Florida insurance 2-14 exam 2025| brand new exam questions with
100% correct solutions | guaranteed success| ace your grades.
Elements of contract - ANS: offer & acceptance + consideration + legal purpose +
competent parties = legally binding contract
Offer & acceptance - ANS: completed when a premium payment accompanies the offer made by
the proposed insured
Legal purpose - ANS: the policy owner must have an insurable interest in the insured
Competent - ANS: just like " innocent until proven guilty"
Aleatory - ANS: (1) there is an element of chance for both parties
(2) the dollar values exchanged may not be equal
Adhesion - ANS: the contract has been prepared by one party (the insurer), rather than by
negotiation between the contracting parties.
,Unilateral - ANS: promise for performance
Valued contracts - ANS: pay a predetermined amount with no way to assess loss
Indemnity contracts - ANS: pay the amount of the loss only (up to the policy limit)
Stoli - ANS: - stranger-orignated life insurance
- Typically target seniors
-
Brokers - ANS: -florida does not issue separate licenses for brokers
- Cannot bind the contract
Agents - ANS: - the acts of the agent are considered the acts of the company
- Can bind the contract
,Entities involved in agency - ANS: the agent the insured
The insurance company
Express authority - ANS: the authority that an agent has in writing in the contract with the
insurer that the agent represent
Implied authority - ANS: authority that is given not in writing but that is necessary for the
agent to transact insurance
Apparent authority - ANS: a third party is led to believe and that the agent is given due to
the agent's actions.
Waiver - ANS: the voluntary giving up of a legal, given right.
Estoppel - ANS: simply means the legal enforcement of a waiver.
, Parol evidence rule - ANS: when parties put their agreement in writing, all previous verbal
statements come together in that writing, and a written contract cannot be changed or
modified.
Void contract - ANS: fraud + prior knowledge
- Have two years from the date of the contract purchase to dispute the validity of a
contract
Voidable - ANS: one of the parties has a legal reason to reject or cancel the contract
Categories of life insurance - ANS: ordinary industrial
Group
Ordinary life insurance - ANS: - term, whole life, universal life, endowment
- The most common
Industrial life insurance - ANS: - sold by home service insurers
- Over the years has been used less
- Mainly, to cover funeral expense
100% correct solutions | guaranteed success| ace your grades.
Elements of contract - ANS: offer & acceptance + consideration + legal purpose +
competent parties = legally binding contract
Offer & acceptance - ANS: completed when a premium payment accompanies the offer made by
the proposed insured
Legal purpose - ANS: the policy owner must have an insurable interest in the insured
Competent - ANS: just like " innocent until proven guilty"
Aleatory - ANS: (1) there is an element of chance for both parties
(2) the dollar values exchanged may not be equal
Adhesion - ANS: the contract has been prepared by one party (the insurer), rather than by
negotiation between the contracting parties.
,Unilateral - ANS: promise for performance
Valued contracts - ANS: pay a predetermined amount with no way to assess loss
Indemnity contracts - ANS: pay the amount of the loss only (up to the policy limit)
Stoli - ANS: - stranger-orignated life insurance
- Typically target seniors
-
Brokers - ANS: -florida does not issue separate licenses for brokers
- Cannot bind the contract
Agents - ANS: - the acts of the agent are considered the acts of the company
- Can bind the contract
,Entities involved in agency - ANS: the agent the insured
The insurance company
Express authority - ANS: the authority that an agent has in writing in the contract with the
insurer that the agent represent
Implied authority - ANS: authority that is given not in writing but that is necessary for the
agent to transact insurance
Apparent authority - ANS: a third party is led to believe and that the agent is given due to
the agent's actions.
Waiver - ANS: the voluntary giving up of a legal, given right.
Estoppel - ANS: simply means the legal enforcement of a waiver.
, Parol evidence rule - ANS: when parties put their agreement in writing, all previous verbal
statements come together in that writing, and a written contract cannot be changed or
modified.
Void contract - ANS: fraud + prior knowledge
- Have two years from the date of the contract purchase to dispute the validity of a
contract
Voidable - ANS: one of the parties has a legal reason to reject or cancel the contract
Categories of life insurance - ANS: ordinary industrial
Group
Ordinary life insurance - ANS: - term, whole life, universal life, endowment
- The most common
Industrial life insurance - ANS: - sold by home service insurers
- Over the years has been used less
- Mainly, to cover funeral expense
