Florida Life Insurance Study Questions And Answers
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Course
FLORIDA HEALTH AND LIFE
Institution
FLORIDA HEALTH AND LIFE
Mutual Insurance Companies - CORRECT ANSWER- organized and incorporated
under state laws. No stockholders.
Mutual companies - CORRECT ANSWER- Participating, they pay dividends.
Stock company - CORRECT ANSWER- Owns Stock. Nonparticipating (no dividends)
Risk Retention Group - CORRECT ANSWER- Mut...
Florida Life Insurance Study Questions
And Answers
Mutual Insurance Companies - CORRECT ANSWER- organized and incorporated
under state laws. No stockholders.
Mutual companies - CORRECT ANSWER- Participating, they pay dividends.
Stock company - CORRECT ANSWER- Owns Stock. Nonparticipating (no dividends)
Risk Retention Group - CORRECT ANSWER- Mutual company formed to insure ppl in
the same business, occupation, profession (pharmacists, dentists, engineers)
Fraternal Benefit Societies - CORRECT ANSWER- Non profit organization, lodge
system that includes ritualistic work, and maintain a rep form of gov with elected
officers.
FICA - CORRECT ANSWER- Made up of Social Security and Medicare
Variable Product - CORRECT ANSWER- Dual license. One license issued by FINRA &
the other Life & Annuity (issued by the state)
Fair Credit Reporting Act - CORRECT ANSWER- Consumers have the right to question
what is on their credit report
Domestic insurer - CORRECT ANSWER- company doing business in the state in which
it is incorporated
Foreign insurer - CORRECT ANSWER- company licensed & doing business in states
other than the one in which it is incorporated
Buyers Guides - CORRECT ANSWER- generic (explain various types of life insurance
products, including variable annuities)
Policy Summaries - CORRECT ANSWER- 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
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, National Association of Ins Commissioners (NAIC) - CORRECT ANSWER- Encourage
Uniformity, Assist in admin of laws & regs, Protect interest of policy owners, Preserve
state regulation
Warranty - CORRECT ANSWER- a statement guaranteed to be true
Representation - CORRECT ANSWER- statement by client (best of their knowledge).
We give the client the benefit of the doubt
Concealment - CORRECT ANSWER- failure by applicant to disclose a known material
fact at time of application
Insurable interest - CORRECT ANSWER- Interest must exist at the inception of the
policy
Fiduciary - CORRECT ANSWER- a person holds a special FINANCIAL trust and
confidence (agent)
Producer - CORRECT ANSWER- Broker or agent
Professional Liability Ins - CORRECT ANSWER- protect against legal liability (like
malpractice ins)
Fraud - CORRECT ANSWER- Insurer reason to void a contract (2 years from date
insurance issued)
Fudiciary - CORRECT ANSWER- special financial trust
Twisting - CORRECT ANSWER- External - Illegal if not in the best interest for the client
Churning - CORRECT ANSWER- Internal - replacing policies within the same company.
Illegal if not in the best interest for the client
Coercion - CORRECT ANSWER- apply physical or mental force or threat to persuade
(the mafia)
Unfair Discrimination - CORRECT ANSWER- making a distinction, in sales,
underwriting, pricing, claims handling, or other ins applicant function, between 2 diff
individuals of substantially the same classification
Term Life Insurance - CORRECT ANSWER- simplest type of life ins plan. Provides
protection for a specified period (term) & pays a benefit only if the insured dies during
that period
Level Term Ins - CORRECT ANSWER- provides a level amount of protection for a
specified period, after which the policy expires.
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