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Florida 240 License Comprehensive
Questions (Frequently Tested) with
Veriified Answers Graded A+
1. 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:: Reserves 2. An insurance
applicant MUST be informed of an investigation regarding his/her reputation and
character according to the:: Fair Credit Reporting Act
3. A nonprofit incorporated society that does not have capital stock and operates for
the sole benefit of its members is known as:: A fraternal benefit society
4. What I the name of the law that requires insurers to disclose information gathering
practices and where the information was obtained?: Fair Credit Reporting
Act
,Florida 240 License Comprehensive Questions (Frequently Tested) with Ve ified Answe
Graded A+
Study online at https://quizlet.com/_hsgxqk
.
5. Who elects the governing body of a mutual insurance company?: Policyholders 6. A
group-owned insurance company that is formed to assume and spread the liability ricks
of its members is known as a:: Risk retention group
7.What type of reinsurance contract involves two companies automatically sharing their
risk exposure?: treaty
8.What year was the McCarran-Ferguson Act enacted?: 1945
9.Which of these describe a participating life insurance policy?: Policy owners are entitled
to receive dividends
10. At what point must a life insurance applicant be informed of their rights that fall
under the Fair Credit Reporting Act?: Upon completion of the application
11. Which of the following requires insurers to disclose when an applicant's consumer
or credit history is being investigated:: 1970 - Fair Credit Reporting Act
12. What type of reinsurance contract involves two companies automatically sharing
their risk exposure?: Treaty
13. A group-owned insurance company that is formed to assume and spread the liability
risks of its members is known as a:: risk retention group
,Florida 240 License Comprehensive Questions (Frequently Tested) with Ve ified Answe
Graded A+
Study online at https://quizlet.com/_hsgxqk
.
14. All of the following are considered to be typical characteristics describing the nature
of an insurance contract, EXCEPT:: Bilateral
15. The part of a life insurance policy guaranteed to be true is called a(n): warranty 16.
Statements made on an insurance application that are believed to be true to the best of
the applicant's knowledge are called: representations
17 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?: Aleatory
18. When must insurable interest be present in order for a life insurance policy to be
valid?: When the application is made
19. A life insurance arrangement which circumvents insurable interest statutes is
called:: Investor-Originated Life Insurance
20. Stranger Originated Life Insurance (STOLI) has been found to be in violation of which
of the following contractual elements?: Legal Purpose (Insurable Interest)
21. Who makes the legally enforceable promises in a unilateral contract?: Insurance
company
, Florida 240 License Comprehensive Questions (Frequently Tested) with Ve ified Answe
Graded A+
Study online at https://quizlet.com/_hsgxqk
.
22. A policy of adhesion can only be modified by whom?: insurance company
23. When third-party ownership is involved, applicants who also happen to be the
stated primary beneficiary are required to have:: insurable interest in the proposed
insured
24. Which of these is considered a statement that is assured to be true in every aspect?:
Warranty
25. Which of these require an offer, acceptance, and consideration?: contract
26. If a contract of adhesion contains complicated language, to whom would the
interpretation be in favor of?: insured
27. Insurance contracts are known as _____ because certain future conditions or acts
must occur before any claims can be paid.: conditional
28. Insurance policies are offered on a "take it or leave it" basis, which make them::
Contracts of Adhesion
29. In regards to representations or warranties, which of these statements is
TRUE?: If material to the risk, false representations will void a policy
30. Which of these arrangements allows one to bypass insurable interest laws?-
Florida 240 License Comprehensive
Questions (Frequently Tested) with
Veriified Answers Graded A+
1. 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:: Reserves 2. An insurance
applicant MUST be informed of an investigation regarding his/her reputation and
character according to the:: Fair Credit Reporting Act
3. A nonprofit incorporated society that does not have capital stock and operates for
the sole benefit of its members is known as:: A fraternal benefit society
4. What I the name of the law that requires insurers to disclose information gathering
practices and where the information was obtained?: Fair Credit Reporting
Act
,Florida 240 License Comprehensive Questions (Frequently Tested) with Ve ified Answe
Graded A+
Study online at https://quizlet.com/_hsgxqk
.
5. Who elects the governing body of a mutual insurance company?: Policyholders 6. A
group-owned insurance company that is formed to assume and spread the liability ricks
of its members is known as a:: Risk retention group
7.What type of reinsurance contract involves two companies automatically sharing their
risk exposure?: treaty
8.What year was the McCarran-Ferguson Act enacted?: 1945
9.Which of these describe a participating life insurance policy?: Policy owners are entitled
to receive dividends
10. At what point must a life insurance applicant be informed of their rights that fall
under the Fair Credit Reporting Act?: Upon completion of the application
11. Which of the following requires insurers to disclose when an applicant's consumer
or credit history is being investigated:: 1970 - Fair Credit Reporting Act
12. What type of reinsurance contract involves two companies automatically sharing
their risk exposure?: Treaty
13. A group-owned insurance company that is formed to assume and spread the liability
risks of its members is known as a:: risk retention group
,Florida 240 License Comprehensive Questions (Frequently Tested) with Ve ified Answe
Graded A+
Study online at https://quizlet.com/_hsgxqk
.
14. All of the following are considered to be typical characteristics describing the nature
of an insurance contract, EXCEPT:: Bilateral
15. The part of a life insurance policy guaranteed to be true is called a(n): warranty 16.
Statements made on an insurance application that are believed to be true to the best of
the applicant's knowledge are called: representations
17 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?: Aleatory
18. When must insurable interest be present in order for a life insurance policy to be
valid?: When the application is made
19. A life insurance arrangement which circumvents insurable interest statutes is
called:: Investor-Originated Life Insurance
20. Stranger Originated Life Insurance (STOLI) has been found to be in violation of which
of the following contractual elements?: Legal Purpose (Insurable Interest)
21. Who makes the legally enforceable promises in a unilateral contract?: Insurance
company
, Florida 240 License Comprehensive Questions (Frequently Tested) with Ve ified Answe
Graded A+
Study online at https://quizlet.com/_hsgxqk
.
22. A policy of adhesion can only be modified by whom?: insurance company
23. When third-party ownership is involved, applicants who also happen to be the
stated primary beneficiary are required to have:: insurable interest in the proposed
insured
24. Which of these is considered a statement that is assured to be true in every aspect?:
Warranty
25. Which of these require an offer, acceptance, and consideration?: contract
26. If a contract of adhesion contains complicated language, to whom would the
interpretation be in favor of?: insured
27. Insurance contracts are known as _____ because certain future conditions or acts
must occur before any claims can be paid.: conditional
28. Insurance policies are offered on a "take it or leave it" basis, which make them::
Contracts of Adhesion
29. In regards to representations or warranties, which of these statements is
TRUE?: If material to the risk, false representations will void a policy
30. Which of these arrangements allows one to bypass insurable interest laws?-
