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FLORIDA 2-15 INSURANCE LICENSE EXAM
2025/2026 BANK / ACCURATE REAL EXAM 2
VERSIONS WITH 900 QUESTIONS TESTING
VERSIONS AND A STUDY GUIDE | EXPERT
VERIFIED FOR GUARANTEED PASS
Version 1
All of the following are elements of an insurable risk EXCEPT
A. the loss must be due to chance
B. the loss must be predictable
C. the loss must be catastrophic
D. the loss must have a determinable value ........answer.......C. One of the
criteria for an insurable risk is that it NOT be catastrophic. A principle of
insurance holds that only a small portion of a given group will experience
loss at any one time. Risks that would adversely affect large numbers of
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people or large amounts of property - wars or floods, for example - are
typically not insurable.
The amount of money an insurer sets aside to pay future claims is called
A. a premium
B. a reserve
C. a dividend
D. an accumulated interest ........answer.......B. Reserves can be defined as the
amounts that are set aside to fulfill the insurance company's obligation to
pay future claims. The reserve is compiled from past premium payments and
interest.
Which of the following constitutes an insurable interest?
A. the policyowner must expect to benefit from the insured's death
B. the policyowner must expect to suffer a loss when the insured dies or
becomes disabled
C. the beneficiary, by definition, has an insurable interest in the insured
D. the insured must have a personal or business relationship with the
beneficiary ........answer.......B. Insurable interest requires the policyowner to
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benefit from the insured's continuing to live or enjoy good health or to suffer
a loss when the insured dies or is disabled.
Which of the following statements describes the parol evidence rule?
A. a written contract cannot be changed once it is signed
B. an oral contract cannot be modified by written evidence
C. a written contract cannot be changed by oral evidence
D. an oral contract takes precedence over any earlier written contract
........answer.......C. The parol evidence rule states that when parties put their
agreement in writing, all previous verbal statements come together in that
writing, and a written contract cannot be changed or modified by parol
(oral) evidence.
Which of the following factors determines whether policy dividends will be
paid on a participating policy?
A. reserves and experience
B. expenses and claims costs
C. interest and benefits
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D. premiums and renewability ........answer.......B. If expenses and claims
costs are less than expected, dividends are likely to be paid.
A licensed agent legally represents
A. the insurer
B. the applicant/insured
C. the state insurance department
D. himself or herself ........answer.......A. An agent is an individual who has
been authorized by an insurer to be its representative to the public and to
offer for sale its goods and services.
All of the following statements regarding policy replacement are correct
EXCEPT
A. replacement involves convincing a policyholder to lapse or terminate an
existing policy and to purchase another
B. interrupting one cash value insurance plan to begin another could cause
serious financial problems for the policyowner
FLORIDA 2-15 INSURANCE LICENSE EXAM
2025/2026 BANK / ACCURATE REAL EXAM 2
VERSIONS WITH 900 QUESTIONS TESTING
VERSIONS AND A STUDY GUIDE | EXPERT
VERIFIED FOR GUARANTEED PASS
Version 1
All of the following are elements of an insurable risk EXCEPT
A. the loss must be due to chance
B. the loss must be predictable
C. the loss must be catastrophic
D. the loss must have a determinable value ........answer.......C. One of the
criteria for an insurable risk is that it NOT be catastrophic. A principle of
insurance holds that only a small portion of a given group will experience
loss at any one time. Risks that would adversely affect large numbers of
,2|Page
people or large amounts of property - wars or floods, for example - are
typically not insurable.
The amount of money an insurer sets aside to pay future claims is called
A. a premium
B. a reserve
C. a dividend
D. an accumulated interest ........answer.......B. Reserves can be defined as the
amounts that are set aside to fulfill the insurance company's obligation to
pay future claims. The reserve is compiled from past premium payments and
interest.
Which of the following constitutes an insurable interest?
A. the policyowner must expect to benefit from the insured's death
B. the policyowner must expect to suffer a loss when the insured dies or
becomes disabled
C. the beneficiary, by definition, has an insurable interest in the insured
D. the insured must have a personal or business relationship with the
beneficiary ........answer.......B. Insurable interest requires the policyowner to
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benefit from the insured's continuing to live or enjoy good health or to suffer
a loss when the insured dies or is disabled.
Which of the following statements describes the parol evidence rule?
A. a written contract cannot be changed once it is signed
B. an oral contract cannot be modified by written evidence
C. a written contract cannot be changed by oral evidence
D. an oral contract takes precedence over any earlier written contract
........answer.......C. The parol evidence rule states that when parties put their
agreement in writing, all previous verbal statements come together in that
writing, and a written contract cannot be changed or modified by parol
(oral) evidence.
Which of the following factors determines whether policy dividends will be
paid on a participating policy?
A. reserves and experience
B. expenses and claims costs
C. interest and benefits
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D. premiums and renewability ........answer.......B. If expenses and claims
costs are less than expected, dividends are likely to be paid.
A licensed agent legally represents
A. the insurer
B. the applicant/insured
C. the state insurance department
D. himself or herself ........answer.......A. An agent is an individual who has
been authorized by an insurer to be its representative to the public and to
offer for sale its goods and services.
All of the following statements regarding policy replacement are correct
EXCEPT
A. replacement involves convincing a policyholder to lapse or terminate an
existing policy and to purchase another
B. interrupting one cash value insurance plan to begin another could cause
serious financial problems for the policyowner
