Final Florida 2 - 14 Life, Variables and
Annuities Questions and All Correct
Answers 2025-2026 Updated.
Risk Avoidance - Answer avoiding a risk altogether, which is not easy to do in every situation.
(i.e. By never scuba diving, you avoid the risk of dying while scuba diving.)
Risk Reduction - Answer reducing the risk (i.e. The Jones bought a new alarm system for
their house to reduce the chances of being robbed.)
Risk Retention (or Self-Assuring) - Answer not purchasing insurance and assuming all the
financial risks.
Risk Transference - Answer moving the risk to somewhere else. (i.e. Tom purchases health
insurance to transfer some of the financial risk to the insurance company.)
Insurable Risk includes... - Answer • Chance • Measurable • Predictable • Non-Catastrophic
• Large • Random
Fraternal Benefit Societies - Answer • Must be NONPROFIT, noted for charitable work, and
have a lodge system that includes ritualistic work that maintains a representative form of
government.
Reciprocal Insurers - Answer • Organized on the basis of POLICYHOLDERS and are managed
by an ATTORNEY-IN-FACT.
1945 McCarran Ferguson Act - Answer Made it clear that STATES are to regulate insurance
and made possible the application of FEDERAL ANTITRUST LAWS
1970 Fair Credit Reporting Act - Answer Requires fair and accurate reporting of information
about consumers. If consumer is denied coverage or charged higher rate because of a report,
the insurer must inform the consumer the name of the agency conducting the investigation.
DOMESTIC INSURER - Answer Headquartered in Florida
FOREIGN - Answer Any other state but Florida
ALIEN - Answer Country other than United States.
, Unfair Trade Practice - Answer Gives CFO power to investigate insurers and producers and to
penalize
State Guaranty Association - Answer supports insurance companies and consumers if an
insurance company becomes insolvent by covering claims
Consideration - Answer Once accepted, something of value (money) is given for the promise
sought.
Aleatory - Answer UNEQUAL in that one party may pay less than the other. Also, there is an
element of chance for both parties.
Adhesion - Answer Contract is prepared by ONE party. There are NO NEGOTIATIONS.
Unilateral - Answer Only ONE party, the INSURER, makes an ENFORCEABLE promise.
Warranty - Answer -Applicant's statement is GUARANTEED to be true. If the statement turns
out to be false, this could be grounds for the contract to be revoked.
Representation - Answer Applicant's statement that they BELIEVE to be true
Concealment - Answer Failure of applicant to disclose KNOWN fact
Express - Answer Granted by contract between agent and company in writing
Implied - Answer Not spelled out but implied
Apparent - Answer Authority based on actions, words, or deeds of the company
ESTOPPEL - Answer The company is FORBIDDEN by legal action from exercising a right.
EXAMPLE: If the company decided to deny benefits because of the different way the insured
was paying premiums, the company would be estopped from denying the already approved
change in premium payment.
PAROL EVIDENCE RULE - Answer Oral or verbal statements to put in writing contract cannot
be changed.
Annuities Questions and All Correct
Answers 2025-2026 Updated.
Risk Avoidance - Answer avoiding a risk altogether, which is not easy to do in every situation.
(i.e. By never scuba diving, you avoid the risk of dying while scuba diving.)
Risk Reduction - Answer reducing the risk (i.e. The Jones bought a new alarm system for
their house to reduce the chances of being robbed.)
Risk Retention (or Self-Assuring) - Answer not purchasing insurance and assuming all the
financial risks.
Risk Transference - Answer moving the risk to somewhere else. (i.e. Tom purchases health
insurance to transfer some of the financial risk to the insurance company.)
Insurable Risk includes... - Answer • Chance • Measurable • Predictable • Non-Catastrophic
• Large • Random
Fraternal Benefit Societies - Answer • Must be NONPROFIT, noted for charitable work, and
have a lodge system that includes ritualistic work that maintains a representative form of
government.
Reciprocal Insurers - Answer • Organized on the basis of POLICYHOLDERS and are managed
by an ATTORNEY-IN-FACT.
1945 McCarran Ferguson Act - Answer Made it clear that STATES are to regulate insurance
and made possible the application of FEDERAL ANTITRUST LAWS
1970 Fair Credit Reporting Act - Answer Requires fair and accurate reporting of information
about consumers. If consumer is denied coverage or charged higher rate because of a report,
the insurer must inform the consumer the name of the agency conducting the investigation.
DOMESTIC INSURER - Answer Headquartered in Florida
FOREIGN - Answer Any other state but Florida
ALIEN - Answer Country other than United States.
, Unfair Trade Practice - Answer Gives CFO power to investigate insurers and producers and to
penalize
State Guaranty Association - Answer supports insurance companies and consumers if an
insurance company becomes insolvent by covering claims
Consideration - Answer Once accepted, something of value (money) is given for the promise
sought.
Aleatory - Answer UNEQUAL in that one party may pay less than the other. Also, there is an
element of chance for both parties.
Adhesion - Answer Contract is prepared by ONE party. There are NO NEGOTIATIONS.
Unilateral - Answer Only ONE party, the INSURER, makes an ENFORCEABLE promise.
Warranty - Answer -Applicant's statement is GUARANTEED to be true. If the statement turns
out to be false, this could be grounds for the contract to be revoked.
Representation - Answer Applicant's statement that they BELIEVE to be true
Concealment - Answer Failure of applicant to disclose KNOWN fact
Express - Answer Granted by contract between agent and company in writing
Implied - Answer Not spelled out but implied
Apparent - Answer Authority based on actions, words, or deeds of the company
ESTOPPEL - Answer The company is FORBIDDEN by legal action from exercising a right.
EXAMPLE: If the company decided to deny benefits because of the different way the insured
was paying premiums, the company would be estopped from denying the already approved
change in premium payment.
PAROL EVIDENCE RULE - Answer Oral or verbal statements to put in writing contract cannot
be changed.
