214 FLORIDA INSURANCE FINAL SCRIPT
2026 COMPLETE LICENSING QUESTIONS
AND ANSWERS PACKAGE
◉ Proximate Cause.
Answer: A doctrine that states when there is an unbroken
connection between an occurrence and damage that grows out of
the occurrence, then the resultant damage is all part of the
occurrence.
◉ Direct Loss.
Answer: Physical harm to tangible property
◉ Indirect Loss.
Answer: Economic loss which flows as a consequence of the direct
loss.
◉ Actual Cash Value.
Answer: The current cost that losses will be settled based on Actual
Cash Value
◉ Replacement Cost.
, Answer: the actual cost to repair or replace property.
◉ Valued Policy.
Answer: Where the insurer agrees, in advance that the coverage
limit applicable to the item will be considered its value. This applies
to the item where the ACV or replacement cost is difficult to
establish, such as with antiques or fine arts.
◉ Values Policy law.
Answer: States that for a total loss by a covered peril to a building,
the insurer must pay the amount provided in the policy for which
the premium has been paid.
◉ Coinsurance.
Answer: A method of encouraging the insured to accept the
responsibility of insuring for the amount close to the value of the
property. Coinsurance is primarily used in commercial policies and
values vary from 80 to 100%
◉ Specific Insurance.
Answer: Coverage subject to separate limits such as each building or
the content of each building
◉ Blanket.
2026 COMPLETE LICENSING QUESTIONS
AND ANSWERS PACKAGE
◉ Proximate Cause.
Answer: A doctrine that states when there is an unbroken
connection between an occurrence and damage that grows out of
the occurrence, then the resultant damage is all part of the
occurrence.
◉ Direct Loss.
Answer: Physical harm to tangible property
◉ Indirect Loss.
Answer: Economic loss which flows as a consequence of the direct
loss.
◉ Actual Cash Value.
Answer: The current cost that losses will be settled based on Actual
Cash Value
◉ Replacement Cost.
, Answer: the actual cost to repair or replace property.
◉ Valued Policy.
Answer: Where the insurer agrees, in advance that the coverage
limit applicable to the item will be considered its value. This applies
to the item where the ACV or replacement cost is difficult to
establish, such as with antiques or fine arts.
◉ Values Policy law.
Answer: States that for a total loss by a covered peril to a building,
the insurer must pay the amount provided in the policy for which
the premium has been paid.
◉ Coinsurance.
Answer: A method of encouraging the insured to accept the
responsibility of insuring for the amount close to the value of the
property. Coinsurance is primarily used in commercial policies and
values vary from 80 to 100%
◉ Specific Insurance.
Answer: Coverage subject to separate limits such as each building or
the content of each building
◉ Blanket.
