FLORIDA INSURANCE 2-14 EXAM 2025
QUESTIONS WITH 100% CORRECT
SOLUTIONS
Elements Of Contract - Correct Answer-Offer & Acceptance +
Consideration + Legal Purpose + Competent Parties = Legally
Binding Contract
Offer & Acceptance - Correct Answer-Completed When A Premium
Payment Accompanies The Offer Made By The Proposed Insured
Legal Purpose - Correct Answer-The Policy Owner Must Have An
Insurable Interest In The Insured
Competent - Correct Answer-Just Like " Innocent Until Proven Guilty"
Aleatory - Correct Answer-(1) There Is An Element Of Chance For
Both Parties
(2) The Dollar Values Exchanged May Not Be Equal
,Adhesion - Correct Answer-The Contract Has Been Prepared By
One Party (The Insurer), Rather Than By Negotiation Between
The Contracting Parties.
Unilateral - Correct Answer-Promise For Performance
Valued Contracts - Correct Answer-Pay A Predetermined Amount
With No Way To Assess Loss
Indemnity Contracts - Correct Answer-Pay The Amount Of The
Loss Only (Up To The Policy Limit)
Stoli - Correct Answer-- Stranger-Orignated Life Insurance
- Typically Target Seniors
-
Brokers - Correct Answer--Florida Does Not Issue Separate
Licenses For Brokers
- Cannot Bind The Contract
Agents - Correct Answer-- The Acts Of The Agent Are Considered
The Acts Of The Company
,- Can Bind The Contract
Entities Involved In Agency - Correct Answer-The
Agent The Insured
The Insurance Company
Express Authority - Correct Answer-The Authority That An Agent
Has In Writing In The Contract With The Insurer That The Agent
Represent
Implied Authority - Correct Answer-Authority That Is Given Not In
Writing But That Is Necessary For The Agent To Transact
Insurance
Apparent Authority - Correct Answer-A Third Party Is Led To
Believe And That The Agent Is Given Due To The Agent's
Actions.
Waiver - Correct Answer-The Voluntary Giving Up Of A Legal, Given
Right.
Estoppel - Correct Answer-Simply Means The Legal Enforcement
Of A Waiver.
, Parol Evidence Rule - Correct Answer-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 - Correct Answer-Fraud + Prior Knowledge
- Have Two Years From The Date Of The Contract Purchase
To Dispute The Validity Of A Contract
Voidable - Correct Answer-One Of The Parties Has A Legal Reason
To Reject Or Cancel The Contract
Categories Of Life Insurance - Correct Answer-
Ordinary Industrial
Group
Ordinary Life Insurance - Correct Answer-- Term, Whole Life,
Universal Life, Endowment
- The Most Common
Industrial Life Insurance - Correct Answer-- Sold By Home Service
Insurers
- Over The Years Has Been Used Less
QUESTIONS WITH 100% CORRECT
SOLUTIONS
Elements Of Contract - Correct Answer-Offer & Acceptance +
Consideration + Legal Purpose + Competent Parties = Legally
Binding Contract
Offer & Acceptance - Correct Answer-Completed When A Premium
Payment Accompanies The Offer Made By The Proposed Insured
Legal Purpose - Correct Answer-The Policy Owner Must Have An
Insurable Interest In The Insured
Competent - Correct Answer-Just Like " Innocent Until Proven Guilty"
Aleatory - Correct Answer-(1) There Is An Element Of Chance For
Both Parties
(2) The Dollar Values Exchanged May Not Be Equal
,Adhesion - Correct Answer-The Contract Has Been Prepared By
One Party (The Insurer), Rather Than By Negotiation Between
The Contracting Parties.
Unilateral - Correct Answer-Promise For Performance
Valued Contracts - Correct Answer-Pay A Predetermined Amount
With No Way To Assess Loss
Indemnity Contracts - Correct Answer-Pay The Amount Of The
Loss Only (Up To The Policy Limit)
Stoli - Correct Answer-- Stranger-Orignated Life Insurance
- Typically Target Seniors
-
Brokers - Correct Answer--Florida Does Not Issue Separate
Licenses For Brokers
- Cannot Bind The Contract
Agents - Correct Answer-- The Acts Of The Agent Are Considered
The Acts Of The Company
,- Can Bind The Contract
Entities Involved In Agency - Correct Answer-The
Agent The Insured
The Insurance Company
Express Authority - Correct Answer-The Authority That An Agent
Has In Writing In The Contract With The Insurer That The Agent
Represent
Implied Authority - Correct Answer-Authority That Is Given Not In
Writing But That Is Necessary For The Agent To Transact
Insurance
Apparent Authority - Correct Answer-A Third Party Is Led To
Believe And That The Agent Is Given Due To The Agent's
Actions.
Waiver - Correct Answer-The Voluntary Giving Up Of A Legal, Given
Right.
Estoppel - Correct Answer-Simply Means The Legal Enforcement
Of A Waiver.
, Parol Evidence Rule - Correct Answer-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 - Correct Answer-Fraud + Prior Knowledge
- Have Two Years From The Date Of The Contract Purchase
To Dispute The Validity Of A Contract
Voidable - Correct Answer-One Of The Parties Has A Legal Reason
To Reject Or Cancel The Contract
Categories Of Life Insurance - Correct Answer-
Ordinary Industrial
Group
Ordinary Life Insurance - Correct Answer-- Term, Whole Life,
Universal Life, Endowment
- The Most Common
Industrial Life Insurance - Correct Answer-- Sold By Home Service
Insurers
- Over The Years Has Been Used Less
