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FLORIDA 240 LICENSE EXAM NEWEST EXAM |
QUESTIONS AND CORRECT ANSWERS | GRADED A+ |
VERIFIED ANSWERS | LATEST VERSION
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: -
(ANSWER)Reserves
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the: - (ANSWER)Fair Credit Reporting Act
A nonprofit incorporated society that does not have capital stock and operates for
the sole benefit of its members is known as: - (ANSWER)A fraternal benefit
society
What I the name of the law that requires insurers to disclose information
gathering practices and where the information was obtained? - (ANSWER)Fair
Credit Reporting Act
Who elects the governing body of a mutual insurance company? -
(ANSWER)Policyholders
A group-owned insurance company that is formed to assume and spread the
liability ricks of its members is known as a: - (ANSWER)Risk retention group
What type of reinsurance contract involves two companies automatically sharing
their risk exposure? - (ANSWER)treaty
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What year was the McCarran-Ferguson Act enacted? - (ANSWER)1945
Which of these describe a participating life insurance policy? - (ANSWER)Policy
owners 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? - (ANSWER)Upon completion of the
application
Which of the following requires insurers to disclose when an applicant's consumer
or credit history is being investigated: - (ANSWER)1970 - Fair Credit Reporting Act
What type of reinsurance contract involves two companies automatically sharing
their risk exposure? - (ANSWER)Treaty
A group-owned insurance company that is formed to assume and spread the
liability risks of its members is known as a: - (ANSWER)risk retention group
All of the following are considered to be typical characteristics describing the
nature of an insurance contract, EXCEPT: - (ANSWER)Bilateral
The part of a life insurance policy guaranteed to be true is called a(n) -
(ANSWER)warranty
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Statements made on an insurance application that are believed to be true to the
best of the applicant's knowledge are called - (ANSWER)representations
Q purchases a $500,000 life insurance policy 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? - (ANSWER)Aleatory
When must insurable interest be present in order for a life insurance policy to be
valid? - (ANSWER)When the application is made
A life insurance arrangement which circumvents insurable interest statutes is
called: - (ANSWER)Investor-Originated Life Insurance
Stranger Originated Life Insurance (STOLI) has been found to be in violation of
which of the following contractual elements? - (ANSWER)Legal Purpose
(Insurable Interest)
Who makes the legally enforceable promises in a unilateral contract? -
(ANSWER)Insurance company
A policy of adhesion can only be modified by whom? - (ANSWER)insurance
company
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When third-party ownership is involved, applicants who also happen to be the
stated primary beneficiary are required to have: - (ANSWER)insurable interest in
the proposed insured
Which of these is considered a statement that is assured to be true in every
aspect? - (ANSWER)Warranty
Which of these require an offer, acceptance, and consideration? -
(ANSWER)contract
If a contract of adhesion contains complicated language, to whom would the
interpretation be in favor of? - (ANSWER)insured
Insurance contracts are known as _____ because certain future conditions or acts
must occur before any claims can be paid. - (ANSWER)conditional
Insurance policies are offered on a "take it or leave it" basis, which make them: -
(ANSWER)Contracts of Adhesion
In regards to representations or warranties, which of these statements is TRUE? -
(ANSWER)If material to the risk, false representations will void a policy
Which of these arrangements allows one to bypass insurable interest laws? -
(ANSWER)Investor-Originated Life Insurance
FLORIDA 240 LICENSE EXAM NEWEST EXAM |
QUESTIONS AND CORRECT ANSWERS | GRADED A+ |
VERIFIED ANSWERS | LATEST VERSION
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: -
(ANSWER)Reserves
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the: - (ANSWER)Fair Credit Reporting Act
A nonprofit incorporated society that does not have capital stock and operates for
the sole benefit of its members is known as: - (ANSWER)A fraternal benefit
society
What I the name of the law that requires insurers to disclose information
gathering practices and where the information was obtained? - (ANSWER)Fair
Credit Reporting Act
Who elects the governing body of a mutual insurance company? -
(ANSWER)Policyholders
A group-owned insurance company that is formed to assume and spread the
liability ricks of its members is known as a: - (ANSWER)Risk retention group
What type of reinsurance contract involves two companies automatically sharing
their risk exposure? - (ANSWER)treaty
,2|Page
What year was the McCarran-Ferguson Act enacted? - (ANSWER)1945
Which of these describe a participating life insurance policy? - (ANSWER)Policy
owners 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? - (ANSWER)Upon completion of the
application
Which of the following requires insurers to disclose when an applicant's consumer
or credit history is being investigated: - (ANSWER)1970 - Fair Credit Reporting Act
What type of reinsurance contract involves two companies automatically sharing
their risk exposure? - (ANSWER)Treaty
A group-owned insurance company that is formed to assume and spread the
liability risks of its members is known as a: - (ANSWER)risk retention group
All of the following are considered to be typical characteristics describing the
nature of an insurance contract, EXCEPT: - (ANSWER)Bilateral
The part of a life insurance policy guaranteed to be true is called a(n) -
(ANSWER)warranty
,3|Page
Statements made on an insurance application that are believed to be true to the
best of the applicant's knowledge are called - (ANSWER)representations
Q purchases a $500,000 life insurance policy 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? - (ANSWER)Aleatory
When must insurable interest be present in order for a life insurance policy to be
valid? - (ANSWER)When the application is made
A life insurance arrangement which circumvents insurable interest statutes is
called: - (ANSWER)Investor-Originated Life Insurance
Stranger Originated Life Insurance (STOLI) has been found to be in violation of
which of the following contractual elements? - (ANSWER)Legal Purpose
(Insurable Interest)
Who makes the legally enforceable promises in a unilateral contract? -
(ANSWER)Insurance company
A policy of adhesion can only be modified by whom? - (ANSWER)insurance
company
, 4|Page
When third-party ownership is involved, applicants who also happen to be the
stated primary beneficiary are required to have: - (ANSWER)insurable interest in
the proposed insured
Which of these is considered a statement that is assured to be true in every
aspect? - (ANSWER)Warranty
Which of these require an offer, acceptance, and consideration? -
(ANSWER)contract
If a contract of adhesion contains complicated language, to whom would the
interpretation be in favor of? - (ANSWER)insured
Insurance contracts are known as _____ because certain future conditions or acts
must occur before any claims can be paid. - (ANSWER)conditional
Insurance policies are offered on a "take it or leave it" basis, which make them: -
(ANSWER)Contracts of Adhesion
In regards to representations or warranties, which of these statements is TRUE? -
(ANSWER)If material to the risk, false representations will void a policy
Which of these arrangements allows one to bypass insurable interest laws? -
(ANSWER)Investor-Originated Life Insurance
