FLORIDA INSURANCE 2-14 EXAM 2025| BRAND
NEW EXAM QUESTIONS WITH 100% CORRECT
SOLUTIONS | GUARANTEED SUCCESS| ACE
YOUR GRADES.
Elements of Contract - Correct Answer-Offer & Acceptance +
Consideration + Legal Purpose + Competent Parties = Legally Binding
Contract
Offer & Acceptance - Correct Answer-Completed when a premium payment
accompanies the offer made by the proposed insured
Legal Purpose - Correct Answer-The policy owner must have an insurable
interest in the insured
Competent - Correct Answer-Just like " innocent until proven guilty"
Aleatory - Correct Answer-(1) There is an element of chance for both
parties
(2) The dollar values exchanged may not be equal
Adhesion - Correct Answer-The contract has been prepared by one party
(the insurer), rather than by negotiation between the contracting parties.
,Unilateral - Correct Answer-Promise for Performance
Valued Contracts - Correct Answer-Pay a predetermined amount with no
way to assess loss
Indemnity Contracts - Correct Answer-Pay the amount of the loss only (up
to the policy limit)
STOLI - Correct Answer-- Stranger-Orignated Life Insurance
- Typically target seniors
-
Brokers - Correct Answer--Florida does not issue separate licenses for
brokers
- Cannot bind the contract
Agents - Correct Answer-- The acts of the agent are considered the acts of
the company
- Can bind the contract
,Entities involved in agency - Correct Answer-The agent
The insured
The insurance company
Express Authority - Correct Answer-The authority that an agent has in
writing in the contract with the insurer that the agent represent
Implied Authority - Correct Answer-Authority that is given not in writing but
that is necessary for the agent to transact insurance
Apparent Authority - Correct Answer-A third party is led to believe and that
the agent is given due to the agent's actions.
Waiver - Correct Answer-The voluntary giving up of a legal, given right.
Estoppel - Correct Answer-Simply means the legal enforcement of a
waiver.
, Parol Evidence Rule - Correct Answer-When parties put their agreement in
writing, all previous verbal statements come together in that writing, and a
written contract cannot be changed or modified.
Void Contract - Correct Answer-Fraud + Prior Knowledge
- Have two years from the date of the contract purchase to dispute the
validity of a contract
Voidable - Correct Answer-One of the parties has a legal reason to reject or
cancel the contract
Categories of Life Insurance - Correct Answer-Ordinary
Industrial
Group
Ordinary Life Insurance - Correct Answer-- Term, Whole Life, Universal
Life, Endowment
- The most common
Industrial Life Insurance - Correct Answer-- Sold by home service insurers
- Over the years has been used less
- Mainly, to cover funeral expense
NEW EXAM QUESTIONS WITH 100% CORRECT
SOLUTIONS | GUARANTEED SUCCESS| ACE
YOUR GRADES.
Elements of Contract - Correct Answer-Offer & Acceptance +
Consideration + Legal Purpose + Competent Parties = Legally Binding
Contract
Offer & Acceptance - Correct Answer-Completed when a premium payment
accompanies the offer made by the proposed insured
Legal Purpose - Correct Answer-The policy owner must have an insurable
interest in the insured
Competent - Correct Answer-Just like " innocent until proven guilty"
Aleatory - Correct Answer-(1) There is an element of chance for both
parties
(2) The dollar values exchanged may not be equal
Adhesion - Correct Answer-The contract has been prepared by one party
(the insurer), rather than by negotiation between the contracting parties.
,Unilateral - Correct Answer-Promise for Performance
Valued Contracts - Correct Answer-Pay a predetermined amount with no
way to assess loss
Indemnity Contracts - Correct Answer-Pay the amount of the loss only (up
to the policy limit)
STOLI - Correct Answer-- Stranger-Orignated Life Insurance
- Typically target seniors
-
Brokers - Correct Answer--Florida does not issue separate licenses for
brokers
- Cannot bind the contract
Agents - Correct Answer-- The acts of the agent are considered the acts of
the company
- Can bind the contract
,Entities involved in agency - Correct Answer-The agent
The insured
The insurance company
Express Authority - Correct Answer-The authority that an agent has in
writing in the contract with the insurer that the agent represent
Implied Authority - Correct Answer-Authority that is given not in writing but
that is necessary for the agent to transact insurance
Apparent Authority - Correct Answer-A third party is led to believe and that
the agent is given due to the agent's actions.
Waiver - Correct Answer-The voluntary giving up of a legal, given right.
Estoppel - Correct Answer-Simply means the legal enforcement of a
waiver.
, Parol Evidence Rule - Correct Answer-When parties put their agreement in
writing, all previous verbal statements come together in that writing, and a
written contract cannot be changed or modified.
Void Contract - Correct Answer-Fraud + Prior Knowledge
- Have two years from the date of the contract purchase to dispute the
validity of a contract
Voidable - Correct Answer-One of the parties has a legal reason to reject or
cancel the contract
Categories of Life Insurance - Correct Answer-Ordinary
Industrial
Group
Ordinary Life Insurance - Correct Answer-- Term, Whole Life, Universal
Life, Endowment
- The most common
Industrial Life Insurance - Correct Answer-- Sold by home service insurers
- Over the years has been used less
- Mainly, to cover funeral expense
