Florida Health 240 Insurance Exam Questions
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warranty - ✔✔guarantee; assurance by seller. Any breach provides grounds for
voiding the contract.
representation - ✔✔a statement believed to be true to the best of one's knowledge.
false pretenses - ✔✔When an uninsurable individual applying for insurance may ask
another person to substitute for him to take the physical examination.
Misrepresentation - ✔✔A false statement or lie that can render the contract void.
concealment (n) - ✔✔The failure to disclose material facts. Grounds for recission by
either party.
Material Information or facts - ✔✔Something crucial to acceptance of the risk.
fraud (n) - ✔✔An intentional act designed to deceive and induce another party to
part with something of value.
Parol Evidence Rule - ✔✔Rule of law disallowing oral evidence which disputes a
written agreement.
Voidable Contract - ✔✔A contract that may be legally avoided at the option of one or
both of the parties.
,Void Contract - ✔✔an agreement of no legal effect.
Implied Authority - ✔✔Authority that is given not in writing but that is necessary for
the agent to transact insurance.
Apparent Authority - ✔✔A third party's reasonable belief that an agent has authority
to act on the principal's behalf.
Express Authority - ✔✔the authority of an agent, stated in the document or
agreement creating the agency.
Lingering implied authority - ✔✔means that the agent carries "signs or evidences of
authority.
Estoppel - ✔✔A legal impediment to denying a fact or restoring a right that has been
previously waived.
Valid Contract (Legal Contract) - ✔✔one that meets all of the requirements of a
binding contract. Competent parties, legal purpose, and consideration, not an actual
written document.
Policyfolder - ✔✔Important documents with a custom folder.
Plan Sponsors - ✔✔Policyholder responsible for administering pan and making
premiums to insurance company.
, Employee or individual employer group - ✔✔Employer is the policy-owner and
establishes eligible class of employees to be covered under group policy.
Multiple employer group - ✔✔Several employers forming a trust to combine their
workers for life insurance eligibility.
Multiple Employer Trust (MET) - ✔✔A legal entity of small business owners grouped
together to buy life insurance.
Taft-Hartley Act - ✔✔a law that restricted the power of labor unions
Taft Hartley Trust - ✔✔multi-employers funds, Taft-Hartley trusts, joint trusts, jointly
trusted plans, ERISA trust funds and labor-management employees benefit plans
Association or labor group - ✔✔Group insurance for labor organizations. Must Have a
constitution and bylaws, organized and maintain good faith, cover members for their
employer benefit.
credit insurance - ✔✔covers the life of a debtor if death or disabled.
Creditor - ✔✔Policyowner
Debtors - ✔✔People who owe money insured.
Contributory Plan - ✔✔Insured contributes money toward the premium. 75% of
employees must participate.
Solved 100% Correct| Newest 2025|Verified
Solutions
warranty - ✔✔guarantee; assurance by seller. Any breach provides grounds for
voiding the contract.
representation - ✔✔a statement believed to be true to the best of one's knowledge.
false pretenses - ✔✔When an uninsurable individual applying for insurance may ask
another person to substitute for him to take the physical examination.
Misrepresentation - ✔✔A false statement or lie that can render the contract void.
concealment (n) - ✔✔The failure to disclose material facts. Grounds for recission by
either party.
Material Information or facts - ✔✔Something crucial to acceptance of the risk.
fraud (n) - ✔✔An intentional act designed to deceive and induce another party to
part with something of value.
Parol Evidence Rule - ✔✔Rule of law disallowing oral evidence which disputes a
written agreement.
Voidable Contract - ✔✔A contract that may be legally avoided at the option of one or
both of the parties.
,Void Contract - ✔✔an agreement of no legal effect.
Implied Authority - ✔✔Authority that is given not in writing but that is necessary for
the agent to transact insurance.
Apparent Authority - ✔✔A third party's reasonable belief that an agent has authority
to act on the principal's behalf.
Express Authority - ✔✔the authority of an agent, stated in the document or
agreement creating the agency.
Lingering implied authority - ✔✔means that the agent carries "signs or evidences of
authority.
Estoppel - ✔✔A legal impediment to denying a fact or restoring a right that has been
previously waived.
Valid Contract (Legal Contract) - ✔✔one that meets all of the requirements of a
binding contract. Competent parties, legal purpose, and consideration, not an actual
written document.
Policyfolder - ✔✔Important documents with a custom folder.
Plan Sponsors - ✔✔Policyholder responsible for administering pan and making
premiums to insurance company.
, Employee or individual employer group - ✔✔Employer is the policy-owner and
establishes eligible class of employees to be covered under group policy.
Multiple employer group - ✔✔Several employers forming a trust to combine their
workers for life insurance eligibility.
Multiple Employer Trust (MET) - ✔✔A legal entity of small business owners grouped
together to buy life insurance.
Taft-Hartley Act - ✔✔a law that restricted the power of labor unions
Taft Hartley Trust - ✔✔multi-employers funds, Taft-Hartley trusts, joint trusts, jointly
trusted plans, ERISA trust funds and labor-management employees benefit plans
Association or labor group - ✔✔Group insurance for labor organizations. Must Have a
constitution and bylaws, organized and maintain good faith, cover members for their
employer benefit.
credit insurance - ✔✔covers the life of a debtor if death or disabled.
Creditor - ✔✔Policyowner
Debtors - ✔✔People who owe money insured.
Contributory Plan - ✔✔Insured contributes money toward the premium. 75% of
employees must participate.
