Florida 214 Exam Prep | 100% Correct Answers | Verified | Latest 2024 Version

What is required by the Fair Credit Reporting Act of 1970? - If an applicant is rejected due to findings in a report, the applicant must be provided with the names and address of the reporting agency. An applicant has the right to know anyone questioned regarding the report. An applicant must be notified a report has been requested. Insurable interest exists between all of the following - Husband and wife Blood relatives (parent, grandparent, children and grandchildren) Business partners Which of the following terms is known as the voluntary relinquishment of a given right or privilege? - Waiver Which type of contract is considered to never have been legally binding? - Void contract In the event an insurance company becomes insolvent, this type of association ensures unpaid claims will be paid for covered policyowners? - State Guaranty Association In regards to group insurance, which of the following statements below is correct? - A master contract is issued by the insurer to the employer, while employees are given certificates of insurance Which of the following sets of fundamental principles is insurance based? - Pooling of risks and the law of large numbersSolution: Insurance is based on the pooling of risks, also known as risk 'pooling,' and the law of large numbers. Which type of risk is considered insurable? - Pure risk Overstating promises, using inaccurate or misleading information and guaranteeing insurance are types of: - misrepresentation The part of a premium set aside by the insurance company to be used for future claims is known as: - Reserves