F CARD COMPREHENSIVE FINAL STUDY
GUIDE 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
⩥ aleatory contract.
Answer: contract in which the amounts exchanged are not equal
⩥ conformity to statute.
Answer: a policy provision that says the policy follows a state's law if
the law and policy language are in conflict
⩥ contract of adhesion.
Answer: contract drawn by one party and offered to another on a "take it
or leave it" basis
⩥ direct writer agent.
Answer: an agent that is an employee of an insurer, rather than as an
independent holding contracts with an insurer
⩥ duty of accounting.
Answer: the agent must account for any money entrusted to him by the
principal
,⩥ duty of loyalty.
Answer: owed by an agent to the principal- the agent must not do
anything to harm the principal
⩥ duty of obedience.
Answer: the agent must obey all lawful instructions from the principal
⩥ duty of reasonable care.
Answer: the agent must exercise the same degree of care as a reasonable
and prudent person
⩥ duty to give information.
Answer: the agent must keep the principal informed about any factors
that affect the principal-agent relationship
⩥ exclusive agent.
Answer: an agent that has a contract with only one insurer. may or may
not be an employee of the insurance company he represents.
⩥ FAIR plan.
Answer: a government program that offers property and crime insurance
in the inner cities
,⩥ fraternal insurers.
Answer: offer coverage only to members of a particular group
⩥ hazard.
Answer: increases the chance of loss from a peril
⩥ indemnify.
Answer: to make whole again financially
⩥ independent adjuster.
Answer: an adjuster who works for several companies on a contract
basis
⩥ independent agent.
Answer: an agent that has contracts with several insurers. "Owns the
expirations"
⩥ Inland Marine.
Answer: traditionally provides protection for property in transit over
land, and today, to collections, personal property, and other coverage for
movable property
⩥ insurable interest.
, Answer: the potential for financial loss associated with damage or
destruction of property
⩥ insurance policy.
Answer: the indemnity contract between an insured and insurer
⩥ marine insurance.
Answer: insurance that covers property that is in some way related to
transportation
⩥ moral hazard.
Answer: arises out of the dishonesty of an insured. Burning down your
own house
⩥ morale hazard.
Answer: arises out of the indifference to loss because of insurance
coverage
⩥ ocean marine.
Answer: provides protection for waterborne property
⩥ peril.
Answer: potential cause for loss
GUIDE 2026 QUESTIONS WITH SOLUTIONS
GRADED A+
⩥ aleatory contract.
Answer: contract in which the amounts exchanged are not equal
⩥ conformity to statute.
Answer: a policy provision that says the policy follows a state's law if
the law and policy language are in conflict
⩥ contract of adhesion.
Answer: contract drawn by one party and offered to another on a "take it
or leave it" basis
⩥ direct writer agent.
Answer: an agent that is an employee of an insurer, rather than as an
independent holding contracts with an insurer
⩥ duty of accounting.
Answer: the agent must account for any money entrusted to him by the
principal
,⩥ duty of loyalty.
Answer: owed by an agent to the principal- the agent must not do
anything to harm the principal
⩥ duty of obedience.
Answer: the agent must obey all lawful instructions from the principal
⩥ duty of reasonable care.
Answer: the agent must exercise the same degree of care as a reasonable
and prudent person
⩥ duty to give information.
Answer: the agent must keep the principal informed about any factors
that affect the principal-agent relationship
⩥ exclusive agent.
Answer: an agent that has a contract with only one insurer. may or may
not be an employee of the insurance company he represents.
⩥ FAIR plan.
Answer: a government program that offers property and crime insurance
in the inner cities
,⩥ fraternal insurers.
Answer: offer coverage only to members of a particular group
⩥ hazard.
Answer: increases the chance of loss from a peril
⩥ indemnify.
Answer: to make whole again financially
⩥ independent adjuster.
Answer: an adjuster who works for several companies on a contract
basis
⩥ independent agent.
Answer: an agent that has contracts with several insurers. "Owns the
expirations"
⩥ Inland Marine.
Answer: traditionally provides protection for property in transit over
land, and today, to collections, personal property, and other coverage for
movable property
⩥ insurable interest.
, Answer: the potential for financial loss associated with damage or
destruction of property
⩥ insurance policy.
Answer: the indemnity contract between an insured and insurer
⩥ marine insurance.
Answer: insurance that covers property that is in some way related to
transportation
⩥ moral hazard.
Answer: arises out of the dishonesty of an insured. Burning down your
own house
⩥ morale hazard.
Answer: arises out of the indifference to loss because of insurance
coverage
⩥ ocean marine.
Answer: provides protection for waterborne property
⩥ peril.
Answer: potential cause for loss
