Florida Life and Health Insurance Study Quiz with 100% Verified Definition
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Course
Florida life and health
Institution
Florida Life And Health
Insured - DEFINITION- The person covered by the insurance policy.
Rider - DEFINITION- A written modification attached to a policy that increases or
decreases coverage and/or premiums.
What is a unilateral contract? - DEFINITION- A contract in which only one of the parties
is legally bound to fu...
Florida Life and Health Insurance Study
Quiz with 100% Verified Definition
Insured - DEFINITION- The person covered by the insurance policy.
Rider - DEFINITION- A written modification attached to a policy that increases or
decreases coverage and/or premiums.
What is a unilateral contract? - DEFINITION- A contract in which only one of the parties
is legally bound to fulfill its obligations.
What law protects consumers from the circulation of inaccurate or obsolete information?
- DEFINITION- The Fair Credit Reporting Act.
What are the three types of agent authority? - DEFINITION- Implied, Express, and
Apparent.
Agent - DEFINITION- An individual who is licensed to sell, negotiate, or effect insurance
contracts on behalf of the insurer.
What is name of the process that insurance companies use to determine whether or not
an applicant is insurable? - DEFINITION- Underwriting
The requirement that agents must account for and promptly remit all insurance funds
collected is known as what type of agent responsibility? - DEFINITION- Fiduciary
What is a third-party ownership? - DEFINITION- An insurance arrangement in which the
policy owner and the insured are not the same person.
Suitability - DEFINITION- Factors that determine if an insurance product is appropriate
for a particular customer.
Premium - DEFINITION- A payment by the policy owner to the insurance company to
keep the policy in force.
Disclosure - DEFINITION- Providing sufficient information to help someone make
informed decision.
An agent offer a client free tickets to a sporting event in exchange for the purchase of
an insurance policy. What is the agent guilty of? - DEFINITION- Rebating
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,If an insurer meets the states financial requirements and is approved to transact
business in the state, it is considered what type of insurer? - DEFINITION- Authorized
What information are the members of the medical information bureau required to
report? - DEFINITION- Adverse medical information about the applicants or insureds.
What type of beneficiary can be changed at any point by the policy owner? -
DEFINITION- Revocable
What document describes the specific information about a policy? - DEFINITION- Policy
Summary
What is the term for the causes of loss insured against in an insurance policy? -
DEFINITION- Peril
Whom does an insurance agent represent? - DEFINITION- Insurance Company
What is an unfair trade practice? - DEFINITION- Any fraudulent, deceptive, or dishonest
business practice that is prohibited by statutes and regulations.
Insurer - DEFINITION- The company that issues an insurance policy.
Peril - DEFINITION- Cause of loss
Contract of Adhesion - DEFINITION- A contract prepared by one party that must be
accepted as written or be rejected by the other party.
What are the four elements of an insurance contract? - DEFINITION- Agreement (Offer
and Acceptance), consideration, competent parties, and legal purpose.
Policy Provision - DEFINITION- A clause that stipulates the rights and obligations under
an insurance contract.
Fiduciary - DEFINITION- A producer who handles insurer's funds in a trust capacity.
Who is considered a nonresident agent? - DEFINITION- An agent who resides and is
licensed in another state, but is authorized to transact insurance in Florida.
What is underwriting? - DEFINITION- The risk selection and classification process.
What is the best way to handle incomplete insurance applications? - DEFINITION-
Return the application to the applicant for completion.
What are the five characteristics of an ideally insurable risk? - DEFINITION- Loss must
be:
1. Due to Change
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, 2. Definite and measurable
3. Statistically predictable
4. Not catastrophic
5. Coverage cannot be mandatory.
What type of policy issues certificates of insurance to the insurance? - DEFINITION-
Group Policy
What is the purpose of a free-look period? - DEFINITION- To allow the insured to return
the policy and get a full refund (if done during the free-look period)
Whose responsibility is it to determine that all of the questions on an insurance
application are answered? - DEFINITION- The Agent's
What types of licensee represents the insurance company? - DEFINITION- Agent
Who must be notified of the producers change of address? - DEFINITION- The
department of Insurance
Certificate of Insurance - DEFINITION- A document issued to insureds under a group
plan that states the coverage being issued, and indicates the coverage type and
amounts.
Nonrenewal - DEFINITION- Termination of a policy by an insurer on the anniversary or
renewal date.
Representation - DEFINITION- A statement made by the applicant on the insurance
application that is believed to be true.
What is a warranty? - DEFINITION- An absolutely true statement that, if breached, may
viod an insurance contract.
In insurance, when is the offer usually made on a contract? - DEFINITION- When the
insurance application is submitted.
When a change needs to be made on the application for insurance, which is the best
method for correcting the information? - DEFINITION- Complete a new application or
ask the applicant to initial the correction on the original application.
A situation in which a person can only experience a loss and no gain represents what
type of risk? - DEFINITION- Pure Risk
Who is responsible for the contents of insurance advertisements? - DEFINITION- The
Insurance Company
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