT ANSWERS- Mutual: going from
stock insurance company to Mutual Insurance Company.
De mutual: the opposite
Aleatory contract - CORRECT ANSWERS- A contract that:
- there is an element of chance for both parties
- dollar values exchanged may not be equal.
Ex: member pays premium but may not receive benefit for a long time.
