©FYNDLAY 2024/2025 ALL RIGHTS RESERVED 11:08AM. A+
Florida Health 240 Insurance Exam Questions
And Answers |Latest 2025 | Guaranteed Pass.
Rules of Construction - Answer✔Help to identify and establish the intent of the parties to the
contract
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.
Aleatory Contract - Answer✔A contract under which one party's performance is contingent on
an uncertain event.
property and casualty agent - Answer✔has the power to bind the insurer
Adhesion Contract - Answer✔Insurance company drafts contract and the insured adheres to it.
Any ambiguity resolved in favor of the insured.
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.
Conditional contract - Answer✔This type of contract is conditional because the company only
pays on condition of a loss.
Personal Contract - Answer✔The contract is between the insured and the insurer
warranty - Answer✔guarantee; assurance by seller. Any breach provides grounds for voiding
the contract.
representation - Answer✔a statement believed to be true to the best of one's knowledge.
false pretenses - Answer✔When an uninsurable individual applying for insurance may ask
another person to substitute for him to take the physical examination.
Misrepresentation - Answer✔A false statement or lie that can render the contract void.
1
, ©FYNDLAY 2024/2025 ALL RIGHTS RESERVED 11:08AM. A+
concealment (n) - Answer✔The failure to disclose material facts. Grounds for recission by either
party.
Material Information or facts - Answer✔Something crucial to acceptance of the risk.
fraud (n) - Answer✔An intentional act designed to deceive and induce another party to part
with something of value.
Parol Evidence Rule - Answer✔Rule of law disallowing oral evidence which disputes a written
agreement.
Voidable Contract - Answer✔A contract that may be legally avoided at the option of one or
both of the parties.
Void Contract - Answer✔an agreement of no legal effect.
Implied Authority - Answer✔Authority that is given not in writing but that is necessary for the
agent to transact insurance.
Apparent Authority - Answer✔A third party's reasonable belief that an agent has authority to
act on the principal's behalf.
Express Authority - Answer✔the authority of an agent, stated in the document or agreement
creating the agency.
Lingering implied authority - Answer✔means that the agent carries "signs or evidences of
authority.
Estoppel - Answer✔A legal impediment to denying a fact or restoring a right that has been
previously waived.
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.
Policyfolder - Answer✔Important documents with a custom folder.
Plan Sponsors - Answer✔Policyholder responsible for administering pan and making premiums
to insurance company.
Employee or individual employer group - Answer✔Employer is the policy-owner and establishes
eligible class of employees to be covered under group policy.
Multiple employer group - Answer✔Several employers forming a trust to combine their
workers for life insurance eligibility.
Multiple Employer Trust (MET) - Answer✔A legal entity of small business owners grouped
together to buy life insurance.
2
Florida Health 240 Insurance Exam Questions
And Answers |Latest 2025 | Guaranteed Pass.
Rules of Construction - Answer✔Help to identify and establish the intent of the parties to the
contract
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.
Aleatory Contract - Answer✔A contract under which one party's performance is contingent on
an uncertain event.
property and casualty agent - Answer✔has the power to bind the insurer
Adhesion Contract - Answer✔Insurance company drafts contract and the insured adheres to it.
Any ambiguity resolved in favor of the insured.
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.
Conditional contract - Answer✔This type of contract is conditional because the company only
pays on condition of a loss.
Personal Contract - Answer✔The contract is between the insured and the insurer
warranty - Answer✔guarantee; assurance by seller. Any breach provides grounds for voiding
the contract.
representation - Answer✔a statement believed to be true to the best of one's knowledge.
false pretenses - Answer✔When an uninsurable individual applying for insurance may ask
another person to substitute for him to take the physical examination.
Misrepresentation - Answer✔A false statement or lie that can render the contract void.
1
, ©FYNDLAY 2024/2025 ALL RIGHTS RESERVED 11:08AM. A+
concealment (n) - Answer✔The failure to disclose material facts. Grounds for recission by either
party.
Material Information or facts - Answer✔Something crucial to acceptance of the risk.
fraud (n) - Answer✔An intentional act designed to deceive and induce another party to part
with something of value.
Parol Evidence Rule - Answer✔Rule of law disallowing oral evidence which disputes a written
agreement.
Voidable Contract - Answer✔A contract that may be legally avoided at the option of one or
both of the parties.
Void Contract - Answer✔an agreement of no legal effect.
Implied Authority - Answer✔Authority that is given not in writing but that is necessary for the
agent to transact insurance.
Apparent Authority - Answer✔A third party's reasonable belief that an agent has authority to
act on the principal's behalf.
Express Authority - Answer✔the authority of an agent, stated in the document or agreement
creating the agency.
Lingering implied authority - Answer✔means that the agent carries "signs or evidences of
authority.
Estoppel - Answer✔A legal impediment to denying a fact or restoring a right that has been
previously waived.
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.
Policyfolder - Answer✔Important documents with a custom folder.
Plan Sponsors - Answer✔Policyholder responsible for administering pan and making premiums
to insurance company.
Employee or individual employer group - Answer✔Employer is the policy-owner and establishes
eligible class of employees to be covered under group policy.
Multiple employer group - Answer✔Several employers forming a trust to combine their
workers for life insurance eligibility.
Multiple Employer Trust (MET) - Answer✔A legal entity of small business owners grouped
together to buy life insurance.
2
