FLORIDA 2-15 INSURANCE LICENSE EXAM 2026 – QUESTIONS AND
ANSWERS | VERIFIED AND WELL DETAILED ANSWERS | PLUS
RATIONALES MUST BE IN ITALICS| GUARANTEED PASS | LATEST
EXAM UPDATE
1. Which insurance contract element requires both parties to exchange something of value?
A. Offer
B. Consideration
C. Representation
D. Warranty
Correct Answer: B. Consideration
Rationale: Consideration consists of the premium paid by the insured and the promise of
coverage by the insurer.
2. An insurance policy is considered a:
A. Aleatory contract
B. Bilateral contract only
C. Void contract
D. Unilateral application
Correct Answer: A. Aleatory contract
Rationale: Benefits exchanged may be unequal depending on the occurrence of a loss.
3. Which authority grants a Florida insurance license?
A. Governor of Florida
B. Florida Legislature
C. Florida Department of Financial Services
D. County Court
Correct Answer: C. Florida Department of Financial Services
Rationale: The DFS oversees licensing and regulation of insurance professionals.
4. A peril is:
A. The cause of loss
B. A policy exclusion
C. A deductible
D. A premium charge
Correct Answer: A. The cause of loss
Rationale: Examples include fire, windstorm, and theft.
5. Which principle prevents an insured from profiting from a loss?
A. Adhesion
B. Indemnity
C. Estoppel
D. Waiver
Correct Answer: B. Indemnity
Rationale: Indemnity restores the insured to the approximate financial position before the
loss.
6. A deductible primarily serves to:
A. Increase premiums
, B. Eliminate underwriting
C. Reduce small claims and share risk
D. Guarantee profits
Correct Answer: C. Reduce small claims and share risk
Rationale: Deductibles discourage minor claims and lower insurer exposure.
7. Which type of insurer is owned by policyholders?
A. Stock insurer
B. Mutual insurer
C. Reciprocal insurer
D. Lloyd’s association
Correct Answer: B. Mutual insurer
Rationale: Policyholders are the owners of a mutual insurer.
8. The legal process by which an insurer recovers from a negligent third party is:
A. Reinsurance
B. Arbitration
C. Subrogation
D. Estoppel
Correct Answer: C. Subrogation
Rationale: Subrogation allows recovery after claim payment.
9. Which risk is generally insurable?
A. Speculative risk
B. Gambling risk
C. Pure risk
D. Market risk
Correct Answer: C. Pure risk
Rationale: Pure risk involves only the possibility of loss or no loss.
10. The insured's financial interest in insured property is called:
A. Hazard
B. Insurable interest
C. Warranty
D. Liability
Correct Answer: B. Insurable interest
Rationale: The insured must suffer a financial loss if damage occurs.
11. A moral hazard refers to:
A. Physical condition increasing loss chance
B. Dishonesty increasing loss probability
C. Weather condition
D. Building defect
Correct Answer: B. Dishonesty increasing loss probability
Rationale: Intentional or dishonest behavior increases risk.
12. Which hazard is broken stairs in a building?
A. Moral
B. Legal
C. Physical
ANSWERS | VERIFIED AND WELL DETAILED ANSWERS | PLUS
RATIONALES MUST BE IN ITALICS| GUARANTEED PASS | LATEST
EXAM UPDATE
1. Which insurance contract element requires both parties to exchange something of value?
A. Offer
B. Consideration
C. Representation
D. Warranty
Correct Answer: B. Consideration
Rationale: Consideration consists of the premium paid by the insured and the promise of
coverage by the insurer.
2. An insurance policy is considered a:
A. Aleatory contract
B. Bilateral contract only
C. Void contract
D. Unilateral application
Correct Answer: A. Aleatory contract
Rationale: Benefits exchanged may be unequal depending on the occurrence of a loss.
3. Which authority grants a Florida insurance license?
A. Governor of Florida
B. Florida Legislature
C. Florida Department of Financial Services
D. County Court
Correct Answer: C. Florida Department of Financial Services
Rationale: The DFS oversees licensing and regulation of insurance professionals.
4. A peril is:
A. The cause of loss
B. A policy exclusion
C. A deductible
D. A premium charge
Correct Answer: A. The cause of loss
Rationale: Examples include fire, windstorm, and theft.
5. Which principle prevents an insured from profiting from a loss?
A. Adhesion
B. Indemnity
C. Estoppel
D. Waiver
Correct Answer: B. Indemnity
Rationale: Indemnity restores the insured to the approximate financial position before the
loss.
6. A deductible primarily serves to:
A. Increase premiums
, B. Eliminate underwriting
C. Reduce small claims and share risk
D. Guarantee profits
Correct Answer: C. Reduce small claims and share risk
Rationale: Deductibles discourage minor claims and lower insurer exposure.
7. Which type of insurer is owned by policyholders?
A. Stock insurer
B. Mutual insurer
C. Reciprocal insurer
D. Lloyd’s association
Correct Answer: B. Mutual insurer
Rationale: Policyholders are the owners of a mutual insurer.
8. The legal process by which an insurer recovers from a negligent third party is:
A. Reinsurance
B. Arbitration
C. Subrogation
D. Estoppel
Correct Answer: C. Subrogation
Rationale: Subrogation allows recovery after claim payment.
9. Which risk is generally insurable?
A. Speculative risk
B. Gambling risk
C. Pure risk
D. Market risk
Correct Answer: C. Pure risk
Rationale: Pure risk involves only the possibility of loss or no loss.
10. The insured's financial interest in insured property is called:
A. Hazard
B. Insurable interest
C. Warranty
D. Liability
Correct Answer: B. Insurable interest
Rationale: The insured must suffer a financial loss if damage occurs.
11. A moral hazard refers to:
A. Physical condition increasing loss chance
B. Dishonesty increasing loss probability
C. Weather condition
D. Building defect
Correct Answer: B. Dishonesty increasing loss probability
Rationale: Intentional or dishonest behavior increases risk.
12. Which hazard is broken stairs in a building?
A. Moral
B. Legal
C. Physical
