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2024 FLORIDA HEALTH 240 INSURANCE EXAM QUESTIONS WITH CORRECT ANSWERS
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2024 FLORIDA HEALTH 240 INSURANCE EXAM QUESTIONS WITH CORRECT ANSWERS
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2024 FLORIDA HEALTH 240INSURANCE EXAM QUESTIONS
WITH CORRECT ANSWERS
Rules of Construction - CORRECT ANSWERS- Help to identify and establish
the intent of the parties to the contract
Utmost good faith - CORRECT ANSWERS- 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 - CORRECT ANSWERS- A contract under which one party's
performance is contingent on an uncertain event.
property and casualty agent - CORRECT ANSWERS- has the power to bind
the insurer
Adhesion Contract - CORRECT ANSWERS- Insurance company drafts contract
and the insured adheres to it. Any ambiguity resolved in favor of the insured.
Unilateral contract - CORRECT ANSWERS- 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.
Conditional contract - CORRECT ANSWERS- This type of contract is
conditional because the company only pays on condition of a loss.
Annual Renewable Term - CORRECT ANSWERS- Level term insurance which
has a level face amount and increasing premiums.
Return of Premium Rider - CORRECT ANSWERS- Allows for a portion of the
premium to be returned if the policy owner is not disabled
Future increase option - CORRECT ANSWERS- Provides for the insured to be
able to purchase additional amounts of disability income periodically without
proving insurability.
Waiver of Premium - CORRECT ANSWERS- - exempts the owner from paying
premiums while they're disabled.
,Usual Customary and Reasonable - CORRECT ANSWERS- amount
customarily charged for services and supplies
Corridor Deductible - CORRECT ANSWERS- the deductible between a basic
and major medical policy
Personal Contract - CORRECT ANSWERS- The contract is between the
insured and the insurer
warranty - CORRECT ANSWERS- guarantee; assurance by seller. Any breach
provides grounds for voiding the contract.
representation - CORRECT ANSWERS- a statement believed to be true to the
best of one's knowledge.
false pretenses - CORRECT ANSWERS- When an uninsurable individual
applying for insurance may ask another person to substitute for him to take
the physical examination.
Misrepresentation - CORRECT ANSWERS- A false statement or lie that can
render the contract void.
concealment (n) - CORRECT ANSWERS- The failure to disclose material facts.
Grounds for recission by either party.
Material Information or facts - CORRECT ANSWERS- Something crucial to
acceptance of the risk.
fraud (n) - CORRECT ANSWERS- An intentional act designed to deceive and
induce another party to part with something of value.
Parol Evidence Rule - CORRECT ANSWERS- Rule of law disallowing oral
evidence which disputes a written agreement.
Voidable Contract - CORRECT ANSWERS- A contract that may be legally
avoided at the option of one or both of the parties.
Void Contract - CORRECT ANSWERS- an agreement of no legal effect.
Implied Authority - CORRECT ANSWERS- Authority that is given not in writing
but that is necessary for the agent to transact insurance.
Apparent Authority - CORRECT ANSWERS- A third party's reasonable belief
that an agent has authority to act on the principal's behalf.
, Express Authority - CORRECT ANSWERS- the authority of an agent, stated in
the document or agreement creating the agency.
Lingering implied authority - CORRECT ANSWERS- means that the agent
carries "signs or evidences of authority.
Estoppel - CORRECT ANSWERS- A legal impediment to denying a fact or
restoring a right that has been previously waived.
Valid Contract (Legal Contract) - CORRECT ANSWERS- one that meets all of
the requirements of a binding contract. Competent parties, legal purpose,
and consideration, not an actual written document.
Policyfolder - CORRECT ANSWERS- Important documents with a custom
folder.
Plan Sponsors - CORRECT ANSWERS- Policyholder responsible for
administering pan and making premiums to insurance company.
Employee or individual employer group - CORRECT ANSWERS- Employer is
the policy-owner and establishes eligible class of employees to be covered
under group policy.
Multiple employer group - CORRECT ANSWERS- Several employers forming a
trust to combine their workers for life insurance eligibility.
Multiple Employer Trust (MET) - CORRECT ANSWERS- A legal entity of small
business owners grouped together to buy life insurance.
Taft-Hartley Act - CORRECT ANSWERS- a law that restricted the power of
labor unions
Taft Hartley Trust - CORRECT ANSWERS- multi-employers funds, Taft-Hartley
trusts, joint trusts, jointly trusted plans, ERISA trust funds and labor-
management employees benefit plans
Association or labor group - CORRECT ANSWERS- Group insurance for labor
organizations. Must Have a constitution and bylaws, organized and maintain
good faith, cover members for their employer benefit.
credit insurance - CORRECT ANSWERS- covers the life of a debtor if death or
disabled.
Creditor - CORRECT ANSWERS- Policyowner
Debtors - CORRECT ANSWERS- People who owe money insured.
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