Florida Life and Health Insurance Law
Practice Exam
By ExamNavigator
,Florida Life and Health Insurance Law Practice Exam
1. Who elects the governing body of a metal Insurance company?
Answer: The Policy-holders
2. When a policy pays dividends to its policy holders is said to be?
Answer: Participating
3. Which of these describe a participating insurance policy?
Answer: Policy owners areentitled to receive dividends
4. An insurance applicant MUST be informed of an investigation regarding his/her reputation
and character according to the?
Answer: 1970 Fair credit reportingact
5. The Stated amount or percent of liquid assets that an insurer must have on hand that will
satisfy future obligations to its policyholders is called?
Answer: Re-serves
6. The Part of a life insurance policy GUARANTEED to be true is called?
Answer: Warranty
7. At what point does an informal agreement become a binding contract?
Answer: - When consideration is provided by one of the parties to the contract
8. Who makes the legally enforceable promise in a unilateral insurance poli-cy?
Answer: The Insurance Company
9. When a third-party ownership is involved, applicants who also happen to be the stated the
primary beneficiary are required to have?
Answer: Insurable interestin the proposed insured
10. A policy of adhesion can only be modified by whom?
Answer: The insurance company
11. Insurance policies are considered aleatory contracts because?
Answer: Performance is conditioned upon a future occurrence
12. Q purchase $500k 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 insurance contract features?-
Answer: Aleatory
13. What consists of an offer, acceptance, and consideration?
, Answer: The Contract
14. A Principal is NOT a type agent authority?
Answer: True
15. Taking a receipt of premiums and holding them for the insurance companyis an example
of?
Answer: Fiduciary responsibility
16. A Bilateral typically has characteristics describing the nature of an insurance contract.
Answer: False
17. In regards to representation or warranties?
Answer: If material to the RISK, falserepresentations will void a policy
18. Statements made on an insurance application that are BELIEVED to be trueto the best of the
applicants knowledge are called?
Answer: Representations
19. A variable insurance policy?
Answer: Does NOT guarantee a return on investmentaccounts
20. Whole life insurance is sometimes referred to as "Straight Life". What does the word
"Straight" indicate when using this phrase?
Answer: The duration of premiumpayments
21. What type of policy would offer a 40- year old the quickest accumulationof cash value?
Answer: A 20-pay life
22. Modified Whole Life: This life product is NOT considered interest sensitive?
23. Y Purchased $100,000 worth of permanent protection on himself and
$50,000 worth of 10-year Term coverage for his wife on the same policy. Whatdid Y Purchase?
Answer: Whole life policy with an Other Insured Rider
24. Which of the following types of Term Life policies most likely contains aRenewability
feature?
Answer: A 10 year convertibility Term
25. Modified Endowment Contract: This type of policy is considered to be over-funded, as
stated by IRS guidelines?
26. A company that owns a life insurance policy on one of its key employeescan't?
Answer: Change the policy's interest rate
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