FLORIDA LIFE INSURANCE EXAM
Questions and Answers
1. Mutual Insurance Companies: organized and incorporated under state laws. No
stockholders.
2. Mutual companies: Participating, they pay dividends.
3. Stock company: Owns Stock. Nonparticipating (no dividends)
4. Risk Retention Group: Mutual company formed to insure ppl in the same business, occupation,
profession
(pharmacists, dentists, engineers)
5. Fraternal Benefit Societies: Non profit organization, lodge system that includes ritualistic
work, and maintain a rep form of gov with elected officers.
6. FICA: Made up of Social Security and Medicare
7. Variable Product: Dual license. One license issued by FINRA & the other Life & Annuity (issued by
the state)
8. Fair Credit Reporting Act: Consumers have the right to question what is on their credit
report
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, 9. Domestic insurer: company doing business in the state in which it is incorporated
10. Foreign insurer: company licensed & doing business in states other than the one in which
it is incorporated
11. Buyers Guides: generic (explain various types of life insurance products, including variable
annuities)
12. Policy Summaries: Specific to the Policy - ids the agent, insurer, policy, each rider, and
includes info about
premiums, dividends, benefit amounts, cash surrender values, policy loan interest rates, and life insurance
cost indexes of the specific policy being considered
13. National Association of Ins Commissioners (NAIC): Encourage Uniformity,
Assist in admin
of laws & regs, Protect interest of policy owners, Preserve state regulation
14. Warranty: a statement guaranteed to be true
15. Representation: statement by client (best of their knowledge). We give the client the
benefit of the doubt
16. Concealment: failure by applicant to disclose a known material fact at time of application
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Questions and Answers
1. Mutual Insurance Companies: organized and incorporated under state laws. No
stockholders.
2. Mutual companies: Participating, they pay dividends.
3. Stock company: Owns Stock. Nonparticipating (no dividends)
4. Risk Retention Group: Mutual company formed to insure ppl in the same business, occupation,
profession
(pharmacists, dentists, engineers)
5. Fraternal Benefit Societies: Non profit organization, lodge system that includes ritualistic
work, and maintain a rep form of gov with elected officers.
6. FICA: Made up of Social Security and Medicare
7. Variable Product: Dual license. One license issued by FINRA & the other Life & Annuity (issued by
the state)
8. Fair Credit Reporting Act: Consumers have the right to question what is on their credit
report
1/
14
, 9. Domestic insurer: company doing business in the state in which it is incorporated
10. Foreign insurer: company licensed & doing business in states other than the one in which
it is incorporated
11. Buyers Guides: generic (explain various types of life insurance products, including variable
annuities)
12. Policy Summaries: Specific to the Policy - ids the agent, insurer, policy, each rider, and
includes info about
premiums, dividends, benefit amounts, cash surrender values, policy loan interest rates, and life insurance
cost indexes of the specific policy being considered
13. National Association of Ins Commissioners (NAIC): Encourage Uniformity,
Assist in admin
of laws & regs, Protect interest of policy owners, Preserve state regulation
14. Warranty: a statement guaranteed to be true
15. Representation: statement by client (best of their knowledge). We give the client the
benefit of the doubt
16. Concealment: failure by applicant to disclose a known material fact at time of application
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