FLORIDA LIFE AND HEALTH INSURANCE
QUESTIONS WITH CORRECT SOLUTIONS
Insured - cORRECT sOLUTION The person covered by the insurance policy.
Rider - cORRECT sOLUTION A written modification attached to a policy that
increases or decreases coverage and/or premiums.
What is a unilateral contract? - cORRECT sOLUTION A contract in which only
one of the parties is legally bound to fulfill its obligations.
What law protects consumers from the circulation of inaccurate or obsolete
information? - cORRECT sOLUTION The Fair Credit Reporting Act.
What are the three types of agent authority? - cORRECT sOLUTION Implied,
Express, and Apparent.
Agent - cORRECT sOLUTION An individual who is licensed to sell, negotiate, or
effect insurance contracts on behalf of the insurer.
What is name of the process that insurance companies use to determine whether or
not an applicant is insurable? - cORRECT sOLUTION Underwriting
,The requirement that agents must account for and promptly remit all insurance
funds collected is known as what type of agent responsibility? - cORRECT
sOLUTION Fiduciary
What is a third-party ownership? - cORRECT sOLUTION An insurance
arrangement in which the policy owner and the insured are not the same person.
Suitability - cORRECT sOLUTION Factors that determine if an insurance product
is appropriate for a particular customer.
Premium - cORRECT sOLUTION A payment by the policy owner to the
insurance company to keep the policy in force.
Disclosure - cORRECT sOLUTION Providing sufficient information to help
someone make informed decision.
An agent offer a client free tickets to a sporting event in exchange for the purchase
of an insurance policy. What is the agent guilty of? - cORRECT sOLUTION
Rebating
If an insurer meets the states financial requirements and is approved to transact
business in the state, it is considered what type of insurer? - cORRECT
sOLUTION Authorized
,What information are the members of the medical information bureau required to
report? - cORRECT sOLUTION Adverse medical information about the applicants
or insureds.
What type of beneficiary can be changed at any point by the policy owner? -
cORRECT sOLUTION Revocable
What document describes the specific information about a policy? - cORRECT
sOLUTION Policy Summary
What is the term for the causes of loss insured against in an insurance policy? -
cORRECT sOLUTION Peril
Whom does an insurance agent represent? - cORRECT sOLUTION Insurance
Company
What is an unfair trade practice? - cORRECT sOLUTION Any fraudulent,
deceptive, or dishonest business practice that is prohibited by statutes and
regulations.
Insurer - cORRECT sOLUTION The company that issues an insurance policy.
Peril - cORRECT sOLUTION Cause of loss
, Contract of Adhesion - cORRECT sOLUTION A contract prepared by one party
that must be accepted as written or be rejected by the other party.
What are the four elements of an insurance contract? - cORRECT sOLUTION
Agreement (Offer and Acceptance), consideration, competent parties, and legal
purpose.
Policy Provision - cORRECT sOLUTION A clause that stipulates the rights and
obligations under an insurance contract.
Fiduciary - cORRECT sOLUTION A producer who handles insurer's funds in a
trust capacity.
Who is considered a nonresident agent? - cORRECT sOLUTION An agent who
resides and is licensed in another state, but is authorized to transact insurance in
Florida.
What is underwriting? - cORRECT sOLUTION The risk selection and
classification process.
What is the best way to handle incomplete insurance applications? - cORRECT
sOLUTION Return the application to the applicant for completion.
What are the five characteristics of an ideally insurable risk? - cORRECT
sOLUTION Loss must be:
QUESTIONS WITH CORRECT SOLUTIONS
Insured - cORRECT sOLUTION The person covered by the insurance policy.
Rider - cORRECT sOLUTION A written modification attached to a policy that
increases or decreases coverage and/or premiums.
What is a unilateral contract? - cORRECT sOLUTION A contract in which only
one of the parties is legally bound to fulfill its obligations.
What law protects consumers from the circulation of inaccurate or obsolete
information? - cORRECT sOLUTION The Fair Credit Reporting Act.
What are the three types of agent authority? - cORRECT sOLUTION Implied,
Express, and Apparent.
Agent - cORRECT sOLUTION An individual who is licensed to sell, negotiate, or
effect insurance contracts on behalf of the insurer.
What is name of the process that insurance companies use to determine whether or
not an applicant is insurable? - cORRECT sOLUTION Underwriting
,The requirement that agents must account for and promptly remit all insurance
funds collected is known as what type of agent responsibility? - cORRECT
sOLUTION Fiduciary
What is a third-party ownership? - cORRECT sOLUTION An insurance
arrangement in which the policy owner and the insured are not the same person.
Suitability - cORRECT sOLUTION Factors that determine if an insurance product
is appropriate for a particular customer.
Premium - cORRECT sOLUTION A payment by the policy owner to the
insurance company to keep the policy in force.
Disclosure - cORRECT sOLUTION Providing sufficient information to help
someone make informed decision.
An agent offer a client free tickets to a sporting event in exchange for the purchase
of an insurance policy. What is the agent guilty of? - cORRECT sOLUTION
Rebating
If an insurer meets the states financial requirements and is approved to transact
business in the state, it is considered what type of insurer? - cORRECT
sOLUTION Authorized
,What information are the members of the medical information bureau required to
report? - cORRECT sOLUTION Adverse medical information about the applicants
or insureds.
What type of beneficiary can be changed at any point by the policy owner? -
cORRECT sOLUTION Revocable
What document describes the specific information about a policy? - cORRECT
sOLUTION Policy Summary
What is the term for the causes of loss insured against in an insurance policy? -
cORRECT sOLUTION Peril
Whom does an insurance agent represent? - cORRECT sOLUTION Insurance
Company
What is an unfair trade practice? - cORRECT sOLUTION Any fraudulent,
deceptive, or dishonest business practice that is prohibited by statutes and
regulations.
Insurer - cORRECT sOLUTION The company that issues an insurance policy.
Peril - cORRECT sOLUTION Cause of loss
, Contract of Adhesion - cORRECT sOLUTION A contract prepared by one party
that must be accepted as written or be rejected by the other party.
What are the four elements of an insurance contract? - cORRECT sOLUTION
Agreement (Offer and Acceptance), consideration, competent parties, and legal
purpose.
Policy Provision - cORRECT sOLUTION A clause that stipulates the rights and
obligations under an insurance contract.
Fiduciary - cORRECT sOLUTION A producer who handles insurer's funds in a
trust capacity.
Who is considered a nonresident agent? - cORRECT sOLUTION An agent who
resides and is licensed in another state, but is authorized to transact insurance in
Florida.
What is underwriting? - cORRECT sOLUTION The risk selection and
classification process.
What is the best way to handle incomplete insurance applications? - cORRECT
sOLUTION Return the application to the applicant for completion.
What are the five characteristics of an ideally insurable risk? - cORRECT
sOLUTION Loss must be:
