Florida Life and Health Insurance Study Guide

Florida Life and Health Insurance Study Guide
1. Insured
Answer: The person covered by the insurance policy.
2. Rider
Answer: A written modification attached to a policy that increases or decreasescoverage
and/or premiums.
3. What is a unilateral contract?
Answer: A contract in which only one of the parties islegally bound to fulfill its obligations.
4. What law protects consumersfrom the circulation of inaccurate or obsoleteinformation?
Answer: The Fair Credit Reporting Act.
5. What are the three types of agent authority?
Answer: Implied, Express, and Apparent.
6. Agent
Answer: An individual who is licensed to sell, negotiate, or effect insurance con-tracts on
behalf of the insurer.
7. What is name of the process that insurance companies use to determinewhether or not an
applicant is insurable?
Answer: Underwriting
8. The requirement that agents must account for and promptly remit all insurance funds
collected is known as what type of agent responsibility?
Answer: Fiduciary
9. What is a third-party ownership?
Answer: An insurance arrangement in which the policyowner and the insured are not the same
person.
10. Suitability
Answer: Factors that determine if an insurance product is appropriate for aparticular
customer.
11. Premium
Answer: A payment by the policy owner to the insurance company to keep thepolicy in force.
12. Disclosure
Answer: Providing sufficient information to help someone make informeddecision.