Florida State Licensing Exam Prep: Life & Health
Insurance Agent #1-240 Practice Exam Questions
Solved 100% Correct| Newest 2025|Verified
Solutions
Which employer tasks does a Professional Employer Organization normally handle? -
✔✔administration tasks
The coordination of benefits (COB) provision exists in order to - ✔✔avoid duplication
of benefit payments
M completes an application for health insurance, but does not pay the initial premium.
All of these actions must occur before M's policy goes into effect EXCEPT - ✔✔Free-
Look period has expired
Q applied for life insurance and submitted the initial premium on January 1. The policy
was issued February 1, but it was not delivered by the agent until February 7. Q is
dissatisfied and returns the policy February 13. How will the insurer handle this
situation? - ✔✔Policy was returned within the free-look period, premium will be fully
refunded
What act is an agent NOT authorized to do on behalf of an insurer? - ✔✔Authorize
claim payments
According to State insurance law, while transacting insurance business, agents act as
representatives of - ✔✔the insurer
,An insurance broker is a representative of - ✔✔the insured
T is an agent and when hired, is reminded that he has a responsibility to handle clients'
funds in an honest and ethical manner. This responsibility is referred to as -
✔✔Fiduciary responsibility
Insurance companies that are organized in countries outside of the United States are
referred to as - ✔✔Alien companies
An insurance company incorporated under the laws of the state in which its home office
is located is called - ✔✔Domestic company
If an insurance company is organized under the laws of New Jersey and licensed to do
business here, it is considered what in Texas? - ✔✔Foreign company
An insurance company that is incorporated in New Hampshire and does business in
Florida is defined in Florida as - ✔✔Foreign insurer
A foreign insurance company is one that is incorporated - ✔✔under the laws of
another state
In order for a domestic, foreign, or alien insurance company to conduct business, it must
be authorized by whom? - ✔✔The state where they are conducting business
A certificate of authority does what? - ✔✔Permits an insurance company to transact
business in that state
, Before approving an application for a business entity acting as an agent, the
Commissioner or Director must find that the business entity has - ✔✔Designate an
agent to be responsible for compliance with insurance laws
If an insured sustains a loss on a policy sold by an agent through an insurance company
that is not authorized to do business in that particular state, who would be liable? -
✔✔The agent and the company
Which of the following is NOT a consequence for placing business with an unauthorized
insurer? - ✔✔First degree misdemeanor
What is one of many acts an agent is NOT authorized to do on behalf of an insurer? -
✔✔Authorize claim payments
Advertising gifts given by an agent to a prospective client are not allowed to exceed -
✔✔$25
An agent may legally share commissions with only - ✔✔Another agent who is
licensed in the same line of business
An insurance company will not compensate - ✔✔Licensed agent not appointed by
the company
How can an agent-in-charge have more than one location? - ✔✔Only if the agent-in-
charge is present when insurance activity occurs
What can an agent provide to help a prospective client understand and purchase the
most appropriate product? - ✔✔Buyer's Guide
Insurance Agent #1-240 Practice Exam Questions
Solved 100% Correct| Newest 2025|Verified
Solutions
Which employer tasks does a Professional Employer Organization normally handle? -
✔✔administration tasks
The coordination of benefits (COB) provision exists in order to - ✔✔avoid duplication
of benefit payments
M completes an application for health insurance, but does not pay the initial premium.
All of these actions must occur before M's policy goes into effect EXCEPT - ✔✔Free-
Look period has expired
Q applied for life insurance and submitted the initial premium on January 1. The policy
was issued February 1, but it was not delivered by the agent until February 7. Q is
dissatisfied and returns the policy February 13. How will the insurer handle this
situation? - ✔✔Policy was returned within the free-look period, premium will be fully
refunded
What act is an agent NOT authorized to do on behalf of an insurer? - ✔✔Authorize
claim payments
According to State insurance law, while transacting insurance business, agents act as
representatives of - ✔✔the insurer
,An insurance broker is a representative of - ✔✔the insured
T is an agent and when hired, is reminded that he has a responsibility to handle clients'
funds in an honest and ethical manner. This responsibility is referred to as -
✔✔Fiduciary responsibility
Insurance companies that are organized in countries outside of the United States are
referred to as - ✔✔Alien companies
An insurance company incorporated under the laws of the state in which its home office
is located is called - ✔✔Domestic company
If an insurance company is organized under the laws of New Jersey and licensed to do
business here, it is considered what in Texas? - ✔✔Foreign company
An insurance company that is incorporated in New Hampshire and does business in
Florida is defined in Florida as - ✔✔Foreign insurer
A foreign insurance company is one that is incorporated - ✔✔under the laws of
another state
In order for a domestic, foreign, or alien insurance company to conduct business, it must
be authorized by whom? - ✔✔The state where they are conducting business
A certificate of authority does what? - ✔✔Permits an insurance company to transact
business in that state
, Before approving an application for a business entity acting as an agent, the
Commissioner or Director must find that the business entity has - ✔✔Designate an
agent to be responsible for compliance with insurance laws
If an insured sustains a loss on a policy sold by an agent through an insurance company
that is not authorized to do business in that particular state, who would be liable? -
✔✔The agent and the company
Which of the following is NOT a consequence for placing business with an unauthorized
insurer? - ✔✔First degree misdemeanor
What is one of many acts an agent is NOT authorized to do on behalf of an insurer? -
✔✔Authorize claim payments
Advertising gifts given by an agent to a prospective client are not allowed to exceed -
✔✔$25
An agent may legally share commissions with only - ✔✔Another agent who is
licensed in the same line of business
An insurance company will not compensate - ✔✔Licensed agent not appointed by
the company
How can an agent-in-charge have more than one location? - ✔✔Only if the agent-in-
charge is present when insurance activity occurs
What can an agent provide to help a prospective client understand and purchase the
most appropriate product? - ✔✔Buyer's Guide
