Florida 215 Life, Health, Insurance Law
Practice Exam questions and answers
Who elects the governing body of a metal Insurance company? - The Policyholders
When a policy pays dividends to its policy holders is said to be? - Participating
Which of these describe a participating insurance policy? - Policy owners are
entitled to receive dividends
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the? - 1970 Fair credit reporting act
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
The Part of a life insurance policy GUARANTEED to be true is called? - Warranty
At what point does an informal agreement become a binding contract? - When
consideration is provided by one of the parties to the contract
,Florida 215 Life, Health, Insurance Law
Practice Exam questions and answers
Who makes the legally enforceable promise in a unilateral insurance policy? - The
Insurance Company
When a third-party ownership is involved, applicants who also happen to be the
stated the primary beneficiary are required to have? - Insurable interest in the
proposed insured
A policy of adhesion can only be modified by whom? - The insurance company
Insurance policies are considered aleatory contracts because? - Performance is
conditioned upon a future occurrence
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
What consists of an offer, acceptance, and consideration? - The Contract
A Principal is NOT a type agent authority? - True
,Florida 215 Life, Health, Insurance Law
Practice Exam questions and answers
Taking a receipt of premiums and holding them for the insurance company is an
example of? - Fiduciary responsibility
A Bilateral typically has characteristics describing the nature of an insurance
contract. - False
In regards to representation or warranties? - If material to the RISK, false
representations will void a policy
Statements made on an insurance application that are BELIEVED to be true to the
best of the applicants knowledge are called? - Representations
A variable insurance policy? - Does NOT guarantee a return on investment
accounts
Whole life insurance is sometimes referred to as "Straight Life". What does the
word "Straight" indicate when using this phrase? - The duration of premium
payments
, Florida 215 Life, Health, Insurance Law
Practice Exam questions and answers
What type of policy would offer a 40- year old the quickest accumulation of cash
value? - A 20-pay life
Modified Whole Life - This life product is NOT considered interest sensitive?
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? - Whole life policy with an Other Insured Rider
Which of the following types of Term Life policies most likely contains a
Renewability feature? - A 10 year convertibility Term
Modified Endowment Contract - This type of policy is considered to be
overfunded, as stated by IRS guidelines?
A company that owns a life insurance policy on one of its key employees can't? -
Change the policy's interest rate
Under a Graded Premium policy, The premiums? - Are lower during the policy's
early years
Practice Exam questions and answers
Who elects the governing body of a metal Insurance company? - The Policyholders
When a policy pays dividends to its policy holders is said to be? - Participating
Which of these describe a participating insurance policy? - Policy owners are
entitled to receive dividends
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the? - 1970 Fair credit reporting act
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
The Part of a life insurance policy GUARANTEED to be true is called? - Warranty
At what point does an informal agreement become a binding contract? - When
consideration is provided by one of the parties to the contract
,Florida 215 Life, Health, Insurance Law
Practice Exam questions and answers
Who makes the legally enforceable promise in a unilateral insurance policy? - The
Insurance Company
When a third-party ownership is involved, applicants who also happen to be the
stated the primary beneficiary are required to have? - Insurable interest in the
proposed insured
A policy of adhesion can only be modified by whom? - The insurance company
Insurance policies are considered aleatory contracts because? - Performance is
conditioned upon a future occurrence
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
What consists of an offer, acceptance, and consideration? - The Contract
A Principal is NOT a type agent authority? - True
,Florida 215 Life, Health, Insurance Law
Practice Exam questions and answers
Taking a receipt of premiums and holding them for the insurance company is an
example of? - Fiduciary responsibility
A Bilateral typically has characteristics describing the nature of an insurance
contract. - False
In regards to representation or warranties? - If material to the RISK, false
representations will void a policy
Statements made on an insurance application that are BELIEVED to be true to the
best of the applicants knowledge are called? - Representations
A variable insurance policy? - Does NOT guarantee a return on investment
accounts
Whole life insurance is sometimes referred to as "Straight Life". What does the
word "Straight" indicate when using this phrase? - The duration of premium
payments
, Florida 215 Life, Health, Insurance Law
Practice Exam questions and answers
What type of policy would offer a 40- year old the quickest accumulation of cash
value? - A 20-pay life
Modified Whole Life - This life product is NOT considered interest sensitive?
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? - Whole life policy with an Other Insured Rider
Which of the following types of Term Life policies most likely contains a
Renewability feature? - A 10 year convertibility Term
Modified Endowment Contract - This type of policy is considered to be
overfunded, as stated by IRS guidelines?
A company that owns a life insurance policy on one of its key employees can't? -
Change the policy's interest rate
Under a Graded Premium policy, The premiums? - Are lower during the policy's
early years
