Florida Insurance Exam Latest 2024-2025 Questions and Answers, Exams of Nursing

Download Florida Insurance Exam Latest 2024-2025 Questions and Answers and more Exams Nursing in PDF only on Docsity! 214 FLORIDA INSURANCE EXAM LATEST 2024- 2025 QUESTIONS AND CORRECT ANSWERS |ALREADY GRADED A+ 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? - ANSWER>>Errors and Omissions Insurance Which of the following terms is known as the voluntary relinquishment of a given right or privilege? - ANSWER>>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? - ANSWER>>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? - ANSWER>>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? - ANSWER>>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: - ANSWER>>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? - ANSWER>>Waiver of premium and Disability Income Riders In a contributory group plan, what percentage of eligible employees must be covered? - ANSWER>>75% Which statement regarding annuities is CORRECT? - ANSWER>>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. - ANSWER>>6 Social security is also known as: - ANSWER>>Old Age Survivors and Disability Insurance (OASDI) Insurance is not intended to protect against? - ANSWER>>Speculative Risk Under a family plan life insurance policy, coverage on the breadwinner is often provided by which of the following insurance types? - ANSWER>>Whole Life Which of the following statements regarding annuity settlement or payout options is NOT true? - ANSWER>>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: - ANSWER>>Plans rarely have a matching contribution component by an employer All of the statements below pertaining to group life insurance are correct EXCEPT: - ANSWER>>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: - ANSWER>>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? - ANSWER>>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? - ANSWER>>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. - ANSWER>>Viator Which of the following is NOT a type of speculative risk? - ANSWER>>Unemployment A broker - ANSWER>>Raymond, a licensed insurance producer, solicits insurance through more than one insurer and negotiates on behalf of his clients; therefore, he is considered to be Non-Medical - ANSWER>>Referred to as a _________ application, it is common for a health or life insurance policy to be issued to an applicant based solely on the medical information gathered from the application that is submitted by the applicant to the insurer. National Association of Insurance Commissioners (NAIC) - ANSWER>>Which agency has influenced the insurance industry by introducing uniform regulation 'models' for states to follow in an attempt to standardize multiple-state insurance laws? A beneficiary - ANSWER>>Which of the following does not have the responsibility of acting as a fiduciary? The ratio between company losses and company revenue that determines an insurance company's revenues that must be maintained to cover annual claims by its policyowners. - ANSWER>>Loss ratio is defined as No minimum - ANSWER>>In the state of Florida, what is the minimum number of members required for a group life insurance policy? Controlled business - ANSWER>>Sandra, who is a licensed agent and an employee at XYZ company, is writing an insurance policy on herself and a few of her co-workers since group benefits are currently not available. What type of business is she considered to be conducting? Substandard risk - ANSWER>>Betty has a history of poor health and is currently taking four medications for high blood pressure and cholesterol. What type of risk is Betty if she were to apply for a health policy? The primary function of an Equity Index Annuity is to: - ANSWER>>Link excess interest to the upward movement of an outside market index, such as the S&P 500, while maintaining a minimum guaranteed interest rate Speculative risk - ANSWER>>Insurance is not intended to protect against? At the time of application - ANSWER>>In determining the validity of an insurance contract, when must insurable interest be present? 60 days - ANSWER>>If an individual wants to transfer funds from their 401(k) plan into a Rollover IRA, what is the maximum allowed time in order to be eligible for a tax-free rollover? Annuity Funding plan - ANSWER>>Which of the following qualified employer retirement plans is NOT recognized as a 'defined contribution' plan? 40 credits - ANSWER>>What is the full amount of Social Security credits needed to be fully insured for benefits? Long-term care rider - ANSWER>>Which life rider allows for care in a convalescent or nursing home? Extended term option - ANSWER>>If Jim decides to cancel his whole life insurance policy and uses his policy's cash value to purchase a term life policy with a face amount of equal value but with a likely shorter coverage period, he is utilizing which type of life insurance nonforfeiture option? Consideration Clause - ANSWER>>Which provision or clause below will illustrate the frequency and amount of policy premiums? A term life policy builds cash value over the policy's term. - ANSWER>>Which of the following statements describing term life insurance is INCORRECT? The insurance company evaluates the individuals within a group instead of the group as a whole, and then measures the individual's risks against its underwriting standards. - ANSWER>>In regards to group insurance, which statement below is INCORRECT? Central Medical Bureau (CMB) - ANSWER>>All of the following are sources for obtaining information regarding an applicant's insurability EXCEPT: An insurer is required to disclose medical information to an applicant in the event the applicant is rejected due to findings in the report. - ANSWER>>Which of the following is NOT required by the Fair Credit Reporting Act of 1970? Friends - ANSWER>>Insurable interest exists between all of the following EXCEPT: The policy no longer meets the needs of the client - ANSWER>>Which of the following reasons would justify a policy replacement? Usually 2 years, but in some states only 1 year - ANSWER>>The Incontestable Clause states that the insurer cannot contest the validity of a life insurance policy as long as it remains in force after what period of time? Non-contributory plans - ANSWER>>Group insurance plans that do not require employees to pay a portion of policy premiums are referred to as: 4 credits - ANSWER>>What is the maximum number of Social Security credits an individual can earn per year? An annuity contract exchanged for a life insurance policy - ANSWER>>Under the 1035 policy exchange provision, which of the following will NOT receive favorable tax treatment? Stock - ANSWER>>Which of the following insurers is best defined as a non-participating company? 100% - ANSWER>>A non-contributory group policy requires which percentage of eligible employees to be covered? Revocable Designation - ANSWER>>Carla has named her husband Jeffrey as the beneficiary to her life insurance policy. Under which beneficiary designation does she remains in control of the policy and can make any changes she sees fit in the future? Graded premium whole life - ANSWER>>Which type of whole life insurance policy is characterized by affordable premiums in its initial years, then gradually increasing over the next few years until finally leveling off at a slightly higher rate than a standard whole life policy? Cash surrender option, reduced paid-up option and extended term option - ANSWER>>In the event that a whole life insurance policy lapses due to nonpayment or it is intentionally cancelled, which of the following nonforfeiture options are available to the policyowner? 1000x24 months = ? - ANSWER>>Carl purchased an Immediate Annuity with a 5-year 'life with period certain option,' which pays him $1,000 per month. Exactly 3 years after his policy start date Carl dies. How much money will his beneficiary receive for the remainder of the policy? His distribution payment amount will fluctuate depending on the return of interest at the time of each distribution payment - ANSWER>>Leon currently receives $650 per month from his variable annuity. Since he is scheduled to receive payments from his variable annuity for the remainder of his life, what will most likely occur to Leon's distribution payment amount as time goes on? Conviction of a 3rd degree felony - ANSWER>>Unauthorized entities acting as a licensed insurer in the state of Florida are subject to the following possible consequences EXCEPT: 14 days for life policies and 21 days for annuities - ANSWER>>Under Florida law, how long must an individual be allowed to review a new life policy or annuity contract with the option of an unconditional refund if not fully satisfied? Pension Benefit Guaranty Corporation (PBGC) - ANSWER>>Which federal organization was created under ERISA to guarantee payments of pension benefits in defined benefit plans that terminate due to a lack of funding to cover benefit payments? The FTC - ANSWER>>Which of the following entities manages the National Do-Not-Call Registry? Other (Additional) Insured(s) Rider - ANSWER>>Which of the following life policy riders is also referred to as a 'child' rider? Annual Renewable Term - ANSWER>>What is the most common type of employment-related group life insurance? Twisting - ANSWER>>The practice of inducing a policyowner through misrepresentation to forfeit or change insurance from one company to another to gain commission for an agent or agency is called: Aleatory - ANSWER>>The concept that an insurance contract is dependent on an uncertain outcome and that one party may receive more value than given it is said to be: 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. - ANSWER>>Which of the following statements regarding annuity settlement or payout options is NOT true? Her insurer will issue a paid-up term life policy with the same face value as the original whole life policy and a term length based on the amount of cash value that the forfeited whole life policy can purchase. - ANSWER>>Susan has been paying premiums on her whole life policy for the past 14 years. Recently, she decided to stop making payments, but did not select a nonforfeiture option. Since she did not select such option, what actions will her insurer take? 25-year $85,000 Decreasing Term Life policy - ANSWER>>Charles has a $85,000 25-year mortgage and wants to purchase a life insurance policy that would cover any outstanding balance on the mortgage if he were to pre-maturely die, which of the following policies would be the most logical for him to purchase? A receipt given to an applicant when an agent collects both the application and initial premium. Under a conditional receipt, the applicant is covered against loss, should it occur, before the policy becomes effective, on the 'condition' that the applicant is found to be insurable as applied for by the insurer's underwriting department upon completion of its underwriting process. - ANSWER>>How is a conditional receipt BEST described? Preferred risk - ANSWER>>Patricia has good health, good habits and even good credit. If she were to apply for an insurance policy, which classification would she most likely be labeled? Exclusion ratio - ANSWER>>Which formula is used to compute the taxable portion of an annuity payment? Sliding - ANSWER>>Representing to an applicant that a rider or policy add-on with the purchase of insurance is required by law is a form of: In a term life insurance contract, the policyowner has the right to take out loans against his or her policy's cash value, or use it as collateral on a loan. - ANSWER>>All of the following are true in regards to the rights of ownership in a life insurance contract EXCEPT Family Needs Assessment - ANSWER>>Which approach is more commonly used when assessing the correct amount of life insurance, taking into account medical deductibles, final expenses, surviving family maintenance income such as mortgage payments and cost-of-living expenses, as well as future income needs such as college tuition and spousal retirement income? National Association of Insurance Commissioners (NAIC) - ANSWER>>Which agency has influenced the insurance industry by introducing uniform regulation 'models' for states to follow in an attempt to standardize multiple-state insurance laws? Her insurer will issue a paid-up term life policy with the same face value as the original whole life policy and a term length based on the amount of cash value that the forfeited whole life policy can purchase. - ANSWER>>Susan has been paying premiums on her whole life policy for the past 14 years. Recently, she decided to stop making payments, but did not select a nonforfeiture option. Since she did not select such option, what actions will her insurer take? Adhesion - ANSWER>>Which characteristic of insurance means that only one party, the insurer, defines and prepares the insurance contract, which is non-negotiable by the other party? Per stiripes rule - ANSWER>>Benefits that are passed to a beneficiary's child or children in equal shares in the event that the beneficiary dies is known as the: Irrevocable Designation - ANSWER>>Linda has decided to make her husband John the beneficiary to her life insurance policy. She has chosen a beneficiary designation that can only allow her to change beneficiaries with the written consent of her husband. This type of beneficiary designation is known as a(n): general buyer's guide; policy summary - ANSWER>>According to the NAIC Life Insurance Solicitation Model, when soliciting life insurance, a producer is required to provide a prospect with a ______ and a _______ specific to the product being marketed. Fixed-Period Option - ANSWER>>In the event a whole life policy is cancelled or lapses due to nonpayment, all of the following nonforfeiture options are available to the policyowner EXCEPT Extended term option - ANSWER>>Which of the following is NOT considered to be a life policy settlement option? Insured - ANSWER>>Which of the following is NOT involved in an annuity contract? State Guarantee Association - ANSWER>>In the event an insurance company becomes insolvent, this type of association ensures unpaid claims will be paid for covered policyowners? general buyer's guide; policy summary - ANSWER>>According to the NAIC Life Insurance Solicitation Model, when soliciting life insurance, a producer is required to provide a prospect with a ______ and a _______ specific to the product being marketed. Spendthrift provision - ANSWER>>Mr. Baker has named his son as the beneficiary to his life insurance policy, but he is worried about his son's spending habits and the money his son might already owe when he receives the death benefit. Which policy provision, clause or rider best fits his situation? Guaranteed Insurability rider - ANSWER>>Which rider, also known as an 'insurance protection' rider, states that at certain dates in the future, the insured can purchase additional insurance without evidence of insurability? Mutual - ANSWER>>Which of the following insurers is considered a participating company? Analyzing risk - ANSWER>>Which of the following is NOT a method of handling risk? A master contract is issued by the insurer to the employer, while employees are given certificates of insurance - ANSWER>>In regards to group insurance, which of the following statements below is correct? Irrevocable designation - ANSWER>>Linda has decided to make her husband John the beneficiary to her life insurance policy. She has chosen a beneficiary designation that can only allow her to change beneficiaries with the written consent of her husband. This type of beneficiary designation is known as a(n): Annuity Funding Plan - ANSWER>>Which of the following qualified employer retirement plans is NOT recognized as a 'defined contribution' plan? Morbidity Rate - ANSWER>>In reference to health insurance, which of the following is a factor when determining health insurance premiums? The insured always receives more from the contract than the insurer - ANSWER>>An insurance contract is considered Aleatory for the following reasons EXCEPT: 24 - ANSWER>>How many hours of continuing education must a life and/or health insurance agent complete who has held an insurance license for a period of less than 6 years? Agents selling insurance products for an agency are not required to be individually licensed, as long as the agency itself is. - ANSWER>>Which of the following statements regarding insurance agencies in Florida is INCORRECT?