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Florida Life and Health Insurance Law Practice Exam
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Florida Life and Health Insurance Law Practice Exam
- Who elects the governing body of a metal Insurance company?
Answer: The Policy- holders
- When a policy pays dividends to its policy holders is said to be?
Answer: Participating
- Which of these describe a participating insurance policy?
Answer: Policy owners are entitled to receive dividends
- An insurance applicant MUST be informed of an investigation regarding his/her reputation
and character according to the?
Answer: 1970 Fair credit reporting act
- 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?
Answer: Re- serves
- The Part of a life insurance policy GUARANTEED to be true is called?
Answer: Warranty
- At what point does an informal agreement become a binding contract?
Answer: - When consideration is provided by one of the parties to the contract
- Who makes the legally enforceable promise in a unilateral insurance poli- cy?
Answer: The Insurance Company
- When a third-party ownership is involved, applicants who also happen to be the stated the
primary beneficiary are required to have?
Answer: Insurable interest in the proposed insured
- A policy of adhesion can only be modified by whom?
Answer: The insurance company
- Insurance policies are considered aleatory contracts because?
Answer: Performance is conditioned upon a future occurrence
- Q purchase $500k 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 insurance contract features?-
Answer: Aleatory
- What consists of an offer, acceptance, and consideration? 2 / 3
Answer: The Contract
- A Principal is NOT a type agent authority?
Answer: True
- Taking a receipt of premiums and holding them for the insurance company is an example
of?
Answer: Fiduciary responsibility
- A Bilateral typically has characteristics describing the nature of an insurance contract.
Answer: False
- In regards to representation or warranties?
Answer: If material to the RISK, false representations will void a policy
- Statements made on an insurance application that are BELIEVED to be true to the best of the
applicants knowledge are called?
Answer: Representations
- A variable insurance policy?
Answer: Does NOT guarantee a return on investment accounts
- Whole life insurance is sometimes referred to as "Straight Life". What does the word
"Straight" indicate when using this phrase?
Answer: The duration of premium payments
- What type of policy would offer a 40- year old the quickest accumulation of cash value?
Answer: A 20-pay life
- Modified Whole Life: This life product is NOT considered interest sensitive?
- Y Purchased $100,000 worth of permanent protection on himself and
$50,000 worth of 10-year Term coverage for his wife on the same policy. What did Y Purchase?
Answer: Whole life policy with an Other Insured Rider
- Which of the following types of Term Life policies most likely contains a Renewability
feature?
Answer: A 10 year convertibility Term
- Modified Endowment Contract: This type of policy is considered to be over- funded, as
- A company that owns a life insurance policy on one of its key employees can't?
stated by IRS guidelines?
Answer: Change the policy's interest rate
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