FLORIDA 240 LICENSE EXAM ACTUAL
QUESTIONS AND CORRECTLY WELL
DEFINED ANSWERS LATEST 2024 – 2025
ALREADY GRADED A+
P is a Major Medical policyowner who is hospitalized as a result of injuries
sustained from participating in a carjacking. How will the insurer most likely
handle this claim? - ANSWERS-Claim will be denied
An insured pays premiums on an annual basis for an individual health insurance
policy. What is the MINIMUM number of days for the Grace Period provision? -
ANSWERS-31 days
Which of the following health policy provisions states that the producer does NOT
have the authority to change the policy or waive any of its provisions? -
ANSWERS-Entire Contract
An insurer must provide an insured with claim forms within __ days after
receiving notice of a loss. - ANSWERS-15
,What I the name of the law that requires insurers to disclose information
gathering practices and where the information was obtained? - ANSWERS-Fair
Credit Reporting Act
Who elects the governing body of a mutual insurance company? - ANSWERS-
Policyholders
A group-owned insurance company that is formed to assume and spread the
liability ricks of its members is known as a: - ANSWERS-Risk retention group
What type of reinsurance contract involves two companies automatically sharing
their risk exposure? - ANSWERS-treaty
What year was the McCarran-Ferguson Act enacted? - ANSWERS-1945
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: - ANSWERS-
Reserves
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the: - ANSWERS-Fair Credit Reporting Act
,A nonprofit incorporated society that does not have capital stock and operates for
the sole benefit of its members is known as: - ANSWERS-A fraternal benefit
society
Which of these describe a participating life insurance policy? - ANSWERS-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? - ANSWERS-Upon completion of the
application
Which of the following requires insurers to disclose when an applicant's consumer
or credit history is being investigated: - ANSWERS-1970 - Fair Credit Reporting Act
What type of reinsurance contract involves two companies automatically sharing
their risk exposure? - ANSWERS-Treaty
A group-owned insurance company that is formed to assume and spread the
liability risks of its members is known as a: - ANSWERS-risk retention group
All of the following are considered to be typical characteristics describing the
nature of an insurance contract, EXCEPT: - ANSWERS-Bilateral
The part of a life insurance policy guaranteed to be true is called a(n) - ANSWERS-
warranty
, Statements made on an insurance application that are believed to be true to the
best of the applicant's knowledge are called - ANSWERS-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? - ANSWERS-Aleatory
When must insurable interest be present in order for a life insurance policy to be
valid? - ANSWERS-When the application is made
A life insurance arrangement which circumvents insurable interest statutes is
called: - ANSWERS-Investor-Originated Life Insurance
Stranger Originated Life Insurance (STOLI) has been found to be in violation of
which of the following contractual elements? - ANSWERS-Legal Purpose
(Insurable Interest)
Who makes the legally enforceable promises in a unilateral contract? - ANSWERS-
Insurance company
A policy of adhesion can only be modified by whom? - ANSWERS-insurance
company
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