FLORIDA 240 LICENSE QUESTIONS WITH 100% CORRECT
ANSWERS ALREADY GRADED A+
“Which of the following actions will the insurance company take? - CORRECT ANSWER=> The insurer
will adjust the benefit to what the premiums paid would have purchased at the insured's actual age"
"The clause identifying which losses resulting from an accident or sickness are insured by the policy is
called the - CORRECT ANSWER=> Insuring clause"
"If an individual has an Accidental Death and Dismemberment policy and dies, an autopsy can be
performed in all these situations, EXCEPT: - CORRECT ANSWER=> When the state prohibits this by law"
"According to the Time Limit of Certain Defenses provision in an Individual Health Insurance Policy, non
fraudulent misstatements first become incontestable: - CORRECT ANSWER=> Two years from the date
of the policy was issued"
"Health insurance benefits NOT covered due to an act of war are: - CORRECT ANSWER=> excluded by
the insurer in the contract provisions"
"The insuring clause - CORRECT ANSWER=> States the scope and limits of the coverage"
"With Accidental Death and Dismemberment policies, what is the purpose of the Grace Period? -
CORRECT ANSWER=> Gives the policyowner additional time to pay past due premiums"
"When an insurance company sends a policy to the insured with an attached application, the element
that makes the application part of the contract between the insured and the insurer is called the -
CORRECT ANSWER=> Entire Contract provision"
"An insured must notify an insurer of a medical claim within how many days after an accident? -
CORRECT ANSWER=> 20"
"What is the purpose of Time of Payment if Claims provision? - CORRECT ANSWER=> Prevents delayed
claim payments made by the insurer"
"Which health policy clause specified the amount of benefits to be paid? - CORRECT ANSWER=>
Insuring"
"Which of these is considered a mandatory provision? - CORRECT ANSWER=> Payment of Claims"
,"G is involved in an automobile accident as a result of driving while intoxicated and suffers numerous
injuries. According to the Intoxicants and Narcotics exclusion in G's policy, who is responsible for paying
the medical bills? - CORRECT ANSWER=> insured"
"Which of the following statements describes what an Accident and Health policyowner may NOT do? -
CORRECT ANSWER=> Adjust the premium payments"
"At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit
Reporting Act? - CORRECT ANSWER=> Upon completion of the application"
"Which of the following requires insurers to disclose when an applicant's consumer or credit history is
being investigated: - CORRECT ANSWER=> 1970 - Fair Credit Reporting Act"
"What type of reinsurance contract involves two companies automatically sharing their risk exposure? -
CORRECT ANSWER=> Treaty"
"A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a: - CORRECT ANSWER=> risk retention group"
"All of the following are considered to be typical characteristics describing the nature of an insurance
contract, EXCEPT: - CORRECT ANSWER=> Bilateral"
"The part of a life insurance policy guaranteed to be true is called a(n) - CORRECT ANSWER=>
warranty"
"Statements made on an insurance application that are believed to be true to the best of the applicant's
knowledge are called - CORRECT ANSWER=> representations"
"Q purchases a $500,000 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 of the
following insurance contract features? - CORRECT ANSWER=> Aleatory"
"When must insurable interest be present in order for a life insurance policy to be valid? - CORRECT
ANSWER=> When the application is made"
"A life insurance arrangement which circumvents insurable interest statutes is called: - CORRECT
ANSWER=> Investor-Originated Life Insurance"
"Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following
contractual elements? - CORRECT ANSWER=> Legal Purpose (Insurable Interest)"
"Who makes the legally enforceable promises in a unilateral contract? - CORRECT ANSWER=>
Insurance company"
, "A policy of adhesion can only be modified by whom? - CORRECT ANSWER=> insurance company"
"When third-party ownership is involved, applicants who also happen to be the stated primary
beneficiary are required to have: - CORRECT ANSWER=> insurable interest in the proposed insured"
"Which of these is considered a statement that is assured to be true in every aspect? - CORRECT
ANSWER=> Warranty"
"Which of these require an offer, acceptance, and consideration? - CORRECT ANSWER=> contract"
"If a contract of adhesion contains complicated language, to whom would the interpretation be in favor
of? - CORRECT ANSWER=> insured"
"Insurance contracts are known as _____ because certain future conditions or acts must occur before
any claims can be paid. - CORRECT ANSWER=> conditional"
"Insurance policies are offered on a "take it or leave it" basis, which make them: - CORRECT
ANSWER=> Contracts of Adhesion"
"In regards to representations or warranties, which of these statements is TRUE? - CORRECT
ANSWER=> If material to the risk, false representations will void a policy"
"Which of these arrangements allows one to bypass insurable interest laws? - CORRECT ANSWER=>
Investor-Originated Life Insurance"
"In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What
kind of contract is this? - CORRECT ANSWER=> unilateral"
"Which of these is NOT a type of agent authority? - CORRECT ANSWER=> principal"
"E and F are business partners. Each takes out a $500,000 life insurance policy on the other, naming
himself as primary beneficiary. E and F eventually terminate their business, and four months later E dies.
Although E was married with three children at the time of death, the primary beneficiary is still F.
However, an insurable interest no longer exists. Where will the proceeds from E's life insurance policy be
directed to? - CORRECT ANSWER=> In this situation, the proceeds from E's life insurance policy will go
to F."
"When must insurable interest exist for a life insurance contract to be valid? - CORRECT ANSWER=>
Inception of the contract"
"Life and health insurance policies are: - CORRECT ANSWER=> unilateral contracts"
ANSWERS ALREADY GRADED A+
“Which of the following actions will the insurance company take? - CORRECT ANSWER=> The insurer
will adjust the benefit to what the premiums paid would have purchased at the insured's actual age"
"The clause identifying which losses resulting from an accident or sickness are insured by the policy is
called the - CORRECT ANSWER=> Insuring clause"
"If an individual has an Accidental Death and Dismemberment policy and dies, an autopsy can be
performed in all these situations, EXCEPT: - CORRECT ANSWER=> When the state prohibits this by law"
"According to the Time Limit of Certain Defenses provision in an Individual Health Insurance Policy, non
fraudulent misstatements first become incontestable: - CORRECT ANSWER=> Two years from the date
of the policy was issued"
"Health insurance benefits NOT covered due to an act of war are: - CORRECT ANSWER=> excluded by
the insurer in the contract provisions"
"The insuring clause - CORRECT ANSWER=> States the scope and limits of the coverage"
"With Accidental Death and Dismemberment policies, what is the purpose of the Grace Period? -
CORRECT ANSWER=> Gives the policyowner additional time to pay past due premiums"
"When an insurance company sends a policy to the insured with an attached application, the element
that makes the application part of the contract between the insured and the insurer is called the -
CORRECT ANSWER=> Entire Contract provision"
"An insured must notify an insurer of a medical claim within how many days after an accident? -
CORRECT ANSWER=> 20"
"What is the purpose of Time of Payment if Claims provision? - CORRECT ANSWER=> Prevents delayed
claim payments made by the insurer"
"Which health policy clause specified the amount of benefits to be paid? - CORRECT ANSWER=>
Insuring"
"Which of these is considered a mandatory provision? - CORRECT ANSWER=> Payment of Claims"
,"G is involved in an automobile accident as a result of driving while intoxicated and suffers numerous
injuries. According to the Intoxicants and Narcotics exclusion in G's policy, who is responsible for paying
the medical bills? - CORRECT ANSWER=> insured"
"Which of the following statements describes what an Accident and Health policyowner may NOT do? -
CORRECT ANSWER=> Adjust the premium payments"
"At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit
Reporting Act? - CORRECT ANSWER=> Upon completion of the application"
"Which of the following requires insurers to disclose when an applicant's consumer or credit history is
being investigated: - CORRECT ANSWER=> 1970 - Fair Credit Reporting Act"
"What type of reinsurance contract involves two companies automatically sharing their risk exposure? -
CORRECT ANSWER=> Treaty"
"A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a: - CORRECT ANSWER=> risk retention group"
"All of the following are considered to be typical characteristics describing the nature of an insurance
contract, EXCEPT: - CORRECT ANSWER=> Bilateral"
"The part of a life insurance policy guaranteed to be true is called a(n) - CORRECT ANSWER=>
warranty"
"Statements made on an insurance application that are believed to be true to the best of the applicant's
knowledge are called - CORRECT ANSWER=> representations"
"Q purchases a $500,000 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 of the
following insurance contract features? - CORRECT ANSWER=> Aleatory"
"When must insurable interest be present in order for a life insurance policy to be valid? - CORRECT
ANSWER=> When the application is made"
"A life insurance arrangement which circumvents insurable interest statutes is called: - CORRECT
ANSWER=> Investor-Originated Life Insurance"
"Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following
contractual elements? - CORRECT ANSWER=> Legal Purpose (Insurable Interest)"
"Who makes the legally enforceable promises in a unilateral contract? - CORRECT ANSWER=>
Insurance company"
, "A policy of adhesion can only be modified by whom? - CORRECT ANSWER=> insurance company"
"When third-party ownership is involved, applicants who also happen to be the stated primary
beneficiary are required to have: - CORRECT ANSWER=> insurable interest in the proposed insured"
"Which of these is considered a statement that is assured to be true in every aspect? - CORRECT
ANSWER=> Warranty"
"Which of these require an offer, acceptance, and consideration? - CORRECT ANSWER=> contract"
"If a contract of adhesion contains complicated language, to whom would the interpretation be in favor
of? - CORRECT ANSWER=> insured"
"Insurance contracts are known as _____ because certain future conditions or acts must occur before
any claims can be paid. - CORRECT ANSWER=> conditional"
"Insurance policies are offered on a "take it or leave it" basis, which make them: - CORRECT
ANSWER=> Contracts of Adhesion"
"In regards to representations or warranties, which of these statements is TRUE? - CORRECT
ANSWER=> If material to the risk, false representations will void a policy"
"Which of these arrangements allows one to bypass insurable interest laws? - CORRECT ANSWER=>
Investor-Originated Life Insurance"
"In an insurance contract, the insurer is the only party who makes a legally enforceable promise. What
kind of contract is this? - CORRECT ANSWER=> unilateral"
"Which of these is NOT a type of agent authority? - CORRECT ANSWER=> principal"
"E and F are business partners. Each takes out a $500,000 life insurance policy on the other, naming
himself as primary beneficiary. E and F eventually terminate their business, and four months later E dies.
Although E was married with three children at the time of death, the primary beneficiary is still F.
However, an insurable interest no longer exists. Where will the proceeds from E's life insurance policy be
directed to? - CORRECT ANSWER=> In this situation, the proceeds from E's life insurance policy will go
to F."
"When must insurable interest exist for a life insurance contract to be valid? - CORRECT ANSWER=>
Inception of the contract"
"Life and health insurance policies are: - CORRECT ANSWER=> unilateral contracts"
