Florida Life and Health Insurance Law Practice Exam

Florida Life and Health Insurance Law Practice Exam
1. Who elects the governing body of a metal Insurance company?
Answer: The Policy-holders
2. When a policy pays dividends to its policy holders is said to be?
Answer: Participating
3. Which of these describe a participating insurance policy?
Answer: Policy owners areentitled to receive dividends
4. An insurance applicant MUST be informed of an investigation regarding his/her reputation
and character according to the?
Answer: 1970 Fair credit reportingact
5. 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
6. The Part of a life insurance policy GUARANTEED to be true is called?
Answer: Warranty
7. At what point does an informal agreement become a binding contract?
Answer: - When consideration is provided by one of the parties to the contract
8. Who makes the legally enforceable promise in a unilateral insurance poli-cy?
Answer: The Insurance Company
9. When a third-party ownership is involved, applicants who also happen to be the stated the
primary beneficiary are required to have?
Answer: Insurable interestin the proposed insured
10. A policy of adhesion can only be modified by whom?
Answer: The insurance company
11. Insurance policies are considered aleatory contracts because?
Answer: Performance is conditioned upon a future occurrence
12. 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
valuesreflects which insurance contract features?-
Answer: Aleatory
13. What consists of an offer, acceptance, and consideration?
Answer: The Contract