Florida 215 Life, Health, Insurance Law
Practice Exam Questions and Answers
1. Who elects the governing body of a metal Insurance company?
Answer The Policyholders
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 are entitled 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 reporting act
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 Reserves
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
policy?-
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 interest in 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 values
reflects which insurance contract features?
Answer Aleatory
,13. What consists of an offer, acceptance, and consideration?
Answer The Contract
14. A Principal is NOT a type agent authority?
Answer True
15. Taking a receipt of premiums and holding them for the
insurance company is an example of?
Answer Fiduciary responsibility
16. A Bilateral typically has characteristics describing the nature
of an insurance contract.
Answer False
17. In regards to representation or warranties?
Answer If material to the RISK, false representations will void a policy
18. Statements made on an insurance application that are
BELIEVED to be true to the best of the applicants knowledge are
called?
Answer Representations
19. A variable insurance policy?
Answer Does NOT guarantee a return on investment accounts
, 20. 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
21. What type of policy would offer a 40- year old the quickest
accumulation of cash value?
Answer A 20-pay life
22. Modified Whole Life
Answer This life product is NOT considered interest sensitive?
23. 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
24. Which of the following types of Term Life policies most
likely contains a Renewability feature?
Answer A 10 year convertibility Term
25. Modified Endowment Contract
Answer This type of policy is considered to be overfunded, as stated by IRS guidelines?
26. A company that owns a life insurance policy on one of its
key employees can't?
Practice Exam Questions and Answers
1. Who elects the governing body of a metal Insurance company?
Answer The Policyholders
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 are entitled 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 reporting act
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 Reserves
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
policy?-
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 interest in 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 values
reflects which insurance contract features?
Answer Aleatory
,13. What consists of an offer, acceptance, and consideration?
Answer The Contract
14. A Principal is NOT a type agent authority?
Answer True
15. Taking a receipt of premiums and holding them for the
insurance company is an example of?
Answer Fiduciary responsibility
16. A Bilateral typically has characteristics describing the nature
of an insurance contract.
Answer False
17. In regards to representation or warranties?
Answer If material to the RISK, false representations will void a policy
18. Statements made on an insurance application that are
BELIEVED to be true to the best of the applicants knowledge are
called?
Answer Representations
19. A variable insurance policy?
Answer Does NOT guarantee a return on investment accounts
, 20. 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
21. What type of policy would offer a 40- year old the quickest
accumulation of cash value?
Answer A 20-pay life
22. Modified Whole Life
Answer This life product is NOT considered interest sensitive?
23. 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
24. Which of the following types of Term Life policies most
likely contains a Renewability feature?
Answer A 10 year convertibility Term
25. Modified Endowment Contract
Answer This type of policy is considered to be overfunded, as stated by IRS guidelines?
26. A company that owns a life insurance policy on one of its
key employees can't?
