Florida Life and Health Final Exam
1. Which UnfairTrade Practice involves making a false statement on an insurance application
in order to receive money from an insurer?
Answer: Misrepresentation
2. Who owns a stock company?
Answer: A stock insurance company is owned by itsstockholders.
3. In Florida, which of the following is considered an UnfairTrade Practice?
Answer: -Coercion
4. Which of these options can an individual use their medical flexible spendingaccount to pay
for?
Answer: Prescription drugs are an allowable expense when paid for by a medical flexible
spending account.
5. Which of the following features of a groupTerm Life policy enables an individual to leave
the group and continue his or her insurance without providingevidence of insurability?
Answer: The conversion privilege allows an individual to leave the group term plan and
continue his or her insurance without providing evidence ofinsurability.
6. An example of false advertising would be
Answer: An insurer exaggerating its dividends in a magazine advertisement
7. Q purchases a $500,000 life insurance policy and pays $900 in premiums overthe firstsix
months.Q diessuddenly and the beneficiary is paid $500,000.This exchange of unequal values
reflects which of the following insurance contract features?
Answer: Aleatory.
Insurance contracts are aleatory in that the amount the insured will pay in premiumsis unequal
to the amount that the insurer will pay in the event of a loss.
8. An example of an unfair trade practice is
Answer: Making a material misrepresentationto an insured is considered to be an unfair trade
practice.
9. How would a contingent beneficiary receive the policy proceeds in an Accidental Death
and Dismemberment (AD&D) policy?
Answer: A contingent beneficiarywill receive the policy proceeds if the primary beneficiary
dies before the insured'sdeath.
10. Which of these terms accurately defines an underwriter's assessment ofinformation on a
life insurance application?