214 FLORIDA INSURANCE

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214 FLORIDA INSURANCE

ACTUAL EXAM WITH CORRECT SOLUTIONS.

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 answer- Errors and Omissions Insurance

Which of the following terms is known as the voluntary relinquishment of a given right or privilege? - correct 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? - correct 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? - correct answer- Probationary period, he can sign up after 90 days

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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 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: - correct 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? - correct answer- Waiver of premium and Disability Income Riders

In a contributory group plan, what percentage of eligible employees must be covered? - correct answer- 75%

Which statement regarding annuities is CORRECT? - correct answer- Variable annuity units are fixed but the annuity payment will vary according to the value of the annuity unit.

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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 answer- 6

Social security is also known as: - correct answer- Old Age

Survivors and Disability Insurance (OASDI)

Insurance is not intended to protect against? - correct answer- Speculative Risk

Under a family plan life insurance policy, coverage on the breadwinner is often provided by which of the following insurance types? - correct answer- Whole Life

Which of the following statements regarding annuity settlement or payout options is NOT true? - correct 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.

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The following statements regarding 401(k) retirement plans are

correct EXCEPT: - correct answer- Plans rarely have a

matching contribution component by an employer

All of the statements below pertaining to group life insurance

are correct EXCEPT: - correct 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: - correct 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? - correct 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

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