Florida 240 License
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1. The stated amount or percent of liquid assets that Reserves
an insurer must have on hand that will satisfy fu-
ture obligations to its policyholders is called:
2. An insurance applicant MUST be informed of an in- Fair Credit Reporting Act
vestigation regarding his/her reputation and char-
acter according to the:
3. A nonprofit incorporated society that does not A fraternal benefit society
have capital stock and operates for the sole bene-
fit of its members is known as:
4. What I the name of the law that requires insurers Fair Credit Reporting Act
to disclose information gathering practices and
where the information was obtained?
5. Who elects the governing body of a mutual insur- Policyholders
ance company?
6. A group-owned insurance company that is formed Risk retention group
to assume and spread the liability ricks of its mem-
bers is known as a:
7. What type of reinsurance contract involves two treaty
companies automatically sharing their risk expo-
sure?
8. What year was the McCarran-Ferguson Act enact- 1945
ed?
9. Which of these describe a participating life insur- Policy owners are entitled to re-
ance policy? ceive dividends
10.
, Florida 240 License
Study online at https://quizlet.com/_5eka0j
At what point must a life insurance applicant be Upon completion of the appli-
informed of their rights that fall under the Fair cation
Credit Reporting Act?
11. Which of the following requires insurers to dis- 1970 - Fair Credit Reporting Act
close when an applicant's consumer or credit his-
tory is being investigated:
12. What type of reinsurance contract involves two Treaty
companies automatically sharing their risk expo-
sure?
13. A group-owned insurance company that is formed risk retention group
to assume and spread the liability risks of its mem-
bers is known as a:
14. All of the following are considered to be typical Bilateral
characteristics describing the nature of an insur-
ance contract, EXCEPT:
15. The part of a life insurance policy guaranteed to be warranty
true is called a(n)
16. Statements made on an insurance application that representations
are believed to be true to the best of the appli-
cant's knowledge are called
17. Q purchases a $500,000 life insurance policy Aleatory
and pays $900 in premiums over the first six
months. Q dies suddenly and the beneficiary is
paid $500,000. This exchange of unequal values
reflects which of the following insurance contract
features?
, Florida 240 License
Study online at https://quizlet.com/_5eka0j
18. When must insurable interest be present in order When the application is made
for a life insurance policy to be valid?
19. A life insurance arrangement which circumvents Investor-Originated Life Insur-
insurable interest statutes is called: ance
20. Stranger Originated Life Insurance (STOLI) has Legal Purpose (Insurable Inter-
been found to be in violation of which of the fol- est)
lowing contractual elements?
21. Who makes the legally enforceable promises in a Insurance company
unilateral contract?
22. A policy of adhesion can only be modified by insurance company
whom?
23. When third-party ownership is involved, appli- insurable interest in the pro-
cants who also happen to be the stated primary posed insured
beneficiary are required to have:
24. Which of these is considered a statement that is Warranty
assured to be true in every aspect?
25. Which of these require an offer, acceptance, and contract
consideration?
26. If a contract of adhesion contains complicated lan- insured
guage, to whom would the interpretation be in
favor of?
27. Insurance contracts are known as _____ because conditional
certain future conditions or acts must occur before
any claims can be paid.
, Florida 240 License
Study online at https://quizlet.com/_5eka0j
28. Insurance policies are offered on a "take it or leave Contracts of Adhesion
it" basis, which make them:
29. In regards to representations or warranties, which If material to the risk, false rep-
of these statements is TRUE? resentations will void a policy
30. Which of these arrangements allows one to by- Investor-Originated Life Insur-
pass insurable interest laws? ance
31. In an insurance contract, the insurer is the only unilateral
party who makes a legally enforceable promise.
What kind of contract is this?
32. Which of these is NOT a type of agent authority? principal
33. E and F are business partners. Each takes out a In this situation, the proceeds
$500,000 life insurance policy on the other, nam- from E's life insurance policy will
ing himself as primary beneficiary. E and F even- go to F.
tually terminate their business, and four months
later E dies. Although E was married with three
children at the time of death, the primary bene-
ficiary is still F. However, an insurable interest no
longer exists. Where will the proceeds from E's life
insurance policy be directed to?
34. When must insurable interest exist for a life insur- Inception of the contract
ance contract to be valid?
35. Life and health insurance policies are: unilateral contracts
36. At what point does an informal contract become When one party makes an offer
binding? and the other party accepts that
offer
Study online at https://quizlet.com/_5eka0j
1. The stated amount or percent of liquid assets that Reserves
an insurer must have on hand that will satisfy fu-
ture obligations to its policyholders is called:
2. An insurance applicant MUST be informed of an in- Fair Credit Reporting Act
vestigation regarding his/her reputation and char-
acter according to the:
3. A nonprofit incorporated society that does not A fraternal benefit society
have capital stock and operates for the sole bene-
fit of its members is known as:
4. What I the name of the law that requires insurers Fair Credit Reporting Act
to disclose information gathering practices and
where the information was obtained?
5. Who elects the governing body of a mutual insur- Policyholders
ance company?
6. A group-owned insurance company that is formed Risk retention group
to assume and spread the liability ricks of its mem-
bers is known as a:
7. What type of reinsurance contract involves two treaty
companies automatically sharing their risk expo-
sure?
8. What year was the McCarran-Ferguson Act enact- 1945
ed?
9. Which of these describe a participating life insur- Policy owners are entitled to re-
ance policy? ceive dividends
10.
, Florida 240 License
Study online at https://quizlet.com/_5eka0j
At what point must a life insurance applicant be Upon completion of the appli-
informed of their rights that fall under the Fair cation
Credit Reporting Act?
11. Which of the following requires insurers to dis- 1970 - Fair Credit Reporting Act
close when an applicant's consumer or credit his-
tory is being investigated:
12. What type of reinsurance contract involves two Treaty
companies automatically sharing their risk expo-
sure?
13. A group-owned insurance company that is formed risk retention group
to assume and spread the liability risks of its mem-
bers is known as a:
14. All of the following are considered to be typical Bilateral
characteristics describing the nature of an insur-
ance contract, EXCEPT:
15. The part of a life insurance policy guaranteed to be warranty
true is called a(n)
16. Statements made on an insurance application that representations
are believed to be true to the best of the appli-
cant's knowledge are called
17. Q purchases a $500,000 life insurance policy Aleatory
and pays $900 in premiums over the first six
months. Q dies suddenly and the beneficiary is
paid $500,000. This exchange of unequal values
reflects which of the following insurance contract
features?
, Florida 240 License
Study online at https://quizlet.com/_5eka0j
18. When must insurable interest be present in order When the application is made
for a life insurance policy to be valid?
19. A life insurance arrangement which circumvents Investor-Originated Life Insur-
insurable interest statutes is called: ance
20. Stranger Originated Life Insurance (STOLI) has Legal Purpose (Insurable Inter-
been found to be in violation of which of the fol- est)
lowing contractual elements?
21. Who makes the legally enforceable promises in a Insurance company
unilateral contract?
22. A policy of adhesion can only be modified by insurance company
whom?
23. When third-party ownership is involved, appli- insurable interest in the pro-
cants who also happen to be the stated primary posed insured
beneficiary are required to have:
24. Which of these is considered a statement that is Warranty
assured to be true in every aspect?
25. Which of these require an offer, acceptance, and contract
consideration?
26. If a contract of adhesion contains complicated lan- insured
guage, to whom would the interpretation be in
favor of?
27. Insurance contracts are known as _____ because conditional
certain future conditions or acts must occur before
any claims can be paid.
, Florida 240 License
Study online at https://quizlet.com/_5eka0j
28. Insurance policies are offered on a "take it or leave Contracts of Adhesion
it" basis, which make them:
29. In regards to representations or warranties, which If material to the risk, false rep-
of these statements is TRUE? resentations will void a policy
30. Which of these arrangements allows one to by- Investor-Originated Life Insur-
pass insurable interest laws? ance
31. In an insurance contract, the insurer is the only unilateral
party who makes a legally enforceable promise.
What kind of contract is this?
32. Which of these is NOT a type of agent authority? principal
33. E and F are business partners. Each takes out a In this situation, the proceeds
$500,000 life insurance policy on the other, nam- from E's life insurance policy will
ing himself as primary beneficiary. E and F even- go to F.
tually terminate their business, and four months
later E dies. Although E was married with three
children at the time of death, the primary bene-
ficiary is still F. However, an insurable interest no
longer exists. Where will the proceeds from E's life
insurance policy be directed to?
34. When must insurable interest exist for a life insur- Inception of the contract
ance contract to be valid?
35. Life and health insurance policies are: unilateral contracts
36. At what point does an informal contract become When one party makes an offer
binding? and the other party accepts that
offer
