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Florida life Insurance Exam Set ( Latest 2024 / 2025 ) Actual Questions and Answers 100% Correct
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Florida life Insurance Exam Set ( Latest 2024 / 2025 ) Actual Questions and Answers 100% Correct
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Florida life Insurance Exam SetBy ExamNavigator
,Florida life Insurance Exam Set
1. Which of the following requires insurers to disclose when an applicants consumer or credit
history is being investigated
Answer: 1970 - Fair Credit ReportingAct
2. Who elects the governing body of a mutual insurance company
Answer: Policyholders
3. Which of these describe a participating insurance policy
Answer: Policyowners areentitled to receive dividends
4. The stated amount or percent of liquid assets that an insurer must have onhand that will
satisfy future obligations to its policyholders is called
Answer: reserves
5. An insurance applicant MUST be informed of an investigation regardinghis/her reputation
and character according to the
Answer: Fair Credit Reporting Act
6. Dividends payable to a policy owner are
Answer: Declared by the insurance company
7. A group-owned insurance company that is formed to assume and spreadthe liability risks of
its members is known as a
Answer: risk retention group
8. When a policy pays dividends to its policyholders, it is said to be
Answer: participating
9. At what point must a life insurance applicant be informed of their rights thatfall under the
Fair Credit Reporting Act
Answer: Upon completion of the application
10. What type of reinsurance contract involves two companies automaticallysharing their risk
exposure?
Answer: Treaty reinsurance
11. What year was the McCarran-Ferguson Act enacted
Answer: 1945
12. What is the name of the law that requires insurers to disclose informationgathering
practices and where the information was obtained
Answer: Fair Credit Re- porting Act
, 13. A non profit incorporated society that does not have capital stock andoperates for the sole
benefit of its members is known as:
Answer: fraternal benefitsociety
14. Which of these is considered a statement that is assured to be true in everyrespect
Answer: warranty
15. Which of the following consist of an offer acceptance and consideration
Answer: -contract
16. A life insurance arrangement which circumvents insurable interest statuesis called
Answer: Investor-Originated Life Insurance
17. Who makes the legally enforceable promises in a unilateral insurancepolicy?
Answer: insurance company
18. What is the consideration given by an insurer in the consideration clauseof a life policy
Answer: Promise to pay a death benefit to a named beneficiary
19. Taking receipt of premiums and holding them for the insurance companyis an example of
Answer: Fiduciary responsibility
20. Life and health insurance policies are
Answer: Unilateral contracts.
(Life and health insurance policies are considered unilateral contracts because oneparty makes
a promise, and the other party can only accept by performance.)
21. A policy of adhesion can only be modified by whom?
Answer: The insurance company.
(A policy of adhesion is best described as a policy which only the insurance companycan
modify.)
22. If a contract of adhesion contains complicated language, to whom wouldthe interpretation
be in favor of?
Answer: insured
23. The Consideration clause of an insurance contract includes
Answer: the scheduleand amount of premium payments
24. Which of these is not considered to be an element of an insurancecontract
Answer: negotiating
25. Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of
the following contractual elements?
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