Florida 215 Life, Health, Insurance Law Practice
Exam
1. Who elects the governing body of a metal Insurance company Ans: The
Policy- holders
2. When a policy pays dividends to its policy holders is said to be Ans:
Participat- ing
3. Which of these describe a participating insurance policy Ans: Policy owners
are entitled to receive dividends
4. An insurance applicant MUST be informed of an investigation regarding
his/her reputation and character according to the Ans: 1970 Fair credit
reporting act
5. 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 Ans:
Re- serves
6. The Part of a life insurance policy GUARANTEED to be true is called Ans:
War- ranty
7. At what point does an informal agreement become a binding contract Ans:
When consideration is provided by one of the parties to the contract
,8. Who makes the legally enforceable promise in a unilateral insurance poli-
cy Ans: The Insurance Company
9. When a third-party ownership is involved, applicants who also happen to
be the stated the primary beneficiary are required to have Ans: Insurable
interest in the proposed insured
10. A policy of adhesion can only be modified by whom Ans: The insurance
com- pany
11. Insurance policies are considered aleatory contracts because Ans:
Perfor- mance is conditioned upon a future occurrence
12. Q purchase $500k 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 insurance contract features?-
: Aleatory
13. What consists of an offer, acceptance, and consideration Ans: The Contra
14. A Principal is NOT a type agent authority Ans: True
15. Taking a receipt of premiums and holding them for the insurance company
is an example of Ans: Fiduciary responsibility
16. A Bilateral typically has characteristics describing the nature of an insur-
ance contract.: False
,17. In regards to representation or warranties Ans: If material to the RISK,
false representations will void a policy
18. Statements made on an insurance application that are BELIEVED to be true
to the best of the applicants knowledge are called Ans: Representations
, 19. A variable insurance policy Ans: Does NOT guarantee a return on
investment accounts
20. Whole life insurance is sometimes referred to as "Straight Life". What does
the word "Straight" indicate when using this phrase Ans: The duration of
premium payments
21. What type of policy would offer a 40- year old the quickest accumulation
of cash value Ans: A 20-pay life
22. Modified Whole Life: This life product is NOT considered interest sensitive?
23. Y Purchased $100,000 worth of permanent protection on himself and
$50,000 worth of 10-year Term coverage for his wife on the same policy. What
did Y Purchase Ans: Whole life policy with an Other Insured Rider
24. Which of the following types of Term Life policies most likely contains a
Renewability feature Ans: A 10 year convertibility Term
25. Modified Endowment Contract: This type of policy is considered to be over-
funded, as stated by IRS guidelines?
26. A company that owns a life insurance policy on one of its key employees
can't Ans: Change the policy's interest rate
27. Under a Graded Premium policy, The premiums Ans: Are lower during the
poli- cy's early years
Exam
1. Who elects the governing body of a metal Insurance company Ans: The
Policy- holders
2. When a policy pays dividends to its policy holders is said to be Ans:
Participat- ing
3. Which of these describe a participating insurance policy Ans: Policy owners
are entitled to receive dividends
4. An insurance applicant MUST be informed of an investigation regarding
his/her reputation and character according to the Ans: 1970 Fair credit
reporting act
5. 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 Ans:
Re- serves
6. The Part of a life insurance policy GUARANTEED to be true is called Ans:
War- ranty
7. At what point does an informal agreement become a binding contract Ans:
When consideration is provided by one of the parties to the contract
,8. Who makes the legally enforceable promise in a unilateral insurance poli-
cy Ans: The Insurance Company
9. When a third-party ownership is involved, applicants who also happen to
be the stated the primary beneficiary are required to have Ans: Insurable
interest in the proposed insured
10. A policy of adhesion can only be modified by whom Ans: The insurance
com- pany
11. Insurance policies are considered aleatory contracts because Ans:
Perfor- mance is conditioned upon a future occurrence
12. Q purchase $500k 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 insurance contract features?-
: Aleatory
13. What consists of an offer, acceptance, and consideration Ans: The Contra
14. A Principal is NOT a type agent authority Ans: True
15. Taking a receipt of premiums and holding them for the insurance company
is an example of Ans: Fiduciary responsibility
16. A Bilateral typically has characteristics describing the nature of an insur-
ance contract.: False
,17. In regards to representation or warranties Ans: If material to the RISK,
false representations will void a policy
18. Statements made on an insurance application that are BELIEVED to be true
to the best of the applicants knowledge are called Ans: Representations
, 19. A variable insurance policy Ans: Does NOT guarantee a return on
investment accounts
20. Whole life insurance is sometimes referred to as "Straight Life". What does
the word "Straight" indicate when using this phrase Ans: The duration of
premium payments
21. What type of policy would offer a 40- year old the quickest accumulation
of cash value Ans: A 20-pay life
22. Modified Whole Life: This life product is NOT considered interest sensitive?
23. Y Purchased $100,000 worth of permanent protection on himself and
$50,000 worth of 10-year Term coverage for his wife on the same policy. What
did Y Purchase Ans: Whole life policy with an Other Insured Rider
24. Which of the following types of Term Life policies most likely contains a
Renewability feature Ans: A 10 year convertibility Term
25. Modified Endowment Contract: This type of policy is considered to be over-
funded, as stated by IRS guidelines?
26. A company that owns a life insurance policy on one of its key employees
can't Ans: Change the policy's interest rate
27. Under a Graded Premium policy, The premiums Ans: Are lower during the
poli- cy's early years
