FLORIDA 2-15 INSURANCE LICENSE EXAM LATEST 2023-
2024 REAL EXAM 200 QUESTIONS AND CORRECT ANSWERS
WITH RATIONALES |AGRADE
On August 9, Albert made an application for life insurance that his agent submitted
a day later without a premium payment. On August 21, the insurer issued the
policy as applied for and on August 24, the agent delivered the policy and collected
the initial premium. On what day was the contract offer made?
A. August 9
B. August 10
C. August 21
D. August 24 – ANSWER- C. Rationale:If an applicant does not submit an initial
premium with the application, the applicant is inviting the insurance company to
make a contract offer. The insurer can respond by issuing a policy (the offer) that
the applicant can accept by paying the premium when the policy is delivered.
All statements made by an applicant in an application for life insurance are
considered to be
A. warranties
B. affirmations
C. representations
D. declarations – ANSWER- C. Rationale:Most states require that life insurance
policies contain a provision that all statements made in application be deemed
representation not warranties. A representation is a statement made by the
applicant that the applicant believes to be true. A warranty is a statement made by
the applicant that is guaranteed to be true. If an insurance company rejects a claim
on the basis of a representation, the company bears the burden of proving
materiality.
Which of the following legal terms indicates that a life insurance contract contains
the enforceable promises of only one party?
A. adhesion
B. unilateral
C. conditional
D. aleatory – ANSWER- B. Rationale:Insurance contracts are unilateral in that only
one party – the insurer – makes any kind of enforceable promise.<\/p>\n\n\n\n
Which of the following types of agent authority is specifically set forth in writing
in the agent’s contract?
A. express
B. implied
C. apparent
D. personal – ANSWER- A. Rationale:Express authority is the authority a principal
gives to its agent. Express authority is granted by means of the agent’s contract,
which is the principal’s appointment of the agent to act on its behalf.
Assume a home catches fire after it is struck by lightning and the fire destroys its
structure and contents. By insurance definition, the fire is
A. the risk
B. the hazard
C. the peril
D. the proximate cause – ANSWER- C. Rationale:A peril is the immediate specific
event causing loss and giving rise to risk. When a building burns, fire is the peril.
What constitutes “consideration” for a life insurance policy?
A. application and initial premium
B. agent’s commission
C. adhesion feature of the contract
D. policy’s benefits – ANSWER- A. Rationale:Consideration is the value given in
exchange for the promises sought. In an insurance contract, consideration is given
by the applicant in exchange for the insurer’s promise to pay benefits, and it
consists of the application and the initial premium.
Statements made by an applicant for life insurance that are guaranteed to be true
are
A. warranties
B. material statements
C. representations
D. declarations – ANSWER- A. Rationale:A warranty in insurance is a statement
made by the applicant that is guaranteed to be true. It becomes part of the contract
and, if found to be untrue, can be grounds for revoking the contract. Warranties are<\/p>\n\n\n\n
presumed to be material because they affect the insurer’s decision to accept or
reject an applicant.
Which of the following insurance companies is owned by its policyholders?
A. service insurer
B. stock insurer
C. reinsurer
D. mutual insurer – ANSWER- D. Rationale:Mutual insurers are owned by the
policyholders. Anyone purchasing insurance from a mutual insurer is both a
customer and an owner.
With regard to life insurance, all of the following statements are correct EXCEPT
A. all individuals are considered to have insurable interests in themselves
B. spouses are automatically considered to have insurable interests in each other
C. a creditor has an insurable interest in a debtor
D. insurable interest must be maintained throughout the life of the contract –
ANSWER- D. Rationale:Insurable interest is required only when a contract is
issued; it does not have to be maintained throughout the life of the contract nor is it
necessary at the time of claim.
A life insurance company is organized in Orlando where it maintains its home
office. In Florida, the company is classified as
A. a domestic company
B. a local company
C. a foreign company
D. a preferred company – ANSWER- Rationale: A. An insurer is termed
“domestic” in a state when it is incorporated in that state.
A life insurance company organized in Illinois, with its home office in
Philadelphia, is licensed to conduct business in Wisconsin. In Wisconsin, this
company is classified as
A. a domestic company
B. an alien company
C. a foreign company<\/p>\n\n\n\n
D. a regional company – ANSWER- C. Rationale:A foreign company operates
within a state in which it is not chartered and in which the home office is not
located.
To whom does the cash value of a life insurance policy belong?
A. policyowner
B. insured
C. insurer
D. beneficiary – ANSWER- A. Rationale:The accumulation that builds over the life
of a policy is called the “cash value,” and it belongs to the policyowner, who may
or may not be the insured.
Frank is the insured in a $40,000, 5-year level term policy issued in 2003. He died
in 2009. His beneficiary received
A. nothing
B. $20,000
C. $40,000
D. the cash value of the policy – ANSWER- Rationale:A. In this case, the insured
died after his term policy had expired. As a result, his beneficiary received nothing.
All of the following statements regarding assignment of a life insurance policy are
correct EXCEPT
A. to secure a loan, the policy can be transferred temporarily to the lender as
security for the loan
B. the policyowner must obtain approval from the insurance company before a
policy can be assigned
C. the life insurance company assume no responsibility for the validity of an
assignment
D. the life insurance company must be notified in writing by the policyowner of
any new assignment – ANSWER- B. Rationale:Policyowners actually own their
policies and may do with them as they please. They can even give them away, just
as they can give away any other kind of property they own. Nevertheless, they
must notify the insurance company in writing of any transfers of ownership
(assignments). The company must then accept the validity of the assignments
without question.
<\/p>\n","protected":false},"excerpt":{"rendered":"
FLORIDA 2-15 INSURANCE LICENSE EXAM LATEST 2023-2024 REAL EXAM 200 QUESTIONS AND CORRECT ANSWERSWITH RATIONALES |AGRADEOn August 9, Albert made an application for life insurance that his agent submitteda day later without a premium payment. On August 21, the insurer issued thepolicy as applied for and on August 24, the agent delivered the policy and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-112797","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/112797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=112797"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/112797\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=112797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=112797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=112797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}