FL Health agent 240 exam questions and answers

An organization that transacts insurance only with its own members is a(n): Fraternal The ____________ has the power to issue rules and regulations to help enforce insurance laws. Commissioner, Superintendent, or Director All of the following are essential elements of a legal contract, EXCEPT: Representation Which of the following manufactures and sells insurance coverage in the form of insurance policies or contracts of insurance? Insurance companies The contract type in which only one party is legally bound to its contractual obligations after a premium is paid is a(n)_______ contract. Unilateral A(n)____________ is the person or entity that is covered by an insurance policy. Insured Fraternal insurance companies are owned by: Members Members of the ___________ include state and territorial insurance commissioners or regulators. National Association of Insurance Commissioners (NAIC) The ___________ branch writes and passes state insurance laws, or statutes, to protect the insuring public. Legislative For the most part, the highest authority for insurance regulation is: The individual states Insurable interest for life insurance is necessary only at the time of: Application Insurers that are incorporated in another state, but doing business in this state, are considered: Foreign Stock insurance companies are owned by: Stockholders When it comes to life insurance, insurable interest on one's own life is: Unlimited Which of the following best describes a conditional contract? Both parties must perform specified duties in order for the contract to be enforceable Which principle states that an insured may be reimbursed up to the amount of the actual loss? Indemnity What gives an insurer the authority to operate within this state? A Certificate of Authority Statements made on the application by the applicant that are believed to be true to the best of the applicant's knowledge are called: Representations The difference between a misrepresentation and a material misrepresentation is: Material misrepresentations are issues that affect policy issuance Under the Fair Credit Reporting Act, which of the following statements is correct? if an individual is denied coverage, they can request a copy of the report Dividends issued by mutual insurance companies: Are non-taxable refunds (returns) of unused or surplus premiums An insurer issues a policy as "other than applied for," requiring an additional premium of $100. When would an agreement come into being? When the applicant accepts delivery of the policy and pays the additional premium An insurer which is formed under the laws of another country is a(n): Alien insurer The insurance industry is primarily regulated at the _________ level. State The State's __________ branch enforces the existing statutes that have been put in place. Executive A nonprofit corporation without capital stock formed solely for the benefit of its members is a: Fraternal benefit society A life insurance applicant's answers on the application indicate that they in good health. In fact, the applicant actually has a disease that they are not aware of. The statement on the application is considered: A representation The ___________ branch is responsible for interpreting and determining the constitutionality of the statutes. Judicial _________ refers to the jurisdiction where an insurer was formed or incorporated. Domicile Tom submits an application and a premium check. Six days later, the insurer issues the policy as applied for and mails it overnight to Tom's producer. Tom picks up the policy at his producer's office the next day. When did Tom's coverage begin? The day Tom submitted his application Insurance contracts are aleatory contracts. What does "aleatory" refer to? An unequal exchange of value n a legal sense, premium functions as the insured's _______. Consideration ___________ manufacture and sell insurance coverage in the form of policies or contracts of insurance. Insurers Which of the following is NOT one of the essential elements of any legal contract? Indemnity An insurer that is authorized to do business in this state MUST be _____. An admitted insurer An applicant completes the application and submits it to the insurer along with a premium check. When is the applicant's offer considered accepted? When the insurer issues a policy The National Association of Insurance Commissioners (NAIC): Has no legal authority over insurance regulation It is the _________ who issues a Certificate of Authority enabling an insurer to conduct insurance business within a particular state. State insurance Commissioner or Director