FLORIDA GENERAL LINES AGENT EXAM QUESTIONS
AND ANSWERS UPDATED 2026 – 2027 .
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 - correct Answers -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 - correct Answers -d.
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 - correct Answers -b
The term casualty is related to all the following insurance lines except?
1
,a.Life and health insurance
b.Marine insurance
c.Insurance on property
d.Liability insurance - correct Answers -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? - correct
Answers -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
b.The waiver principle
c.The principle of utmost good faith
d.The principle of subrogation - correct Answers -a
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 - correct Answers -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
2
,c.A conditional contract
d.An adhesion contract - correct Answers -c
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 - correct Answers -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 - correct Answers -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 - correct Answers -b
John got in an accident that damaged his automobile, what would be considered as what type of
loss?
3
, a.Direct loss
b.Insured loss
c.Insurable loss
d.Indirect loss - correct Answers -a
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 - correct Answers -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 - correct Answers -b
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 - correct Answers -d
Which of the following is not a legal requirement for a contract?
4
AND ANSWERS UPDATED 2026 – 2027 .
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 - correct Answers -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 - correct Answers -d.
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 - correct Answers -b
The term casualty is related to all the following insurance lines except?
1
,a.Life and health insurance
b.Marine insurance
c.Insurance on property
d.Liability insurance - correct Answers -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? - correct
Answers -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
b.The waiver principle
c.The principle of utmost good faith
d.The principle of subrogation - correct Answers -a
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 - correct Answers -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
2
,c.A conditional contract
d.An adhesion contract - correct Answers -c
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 - correct Answers -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 - correct Answers -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 - correct Answers -b
John got in an accident that damaged his automobile, what would be considered as what type of
loss?
3
, a.Direct loss
b.Insured loss
c.Insurable loss
d.Indirect loss - correct Answers -a
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 - correct Answers -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 - correct Answers -b
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 - correct Answers -d
Which of the following is not a legal requirement for a contract?
4
