Florida Insurance 2-14 Exam Terms Practice Test With Complete Solutions

Legal Actions {Ans: - The insured cannot take legal action against the company in a claim dispute until after 60 days from the time the insured submits proof of loss. - A claimant must take legal action against the company within 5 years - 60 days - 5 years}Investment Configuration {Ans: allows for a fixed (guaranteed) rate of return or a variable (nonguaranteed) rate of return.}Uniform Simultaneous Death Act {Ans: - When there is a situation were the policyowner and primary beneficiary die at same time. The proceeds go to secondary beneficiary - Proceeds will be given out as if the primary beneficiary die first}Nonadmitted {Ans: o It has NOT been licensed or authorized to transact insurance business}Advantages of Whole Life {Ans: - Advantages o Guaranteed for life and will not cancel because of age o Cash value builds o Premium costs can be fixed or flexible o Cash value can be used to pay the premiums o Additional insurance can be added without the need for medical examination o The policy can be converted to an annuity o Loan values are available for borrowing against the principal}Risk Avoidance {Ans: Occurs when individuals evade