Exam (elaborations)
Florida Life and Health Insurance Questions and Answers 2024
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Florida Life and Health Insurance
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Florida Life and Health InsuranceInsured - answer the person covered by the insurance policy.
Rider - answer written modification attached to a policy that increases or decreases
coverage and/or premiums.
What is a unilateral contract? - answer 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?
- answer The Fair Credit Reporting Act.
What are the three types of agent authority? - answer Implied, Express, and Apparent.
Agent - answer 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? - answerUnderwriting
The requirement that agents must account for and promptly remit all insurance funds
collected is known as what type of agent responsibility? - answerFiduciary
What is a third-party ownership? - answerAn insurance arrangement in which the policy
owner and the insured are not the same person.
Suitability - answerFactors that determine if an insurance product is appropriate for a
particular customer.
Premium - answerA payment by the policy owner to the insurance company to keep the
policy in force.
Disclosure - answerProviding 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? - answerRebating
If an insurer meets the states financial requirements and is approved to transact
business in the state, it is considered what type of insurer? - answerAuthorized
,What information are the members of the medical information bureau required to
report? - answerAdverse medical information about the applicants or insureds.
What type of beneficiary can be changed at any point by the policy owner? -
answerRevocable
What document describes the specific information about a policy? - answerPolicy
Summary
What is the term for the causes of loss insured against in an insurance policy? -
answerPeril
Whom does an insurance agent represent? - answerInsurance Company
What is an unfair trade practice? - answerAny fraudulent, deceptive, or dishonest
business practice that is prohibited by statutes and regulations.
Insurer - answerThe company that issues an insurance policy.
Peril - answerCause of loss
Contract of Adhesion - answerA 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? - answerAgreement (Offer and
Acceptance), consideration, competent parties, and legal purpose.
Policy Provision - answerA clause that stipulates the rights and obligations under an
insurance contract.
Fiduciary - answerA producer who handles insurer's funds in a trust capacity.
Who is considered a nonresident agent? - answerAn agent who resides and is licensed
in another state, but is authorized to transact insurance in Florida.
What is underwriting? - answerThe risk selection and classification process.
What is the best way to handle incomplete insurance applications? - answerReturn the
application to the applicant for completion.
What are the five characteristics of an ideally insurable risk? - answerLoss must be:
1. Due to Change
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? - answerGroup
Policy
What is the purpose of a free-look period? - answerTo 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? - answerThe Agent's
What types of licensee represents the insurance company? - answerAgent
Who must be notified of the producers change of address? - answerThe department of
Insurance
Certificate of Insurance - answerA document issued to insureds under a group plan that
states the coverage being issued, and indicates the coverage type and amounts.
Nonrenewal - answerTermination of a policy by an insurer on the anniversary or
renewal date.
Representation - answerA statement made by the applicant on the insurance
application that is believed to be true.
What is a warranty? - answerAn absolutely true statement that, if breached, may viod
an insurance contract.
In insurance, when is the offer usually made on a contract? - answerWhen 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? - answerComplete 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? - answerPure Risk
Who is responsible for the contents of insurance advertisements? - answerThe
Insurance Company
What is the entire contract in health insurance underwriting? - answerThe policy with
riders and endorsements, plus a copy of the application.
What is the main purpose for requiring a person to be licensed to transact insurance? -
answerTo protect the general public.
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