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
Quiz: An insurance applicant MUST be informed of an investigation
regarding his/her reputation and character according to the:
An...
| OnlineExams | TestPrep | StudyResources | AcademicSuccess | ExamPreparation | QuizTime | LearningTools | Education | StudentSupport
In today's fast-paced educational landscape, students need reliable resources to excel in their studies.
5.0
FLORIDA 240 LICENSE2025- 2026 QUESTIONS WITH
DETAILED VERIFIED 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
Quiz: An insurance applicant MUST be informed of an investigation
regarding his/her reputation and character according to the:
Ans: Fair Credit Reporting Act
Quiz: A nonprofit incorporated society that does not have capital stock
and operates for the sole benefit of its members is known as:
Ans: A fraternal benefit society
Quiz: 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
Quiz: Who elects the governing body of a mutual insurance company?
Ans: Policyholders
,Quiz: 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
Quiz: What type of reinsurance contract involves two companies
automatically sharing their risk exposure?
Ans: treaty
Quiz: What year was the McCarran-Ferguson Act enacted?
Ans: 1945
Quiz: Which of these describe a participating life insurance policy?
Ans: Policy owners are entitled to receive dividends
Quiz: 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
Quiz: 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
Examstudy - Stuvia US
,Quiz: What type of reinsurance contract involves two companies
automatically sharing their risk exposure?
Ans: Treaty
Quiz: A group-owned insurance company that is formed to assume
and spread the liability risks of its members is known as a:
Ans: risk retention group
Quiz: All of the following are considered to be typical characteristics
describing the nature of an insurance contract, EXCEPT:
Ans: Bilateral
Quiz: The part of a life insurance policy guaranteed to be true is called
a(n)
Ans: warranty
Quiz: Statements made on an insurance application that are believed
to be true to the best of the applicant's knowledge are called
Ans: representations
Quiz: Q purchases a $500,000 life insurance policy and pays $900 in
premiums over the first six months. Q dies suddenly and the beneficiary
Examstudy - Stuvia US
, is paid $500,000. This exchange of unequal values reflects which of the
following insurance contract features?
Ans: Aleatory
Quiz: When must insurable interest be present in order for a life
insurance policy to be valid?
Ans: When the application is made
Quiz: A life insurance arrangement which circumvents insurable interest
statutes is called:
Ans: Investor-Originated Life Insurance
Quiz: Stranger Originated Life Insurance (STOLI) has been found to be in
violation of which of the following contractual elements?
Ans: Legal Purpose (Insurable Interest)
Quiz: Who makes the legally enforceable promises in a unilateral
contract?
Ans: Insurance company
Quiz: A policy of adhesion can only be modified by whom?
Ans: insurance company
Examstudy - Stuvia US
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Examstudy. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £11.68. You're not tied to anything after your purchase.
