Florida Insurance Exam 2025 Questions
and Answers
Risk - --CORRECT ANSWER--the chance of financial loss
Risk is NOT the loss itself, but the _________ of loss. - --CORRECT ANSWER--
CHANCE
Policy - --CORRECT ANSWER--a written contract for effecting insurance and
includes Clauses, Riders, endorsements, and papers which are part of the contract
Insurance - --CORRECT ANSWER--a contract where one undertakes to
indemnify another or pay a specific amount determined on contingencies
Binders - --CORRECT ANSWER--temporary insurance which can be made orally
or written
property insurance - --CORRECT ANSWER--where payment is made directly to
the insured or other named interest
liability insurance - --CORRECT ANSWER--where payment is made on behalf of
the insured to another
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Indemnity contract - --CORRECT ANSWER--one-party should be put back in the
same Financial condition they were before the loss. Never profit from A Loss.
replacement cost - --CORRECT ANSWER--given new for old
agreed value - --CORRECT ANSWER--specific amount agreed in advance
Florida value policy law - --CORRECT ANSWER--paid limit for total loss
liability - --CORRECT ANSWER--pays amount that exceeds insured's resources
insurable interest - --CORRECT ANSWER--insured would suffer economic loss
peril - --CORRECT ANSWER--a contingency that may cause a loss example
Wind, Fire, theft
hazard - --CORRECT ANSWER--a condition that increases the likelihood of a
loss from a covered peril
physical hazard - --CORRECT ANSWER--physical characteristics that increase the
probability and severity of loss example ice-covered steps
moral hazard - --CORRECT ANSWER--intentional loss
example steal from employer
Morale hazard - --CORRECT ANSWER--accident prone or carelessness example
did not lock the car door
proximate cause - --CORRECT ANSWER--root cause
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, a doctrine that states when there is an unbroken connection between An
Occurrence and damage that grows out of the occurrence, then the resultant
damage is all part of the occurrence.
direct loss - --CORRECT ANSWER--physical harm to tangible property
indirect loss - --CORRECT ANSWER--economic loss which flows as a
consequence of the direct loss
example hotel stay after a fire
actual cash value - --CORRECT ANSWER--is the current cost to replace the item
minus depreciation
replacement cost - --CORRECT ANSWER--is the actual cost to repair or replace
property
valued policy - --CORRECT ANSWER--is where the insurer agrees, in advance,
that the covered limit applicable to the item will be considered its value. This
applies to items where ACV or replacement cost is difficult to establish, such as
with antiques or Fine Arts
coinsurance - --CORRECT ANSWER--a method of encouraging the insured to
accept the responsibility of ensuring for the amount close to the value of the
property. Coinsurance is primarily used in commercial policies and values vary
from 80 to 100%
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
and Answers
Risk - --CORRECT ANSWER--the chance of financial loss
Risk is NOT the loss itself, but the _________ of loss. - --CORRECT ANSWER--
CHANCE
Policy - --CORRECT ANSWER--a written contract for effecting insurance and
includes Clauses, Riders, endorsements, and papers which are part of the contract
Insurance - --CORRECT ANSWER--a contract where one undertakes to
indemnify another or pay a specific amount determined on contingencies
Binders - --CORRECT ANSWER--temporary insurance which can be made orally
or written
property insurance - --CORRECT ANSWER--where payment is made directly to
the insured or other named interest
liability insurance - --CORRECT ANSWER--where payment is made on behalf of
the insured to another
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,Indemnity contract - --CORRECT ANSWER--one-party should be put back in the
same Financial condition they were before the loss. Never profit from A Loss.
replacement cost - --CORRECT ANSWER--given new for old
agreed value - --CORRECT ANSWER--specific amount agreed in advance
Florida value policy law - --CORRECT ANSWER--paid limit for total loss
liability - --CORRECT ANSWER--pays amount that exceeds insured's resources
insurable interest - --CORRECT ANSWER--insured would suffer economic loss
peril - --CORRECT ANSWER--a contingency that may cause a loss example
Wind, Fire, theft
hazard - --CORRECT ANSWER--a condition that increases the likelihood of a
loss from a covered peril
physical hazard - --CORRECT ANSWER--physical characteristics that increase the
probability and severity of loss example ice-covered steps
moral hazard - --CORRECT ANSWER--intentional loss
example steal from employer
Morale hazard - --CORRECT ANSWER--accident prone or carelessness example
did not lock the car door
proximate cause - --CORRECT ANSWER--root cause
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, a doctrine that states when there is an unbroken connection between An
Occurrence and damage that grows out of the occurrence, then the resultant
damage is all part of the occurrence.
direct loss - --CORRECT ANSWER--physical harm to tangible property
indirect loss - --CORRECT ANSWER--economic loss which flows as a
consequence of the direct loss
example hotel stay after a fire
actual cash value - --CORRECT ANSWER--is the current cost to replace the item
minus depreciation
replacement cost - --CORRECT ANSWER--is the actual cost to repair or replace
property
valued policy - --CORRECT ANSWER--is where the insurer agrees, in advance,
that the covered limit applicable to the item will be considered its value. This
applies to items where ACV or replacement cost is difficult to establish, such as
with antiques or Fine Arts
coinsurance - --CORRECT ANSWER--a method of encouraging the insured to
accept the responsibility of ensuring for the amount close to the value of the
property. Coinsurance is primarily used in commercial policies and values vary
from 80 to 100%
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
