FLORIDA HEALTH 240 INSURANCE
QUESTIONS WITH ANSWERS
RULES OF CONSTRUCTION - CORRECT SOLUTION HELP TO IDENTIFY
AND ESTABLISH THE INTENT OF THE PARTIES TO THE CONTRACT
UTMOST GOOD FAITH - CORRECT SOLUTION 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.
ALEATORY CONTRACT - CORRECT SOLUTION A CONTRACT UNDER
WHICH ONE PARTY'S PERFORMANCE IS CONTINGENT ON AN
UNCERTAIN EVENT.
PROPERTY AND CASUALTY AGENT - CORRECT SOLUTION HAS THE
POWER TO BIND THE INSURER
ADHESION CONTRACT - CORRECT SOLUTION INSURANCE COMPANY
DRAFTS CONTRACT AND THE INSURED ADHERES TO IT. ANY
AMBIGUITY RESOLVED IN FAVOR OF THE INSURED.
UNILATERAL CONTRACT - CORRECT SOLUTION 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.
,CONDITIONAL CONTRACT - CORRECT SOLUTION THIS TYPE OF
CONTRACT IS CONDITIONAL BECAUSE THE COMPANY ONLY PAYS
ON CONDITION OF A LOSS.
PERSONAL CONTRACT - CORRECT SOLUTION THE CONTRACT IS
BETWEEN THE INSURED AND THE INSURER
WARRANTY - CORRECT SOLUTION GUARANTEE; ASSURANCE BY
SELLER. ANY BREACH PROVIDES GROUNDS FOR VOIDING THE
CONTRACT.
REPRESENTATION - CORRECT SOLUTION A STATEMENT BELIEVED TO
BE TRUE TO THE BEST OF ONE'S KNOWLEDGE.
FALSE PRETENSES - CORRECT SOLUTION WHEN AN UNINSURABLE
INDIVIDUAL APPLYING FOR INSURANCE MAY ASK ANOTHER PERSON
TO SUBSTITUTE FOR HIM TO TAKE THE PHYSICAL EXAMINATION.
MISREPRESENTATION - CORRECT SOLUTION A FALSE STATEMENT OR
LIE THAT CAN RENDER THE CONTRACT VOID.
CONCEALMENT (N) - CORRECT SOLUTION THE FAILURE TO DISCLOSE
MATERIAL FACTS. GROUNDS FOR RECISSION BY EITHER PARTY.
MATERIAL INFORMATION OR FACTS - CORRECT SOLUTION
SOMETHING CRUCIAL TO ACCEPTANCE OF THE RISK.
FRAUD (N) - CORRECT SOLUTION AN INTENTIONAL ACT DESIGNED
TO DECEIVE AND INDUCE ANOTHER PARTY TO PART WITH
SOMETHING OF VALUE.
, PAROL EVIDENCE RULE - CORRECT SOLUTION RULE OF LAW
DISALLOWING ORAL EVIDENCE WHICH DISPUTES A WRITTEN
AGREEMENT.
VOIDABLE CONTRACT - CORRECT SOLUTION A CONTRACT THAT
MAY BE LEGALLY AVOIDED AT THE OPTION OF ONE OR BOTH OF THE
PARTIES.
VOID CONTRACT - CORRECT SOLUTION AN AGREEMENT OF NO
LEGAL EFFECT.
IMPLIED AUTHORITY - CORRECT SOLUTION AUTHORITY THAT IS
GIVEN NOT IN WRITING BUT THAT IS NECESSARY FOR THE AGENT TO
TRANSACT INSURANCE.
APPARENT AUTHORITY - CORRECT SOLUTION A THIRD PARTY'S
REASONABLE BELIEF THAT AN AGENT HAS AUTHORITY TO ACT ON
THE PRINCIPAL'S BEHALF.
EXPRESS AUTHORITY - CORRECT SOLUTION THE AUTHORITY OF AN
AGENT, STATED IN THE DOCUMENT OR AGREEMENT CREATING THE
AGENCY.
LINGERING IMPLIED AUTHORITY - CORRECT SOLUTION MEANS THAT
THE AGENT CARRIES "SIGNS OR EVIDENCES OF AUTHORITY.
ESTOPPEL - CORRECT SOLUTION A LEGAL IMPEDIMENT TO DENYING
A FACT OR RESTORING A RIGHT THAT HAS BEEN PREVIOUSLY
WAIVED.
QUESTIONS WITH ANSWERS
RULES OF CONSTRUCTION - CORRECT SOLUTION HELP TO IDENTIFY
AND ESTABLISH THE INTENT OF THE PARTIES TO THE CONTRACT
UTMOST GOOD FAITH - CORRECT SOLUTION 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.
ALEATORY CONTRACT - CORRECT SOLUTION A CONTRACT UNDER
WHICH ONE PARTY'S PERFORMANCE IS CONTINGENT ON AN
UNCERTAIN EVENT.
PROPERTY AND CASUALTY AGENT - CORRECT SOLUTION HAS THE
POWER TO BIND THE INSURER
ADHESION CONTRACT - CORRECT SOLUTION INSURANCE COMPANY
DRAFTS CONTRACT AND THE INSURED ADHERES TO IT. ANY
AMBIGUITY RESOLVED IN FAVOR OF THE INSURED.
UNILATERAL CONTRACT - CORRECT SOLUTION 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.
,CONDITIONAL CONTRACT - CORRECT SOLUTION THIS TYPE OF
CONTRACT IS CONDITIONAL BECAUSE THE COMPANY ONLY PAYS
ON CONDITION OF A LOSS.
PERSONAL CONTRACT - CORRECT SOLUTION THE CONTRACT IS
BETWEEN THE INSURED AND THE INSURER
WARRANTY - CORRECT SOLUTION GUARANTEE; ASSURANCE BY
SELLER. ANY BREACH PROVIDES GROUNDS FOR VOIDING THE
CONTRACT.
REPRESENTATION - CORRECT SOLUTION A STATEMENT BELIEVED TO
BE TRUE TO THE BEST OF ONE'S KNOWLEDGE.
FALSE PRETENSES - CORRECT SOLUTION WHEN AN UNINSURABLE
INDIVIDUAL APPLYING FOR INSURANCE MAY ASK ANOTHER PERSON
TO SUBSTITUTE FOR HIM TO TAKE THE PHYSICAL EXAMINATION.
MISREPRESENTATION - CORRECT SOLUTION A FALSE STATEMENT OR
LIE THAT CAN RENDER THE CONTRACT VOID.
CONCEALMENT (N) - CORRECT SOLUTION THE FAILURE TO DISCLOSE
MATERIAL FACTS. GROUNDS FOR RECISSION BY EITHER PARTY.
MATERIAL INFORMATION OR FACTS - CORRECT SOLUTION
SOMETHING CRUCIAL TO ACCEPTANCE OF THE RISK.
FRAUD (N) - CORRECT SOLUTION AN INTENTIONAL ACT DESIGNED
TO DECEIVE AND INDUCE ANOTHER PARTY TO PART WITH
SOMETHING OF VALUE.
, PAROL EVIDENCE RULE - CORRECT SOLUTION RULE OF LAW
DISALLOWING ORAL EVIDENCE WHICH DISPUTES A WRITTEN
AGREEMENT.
VOIDABLE CONTRACT - CORRECT SOLUTION A CONTRACT THAT
MAY BE LEGALLY AVOIDED AT THE OPTION OF ONE OR BOTH OF THE
PARTIES.
VOID CONTRACT - CORRECT SOLUTION AN AGREEMENT OF NO
LEGAL EFFECT.
IMPLIED AUTHORITY - CORRECT SOLUTION AUTHORITY THAT IS
GIVEN NOT IN WRITING BUT THAT IS NECESSARY FOR THE AGENT TO
TRANSACT INSURANCE.
APPARENT AUTHORITY - CORRECT SOLUTION A THIRD PARTY'S
REASONABLE BELIEF THAT AN AGENT HAS AUTHORITY TO ACT ON
THE PRINCIPAL'S BEHALF.
EXPRESS AUTHORITY - CORRECT SOLUTION THE AUTHORITY OF AN
AGENT, STATED IN THE DOCUMENT OR AGREEMENT CREATING THE
AGENCY.
LINGERING IMPLIED AUTHORITY - CORRECT SOLUTION MEANS THAT
THE AGENT CARRIES "SIGNS OR EVIDENCES OF AUTHORITY.
ESTOPPEL - CORRECT SOLUTION A LEGAL IMPEDIMENT TO DENYING
A FACT OR RESTORING A RIGHT THAT HAS BEEN PREVIOUSLY
WAIVED.
