Exam (elaborations) Florida General Lines

Florida General Lines Agent Exam questions / with Correct Answers A+ Score Solutions 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 a 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 c 8/11/25, 7:22 AM Florida General Lines Agent Exam questions / with Correct Answers A+ Score Solutions. Flashcards | Quizlet … 2/87 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 c 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 a 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 b 8/11/25, 7:22 AM Florida General Lines Agent Exam questions / with Correct Answers A+ Score Solutions. Flashcards | Quizlet … 3/87 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.Insurabl e loss d.Indirec t loss a 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 a 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 d. 8/11/25, 7:22 AM Florida General Lines Agent Exam questions / with Correct Answers A+ Score Solutions. Flashcards | Quizlet … 4/87 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 b 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 a 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? The concept of The Law of Large Numbers. 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 a 8/11/25, 7:22 AM Florida General Lines Agent Exam questions / with Correct Answers A+ Score Solutions. Flashcards | Quizlet … 5/87 b. The waiver principle c. The principle of utmost good faith d. The principle of subrogation John's home was totally destroyed by fire that resulted in him moving his family to a hotel. The cost of the hotel would be considered as what type of loss? a. A direct loss b. Direct expenses c. An indirect loss d. Insured loss c What insurance clause is related to a lender or creditor's interest in real property and the insurer would pay losses to all parties that have an interest in the same property? a. Subrogation clause b. Mortgage or mortgagee clause c. Property loss clause d. Loss payable or payee clause b 8/11/25, 7:22 AM Florida General Lines Agent Exam questions / with Correct Answers A+ Score Solutions. Flashcards | Quizlet … 6/87 What insurance clause is related to a creditor's interest in personal property such as an auto? a. The property interest clause b. The mortgage or mortgagee clause c. The creditor interest clause d. The loss payable or loss payee clause d Which of the following is not a legal requirement for a contract? a. All are legal requirements b. The contract must have a legal purpose and transfer of consideration (something of value such as payment of insurance premiums) c. There must be a valid offer and a voluntary acceptance d. The parties to the contract must have legal capacity to contract a What insurance loss settlement method is defined as the cost to replace the item less allowance for depreciation, and is the common method used for settlement of personal property losses? a. Scheduled settlement method c 8/11/25, 7:22 AM Florida General Lines Agent Exam questions / with Correct Answers A+ Score Solutions. Flashcards | Quizlet … 7/87 b. Valued or stated settlement method c. Actual cash value settlement method d.Replacement cost (RC) settlement method What insurance loss settlement method is defined as: the property loss is replaced with items that are similar and of like kind and quality, and is the common method used in settling real property losses? a.Replacement cost settlement method b.Actual cash value settlement method c.Scheduled settlement method d.Valued or stated settlement method a What insurance settlement method is defined as: the insurer agrees in advance to pay the value of the property insured up to the coverage limits regardless of the property ACV or RC a. Actual cash value ACV settlement method b. Valued or stated settlement method c.Replacement cost b 8/11/25, 7:22 AM Florida General Lines Agent Exam questions / with Correct Answers A+ Score Solutions. Flashcards | Quizlet (RC) settlement method d.Structured settlement method 8/87 … 8/11/25, 7:22 AM Florida General Lines Agent Exam questions / with Correct Answers A+ Score Solutions. Flashcards | Quizlet … 9/87 What settlement method is related to the price a willing buyer will pay for the property? The market value The remaining value of property after a total loss is referred to as? Salvage value The Florida law that states that an insured must pay the full coverage limits on property when there is a total loss is referred to as? Florida valued policy law A property valued at $100,000 is insured for $56,000 on a property policy that has a coinsurance requirement of 80%. What amount of the loss is payable by the insurer if there is a loss of $20,000? The coinsurance formula is C / R x L where C is the amount of insurance CARRIED by the insured on the property. R is the amount of insurance coverage REQUIRED by the insurer based on the coinsurance requirement and L is the amount of the LOSS. The amount payable for the loss would be? loss would be $14,000 ($56,000 / $80,000 (80% of $100,000) x $20,000.