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FLORIDA 240 LICENSE EXAM 2025 LATEST
WITH 300 REAL EXAM QUESTIONS AND
CORRECT ANSWERS (100% CORRECT
ANSWERS) FL 2-40 HEALTH INSURANCE
PRE-LICENSING EXAM (NEW)
All of the following statements regarding group health insurance is true, EXCEPT:
- ANSWER-An individual policy is given to each member
The part of a life insurance policy guaranteed to be true is called a(n) - ANSWER- warranty
Which of these arrangements allows one to bypass insurable interest laws? - ANSWER-Investor-Originated Life Insurance
What kind of Accidental Death and Dismemberment (AD&D) insurance beneficiary requires his/her consent when a change of beneficiary is made? - ANSWER-Irrevocable beneficiary
Which statement is TRUE regarding a group accident & health policy issued to an employer? - ANSWER-The employer receives the policy and each employee is issued a certificate
P is a new employee and will be obtaining non-contributory group Major Medical insurance from her employer. Which of the following actions must she take during the open enrollment period? - ANSWER-Sign an enrollment card
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pg. 2 M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son? - ANSWER-Revocable
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary? - ANSWER-Request of the change will be refused
Which of these types of coverage is best described as a short term medical policy?
- ANSWER-interim coverage
A Business Disability Buyout plan policy is designed: - ANSWER-to pay benefits
to the Corporation or other shareholders
Group/voluntary long-term care policy premiums are typically deducted from the employee's income and - ANSWER-are less costly as compared to individual long term care coverage
B has a $100,000 Accidental Death and Dismemberment policy that pays triple indemnity for common carrier death. If B is killed from an accident on a commercial flight, what will the policy pay B's beneficiary? - ANSWER-$300,000
A policyowner's rights are limited under which beneficiary designation? - ANSWER-irrevocable
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-Reserves
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pg. 3 An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the: - ANSWER-Fair Credit Reporting Act
A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its members is known as: - ANSWER-A fraternal benefit society
What I the name of the law that requires insurers to disclose information gathering practices and where the information was obtained? - ANSWER-Fair Credit Reporting Act
Who elects the governing body of a mutual insurance company? - ANSWER- Policyholders
A group-owned insurance company that is formed to assume and spread the
liability ricks of its members is known as a: - ANSWER-Risk retention group
What type of reinsurance contract involves two companies automatically sharing their risk exposure? - ANSWER-treaty
What year was the McCarran-Ferguson Act enacted? - ANSWER-1945
Which of these describe a participating life insurance policy? - ANSWER-Policy owners are entitled to receive dividends
At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? - ANSWER-Upon completion of the application
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pg. 4 Which of the following requires insurers to disclose when an applicant's consumer
or credit history is being investigated: - ANSWER-1970 - Fair Credit Reporting
Act
What type of reinsurance contract involves two companies automatically sharing their risk exposure? - ANSWER-Treaty
A group-owned insurance company that is formed to assume and spread the
liability risks of its members is known as a: - ANSWER-risk retention group
All of the following are considered to be typical characteristics describing the
nature of an insurance contract, EXCEPT: - ANSWER-Bilateral
Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called - 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? - 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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