FLORIDA 240 LICENSE EXAM LATEST
COMPLETE ACTUAL EXAM REAL QUESTIONS AND WELL
ELABORATED ANSWERS (CORRECT VERIFIED ANSWERS)
LATEST UPDATED VERSION |ALREADY GRADED A+ (FULL
REVISED EXAM)
The part of a life insurance policy guaranteed to be true is called a(n) -
Answer-warranty
Statements made on an insurance application that are believed to be
true to the best of the applicant's knowledge are called - Answer-
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? - Answer-Aleatory
When must insurable interest be present in order for a life insurance
policy to be valid? - Answer-When the application is made
A life insurance arrangement which circumvents insurable interest
statutes is called: - Answer-Investor-Originated Life Insurance
,Stranger Originated Life Insurance (STOLI) has been found to be in
violation of which of the following contractual elements? - Answer-
Legal Purpose (Insurable Interest)
Who makes the legally enforceable promises in a unilateral contract? -
Answer-Insurance company
A policy of adhesion can only be modified by whom? - Answer-
insurance company
When third-party ownership is involved, applicants who also happen to
be the stated primary beneficiary are required to have: - Answer-
insurable interest in the proposed insured
Which of these is considered a statement that is assured to be true in
every aspect? - Answer-Warranty
Which of these require an offer, acceptance, and consideration? -
Answer-contract
If a contract of adhesion contains complicated language, to whom
would the interpretation be in favor of? - Answer-insured
,Insurance contracts are known as _____ because certain future
conditions or acts must occur before any claims can be paid. - Answer-
conditional
Insurance policies are offered on a "take it or leave it" basis, which
make them: - Answer-Contracts of Adhesion
In regards to representations or warranties, which of these statements
is TRUE? - Answer-If material to the risk, false representations will void
a policy
Which of these arrangements allows one to bypass insurable interest
laws? - Answer-Investor-Originated Life Insurance
In an insurance contract, the insurer is the only party who makes a
legally enforceable promise. What kind of contract is this? - Answer-
unilateral
Which of these is NOT a type of agent authority? - Answer-principal
E and F are business partners. Each takes out a $500,000 life insurance
policy on the other, naming himself as primary beneficiary. E and F
eventually terminate their business, and four months later E dies.
Although E was married with three children at the time of death, the
primary beneficiary is still F. However, an insurable interest no longer
exists. Where will the proceeds from E's life insurance policy be
, directed to? - Answer-In this situation, the proceeds from E's life
insurance policy will go to F.
When must insurable interest exist for a life insurance contract to be
valid? - Answer-Inception of the contract
Life and health insurance policies are: - Answer-unilateral contracts
A policy of adhesion can only be modified by whom? - Answer-
insurance company
At what point does an informal contract become binding? - Answer-
When one party makes an offer and the other party accepts that offer
What is the consideration given by an insurer in the Consideration
clause of a life policy? - Answer-Promise to pay a death benefit
What is the consideration given by an insurer in the Consideration
clause of life policy? - Answer-Promise to pay a death benefit to a
named beneficiary
Insurance policies are considered aleatory contracts because: - Answer-
performance is conditioned upon a future occurrence
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