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FLORIDA 2-15 INSURANCE LICENCE
EXAM LATEST 2025/2026 ACTUAL EXAM
COMPLETE ACCURATE QUESTIONS
AND CORRECT VERIFIED SOLUTIONS)
(APPROVED Q & ANS) A NEW UPDATED
VERSION
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
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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 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
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C. interest and benefits
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.
In the insurance business, risk can best be defined as:
A. sharing the possibility of a loss
B. uncertainty regarding the future
C. uncertainty regarding financial loss
D. uncertainty regarding when death will occur -
..........ANSWER.......C. The concept of insurance developed from
the need to minimize the adverse effects of risk associated with the
probability of financial loss.
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Which of the following risks is insurable?
A. pure risks
B. gambling
C. speculative risks
D. investing - ..........ANSWER.......A. Only pure risks are insurable
because they involve only the chance of loss. They are pure in the
sense that they do not mix both profits and losses. Insurance is
concerned with the economic problems created by pure risks.
Buying insurance is one of the most effective ways of
A. avoiding risk
B. transferring risk
C. reducing risk
D. retaining risk - ..........ANSWER.......B. Buying insurance is one of
the most effective ways of transferring risk. Through the insurance
contract, the burden of carrying the risk and indemnifying the
financial loss is transferred from the individual to the insurance
company.
Which of the following best describes the function of insurance?
FLORIDA 2-15 INSURANCE LICENCE
EXAM LATEST 2025/2026 ACTUAL EXAM
COMPLETE ACCURATE QUESTIONS
AND CORRECT VERIFIED SOLUTIONS)
(APPROVED Q & ANS) A NEW UPDATED
VERSION
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
,2|Page
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 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
,3|Page
C. interest and benefits
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.
In the insurance business, risk can best be defined as:
A. sharing the possibility of a loss
B. uncertainty regarding the future
C. uncertainty regarding financial loss
D. uncertainty regarding when death will occur -
..........ANSWER.......C. The concept of insurance developed from
the need to minimize the adverse effects of risk associated with the
probability of financial loss.
, 4|Page
Which of the following risks is insurable?
A. pure risks
B. gambling
C. speculative risks
D. investing - ..........ANSWER.......A. Only pure risks are insurable
because they involve only the chance of loss. They are pure in the
sense that they do not mix both profits and losses. Insurance is
concerned with the economic problems created by pure risks.
Buying insurance is one of the most effective ways of
A. avoiding risk
B. transferring risk
C. reducing risk
D. retaining risk - ..........ANSWER.......B. Buying insurance is one of
the most effective ways of transferring risk. Through the insurance
contract, the burden of carrying the risk and indemnifying the
financial loss is transferred from the individual to the insurance
company.
Which of the following best describes the function of insurance?
