Florida Life and Health Insurance License Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Florida Life and Health Insurance License Test. Study with flashcards and multiple choice questions, each with hints and explanations. Get ready for your certification exam with ease!

Start Multiple Choice Practice Test
Start Flash Cards

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

The Consideration clause in a life insurance policy indicates that a policyowner's consideration consists of what?

  1. A legal document

  2. The initial premium and a completed application

  3. A monthly premium

  4. An annual statement

The correct answer is: The initial premium and a completed application

A life insurance policy is a contract between the policyowner and the insurance company. The Consideration clause states what the policyowner must provide in order to receive insurance coverage. Option A is incorrect because a legal document is not considered as the policyowner's consideration. Option C is incorrect because a monthly premium is only a periodic payment and does not reflect the initial agreement between the policyowner and the insurance company. Option D is incorrect because an annual statement is simply a report of the policy's status and does not constitute the policyowner's consideration. Only option B, the initial premium and a completed application, fulfills the requirements of the Consideration clause. This means that the policyowner must pay the initial premium and submit a completed application in order to receive insurance coverage.

More Questions Like This