1
For Expert help and assignment solutions, +254707240657
Florida 240 License Questions and
Answers (100% Correct Answers) Already
Graded A+
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:] Reserves
An insurance applicant MUST be informed of an investigation
© 2025 Assignment Expert
regarding his/her reputation and character according to the:
[ANS:] Fair Credit Reporting Act
A nonprofit incorporated society that does not have capital stock
Guru01 - Stuvia
and operates for the sole benefit of its members is known as:
[ANS:] A fraternal benefit society
What I the name of the law that requires insurers to disclose
information gathering practices and where the information was
obtained? [ANS:] Fair Credit Reporting Act
Who elects the governing body of a mutual insurance company?
[ANS:] Policyholders
A group-owned insurance company that is formed to assume and
spread the liability ricks of its members is known as a: [ANS:] Risk
retention group
What type of reinsurance contract involves two companies
automatically sharing their risk exposure? [ANS:] treaty
What year was the McCarran-Ferguson Act enacted? [ANS:] 1945
, 2
For Expert help and assignment solutions, +254707240657
Which of these describe a participating life insurance policy?
[ANS:] Policy owners are entitled to receive dividends
At what point must a life insurance applicant be informed of their
rights that fall under the Fair Credit Reporting Act? [ANS:] Upon
completion of the application
Which of the following requires insurers to disclose when an
applicant's consumer or credit history is being investigated: [ANS:]
1970 - Fair Credit Reporting Act
© 2025 Assignment Expert
What type of reinsurance contract involves two companies
automatically sharing their risk exposure? [ANS:] Treaty
A group-owned insurance company that is formed to assume and
Guru01 - Stuvia
spread the liability risks of its members is known as a: [ANS:] risk
retention group
All of the following are considered to be typical characteristics
describing the nature of an insurance contract, EXCEPT: [ANS:]
Bilateral
The part of a life insurance policy guaranteed to be true is called
a(n) [ANS:] warranty
Statements made on an insurance application that are believed
to be true to the best of the applicant's knowledge are called
[ANS:] representations
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? [ANS:]
Aleatory
, 3
For Expert help and assignment solutions, +254707240657
When must insurable interest be present in order for a life
insurance policy to be valid? [ANS:] When the application is made
A life insurance arrangement which circumvents insurable interest
statutes is called: [ANS:] Investor-Originated Life Insurance
Stranger Originated Life Insurance (STOLI) has been found to be in
violation of which of the following contractual elements? [ANS:]
Legal Purpose (Insurable Interest)
Who makes the legally enforceable promises in a unilateral
© 2025 Assignment Expert
contract? [ANS:] Insurance company
A policy of adhesion can only be modified by whom? [ANS:]
insurance company
Guru01 - Stuvia
When third-party ownership is involved, applicants who also
happen to be the stated primary beneficiary are required to
have: [ANS:] insurable interest in the proposed insured
Which of these is considered a statement that is assured to be true
in every aspect? [ANS:] Warranty
Which of these require an offer, acceptance, and consideration?
[ANS:] contract
If a contract of adhesion contains complicated language, to
whom would the interpretation be in favor of? [ANS:] insured
Insurance contracts are known as _____ because certain future
conditions or acts must occur before any claims can be paid.
[ANS:] conditional
Insurance policies are offered on a "take it or leave it" basis, which
make them: [ANS:] Contracts of Adhesion
, 4
For Expert help and assignment solutions, +254707240657
In regards to representations or warranties, which of these
statements is TRUE? [ANS:] If material to the risk, false
representations will void a policy
Which of these arrangements allows one to bypass insurable
interest laws? [ANS:] Investor-Originated Life Insurance
In an insurance contract, the insurer is the only party who makes a
legally enforceable promise. What kind of contract is this? [ANS:]
unilateral
© 2025 Assignment Expert
Which of these is NOT a type of agent authority? [ANS:] principal
E and F are business partners. Each takes out a $500,000 life
insurance policy on the other, naming himself as primary
Guru01 - Stuvia
beneficiary. E and F eventually terminate their business, and four
months later E dies. Although E was married with three children at
the time of death, the primary beneficiary is still F. However, an
insurable interest no longer exists. Where will the proceeds from E's
life insurance policy be directed to? [ANS:] In this situation, the
proceeds from E's life insurance policy will go to F.
When must insurable interest exist for a life insurance contract to
be valid? [ANS:] Inception of the contract
Life and health insurance policies are: [ANS:] unilateral contracts
A policy of adhesion can only be modified by whom? [ANS:]
insurance company
At what point does an informal contract become binding? [ANS:]
When one party makes an offer and the other party accepts that
offer
For Expert help and assignment solutions, +254707240657
Florida 240 License Questions and
Answers (100% Correct Answers) Already
Graded A+
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:] Reserves
An insurance applicant MUST be informed of an investigation
© 2025 Assignment Expert
regarding his/her reputation and character according to the:
[ANS:] Fair Credit Reporting Act
A nonprofit incorporated society that does not have capital stock
Guru01 - Stuvia
and operates for the sole benefit of its members is known as:
[ANS:] A fraternal benefit society
What I the name of the law that requires insurers to disclose
information gathering practices and where the information was
obtained? [ANS:] Fair Credit Reporting Act
Who elects the governing body of a mutual insurance company?
[ANS:] Policyholders
A group-owned insurance company that is formed to assume and
spread the liability ricks of its members is known as a: [ANS:] Risk
retention group
What type of reinsurance contract involves two companies
automatically sharing their risk exposure? [ANS:] treaty
What year was the McCarran-Ferguson Act enacted? [ANS:] 1945
, 2
For Expert help and assignment solutions, +254707240657
Which of these describe a participating life insurance policy?
[ANS:] Policy owners are entitled to receive dividends
At what point must a life insurance applicant be informed of their
rights that fall under the Fair Credit Reporting Act? [ANS:] Upon
completion of the application
Which of the following requires insurers to disclose when an
applicant's consumer or credit history is being investigated: [ANS:]
1970 - Fair Credit Reporting Act
© 2025 Assignment Expert
What type of reinsurance contract involves two companies
automatically sharing their risk exposure? [ANS:] Treaty
A group-owned insurance company that is formed to assume and
Guru01 - Stuvia
spread the liability risks of its members is known as a: [ANS:] risk
retention group
All of the following are considered to be typical characteristics
describing the nature of an insurance contract, EXCEPT: [ANS:]
Bilateral
The part of a life insurance policy guaranteed to be true is called
a(n) [ANS:] warranty
Statements made on an insurance application that are believed
to be true to the best of the applicant's knowledge are called
[ANS:] representations
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? [ANS:]
Aleatory
, 3
For Expert help and assignment solutions, +254707240657
When must insurable interest be present in order for a life
insurance policy to be valid? [ANS:] When the application is made
A life insurance arrangement which circumvents insurable interest
statutes is called: [ANS:] Investor-Originated Life Insurance
Stranger Originated Life Insurance (STOLI) has been found to be in
violation of which of the following contractual elements? [ANS:]
Legal Purpose (Insurable Interest)
Who makes the legally enforceable promises in a unilateral
© 2025 Assignment Expert
contract? [ANS:] Insurance company
A policy of adhesion can only be modified by whom? [ANS:]
insurance company
Guru01 - Stuvia
When third-party ownership is involved, applicants who also
happen to be the stated primary beneficiary are required to
have: [ANS:] insurable interest in the proposed insured
Which of these is considered a statement that is assured to be true
in every aspect? [ANS:] Warranty
Which of these require an offer, acceptance, and consideration?
[ANS:] contract
If a contract of adhesion contains complicated language, to
whom would the interpretation be in favor of? [ANS:] insured
Insurance contracts are known as _____ because certain future
conditions or acts must occur before any claims can be paid.
[ANS:] conditional
Insurance policies are offered on a "take it or leave it" basis, which
make them: [ANS:] Contracts of Adhesion
, 4
For Expert help and assignment solutions, +254707240657
In regards to representations or warranties, which of these
statements is TRUE? [ANS:] If material to the risk, false
representations will void a policy
Which of these arrangements allows one to bypass insurable
interest laws? [ANS:] Investor-Originated Life Insurance
In an insurance contract, the insurer is the only party who makes a
legally enforceable promise. What kind of contract is this? [ANS:]
unilateral
© 2025 Assignment Expert
Which of these is NOT a type of agent authority? [ANS:] principal
E and F are business partners. Each takes out a $500,000 life
insurance policy on the other, naming himself as primary
Guru01 - Stuvia
beneficiary. E and F eventually terminate their business, and four
months later E dies. Although E was married with three children at
the time of death, the primary beneficiary is still F. However, an
insurable interest no longer exists. Where will the proceeds from E's
life insurance policy be directed to? [ANS:] In this situation, the
proceeds from E's life insurance policy will go to F.
When must insurable interest exist for a life insurance contract to
be valid? [ANS:] Inception of the contract
Life and health insurance policies are: [ANS:] unilateral contracts
A policy of adhesion can only be modified by whom? [ANS:]
insurance company
At what point does an informal contract become binding? [ANS:]
When one party makes an offer and the other party accepts that
offer
