214 Florida Insurance questions and answers
2025\2026 A+ Grade
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?
- correct answer Errors and Omissions Insurance
Which of the following terms is known as the voluntary relinquishment of a given right or privilege?
- correct answer 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?
- correct answer 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?
- correct answer 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?
- correct answer 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:
- correct answer 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?
- correct answer Waiver of premium and Disability Income Riders
,In a contributory group plan, what percentage of eligible employees must be covered?
- correct answer 75%
Which statement regarding annuities is CORRECT?
- correct answer 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.
- correct answer 6
Social security is also known as:
- correct answer Old Age Survivors and Disability Insurance (OASDI)
Insurance is not intended to protect against?
- correct answer Speculative Risk
Under a family plan life insurance policy, coverage on the breadwinner is often provided by which of the
following insurance types?
- correct answer Whole Life
Which of the following statements regarding annuity settlement or payout options is NOT true?
- correct answer 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:
- correct answer Plans rarely have a matching contribution component by an employer
All of the statements below pertaining to group life insurance are correct EXCEPT:
- correct answer 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:
- correct answer 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?
- correct answer 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?
- correct answer 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.
- correct answer Viator
Which of the following is NOT a type of speculative risk?
- correct answer Unemployment
Which agency collects and provides reliable medical information regarding an applicant's health history?
- correct answer The MIB
Tonya failed to pay her life policy's premium on the date in which it is normally due and is currently 23
days late. As a result of her policy's grace period provision, which outcome will occur?
- correct answer Tonya is within her grace period and can pay her premium up to 30 or 31 days after the
date in which the premium is normally due; however, she does not need to pay back any outstanding
loans to the insurer.
2025\2026 A+ Grade
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?
- correct answer Errors and Omissions Insurance
Which of the following terms is known as the voluntary relinquishment of a given right or privilege?
- correct answer 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?
- correct answer 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?
- correct answer 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?
- correct answer 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:
- correct answer 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?
- correct answer Waiver of premium and Disability Income Riders
,In a contributory group plan, what percentage of eligible employees must be covered?
- correct answer 75%
Which statement regarding annuities is CORRECT?
- correct answer 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.
- correct answer 6
Social security is also known as:
- correct answer Old Age Survivors and Disability Insurance (OASDI)
Insurance is not intended to protect against?
- correct answer Speculative Risk
Under a family plan life insurance policy, coverage on the breadwinner is often provided by which of the
following insurance types?
- correct answer Whole Life
Which of the following statements regarding annuity settlement or payout options is NOT true?
- correct answer 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:
- correct answer Plans rarely have a matching contribution component by an employer
All of the statements below pertaining to group life insurance are correct EXCEPT:
- correct answer 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:
- correct answer 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?
- correct answer 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?
- correct answer 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.
- correct answer Viator
Which of the following is NOT a type of speculative risk?
- correct answer Unemployment
Which agency collects and provides reliable medical information regarding an applicant's health history?
- correct answer The MIB
Tonya failed to pay her life policy's premium on the date in which it is normally due and is currently 23
days late. As a result of her policy's grace period provision, which outcome will occur?
- correct answer Tonya is within her grace period and can pay her premium up to 30 or 31 days after the
date in which the premium is normally due; however, she does not need to pay back any outstanding
loans to the insurer.
