Florida 240 License LATEST UPDATED
2025/2026 exam WITH COMPLETE
questions AND SURE VERIFIED
SOLUTIONS 100% GRADED AT A+
SCORE!! SURE GUARANTEED PASS!!
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: - ANSWER ✔ Reserves
2. An insurance applicant MUST be informed of an investigation
regarding his/her reputation and character according to the: -
ANSWER ✔ Fair Credit Reporting Act
3. Which of these is NOT considered to be an element of an
insurance company? - ANSWER ✔ Negotiating
4. What is a warranty? - ANSWER ✔ is a statement guaranteed to be
true
5. A life insurance policy would be considered a wagering contract
WITHOUT: - ANSWER ✔ insurable interest
,6. G is an accountant who has ten employees and is concerned about
how the business would survive financially if G became disabled.
The type of policy which BEST addresses this concern is -
ANSWER ✔ Business Overhead Expense
7. Which of the following claims are typically excluded from
Medical expense policies? - ANSWER ✔ Intentionally self-
inflicted injuries
8. XYZ Company pays the entire premium for its group health plan.
The MINIMUM percentage of eligible employees that must be
covered is - ANSWER ✔ 100%
9. A Business Overhead Expense policy: - ANSWER ✔ covers
business expenses such as rent and utilities
10. A Business Overhead Expense policy would cover which of
the following if a business owner becomes disabled? - ANSWER
✔ Utilities and office rent
11. What is issued to each employee of an employer health plan?
- ANSWER ✔ certificate
12. The benefits under a Disability Buy-Out policy are -
ANSWER ✔ payable to the company or another shareholder
,13. A policy owner would like to change the beneficiary on a
Life insurance policy and make the change permanent. Which type
of designation would fulfill this need? - ANSWER ✔ irrevocable
14. A nonprofit incorporated society that does not have capital
stock and operates for the sole benefit of its members is known as:
- ANSWER ✔ A fraternal benefit society
15. What I the name of the law that requires insurers to disclose
information gathering practices and where the information was
obtained? - ANSWER ✔ Fair Credit Reporting Act
16. Who elects the governing body of a mutual insurance
company? - ANSWER ✔ Policyholders
17. A group-owned insurance company that is formed to assume
and spread the liability ricks of its members is known as a: -
ANSWER ✔ Risk retention group
18. What type of reinsurance contract involves two companies
automatically sharing their risk exposure? - ANSWER ✔ treaty
19. What year was the McCarran-Ferguson Act enacted? -
ANSWER ✔ 1945
, 20. Which of these describe a participating life insurance policy?
- ANSWER ✔ Policy owners are entitled to receive dividends
21. At what point must a life insurance applicant be informed of
their rights that fall under the Fair Credit Reporting Act? -
ANSWER ✔ Upon completion of the application
22. Which of the following requires insurers to disclose when an
applicant's consumer or credit history is being investigated: -
ANSWER ✔ 1970 - Fair Credit Reporting Act
23. What type of reinsurance contract involves two companies
automatically sharing their risk exposure? - ANSWER ✔ Treaty
24. A group-owned insurance company that is formed to assume
and spread the liability risks of its members is known as a: -
ANSWER ✔ risk retention group
25. All of the following are considered to be typical
characteristics describing the nature of an insurance contract,
EXCEPT: - ANSWER ✔ Bilateral
26. The part of a life insurance policy guaranteed to be true is
called a(n) - ANSWER ✔ warranty
2025/2026 exam WITH COMPLETE
questions AND SURE VERIFIED
SOLUTIONS 100% GRADED AT A+
SCORE!! SURE GUARANTEED PASS!!
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: - ANSWER ✔ Reserves
2. An insurance applicant MUST be informed of an investigation
regarding his/her reputation and character according to the: -
ANSWER ✔ Fair Credit Reporting Act
3. Which of these is NOT considered to be an element of an
insurance company? - ANSWER ✔ Negotiating
4. What is a warranty? - ANSWER ✔ is a statement guaranteed to be
true
5. A life insurance policy would be considered a wagering contract
WITHOUT: - ANSWER ✔ insurable interest
,6. G is an accountant who has ten employees and is concerned about
how the business would survive financially if G became disabled.
The type of policy which BEST addresses this concern is -
ANSWER ✔ Business Overhead Expense
7. Which of the following claims are typically excluded from
Medical expense policies? - ANSWER ✔ Intentionally self-
inflicted injuries
8. XYZ Company pays the entire premium for its group health plan.
The MINIMUM percentage of eligible employees that must be
covered is - ANSWER ✔ 100%
9. A Business Overhead Expense policy: - ANSWER ✔ covers
business expenses such as rent and utilities
10. A Business Overhead Expense policy would cover which of
the following if a business owner becomes disabled? - ANSWER
✔ Utilities and office rent
11. What is issued to each employee of an employer health plan?
- ANSWER ✔ certificate
12. The benefits under a Disability Buy-Out policy are -
ANSWER ✔ payable to the company or another shareholder
,13. A policy owner would like to change the beneficiary on a
Life insurance policy and make the change permanent. Which type
of designation would fulfill this need? - ANSWER ✔ irrevocable
14. A nonprofit incorporated society that does not have capital
stock and operates for the sole benefit of its members is known as:
- ANSWER ✔ A fraternal benefit society
15. What I the name of the law that requires insurers to disclose
information gathering practices and where the information was
obtained? - ANSWER ✔ Fair Credit Reporting Act
16. Who elects the governing body of a mutual insurance
company? - ANSWER ✔ Policyholders
17. A group-owned insurance company that is formed to assume
and spread the liability ricks of its members is known as a: -
ANSWER ✔ Risk retention group
18. What type of reinsurance contract involves two companies
automatically sharing their risk exposure? - ANSWER ✔ treaty
19. What year was the McCarran-Ferguson Act enacted? -
ANSWER ✔ 1945
, 20. Which of these describe a participating life insurance policy?
- ANSWER ✔ Policy owners are entitled to receive dividends
21. At what point must a life insurance applicant be informed of
their rights that fall under the Fair Credit Reporting Act? -
ANSWER ✔ Upon completion of the application
22. Which of the following requires insurers to disclose when an
applicant's consumer or credit history is being investigated: -
ANSWER ✔ 1970 - Fair Credit Reporting Act
23. What type of reinsurance contract involves two companies
automatically sharing their risk exposure? - ANSWER ✔ Treaty
24. A group-owned insurance company that is formed to assume
and spread the liability risks of its members is known as a: -
ANSWER ✔ risk retention group
25. All of the following are considered to be typical
characteristics describing the nature of an insurance contract,
EXCEPT: - ANSWER ✔ Bilateral
26. The part of a life insurance policy guaranteed to be true is
called a(n) - ANSWER ✔ warranty
