FLORIDA 240 LICENSE EXAM QUESTION BANK
| 2025 LICENSE FLORIDA 240 ACTUAL EXAM
WITH CORRECT VERIFIED ANSWERS |
ALREADY GRADED A+ | BRAND NEW
T files a claim on his Accident and Health policy after being treated for
an illness. The insurance company believes that T misrepresented his
actual health on the initial insurance application and is, therefore,
disputing the claim's validity. The provision that limits the time period
during which the company may dispute a claim's validity is called - ✔✔✔
Correct Answer > Time Limit on Certain Defenses
Which of the following is NOT included in the policy face? - ✔✔✔ Correct
Answer > Exclusions
A group-owned insurance company that is formed to assume and
spread the liability ricks of its members is known as a: - ✔✔✔ Correct
Answer > Risk retention group
,What type of reinsurance contract involves two companies
automatically sharing their risk exposure? - ✔✔✔ Correct Answer > treaty
Which of these is considered a statement that is assured to be true in
every aspect? - ✔✔✔ Correct Answer > Warranty
Which of these require an offer, acceptance, and consideration? - ✔✔✔
Correct Answer > contract
If a contract of adhesion contains complicated language, to whom
would the interpretation be in favor of? - ✔✔✔ Correct Answer > insured
What does Medicare Parts A and B cover? - ✔✔✔ Correct Answer > Part A
covers hospitalization; Part B covers doctor's services
A medical care provider which typically delivers health services at its
own local medical facility is known as a - ✔✔✔ Correct Answer > Health
maintenance organization (HMOs)
,Which of the following statements is true about most Blue Cross/Blue
Shield organizations? - ✔✔✔ Correct Answer > They are nonprofit
organizations
The clause in an Accident and Health policy which defines the benefit
amounts the insurer will pay is called the - ✔✔✔ Correct Answer > Insuring
clause
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:
- ✔✔✔ Correct Answer > Reserves
An insurance applicant MUST be informed of an investigation regarding
his/her reputation and character according to the: - ✔✔✔ Correct 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: - ✔✔✔ Correct
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? - ✔✔✔ Correct Answer > Fair Credit Reporting Act
Who elects the governing body of a mutual insurance company? - ✔✔✔
Correct Answer > Policyholders
What year was the McCarran-Ferguson Act enacted? - ✔✔✔ Correct Answer
> 1945
Which of these describe a participating life insurance policy? - ✔✔✔
Correct 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? - ✔✔✔ Correct Answer > Upon
completion of the application
| 2025 LICENSE FLORIDA 240 ACTUAL EXAM
WITH CORRECT VERIFIED ANSWERS |
ALREADY GRADED A+ | BRAND NEW
T files a claim on his Accident and Health policy after being treated for
an illness. The insurance company believes that T misrepresented his
actual health on the initial insurance application and is, therefore,
disputing the claim's validity. The provision that limits the time period
during which the company may dispute a claim's validity is called - ✔✔✔
Correct Answer > Time Limit on Certain Defenses
Which of the following is NOT included in the policy face? - ✔✔✔ Correct
Answer > Exclusions
A group-owned insurance company that is formed to assume and
spread the liability ricks of its members is known as a: - ✔✔✔ Correct
Answer > Risk retention group
,What type of reinsurance contract involves two companies
automatically sharing their risk exposure? - ✔✔✔ Correct Answer > treaty
Which of these is considered a statement that is assured to be true in
every aspect? - ✔✔✔ Correct Answer > Warranty
Which of these require an offer, acceptance, and consideration? - ✔✔✔
Correct Answer > contract
If a contract of adhesion contains complicated language, to whom
would the interpretation be in favor of? - ✔✔✔ Correct Answer > insured
What does Medicare Parts A and B cover? - ✔✔✔ Correct Answer > Part A
covers hospitalization; Part B covers doctor's services
A medical care provider which typically delivers health services at its
own local medical facility is known as a - ✔✔✔ Correct Answer > Health
maintenance organization (HMOs)
,Which of the following statements is true about most Blue Cross/Blue
Shield organizations? - ✔✔✔ Correct Answer > They are nonprofit
organizations
The clause in an Accident and Health policy which defines the benefit
amounts the insurer will pay is called the - ✔✔✔ Correct Answer > Insuring
clause
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:
- ✔✔✔ Correct Answer > Reserves
An insurance applicant MUST be informed of an investigation regarding
his/her reputation and character according to the: - ✔✔✔ Correct 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: - ✔✔✔ Correct
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? - ✔✔✔ Correct Answer > Fair Credit Reporting Act
Who elects the governing body of a mutual insurance company? - ✔✔✔
Correct Answer > Policyholders
What year was the McCarran-Ferguson Act enacted? - ✔✔✔ Correct Answer
> 1945
Which of these describe a participating life insurance policy? - ✔✔✔
Correct 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? - ✔✔✔ Correct Answer > Upon
completion of the application
