Florida Health 240 Insurance/ 233 Q&A/ 2024-
2025.
representation - Answer: a statement believed to be true to the best of one's
knowledge.
false pretenses - Answer: When an uninsurable individual applying for insurance
may ask another person to substitute for him to take the physical examination.
Misrepresentation - Answer: A false statement or lie that can render the contract
void.
concealment (n) - Answer: The failure to disclose material facts. Grounds for
recission by either party.
Page 1 of 28
,Material Information or facts - Answer: Something crucial to acceptance of the
risk.
fraud (n) - Answer: An intentional act designed to deceive and induce another
party to part with something of value.
Parol Evidence Rule - Answer: Rule of law disallowing oral evidence which
disputes a written agreement.
Voidable Contract - Answer: A contract that may be legally avoided at the option
of one or both of the parties.
Void Contract - Answer: an agreement of no legal effect.
Implied Authority - Answer: Authority that is given not in writing but that is
necessary for the agent to transact insurance.
Apparent Authority - Answer: A third party's reasonable belief that an agent has
authority to act on the principal's behalf.
Express Authority - Answer: the authority of an agent, stated in the document or
agreement creating the agency.
Page 2 of 28
, Lingering implied authority - Answer: means that the agent carries "signs or
evidences of authority.
Estoppel - Answer: A legal impediment to denying a fact or restoring a right that
has been previously waived.
Rules of Construction - Answer: Help to identify and establish the intent of the
parties to the contract
Utmost good faith - Answer: Each party is entitled to rely on the representation of
the other, and each party should have a reasonable expectation that the other is
acting in good faith without attempts to conceal or deceive.
Aleatory Contract - Answer: A contract under which one party's performance is
contingent on an uncertain event.
property and casualty agent - Answer: has the power to bind the insurer
Adhesion Contract - Answer: Insurance company drafts contract and the insured
adheres to it. Any ambiguity resolved in favor of the insured.
Unilateral contract - Answer: Insured has completed paying the premium, only
one party of the contract is legally required to do something. Insured promises to
pay the death benefit in the event of loss. Can not be held for breach of contract.
Page 3 of 28
2025.
representation - Answer: a statement believed to be true to the best of one's
knowledge.
false pretenses - Answer: When an uninsurable individual applying for insurance
may ask another person to substitute for him to take the physical examination.
Misrepresentation - Answer: A false statement or lie that can render the contract
void.
concealment (n) - Answer: The failure to disclose material facts. Grounds for
recission by either party.
Page 1 of 28
,Material Information or facts - Answer: Something crucial to acceptance of the
risk.
fraud (n) - Answer: An intentional act designed to deceive and induce another
party to part with something of value.
Parol Evidence Rule - Answer: Rule of law disallowing oral evidence which
disputes a written agreement.
Voidable Contract - Answer: A contract that may be legally avoided at the option
of one or both of the parties.
Void Contract - Answer: an agreement of no legal effect.
Implied Authority - Answer: Authority that is given not in writing but that is
necessary for the agent to transact insurance.
Apparent Authority - Answer: A third party's reasonable belief that an agent has
authority to act on the principal's behalf.
Express Authority - Answer: the authority of an agent, stated in the document or
agreement creating the agency.
Page 2 of 28
, Lingering implied authority - Answer: means that the agent carries "signs or
evidences of authority.
Estoppel - Answer: A legal impediment to denying a fact or restoring a right that
has been previously waived.
Rules of Construction - Answer: Help to identify and establish the intent of the
parties to the contract
Utmost good faith - Answer: Each party is entitled to rely on the representation of
the other, and each party should have a reasonable expectation that the other is
acting in good faith without attempts to conceal or deceive.
Aleatory Contract - Answer: A contract under which one party's performance is
contingent on an uncertain event.
property and casualty agent - Answer: has the power to bind the insurer
Adhesion Contract - Answer: Insurance company drafts contract and the insured
adheres to it. Any ambiguity resolved in favor of the insured.
Unilateral contract - Answer: Insured has completed paying the premium, only
one party of the contract is legally required to do something. Insured promises to
pay the death benefit in the event of loss. Can not be held for breach of contract.
Page 3 of 28
