FLORIDA GENERAL LINES AGENT EXAM
Questions and Answers
1.What is the definition of a risk that is insurable?
a. Risk is defined as a chance or the possibility of financial loss; only
pure risks are insurable as there is no possibility of a gain
b. A chance of a loss or gain
c. A risk where there is a possibility of a gain
d. A chance for insurance coverage
Answer a
2.What is an insurance policy?
a.A binder that offers initial insurance coverage
b.An oral agreement related to insurance
c.A temporary agreement for insurance coverage
d.A written agreement or contract for insurance coverage
Answer d.
3.What is an insurance binder?
a. An agreement with an insurer for coverage
b. A temporary agreement for insurance coverage subject to the decision
of the insurer
,c. A permanent agreement for insurance
coverage d.An agreement with an agent
Answer b
4.The term casualty is related to all the following insurance lines except?
a. Life and health insurance
b. Marine insurance
c.Insurance on property
d.Liability insurance
Answer a
5.What is the mathematical concept where the actual results from an event
being measured will equal the predicted or expected results as the number
of units or trials increases?
Answer The concept of The Law of Large Numbers.
6.What insurance principle acts to place an insured in the same or similar
financial position after a loss as was prior to the loss event?
a. The indemnity principle
b. The waiver principle
c. The principle of utmost good faith
d. The principle of subrogation
Answer a
,7.What type of contract prevents an insured from transferring the interest
of an insurance policy to another?
a.A personal contract
b.An indemnity contract
c.A subrogation contract
d.A contract of good faith
Answer a
8.What type of contract is one where the obligation of the insurer is to
perform the terms of the contract and is based on the insured satisfying
certain conditions?
a.A binding contract
b.A personal contract
c.A conditional contract
d.An adhesion contract
Answer c
9.What type of contract is it that the insured cannot negotiate the terms of
the contract and must accept the terms specified in the contract?
a. An indemnity contract
b. A conditional contract
c. A contract of adhesion
d. A personal contract
Answer c
, 10.What type of interest (financial or legal) in property must an insured
have to benefit from a loss that is insured?
a. Insurable interest
b. An adhesion interest
c. An indemnity interest
d. A personal interest
Answer a
11.What insurance doctrine states that a cause of a loss and all other
directly related events flowing from the same cause of the loss would be
considered as one event?
a. The doctrine of insurable interest
b. The doctrine of proximate cause
c. The loss doctrine
d. The doctrine of classification
Answer b
12.John got in an accident that damaged his automobile, what would
be considered as what type of loss?
a. Direct loss
b. Insured loss
c. Insurable loss
Questions and Answers
1.What is the definition of a risk that is insurable?
a. Risk is defined as a chance or the possibility of financial loss; only
pure risks are insurable as there is no possibility of a gain
b. A chance of a loss or gain
c. A risk where there is a possibility of a gain
d. A chance for insurance coverage
Answer a
2.What is an insurance policy?
a.A binder that offers initial insurance coverage
b.An oral agreement related to insurance
c.A temporary agreement for insurance coverage
d.A written agreement or contract for insurance coverage
Answer d.
3.What is an insurance binder?
a. An agreement with an insurer for coverage
b. A temporary agreement for insurance coverage subject to the decision
of the insurer
,c. A permanent agreement for insurance
coverage d.An agreement with an agent
Answer b
4.The term casualty is related to all the following insurance lines except?
a. Life and health insurance
b. Marine insurance
c.Insurance on property
d.Liability insurance
Answer a
5.What is the mathematical concept where the actual results from an event
being measured will equal the predicted or expected results as the number
of units or trials increases?
Answer The concept of The Law of Large Numbers.
6.What insurance principle acts to place an insured in the same or similar
financial position after a loss as was prior to the loss event?
a. The indemnity principle
b. The waiver principle
c. The principle of utmost good faith
d. The principle of subrogation
Answer a
,7.What type of contract prevents an insured from transferring the interest
of an insurance policy to another?
a.A personal contract
b.An indemnity contract
c.A subrogation contract
d.A contract of good faith
Answer a
8.What type of contract is one where the obligation of the insurer is to
perform the terms of the contract and is based on the insured satisfying
certain conditions?
a.A binding contract
b.A personal contract
c.A conditional contract
d.An adhesion contract
Answer c
9.What type of contract is it that the insured cannot negotiate the terms of
the contract and must accept the terms specified in the contract?
a. An indemnity contract
b. A conditional contract
c. A contract of adhesion
d. A personal contract
Answer c
, 10.What type of interest (financial or legal) in property must an insured
have to benefit from a loss that is insured?
a. Insurable interest
b. An adhesion interest
c. An indemnity interest
d. A personal interest
Answer a
11.What insurance doctrine states that a cause of a loss and all other
directly related events flowing from the same cause of the loss would be
considered as one event?
a. The doctrine of insurable interest
b. The doctrine of proximate cause
c. The loss doctrine
d. The doctrine of classification
Answer b
12.John got in an accident that damaged his automobile, what would
be considered as what type of loss?
a. Direct loss
b. Insured loss
c. Insurable loss
