Florida Health 2-40 Insurance 2025/2026
Exam Questions with 100% Correct
Answers | Latest Update
Rules of Construction - 🧠 ANSWER ✔✔Help to identify and establish the
intent of the parties to the contract
Utmost good faith - 🧠 ANSWER ✔✔Each party is entitled to rely on the
representation of the other, and each party should have a reasonable
expectation that the other is acting in good faith without attempts to conceal
or deceive.
Aleatory Contract - 🧠 ANSWER ✔✔A contract under which one party's
performance is contingent on an uncertain event.
property and casualty agent - 🧠 ANSWER ✔✔has the power to bind the
insurer
Adhesion Contract - 🧠 ANSWER ✔✔Insurance company drafts contract
and the insured adheres to it. Any ambiguity resolved in favor of the
insured.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,Unilateral contract - 🧠 ANSWER ✔✔Insured has completed paying the
premium, only one party of the contract is legally required to do something.
Insured promises to pay the death benefit in the event of loss. Can not be
held for breach of contract.
Conditional contract - 🧠 ANSWER ✔✔This type of contract is conditional
because the company only pays on condition of a loss.
Personal Contract - 🧠 ANSWER ✔✔The contract is between the insured
and the insurer
warranty - 🧠 ANSWER ✔✔guarantee; assurance by seller. Any breach
provides grounds for voiding the contract.
representation - 🧠 ANSWER ✔✔a statement believed to be true to the best
of one's knowledge.
false pretenses - 🧠 ANSWER ✔✔When an uninsurable individual applying
for insurance may ask another person to substitute for him to take the
physical examination.
Misrepresentation - 🧠 ANSWER ✔✔A false statement or lie that can render
the contract void.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
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PRIVACY STATEMENT. ALL RIGHTS RESERVED
, concealment (n) - 🧠 ANSWER ✔✔The failure to disclose material facts.
Grounds for recission by either party.
Material Information or facts - 🧠 ANSWER ✔✔Something crucial to
acceptance of the risk.
fraud (n) - 🧠 ANSWER ✔✔An intentional act designed to deceive and
induce another party to part with something of value.
Parol Evidence Rule - 🧠 ANSWER ✔✔Rule of law disallowing oral evidence
which disputes a written agreement.
Voidable Contract - 🧠 ANSWER ✔✔A contract that may be legally avoided
at the option of one or both of the parties.
Void Contract - 🧠 ANSWER ✔✔an agreement of no legal effect.
Implied Authority - 🧠 ANSWER ✔✔Authority that is given not in writing but
that is necessary for the agent to transact insurance.
Apparent Authority - 🧠 ANSWER ✔✔A third party's reasonable belief that
an agent has authority to act on the principal's behalf.
Express Authority - 🧠 ANSWER ✔✔the authority of an agent, stated in the
document or agreement creating the agency.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
Exam Questions with 100% Correct
Answers | Latest Update
Rules of Construction - 🧠 ANSWER ✔✔Help to identify and establish the
intent of the parties to the contract
Utmost good faith - 🧠 ANSWER ✔✔Each party is entitled to rely on the
representation of the other, and each party should have a reasonable
expectation that the other is acting in good faith without attempts to conceal
or deceive.
Aleatory Contract - 🧠 ANSWER ✔✔A contract under which one party's
performance is contingent on an uncertain event.
property and casualty agent - 🧠 ANSWER ✔✔has the power to bind the
insurer
Adhesion Contract - 🧠 ANSWER ✔✔Insurance company drafts contract
and the insured adheres to it. Any ambiguity resolved in favor of the
insured.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,Unilateral contract - 🧠 ANSWER ✔✔Insured has completed paying the
premium, only one party of the contract is legally required to do something.
Insured promises to pay the death benefit in the event of loss. Can not be
held for breach of contract.
Conditional contract - 🧠 ANSWER ✔✔This type of contract is conditional
because the company only pays on condition of a loss.
Personal Contract - 🧠 ANSWER ✔✔The contract is between the insured
and the insurer
warranty - 🧠 ANSWER ✔✔guarantee; assurance by seller. Any breach
provides grounds for voiding the contract.
representation - 🧠 ANSWER ✔✔a statement believed to be true to the best
of one's knowledge.
false pretenses - 🧠 ANSWER ✔✔When an uninsurable individual applying
for insurance may ask another person to substitute for him to take the
physical examination.
Misrepresentation - 🧠 ANSWER ✔✔A false statement or lie that can render
the contract void.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, concealment (n) - 🧠 ANSWER ✔✔The failure to disclose material facts.
Grounds for recission by either party.
Material Information or facts - 🧠 ANSWER ✔✔Something crucial to
acceptance of the risk.
fraud (n) - 🧠 ANSWER ✔✔An intentional act designed to deceive and
induce another party to part with something of value.
Parol Evidence Rule - 🧠 ANSWER ✔✔Rule of law disallowing oral evidence
which disputes a written agreement.
Voidable Contract - 🧠 ANSWER ✔✔A contract that may be legally avoided
at the option of one or both of the parties.
Void Contract - 🧠 ANSWER ✔✔an agreement of no legal effect.
Implied Authority - 🧠 ANSWER ✔✔Authority that is given not in writing but
that is necessary for the agent to transact insurance.
Apparent Authority - 🧠 ANSWER ✔✔A third party's reasonable belief that
an agent has authority to act on the principal's behalf.
Express Authority - 🧠 ANSWER ✔✔the authority of an agent, stated in the
document or agreement creating the agency.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
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PRIVACY STATEMENT. ALL RIGHTS RESERVED
