214 Florida Insurance
Which type of insurance protects an agent and even pays claims if a lawsuit is brought
against the agent as a result of failing to provide a service to a client? - ANS- Errors and
Omissions Insurance
Which of the following terms is known as the voluntary relinquishment of a given right or
privilege? - ANS- Waiver
This Supreme Court case placed the regulation of insurance within the authority of the
federal government by defining insurance as a form of interstate commerce? - ANS-
United States v. Southeastern Underwriters Association (1944)
Tim was just hired today by MAB INC and wants to join the company's group insurance
policy. What period of time is he currently in and when can he join the plan? - ANS-
Probationary period, he can sign up after 90 days
If Justin submitted an initial premium with his life insurance application, was provided a
conditional receipt by the insurance company and was ultimately issued a policy as
applied for, when would his insurance policy be considered in force? - ANS- The date of
his application or the day he completed any required medical exam
When dividends are issued, the policyowner has the following dividend options in
utilizing a return EXCEPT: - ANS- Life Income Option
Which two life insurance riders can Bill purchase to guarantee that his policy will
continue without further commitment from him and that income will be paid to him if he
becomes totally and permanently disabled? - ANS- Waiver of premium and Disability
Income Riders
In a contributory group plan, what percentage of eligible employees must be covered? -
ANS- 75%
Which statement regarding annuities is CORRECT? - ANS- Variable annuity units are
fixed but the annuity payment will vary according to the value of the annuity unit.
In order to be considered currently insured and thus eligible for limited survivor benefits
from Social Security, a worker must have earned ___ credits during the 13-quarter period
ending with the quarter in which the worker died. - ANS- 6
Social security is also known as: - ANS- Old Age Survivors and Disability Insurance
(OASDI)
, Insurance is not intended to protect against? - ANS- Speculative Risk
Under a family plan life insurance policy, coverage on the breadwinner is often provided
by which of the following insurance types? - ANS- Whole Life
Which of the following statements regarding annuity settlement or payout options is NOT
true? - ANS- If the annuitant dies before the principal sum is depleted, the Refund Life
Annuity Option will pay the entire annuity amount to the beneficiary in a lump sum
payment or over scheduled installments.
The following statements regarding 401(k) retirement plans are correct EXCEPT: - ANS-
Plans rarely have a matching contribution component by an employer
All of the statements below pertaining to group life insurance are correct EXCEPT: -
ANS- If the insurance coverage is less than $75,000, employees do not have to report the
employer-paid premiums as income
According to Florida Statues, entering into any agreement to commit any act of
intimidation resulting in the business of insurance is known as: - ANS- Coercion
William, age 67, has owned his life insurance policy for the past 15 years and has mailed
his monthly premiums to his life insurance company. Last month he failed to mail the
monthly payment on his premium due date as well as during his policy's grace period. As
a result, which of the following scenarios will MOST likely occur? - ANS- The insurer will
provide notification of impending lapse in coverage, and allow at least 21 additional days
beyond the grace period to make a payment to prevent the policy from lapse
Before executing an exchange of an annuity contract resulting from a recommendation to
a senior consumer, an insurance agent should make reasonable efforts to obtain
information from the applicant concerning the suitability of the recommendation on an
approved form, which upon completion, must be signed by the applicant and agent.
Within what period of time must an agent submit this form to the insurer once it is
complete? - ANS- Within 10 days
Shelly is considered to be terminally ill and has decided to sell her life insurance policy
in exchange for living benefits to fulfill some final comforts and expenses before her
death. In selling her life insurance policy, Shelly is referred to as a(n)_________and she
will receive a percentage of her life policy's face amount in exchange for ownership of
her policy. - ANS- Viator
Which of the following is NOT a type of speculative risk? - ANS- Unemployment
Which type of insurance protects an agent and even pays claims if a lawsuit is brought
against the agent as a result of failing to provide a service to a client? - ANS- Errors and
Omissions Insurance
Which of the following terms is known as the voluntary relinquishment of a given right or
privilege? - ANS- Waiver
This Supreme Court case placed the regulation of insurance within the authority of the
federal government by defining insurance as a form of interstate commerce? - ANS-
United States v. Southeastern Underwriters Association (1944)
Tim was just hired today by MAB INC and wants to join the company's group insurance
policy. What period of time is he currently in and when can he join the plan? - ANS-
Probationary period, he can sign up after 90 days
If Justin submitted an initial premium with his life insurance application, was provided a
conditional receipt by the insurance company and was ultimately issued a policy as
applied for, when would his insurance policy be considered in force? - ANS- The date of
his application or the day he completed any required medical exam
When dividends are issued, the policyowner has the following dividend options in
utilizing a return EXCEPT: - ANS- Life Income Option
Which two life insurance riders can Bill purchase to guarantee that his policy will
continue without further commitment from him and that income will be paid to him if he
becomes totally and permanently disabled? - ANS- Waiver of premium and Disability
Income Riders
In a contributory group plan, what percentage of eligible employees must be covered? -
ANS- 75%
Which statement regarding annuities is CORRECT? - ANS- Variable annuity units are
fixed but the annuity payment will vary according to the value of the annuity unit.
In order to be considered currently insured and thus eligible for limited survivor benefits
from Social Security, a worker must have earned ___ credits during the 13-quarter period
ending with the quarter in which the worker died. - ANS- 6
Social security is also known as: - ANS- Old Age Survivors and Disability Insurance
(OASDI)
, Insurance is not intended to protect against? - ANS- Speculative Risk
Under a family plan life insurance policy, coverage on the breadwinner is often provided
by which of the following insurance types? - ANS- Whole Life
Which of the following statements regarding annuity settlement or payout options is NOT
true? - ANS- If the annuitant dies before the principal sum is depleted, the Refund Life
Annuity Option will pay the entire annuity amount to the beneficiary in a lump sum
payment or over scheduled installments.
The following statements regarding 401(k) retirement plans are correct EXCEPT: - ANS-
Plans rarely have a matching contribution component by an employer
All of the statements below pertaining to group life insurance are correct EXCEPT: -
ANS- If the insurance coverage is less than $75,000, employees do not have to report the
employer-paid premiums as income
According to Florida Statues, entering into any agreement to commit any act of
intimidation resulting in the business of insurance is known as: - ANS- Coercion
William, age 67, has owned his life insurance policy for the past 15 years and has mailed
his monthly premiums to his life insurance company. Last month he failed to mail the
monthly payment on his premium due date as well as during his policy's grace period. As
a result, which of the following scenarios will MOST likely occur? - ANS- The insurer will
provide notification of impending lapse in coverage, and allow at least 21 additional days
beyond the grace period to make a payment to prevent the policy from lapse
Before executing an exchange of an annuity contract resulting from a recommendation to
a senior consumer, an insurance agent should make reasonable efforts to obtain
information from the applicant concerning the suitability of the recommendation on an
approved form, which upon completion, must be signed by the applicant and agent.
Within what period of time must an agent submit this form to the insurer once it is
complete? - ANS- Within 10 days
Shelly is considered to be terminally ill and has decided to sell her life insurance policy
in exchange for living benefits to fulfill some final comforts and expenses before her
death. In selling her life insurance policy, Shelly is referred to as a(n)_________and she
will receive a percentage of her life policy's face amount in exchange for ownership of
her policy. - ANS- Viator
Which of the following is NOT a type of speculative risk? - ANS- Unemployment
