214 Florida License Test | 100% Correct Answers | Verified | Latest 2024 Version

Which of the following describes a participating insurance policy? - Policyowners are entitled to receive dividends At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? - Upon completion of the application Dividends payable to a policyowner are: - Declared by the insurance company. At what point does an informal agreement become a binding contract? - When consideration is provided by one of the parties to the contract When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have - Insurable interest in the proposed insured Which of the following arrangements allows one to bypass insurable interest laws? - (STOLI) or Investor Originated Life Insurance Taking receipt of premiums and holding them for the insurance company is an example of - Fiduciary Responsibility A policy of adhesion can only be modified by whom? - The Insurance Company The exchange of unequal values reflects: - Aleatory Life and health insurance policies are - Unilateral Contracts (one makes promise, other can only accept by performanceThe consideration clause of insurance contract includes - The schedule and amount of premium payments A life insurance arrangement which circumvents insurable interest values is called - Investor Originated Life Insurance (IOLI) Who makes the legally enforceable promises in a unilateral contract? - The Insurance Company A life insurance policy would be considered a wagering contract WITHOUT: - Insurable Interest A life insurance policy that provides a policyowner with cash value along with a level face amount is called: - Whole Life Policy Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies? - the Policyowner(investor) K purchased a Life insurance policy in 1986 which paid 10% interest in the early years of the policy. Twenty years after the purchase, she received a notice from the insurer stating that the policy will soon terminate unless a much-higher premium is paid because of falling interest rates. This type of policy is known as: - Universal Life Policy Which of these would be considered a Limited-Pay-Life policy? - Life Pai