Exam (elaborations)
214 FLORIDA INSURANCE QUESTIONS AND ANSWERS
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214 FLORIDA INSURANCE QUESTIONS AND ANSWERS
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214 FLORIDA INSURANCE QUESTIONS ANDANSWERS
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? - Answers -Errors
and Omissions Insurance
Which of the following terms is known as the voluntary relinquishment of a given right or
privilege? - Answers -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? - Answers
-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? - Answers -
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? - Answers -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: - Answers -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? - Answers -Waiver of premium and
Disability Income Riders
In a contributory group plan, what percentage of eligible employees must be covered? -
Answers -75%
Which statement regarding annuities is CORRECT? - Answers -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. - Answers -6
Social security is also known as: - Answers -Old Age Survivors and Disability Insurance
(OASDI)
Insurance is not intended to protect against? - Answers -Speculative Risk
, Under a family plan life insurance policy, coverage on the breadwinner is often provided
by which of the following insurance types? - Answers -Whole Life
Which of the following statements regarding annuity settlement or payout options is
NOT true? - Answers -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.
Which type of E&O policy provides permanent coverage for the actions of an agent
during which time he or she was covered under such policy, regardless of when a
lawsuit is filed against the agent? - Answers -Occurrence Policy
In a group life contract, evidence of insurability is - Answers -Required only after the
enrollment period ends.
Peril - Answers -For purposes of insurance, which of the following is NOT considered a
hazard?
The loss must be speculative - Answers -All of the following are characteristics of pure
risk EXCEPT
Twisting - Answers -When an agent persuades a client to cancel his or her current
coverage for a policy from an entirely different company solely to produce another first
year commission is called?
Grace Period Provision - Answers -In the event a policy's premium is paid late, which of
the following provisions will keep the policy in force for a short period of time thereafter
to allow the policyowner to submit payment?
Payor Rider - Answers -In the event that a parent dies or becomes disabled, which rider
allows surviving child coverage to continue until the child reaches a specified age?
30-31 days - Answers -According to the NAIC Model Group Life Insurance Provisions,
what is the standard grace period?
50% - Answers -For individuals who have reached their normal retirement age, their
spouses are entitled a retirement benefit that is equal to what percentage of the retired
worker's primary insurance amount (PIA)?
Interest is not taxed upon withdrawal due its funding from post-tax dollars - Answers -
Which of the following statements is CORRECT in regards to a Roth IRA?
Fails the 7-Pay Test - Answers -An insurance contract becomes a Modified Endowment
Contract (MEC) if which of the following occurs?
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