FLORIDA GENERAL LINES AGENT EXAM QUESTIONS AND ANSWERS 2026/2027 SOLVED 100% CORRECT ANSWERS ARE HIGHLIGHTED IN RED

FLORIDA GENERAL LINES AGENT EXAM QUESTIONS AND ANSWERS
2026/2027 SOLVED 100% CORRECT ANSWERS ARE HIGHLIGHTED IN RED



What is the definition of a risk that is insurable?
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a. Risk is defined as a chance or the possibility of financial loss; only pure risks are ins
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urable as there is no possibility of a gain
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b. A chance of a loss or gain
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c. A risk where there is a possibility of a gain
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d. A chance for insurance coverage
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Answer a cn




What is an insurance policy? cn cn cn cn




a.A binder that offers initial insurance coverage b.A
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n oral agreement related to insurance
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c.A temporary agreement for insurance coverage
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d.A written agreement or contract for insurance coverage Correct Answer
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.
What is an insurance binder? cn cn cn cn




a. An agreement with an insurer for coverage
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b. A temporary agreement for insurance coverage subject to the decision of the ins
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urer Correct Answer cn cn




c. A permanent agreement for insurance coverage d
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.An agreement with an agent
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The term casualty is related to all the following insurance lines except?
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a. Life and health insurance Correct Answer
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b. Marine insurance c.In cn cn




suranceonproperty d.Li n
c n
c cn




ability insurance cn




What is the mathematical concept where the actual results from an event being m
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easured will equal the predicted or expected results as the number of units or trials
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increases?
n

,Answer The concept of The Law of Large Numbers. c n cn cn cn cn cn cn cn




What insurance principle acts to place an insured in the same or similar financial positi
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on after a loss as was prior to the loss event?
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a. The indemnity principle Correct Answer
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b. The waiver principle cn cn




c. The principle of utmost good faith cn cn cn cn cn




d. The principle of subrogation cn cn cn




What type of contract prevents an insured from transferring the interest of an insuranc
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e policy to another?
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a.A personal contract Correct Answer b.An
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indemnity contract cn




c. A subrogation contract
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d. A contract of good faith a
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What type of contract is one where the obligation of the insurer is to perform the terms
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of the contract and is based on the insured satisfying certain conditions?
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a.A binding contractcn cn




b.A personal contract cn cn




c.A conditional contract Correct Answer d.
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An adhesion contract
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What type of contract is it that the insured cannot negotiate the terms of the contract a
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nd must accept the terms specified in the contract?
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a. An indemnity contract cn cn




b. A conditional contract
cn cn




c. A contract of adhesion Correct Answer
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d. A personal contract cn cn




What type of interest (financial or legal) in property must an insured have to benefit f
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rom a loss that is insured? cn cn cn cn cn




a. Insurable interest Correct Answer cn cn cn




b. An adhesion interest cn cn




c. An indemnity interest cn cn




d. A personal interest cn cn

,What insurance doctrine states that a cause of a loss and all other directly related e
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vents flowing from the same cause of the loss would be considered as one event?
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a. The doctrine of insurable interest
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b. The doctrine of proximate cause Correct Answer
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c. The loss doctrine
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d. The doctrine of classification
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John got in an accident that damaged his automobile, what would be considered as
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what type of loss?cn cn cn




a. Direct loss Correct Answer cn cn cn




b. Insured loss c cn cn




.Insurableloss n
c cn




d.Indirect loss cn




John's home was totally destroyed by fire that resulted in him moving his family to a
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hotel. The cost of the hotel would be considered as what type of loss?
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a. A direct loss
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b. Direct expenses cn




c. An indirect loss Correct Answer
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d. Insured loss cn




What insurance clause is related to a lender or creditor's interest in real property and t
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he insurer would pay losses to all parties that have an interest in the same property?
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a. Subrogation clause cn




b. Mortgage or mortgagee clause Correct Answer cn cn cn cn cn




c. Property loss clause cn cn




d. Loss payable or payee clause cn cn cn cn

, What insurance clause is related to a creditor's interest in personal property such as
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an auto?
cn




a. The property interest clause
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b. The mortgage or mortgagee clause
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c. The creditor interest clause
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d. The loss payable or loss payee clause Correct Answer
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Which of the following is not a legal requirement for a contract?
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a. All are legal requirements Correct Answer
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b. The contract must have a legal purpose and transfer of consideration (s
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omething of value such as payment of insurance premiums)
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c. There must be a valid offer and a voluntary acceptance
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d. The parties to the contract must have legal capacity to contract
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What insurance loss settlement method is defined as the cost to replace the item les
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s allowance for depreciation, and is the common method used for settlement of per
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sonal property losses?
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a. Scheduled settlement method cn cn




b. Valued or stated settlement method cn cn cn cn




c. Actual cash value settlement method Correct Answer d
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.Replacement cost (RC) settlement method cn cn cn cn




What insurance loss settlement method is defined as: the property loss is re
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placed with items that are similar and of like kind and quality, and is the com
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mon method used in settling real property losses?
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a. Replacement cost settlement method Correct Answer b cn cn cn cn cn cn




.Actual cash value settlement method
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c.Scheduled settlement method d.Valu cn cn cn




ed or stated settlement method a
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