8/30/25, 12:38 AM Florida 240 License
Florida 240 License Complete study guide 2025-2026 \Actual
Practice Questions & Accurate Detailed Answers \Verified 100%
\Graded A+
Statements made on an representations
insurance
application that are
believed to be true to the
best of the applicant's
knowledge are called
Q purchases a $500,000 life Aleatory
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?
When must insurable interest When the application is made
be present in order for a life
insurance policy to be valid?
A life insurance arrangement Investor-Originated Life Insurance
which
circumvents insurable
interest statutes is called:
Stranger Originated Life Legal Purpose (Insurable Interest)
Insurance (STOLI) has been
found to be in violation of
which of the following
contractual elements?
Who makes the legally Insurance company
1/71
,8/30/25, 12:38 AM Florida 240 License
enforceable promises in
a unilateral contract?
A policy of adhesion can insurance company
only be modified by
whom?
T and S are named co- $0
primary beneficiaries on a
$500,000 Accidental
Death and
Dismemberment policy
insuring their father.
Their mother was named
contingent beneficiary.
Five years later, S dies of
natural causes and the
father is killed in a scuba
accident shortly
afterwards. How much of
the death benefit will the
mother receive?
2/71
,8/30/25, 12:38 AM Florida 240 License
When third-party insurable interest in the proposed insured
ownership is involved,
applicants who also
happen to be the
stated primary beneficiary are
required to have:
Which of these is Warranty
considered a statement that
is assured to be true in
every aspect?
Which of these require an contract
offer, acceptance, and
consideration?
If a contract of adhesion insured
contains
complicated language, to
whom would the
interpretation be in favor
of?
Insurance contracts are conditional
known as _____ because
certain future conditions or
acts must occur before any
claims can be paid.
Insurance policies are Contracts of Adhesion
offered on a "take it or
leave it" basis, which
make them:
In regards to representations If material to the risk, false representations will void a policy
or warranties, which of these
statements is TRUE?
Which of these arrangements Investor-Originated Life Insurance
allows one to bypass
insurable interest laws?
3/71
, 8/30/25, 12:38 AM Florida 240 License
In an insurance contract, the unilateral
insurer is the only party
who makes a legally
enforceable promise. What
kind of contract is this?
Which of these is NOT a principal
type of agent authority?
E and F are business In this situation, the proceeds from E's life insurance policy will
partners. Each takes out a go to F.
$500,000 life insurance
policy on the other,
naming himself as
primary
beneficiary. E and F eventually
terminate
their business, and four
months later E dies. Although
E was married with three
children at the time of
death, the primary
beneficiary is still F.
However, an insurable
interest no longer exists.
Where will the
proceeds from E's life
insurance policy be
directed to?
When must insurable interest Inception of the contract
exist for a life insurance
contract to be valid?
Life and health insurance unilateral contracts
policies are:
A policy of adhesion can insurance company
only be modified by
whom?
At what point does an When one party makes an offer and the other party accepts that
informal contract become offer
binding?
4/71
Florida 240 License Complete study guide 2025-2026 \Actual
Practice Questions & Accurate Detailed Answers \Verified 100%
\Graded A+
Statements made on an representations
insurance
application that are
believed to be true to the
best of the applicant's
knowledge are called
Q purchases a $500,000 life Aleatory
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?
When must insurable interest When the application is made
be present in order for a life
insurance policy to be valid?
A life insurance arrangement Investor-Originated Life Insurance
which
circumvents insurable
interest statutes is called:
Stranger Originated Life Legal Purpose (Insurable Interest)
Insurance (STOLI) has been
found to be in violation of
which of the following
contractual elements?
Who makes the legally Insurance company
1/71
,8/30/25, 12:38 AM Florida 240 License
enforceable promises in
a unilateral contract?
A policy of adhesion can insurance company
only be modified by
whom?
T and S are named co- $0
primary beneficiaries on a
$500,000 Accidental
Death and
Dismemberment policy
insuring their father.
Their mother was named
contingent beneficiary.
Five years later, S dies of
natural causes and the
father is killed in a scuba
accident shortly
afterwards. How much of
the death benefit will the
mother receive?
2/71
,8/30/25, 12:38 AM Florida 240 License
When third-party insurable interest in the proposed insured
ownership is involved,
applicants who also
happen to be the
stated primary beneficiary are
required to have:
Which of these is Warranty
considered a statement that
is assured to be true in
every aspect?
Which of these require an contract
offer, acceptance, and
consideration?
If a contract of adhesion insured
contains
complicated language, to
whom would the
interpretation be in favor
of?
Insurance contracts are conditional
known as _____ because
certain future conditions or
acts must occur before any
claims can be paid.
Insurance policies are Contracts of Adhesion
offered on a "take it or
leave it" basis, which
make them:
In regards to representations If material to the risk, false representations will void a policy
or warranties, which of these
statements is TRUE?
Which of these arrangements Investor-Originated Life Insurance
allows one to bypass
insurable interest laws?
3/71
, 8/30/25, 12:38 AM Florida 240 License
In an insurance contract, the unilateral
insurer is the only party
who makes a legally
enforceable promise. What
kind of contract is this?
Which of these is NOT a principal
type of agent authority?
E and F are business In this situation, the proceeds from E's life insurance policy will
partners. Each takes out a go to F.
$500,000 life insurance
policy on the other,
naming himself as
primary
beneficiary. E and F eventually
terminate
their business, and four
months later E dies. Although
E was married with three
children at the time of
death, the primary
beneficiary is still F.
However, an insurable
interest no longer exists.
Where will the
proceeds from E's life
insurance policy be
directed to?
When must insurable interest Inception of the contract
exist for a life insurance
contract to be valid?
Life and health insurance unilateral contracts
policies are:
A policy of adhesion can insurance company
only be modified by
whom?
At what point does an When one party makes an offer and the other party accepts that
informal contract become offer
binding?
4/71
