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FLORIDA 240 LICENSE EXAM NEWEST 2025/2026 ACTUAL EXAM
WITH COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS
(100% VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED||
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? -
ANSWER-Aleatory
When must insurable interest be present in order for a life
insurance policy to be valid? - ANSWER-When the application is
made
A life insurance arrangement which circumvents insurable interest
statutes is called: - ANSWER-Investor-Originated Life Insurance
Stranger Originated Life Insurance (STOLI) has been found to be
in violation of which of the following contractual elements? -
ANSWER-Legal Purpose (Insurable Interest)
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Who makes the legally enforceable promises in a unilateral
contract? - ANSWER-Insurance company
A policy of adhesion can only be modified by whom? - ANSWER-
insurance company
When third-party ownership is involved, applicants who also
happen to be the stated primary beneficiary are required to have:
- ANSWER-insurable interest in the proposed insured
Which of these is considered a statement that is assured to be
true in every aspect? - ANSWER-Warranty
Which of these require an offer, acceptance, and consideration? -
ANSWER-contract
If a contract of adhesion contains complicated language, to whom
would the interpretation be in favor of? - ANSWER-insured
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Insurance contracts are known as _____ because certain future
conditions or acts must occur before any claims can be paid. -
ANSWER-conditional
Insurance policies are offered on a "take it or leave it" basis,
which make them: - ANSWER-Contracts of Adhesion
In regards to representations or warranties, which of these
statements is TRUE? - ANSWER-If material to the risk, false
representations will void a policy
Which of these arrangements allows one to bypass insurable
interest laws? - 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? -
ANSWER-unilateral
Which of these is NOT a type of agent authority? - ANSWER-
principal
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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? - 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? - ANSWER-Inception of the contract
Life and health insurance policies are: - ANSWER-unilateral
contracts
A policy of adhesion can only be modified by whom? - ANSWER-
insurance company
FLORIDA 240 LICENSE EXAM NEWEST 2025/2026 ACTUAL EXAM
WITH COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS
(100% VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED||
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? -
ANSWER-Aleatory
When must insurable interest be present in order for a life
insurance policy to be valid? - ANSWER-When the application is
made
A life insurance arrangement which circumvents insurable interest
statutes is called: - ANSWER-Investor-Originated Life Insurance
Stranger Originated Life Insurance (STOLI) has been found to be
in violation of which of the following contractual elements? -
ANSWER-Legal Purpose (Insurable Interest)
,2|Page
Who makes the legally enforceable promises in a unilateral
contract? - ANSWER-Insurance company
A policy of adhesion can only be modified by whom? - ANSWER-
insurance company
When third-party ownership is involved, applicants who also
happen to be the stated primary beneficiary are required to have:
- ANSWER-insurable interest in the proposed insured
Which of these is considered a statement that is assured to be
true in every aspect? - ANSWER-Warranty
Which of these require an offer, acceptance, and consideration? -
ANSWER-contract
If a contract of adhesion contains complicated language, to whom
would the interpretation be in favor of? - ANSWER-insured
,3|Page
Insurance contracts are known as _____ because certain future
conditions or acts must occur before any claims can be paid. -
ANSWER-conditional
Insurance policies are offered on a "take it or leave it" basis,
which make them: - ANSWER-Contracts of Adhesion
In regards to representations or warranties, which of these
statements is TRUE? - ANSWER-If material to the risk, false
representations will void a policy
Which of these arrangements allows one to bypass insurable
interest laws? - 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? -
ANSWER-unilateral
Which of these is NOT a type of agent authority? - ANSWER-
principal
, 4|Page
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? - 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? - ANSWER-Inception of the contract
Life and health insurance policies are: - ANSWER-unilateral
contracts
A policy of adhesion can only be modified by whom? - ANSWER-
insurance company
