1
FLORIDA 2-15 INSURANCE LICENSE EXAM LATEST
2025-2026 ACTUAL EXAM 300 QUESTIONS AND
CORRECT ANSWERS WITH RATIONALES AGRADE
NEW!!
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 -
CORRECT ANSWER ✔✔: - B. RATIONALE: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 - CORRECT
ANSWER ✔✔: - C. RATIONALE: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?
pg. 1
,2
A. reserves and experience
B. expenses and claims costs
C. interest and benefits
D. premiums and renewability - CORRECT ANSWER ✔✔: -
B.RATIONALE; 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 - CORRECT ANSWER ✔✔: - A. RATIONALE; 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
C. even if the customer wants to replace his or her existing policy, an agent can
effect a policy replacement only by following the replacement regulations in the
agent's state D. premiums for the replacement policies are generally lower than
premiums for the existing policies they replace - CORRECT ANSWER ✔✔: -
D. RATIONALE; The new policy will probably be at a higher premium rate
because it will be based on the insured's then-attained age.
With regard to insurable risks, which of the following statements is NOT correct?
A. only pure risks are insurable
B. an insurable risk must involve loss that is within the insured's control
C. insurers will not insure risks that are catastrophic in nature
D. an insurable risk must be measurable - CORRECT ANSWER ✔✔: - B.
RATIONALE; To be insurable, a risk must involve the chance of loss that is
fortuitous and outside the insured's control.
pg. 2
,3
On August 9, Albert made an application for life insurance that his agent submitted
a day later without a premium payment. On August 21, the insurer issued the
policy as applied for and on August 24, the agent delivered the policy and collected
the initial premium. On what day was the contract offer made?
A. August 9
B. August 10
C. August 21
D. August 24 - CORRECT ANSWER ✔✔: - C. RATIONALE; If an
applicant does not submit an initial premium with the application, the applicant
is inviting the insurance company to make a contract offer. The insurer can
respond by issuing a policy (the offer) that the applicant can accept by paying
the premium when the policy is delivered.
All statements made by an applicant in an application for life insurance are
considered
to
be
A. warranties
B. affirmations
C. representations
D. declarations - CORRECT ANSWER ✔✔: - C RATIONALE;. Most states
require that life insurance policies contain a provision that all statements made
in application be deemed representation not warranties. A representation is a
statement made by the applicant that the applicant believes to be true. A
warranty is a statement made by the applicant that is guaranteed to be true. If an
insurance company rejects a claim on the basis of a representation, the company
bears the burden of proving materiality.
Which of the following legal terms indicates that a life insurance contract
contains the
enforceable promises of only one
party?
A. adhesion
pg. 3
, 4
B. unilateral
C. conditional
D. aleatory - CORRECT ANSWER ✔✔: - B. RATIONALE; Insurance
contracts are unilateral in that only one party - the insurer - makes any kind of
enforceable promise.
Which of the following types of agent authority is specifically set forth in writing
in the
agent's
contract?
A. express
B. implied
C. apparent
D. personal - CORRECT ANSWER ✔✔: - A. RATIONALE; Express
authority is the authority a principal gives to its agent. Express authority is
granted by means of the agent's contract, which is the principal's appointment of
the agent to act on its behalf.
Assume a home catches fire after it is struck by lightning and the fire destroys
its
structure and contents. By insurance definition, the
fire is
A. the risk
B. the hazard C. the peril
D. the proximate cause - CORRECT ANSWER ✔✔: - C. RATIONALE; A
peril is the immediate specific event causing loss and giving rise to risk. When a
building burns, fire is the peril.
What constitutes "consideration" for a life insurance policy?
A. application and initial premium
B. agent's commission
C. adhesion feature of the contract
D. policy's benefits - CORRECT ANSWER ✔✔: - A RATIONALE;.
Consideration is the value given in exchange for the promises sought. In an
pg. 4
FLORIDA 2-15 INSURANCE LICENSE EXAM LATEST
2025-2026 ACTUAL EXAM 300 QUESTIONS AND
CORRECT ANSWERS WITH RATIONALES AGRADE
NEW!!
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 -
CORRECT ANSWER ✔✔: - B. RATIONALE: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 - CORRECT
ANSWER ✔✔: - C. RATIONALE: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?
pg. 1
,2
A. reserves and experience
B. expenses and claims costs
C. interest and benefits
D. premiums and renewability - CORRECT ANSWER ✔✔: -
B.RATIONALE; 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 - CORRECT ANSWER ✔✔: - A. RATIONALE; 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
C. even if the customer wants to replace his or her existing policy, an agent can
effect a policy replacement only by following the replacement regulations in the
agent's state D. premiums for the replacement policies are generally lower than
premiums for the existing policies they replace - CORRECT ANSWER ✔✔: -
D. RATIONALE; The new policy will probably be at a higher premium rate
because it will be based on the insured's then-attained age.
With regard to insurable risks, which of the following statements is NOT correct?
A. only pure risks are insurable
B. an insurable risk must involve loss that is within the insured's control
C. insurers will not insure risks that are catastrophic in nature
D. an insurable risk must be measurable - CORRECT ANSWER ✔✔: - B.
RATIONALE; To be insurable, a risk must involve the chance of loss that is
fortuitous and outside the insured's control.
pg. 2
,3
On August 9, Albert made an application for life insurance that his agent submitted
a day later without a premium payment. On August 21, the insurer issued the
policy as applied for and on August 24, the agent delivered the policy and collected
the initial premium. On what day was the contract offer made?
A. August 9
B. August 10
C. August 21
D. August 24 - CORRECT ANSWER ✔✔: - C. RATIONALE; If an
applicant does not submit an initial premium with the application, the applicant
is inviting the insurance company to make a contract offer. The insurer can
respond by issuing a policy (the offer) that the applicant can accept by paying
the premium when the policy is delivered.
All statements made by an applicant in an application for life insurance are
considered
to
be
A. warranties
B. affirmations
C. representations
D. declarations - CORRECT ANSWER ✔✔: - C RATIONALE;. Most states
require that life insurance policies contain a provision that all statements made
in application be deemed representation not warranties. A representation is a
statement made by the applicant that the applicant believes to be true. A
warranty is a statement made by the applicant that is guaranteed to be true. If an
insurance company rejects a claim on the basis of a representation, the company
bears the burden of proving materiality.
Which of the following legal terms indicates that a life insurance contract
contains the
enforceable promises of only one
party?
A. adhesion
pg. 3
, 4
B. unilateral
C. conditional
D. aleatory - CORRECT ANSWER ✔✔: - B. RATIONALE; Insurance
contracts are unilateral in that only one party - the insurer - makes any kind of
enforceable promise.
Which of the following types of agent authority is specifically set forth in writing
in the
agent's
contract?
A. express
B. implied
C. apparent
D. personal - CORRECT ANSWER ✔✔: - A. RATIONALE; Express
authority is the authority a principal gives to its agent. Express authority is
granted by means of the agent's contract, which is the principal's appointment of
the agent to act on its behalf.
Assume a home catches fire after it is struck by lightning and the fire destroys
its
structure and contents. By insurance definition, the
fire is
A. the risk
B. the hazard C. the peril
D. the proximate cause - CORRECT ANSWER ✔✔: - C. RATIONALE; A
peril is the immediate specific event causing loss and giving rise to risk. When a
building burns, fire is the peril.
What constitutes "consideration" for a life insurance policy?
A. application and initial premium
B. agent's commission
C. adhesion feature of the contract
D. policy's benefits - CORRECT ANSWER ✔✔: - A RATIONALE;.
Consideration is the value given in exchange for the promises sought. In an
pg. 4
