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2024 FLORIDA 214 INSURANCE EXAM WITH CORRECT ANSWERS
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2024 FLORIDA 214 INSURANCE EXAM WITH CORRECT ANSWERS
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2024 FLORIDA 214 INSURANCEEXAM WITH CORRECT ANSWERS
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? - CORRECT ANSWERS- Errors and Omissions Insurance
Which of the following terms is known as the voluntary relinquishment of a
given right or privilege? - CORRECT 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? - CORRECT ANSWERS- United States v. Southeastern
Underwriters Association (1944)
When dividends are issued, the policyowner has the following dividend
options in utilizing a return EXCEPT: - CORRECT 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? - CORRECT
ANSWERS- Waiver of premium and Disability Income Riders
In a contributory group plan, what percentage of eligible employees must be
covered? - CORRECT ANSWERS- 75%
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? - CORRECT 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? - CORRECT ANSWERS- The date of his application or the day he
completed any required medical exam
Which statement regarding annuities is CORRECT? - 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. - CORRECT ANSWERS- 6
Social security is also known as: - CORRECT ANSWERS- Old Age Survivors
and Disability Insurance (OASDI)
Insurance is not intended to protect against? - CORRECT ANSWERS-
Speculative Risk
Under a family plan life insurance policy, coverage on the breadwinner is
often provided by which of the following insurance types? - CORRECT
ANSWERS- Whole Life
Which of the following statements regarding annuity settlement or payout
options is NOT true? - CORRECT 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.
The following statements regarding 401(k) retirement plans are correct
EXCEPT: - CORRECT ANSWERS- Plans rarely have a matching contribution
component by an employer
All of the statements below pertaining to group life insurance are correct
EXCEPT: - CORRECT ANSWERS- If the insurance coverage is less than
$75,000, employees do not have to report the employer-paid premiums as
income
According to Florida Statues, entering into any agreement to commit any act
of intimidation resulting in the business of insurance is known as: - CORRECT
ANSWERS- Coercion
William, age 67, has owned his life insurance policy for the past 15 years and
has mailed his monthly premiums to his life insurance company. Last month
he failed to mail the monthly payment on his premium due date as well as
during his policy's grace period. As a result, which of the following scenarios
will MOST likely occur? - CORRECT ANSWERS- The insurer will provide
notification of impending lapse in coverage, and allow at least 21 additional
days beyond the grace period to make a payment to prevent the policy from
lapse
Before executing an exchange of an annuity contract resulting from a
recommendation to a senior consumer, an insurance agent should make
, reasonable efforts to obtain information from the applicant concerning the
suitability of the recommendation on an approved form, which upon
completion, must be signed by the applicant and agent. Within what period
of time must an agent submit this form to the insurer once it is complete? -
CORRECT ANSWERS- Within 10 days
Shelly is considered to be terminally ill and has decided to sell her life
insurance policy in exchange for living benefits to fulfill some final comforts
and expenses before her death. In selling her life insurance policy, Shelly is
referred to as a(n)_________and she will receive a percentage of her life
policy's face amount in exchange for ownership of her policy. - CORRECT
ANSWERS- Viator
Which of the following is NOT a type of speculative risk? - CORRECT
ANSWERS- Unemployment
Which agency collects and provides reliable medical information regarding
an applicant's health history? - CORRECT ANSWERS- The MIB
Tonya failed to pay her life policy's premium on the date in which it is
normally due and is currently 23 days late. As a result of her policy's grace
period provision, which outcome will occur? - CORRECT ANSWERS- Tonya is
within her grace period and can pay her premium up to 30 or 31 days after
the date in which the premium is normally due; however, she does not need
to pay back any outstanding loans to the insurer.
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? - CORRECT ANSWERS-
Occurrence Policy
In a group life contract, evidence of insurability is - CORRECT ANSWERS-
Required only after the enrollment period ends.
Peril - CORRECT ANSWERS- For purposes of insurance, which of the following
is NOT considered a hazard?
The loss must be speculative - CORRECT ANSWERS- All of the following are
characteristics of pure risk EXCEPT
Twisting - CORRECT 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 - CORRECT ANSWERS- In the event a policy's
premium is paid late, which of the following provisions will keep the policy in
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