Florida Health 240 Insurance Complete Questions and
Guide Answers, 100% Verified Graded A+
1. Rules of Construction
Answer: Help to identify and establish the intent of the parties to the contract
2. Utmost good faith
Answer: Each party is entitled to rely on the representation of the other, and each party should have a
reasonable expectation that the other is acting in good faith without attempts to conceal or deceive.
3. Aleatory Contract
Answer: A contract under which one party's performance is contingent on an uncertain event.
4. property and casualty agent
Answer: has the power to bind the insurer
5. Adhesion Contract
Answer: Insurance company drafts contract and the insured adheres to it. Any ambiguity resolved in
favor of the insured.
6. Unilateral contract
,Answer: Insured has completed paying the premium, only one party of the contract is legally required to do
something. Insured promises to pay the death benefit in the event of loss. Can not be held for breach of contract.
7. Conditional contract
Answer: This type of contract is conditional because the company only pays on condition of
a loss.
8. Personal Contract
Answer: The contract is between the insured and the insurer
9. warranty
Answer: guarantee; assurance by seller. Any breach provides grounds for voiding the contract.
10. representation
Answer: a statement believed to be true to the best of one's knowledge.
11. false pretenses
Answer: When an uninsurable individual applying for insurance may ask another person to substi- tute for him
to take the physical examination.
12. Misrepresentation
Answer: A false statement or lie that can render the contract void.
13. concealment (n)
Answer: The failure to disclose material facts. Grounds for recission by either party.
,14. Material Information or facts
Answer: Something crucial to acceptance of the risk.
15. fraud (n)
Answer: An intentional act designed to deceive and induce another party to part with something of value.
16. Parol Evidence Rule
Answer: Rule of law disallowing oral evidence which disputes a written agreement.
17. Voidable Contract
Answer: A contract that may be legally avoided at the option of one or both of the parties.
18. Void Contract
Answer: an agreement of no legal ettect.
19. Implied Authority
Answer: Authority that is given not in writing but that is necessary for the agent to transact insurance.
20. Apparent Authority
Answer: A third party's reasonable belief that an agent has authority to act on the principal's behalf.
21. Express Authority
Answer: the authority of an agent, stated in the document or agreement creating the agency.
22. Lingering implied authority
Answer: means that the agent carries "signs or evidences of authority.
, 23. Estoppel
Answer: A legal impediment to denying a fact or restoring a right that has been previously waived.
24. Valid Contract (Legal Contract)
Answer: one that meets all of the requirements of a binding contract. Competent parties, legal
purpose, and consideration, not an actual written document.
25. Policyfolder
Answer: Important documents with a custom folder.
26. Plan Sponsors
Answer: Policyholder responsible for administering pan and making premiums to insurance com- pany.
27. Employee or individual employer group
Answer: Employer is the policy-owner and establishes eligible class of employees to be covered under
group policy.
28. Multiple employer group
Answer: Several employers forming a trust to combine their workers for life insurance eligibility.
29. Multiple Employer Trust (MET)
Answer: A legal entity of small business owners grouped together to buy life insurance.
30. Taft-Hartley Act
Answer: a law that restricted the power of labor unions
Guide Answers, 100% Verified Graded A+
1. Rules of Construction
Answer: Help to identify and establish the intent of the parties to the contract
2. Utmost good faith
Answer: Each party is entitled to rely on the representation of the other, and each party should have a
reasonable expectation that the other is acting in good faith without attempts to conceal or deceive.
3. Aleatory Contract
Answer: A contract under which one party's performance is contingent on an uncertain event.
4. property and casualty agent
Answer: has the power to bind the insurer
5. Adhesion Contract
Answer: Insurance company drafts contract and the insured adheres to it. Any ambiguity resolved in
favor of the insured.
6. Unilateral contract
,Answer: Insured has completed paying the premium, only one party of the contract is legally required to do
something. Insured promises to pay the death benefit in the event of loss. Can not be held for breach of contract.
7. Conditional contract
Answer: This type of contract is conditional because the company only pays on condition of
a loss.
8. Personal Contract
Answer: The contract is between the insured and the insurer
9. warranty
Answer: guarantee; assurance by seller. Any breach provides grounds for voiding the contract.
10. representation
Answer: a statement believed to be true to the best of one's knowledge.
11. false pretenses
Answer: When an uninsurable individual applying for insurance may ask another person to substi- tute for him
to take the physical examination.
12. Misrepresentation
Answer: A false statement or lie that can render the contract void.
13. concealment (n)
Answer: The failure to disclose material facts. Grounds for recission by either party.
,14. Material Information or facts
Answer: Something crucial to acceptance of the risk.
15. fraud (n)
Answer: An intentional act designed to deceive and induce another party to part with something of value.
16. Parol Evidence Rule
Answer: Rule of law disallowing oral evidence which disputes a written agreement.
17. Voidable Contract
Answer: A contract that may be legally avoided at the option of one or both of the parties.
18. Void Contract
Answer: an agreement of no legal ettect.
19. Implied Authority
Answer: Authority that is given not in writing but that is necessary for the agent to transact insurance.
20. Apparent Authority
Answer: A third party's reasonable belief that an agent has authority to act on the principal's behalf.
21. Express Authority
Answer: the authority of an agent, stated in the document or agreement creating the agency.
22. Lingering implied authority
Answer: means that the agent carries "signs or evidences of authority.
, 23. Estoppel
Answer: A legal impediment to denying a fact or restoring a right that has been previously waived.
24. Valid Contract (Legal Contract)
Answer: one that meets all of the requirements of a binding contract. Competent parties, legal
purpose, and consideration, not an actual written document.
25. Policyfolder
Answer: Important documents with a custom folder.
26. Plan Sponsors
Answer: Policyholder responsible for administering pan and making premiums to insurance com- pany.
27. Employee or individual employer group
Answer: Employer is the policy-owner and establishes eligible class of employees to be covered under
group policy.
28. Multiple employer group
Answer: Several employers forming a trust to combine their workers for life insurance eligibility.
29. Multiple Employer Trust (MET)
Answer: A legal entity of small business owners grouped together to buy life insurance.
30. Taft-Hartley Act
Answer: a law that restricted the power of labor unions
