Florida General Lines Agent Exam
questions
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 answersa
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 answersd.
What is an insurance binder?
e.An agreement with an insurer for
coverage
f. A temporary agreement for insurance
coverage subject to the decision of the
insurer
g.A permanent agreement for insurance
coverage d.An agreement with an agent
correct answersb
The term casualty is related to all the
following insurance lines except?
h.Life and health insurance
i. Marine insurance
c.Insurance on
property
d.Liability insurance
correct answersa
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 answersThe 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?
j. The indemnity principle
k. The waiver principle
,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
answersa
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 correct answersc
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 answersc
What type of interest (financial or legal) in property must an insured have to
benefit from a loss that is insured?
e.Insurable interest
f. An adhesion interest
g.An indemnity interest
h.A personal interest correct answersa
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?
i. The doctrine of insurable interest
j. The doctrine of proximate cause
k.The loss doctrine
l. The doctrine of classification correct answersb
John got in an accident that damaged his automobile, what would be
considered as what type of loss?
m.Direct loss
n.Insured loss
, c.Insurable loss
d.Indirect loss correct answersa
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 answersc
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?
e.Subrogation clause
f. Mortgage or mortgagee clause
g.Property loss clause
h.Loss payable or payee clause correct answersb
What insurance clause is related to a creditor's interest in personal property
such as an auto?
i. The property interest clause
j. The mortgage or mortgagee clause
k.The creditor interest clause
l. The loss payable or loss payee clause correct answersd
Which of the following is not a legal requirement for a contract?
m.All are legal requirements
n. The contract must have a legal purpose and transfer of consideration
(something of value such as payment of insurance premiums)
o.There must be a valid offer and a voluntary acceptance
p.The parties to the contract must have legal capacity to contract correct
answersa
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?
q.Scheduled settlement method
r. Valued or stated settlement method
s.Actual cash value settlement method
t. Replacement cost (RC) settlement method correct answersc
questions
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 answersa
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 answersd.
What is an insurance binder?
e.An agreement with an insurer for
coverage
f. A temporary agreement for insurance
coverage subject to the decision of the
insurer
g.A permanent agreement for insurance
coverage d.An agreement with an agent
correct answersb
The term casualty is related to all the
following insurance lines except?
h.Life and health insurance
i. Marine insurance
c.Insurance on
property
d.Liability insurance
correct answersa
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 answersThe 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?
j. The indemnity principle
k. The waiver principle
,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
answersa
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 correct answersc
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 answersc
What type of interest (financial or legal) in property must an insured have to
benefit from a loss that is insured?
e.Insurable interest
f. An adhesion interest
g.An indemnity interest
h.A personal interest correct answersa
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?
i. The doctrine of insurable interest
j. The doctrine of proximate cause
k.The loss doctrine
l. The doctrine of classification correct answersb
John got in an accident that damaged his automobile, what would be
considered as what type of loss?
m.Direct loss
n.Insured loss
, c.Insurable loss
d.Indirect loss correct answersa
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 answersc
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?
e.Subrogation clause
f. Mortgage or mortgagee clause
g.Property loss clause
h.Loss payable or payee clause correct answersb
What insurance clause is related to a creditor's interest in personal property
such as an auto?
i. The property interest clause
j. The mortgage or mortgagee clause
k.The creditor interest clause
l. The loss payable or loss payee clause correct answersd
Which of the following is not a legal requirement for a contract?
m.All are legal requirements
n. The contract must have a legal purpose and transfer of consideration
(something of value such as payment of insurance premiums)
o.There must be a valid offer and a voluntary acceptance
p.The parties to the contract must have legal capacity to contract correct
answersa
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?
q.Scheduled settlement method
r. Valued or stated settlement method
s.Actual cash value settlement method
t. Replacement cost (RC) settlement method correct answersc
