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5.0
FLORIDA 240 LICENSE2025- 2026 QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
The stated amount or percent of liquid assets that an insurer must have
on hand that will satisfy future obligations to its policyholders is called:
Ans: Reserves
Quiz: An insurance applicant MUST be informed of an investigation
regarding his/her reputation and character according to the:
Ans: Fair Credit Reporting Act
Quiz: A nonprofit incorporated society that does not have capital stock
and operates for the sole benefit of its members is known as:
Ans: A fraternal benefit society
Quiz: What I the name of the law that requires insurers to disclose
information gathering practices and where the information was
obtained?
Ans: Fair Credit Reporting Act
Quiz: Who elects the governing body of a mutual insurance company?
Ans: Policyholders
,Quiz: A group-owned insurance company that is formed to assume
and spread the liability ricks of its members is known as a:
Ans: Risk retention group
Quiz: What type of reinsurance contract involves two companies
automatically sharing their risk exposure?
Ans: treaty
Quiz: What year was the McCarran-Ferguson Act enacted?
Ans: 1945
Quiz: Which of these describe a participating life insurance policy?
Ans: Policy owners are entitled to receive dividends
Quiz: At what point must a life insurance applicant be informed of their
rights that fall under the Fair Credit Reporting Act?
Ans: Upon completion of the application
Quiz: Which of the following requires insurers to disclose when an
applicant's consumer or credit history is being investigated:
Ans: 1970 - Fair Credit Reporting Act
Examstudy - Stuvia US
,Quiz: What type of reinsurance contract involves two companies
automatically sharing their risk exposure?
Ans: Treaty
Quiz: A group-owned insurance company that is formed to assume
and spread the liability risks of its members is known as a:
Ans: risk retention group
Quiz: All of the following are considered to be typical characteristics
describing the nature of an insurance contract, EXCEPT:
Ans: Bilateral
Quiz: The part of a life insurance policy guaranteed to be true is called
a(n)
Ans: warranty
Quiz: Statements made on an insurance application that are believed
to be true to the best of the applicant's knowledge are called
Ans: representations
Quiz: Q purchases a $500,000 life insurance policy and pays $900 in
premiums over the first six months. Q dies suddenly and the beneficiary
Examstudy - Stuvia US
, is paid $500,000. This exchange of unequal values reflects which of the
following insurance contract features?
Ans: Aleatory
Quiz: When must insurable interest be present in order for a life
insurance policy to be valid?
Ans: When the application is made
Quiz: A life insurance arrangement which circumvents insurable interest
statutes is called:
Ans: Investor-Originated Life Insurance
Quiz: Stranger Originated Life Insurance (STOLI) has been found to be in
violation of which of the following contractual elements?
Ans: Legal Purpose (Insurable Interest)
Quiz: Who makes the legally enforceable promises in a unilateral
contract?
Ans: Insurance company
Quiz: A policy of adhesion can only be modified by whom?
Ans: insurance company
Examstudy - Stuvia US
In today's fast-paced educational landscape, students need reliable resources to excel in their studies.
5.0
FLORIDA 240 LICENSE2025- 2026 QUESTIONS WITH
DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) /ALREADY GRADED A+
The stated amount or percent of liquid assets that an insurer must have
on hand that will satisfy future obligations to its policyholders is called:
Ans: Reserves
Quiz: An insurance applicant MUST be informed of an investigation
regarding his/her reputation and character according to the:
Ans: Fair Credit Reporting Act
Quiz: A nonprofit incorporated society that does not have capital stock
and operates for the sole benefit of its members is known as:
Ans: A fraternal benefit society
Quiz: What I the name of the law that requires insurers to disclose
information gathering practices and where the information was
obtained?
Ans: Fair Credit Reporting Act
Quiz: Who elects the governing body of a mutual insurance company?
Ans: Policyholders
,Quiz: A group-owned insurance company that is formed to assume
and spread the liability ricks of its members is known as a:
Ans: Risk retention group
Quiz: What type of reinsurance contract involves two companies
automatically sharing their risk exposure?
Ans: treaty
Quiz: What year was the McCarran-Ferguson Act enacted?
Ans: 1945
Quiz: Which of these describe a participating life insurance policy?
Ans: Policy owners are entitled to receive dividends
Quiz: At what point must a life insurance applicant be informed of their
rights that fall under the Fair Credit Reporting Act?
Ans: Upon completion of the application
Quiz: Which of the following requires insurers to disclose when an
applicant's consumer or credit history is being investigated:
Ans: 1970 - Fair Credit Reporting Act
Examstudy - Stuvia US
,Quiz: What type of reinsurance contract involves two companies
automatically sharing their risk exposure?
Ans: Treaty
Quiz: A group-owned insurance company that is formed to assume
and spread the liability risks of its members is known as a:
Ans: risk retention group
Quiz: All of the following are considered to be typical characteristics
describing the nature of an insurance contract, EXCEPT:
Ans: Bilateral
Quiz: The part of a life insurance policy guaranteed to be true is called
a(n)
Ans: warranty
Quiz: Statements made on an insurance application that are believed
to be true to the best of the applicant's knowledge are called
Ans: representations
Quiz: Q purchases a $500,000 life insurance policy and pays $900 in
premiums over the first six months. Q dies suddenly and the beneficiary
Examstudy - Stuvia US
, is paid $500,000. This exchange of unequal values reflects which of the
following insurance contract features?
Ans: Aleatory
Quiz: When must insurable interest be present in order for a life
insurance policy to be valid?
Ans: When the application is made
Quiz: A life insurance arrangement which circumvents insurable interest
statutes is called:
Ans: Investor-Originated Life Insurance
Quiz: Stranger Originated Life Insurance (STOLI) has been found to be in
violation of which of the following contractual elements?
Ans: Legal Purpose (Insurable Interest)
Quiz: Who makes the legally enforceable promises in a unilateral
contract?
Ans: Insurance company
Quiz: A policy of adhesion can only be modified by whom?
Ans: insurance company
Examstudy - Stuvia US
