Florida Licensing ACTUAL EXAM 150
QUESTIONS AND CORRECT
ANSWERS 2025-2026 LATEST
ALREADY GRADED A+
All of the following describe insurable interest EXCEPT:
• It must exist at the time of the loss
• It must exist for insurance to respond
• Shows a similarity between insurance and wagering
• The insured would suffer an economic loss - CORRECT ANSWER-• Shows a similarity between
insurance and wagering
An Insurance Policy is a contract with all the following characteristics, EXCEPT:
• It is a personal contract
• parties are of unequal power with ambiguities or unclear working resolved in favor of the insured
because it is a contract of adhesion
• Indemnity is not part of an insurance contract
• There are conditions imposed on both the insurer and insured - CORRECT ANSWER-• Indemnity is
not part of an insurance contract
An insurance contract which may contain a "gray area" or an ambiguity that is generally resolved in
favor of the insured because insurance is a contract of: - CORRECT ANSWER-Adhesion
If an insured sells his car to another person, the buyer may be prohibited from also receiving the
insured's policy. This is because the insurance contract is a contract of: - CORRECT ANSWER-Personal
nature
Strict or absolute liability - CORRECT ANSWER-Is assigned by law or statute
Jack and Connie agree to have Jack burn down Connie's house for $10,000. What element of a valid
contract is missing? - CORRECT ANSWER-Legal Purpose
Risks that are insurable are - CORRECT ANSWER-Pure risks
,Insurance that covers the responsibility for loss arising out of negligence that results in payment to a
party other than the insured is: - CORRECT ANSWER-Liability Insurance
The goal of insurance is to restore the insured to the same economic position as before the covered
loss, this is the principle of - CORRECT ANSWER-Indemnity
All of the following are ways that liability limits can be expressed except:
• PIP Limit
• Aggregate Limit
• Split Limit
• Single Limit - CORRECT ANSWER-PIP Limit
An insured has A SPLIT limit liability policy with 10/20/10 limits. He owes the following people
liability bodily injuries claims of: Passenger 1 = $12,000, Passenger 2 = $10,000, Passenger 3 =
$18,000. How much liability insurance will his policy pay for these claims? - CORRECT ANSWER-
$20,000
If a lender has an insurable interest in an auto, because of the money loaned to finance the
purchase, the lender would appear on the policy as the:
• Lessee
• Loss Payee
• Mortgagor
• Mortgagee - CORRECT ANSWER-Loss Payee
To turn partially damaged property over to the insurance company and ask them to pay for a total
loss is called - CORRECT ANSWER-Abandonment
Firemen caused water damage to a property by spraying water to put out a fire. If the property
insurance policy listed fire as the only named peril: - CORRECT ANSWER-The water damage is
covered due to the concept of proximate cause
XYZ Insurance Corp. filed its corporate charter in Tallahassee and has its home office in Tampa: -
CORRECT ANSWER-In Florida, XYZ is a domestic insurer
, An insured has a home with a replacement cost / value of $100,000, on which he carries an
insurance policy for $80,000 with an 80% Coinsurance clause. The insured has a $20,000 partial loss,
the insurance company will pay how much for this partial loss of $20,000? (Remember $80,000 is
80% of $100,000) - CORRECT ANSWER-$20,000
"Actual Cash Value" ACV means: - CORRECT ANSWER-Current cost to replace minus depreciation
Which of the following is TRUE concerning Subrogation? - CORRECT ANSWER-Allows insurer to sue a
negligent third party to recover a loss paid to an insured
All of the following may qualify for a dwelling policy EXCEPT:
• A 6 - family dwelling
• A beach house owned by ACME Corporation
• A small single family home, rented by a salesman
• An old frame home, built upon piers, valued at $10,000 and occupied by the owner, Mrs. Jones.
Company underwriting minimum for a homeowner policy is $50,000 - CORRECT ANSWER-A 6 - family
dwelling
All of the following are eligible for a Homeowners Policy EXCEPT:
• A person who rents an apartment
• A condominium owner
• Owner-occupant of a four-family dwelling
• A beach house owned by ACME Corporation - CORRECT ANSWER-A beach house owned by ACME
Corporation
The principle of "insurable interest" is important in the dwelling policy as well as other kinds of
insurance. Which of the following does not have "insurable interest" in the described property?
• The one who holds title to the property
• One who inherits title to property under the terms of a will
• One who attends a Mary Kay party at a friend's property
• A bank who holds a mortgage on a described property - CORRECT ANSWER-One who attends a
Mary Kay party at a friend's property
QUESTIONS AND CORRECT
ANSWERS 2025-2026 LATEST
ALREADY GRADED A+
All of the following describe insurable interest EXCEPT:
• It must exist at the time of the loss
• It must exist for insurance to respond
• Shows a similarity between insurance and wagering
• The insured would suffer an economic loss - CORRECT ANSWER-• Shows a similarity between
insurance and wagering
An Insurance Policy is a contract with all the following characteristics, EXCEPT:
• It is a personal contract
• parties are of unequal power with ambiguities or unclear working resolved in favor of the insured
because it is a contract of adhesion
• Indemnity is not part of an insurance contract
• There are conditions imposed on both the insurer and insured - CORRECT ANSWER-• Indemnity is
not part of an insurance contract
An insurance contract which may contain a "gray area" or an ambiguity that is generally resolved in
favor of the insured because insurance is a contract of: - CORRECT ANSWER-Adhesion
If an insured sells his car to another person, the buyer may be prohibited from also receiving the
insured's policy. This is because the insurance contract is a contract of: - CORRECT ANSWER-Personal
nature
Strict or absolute liability - CORRECT ANSWER-Is assigned by law or statute
Jack and Connie agree to have Jack burn down Connie's house for $10,000. What element of a valid
contract is missing? - CORRECT ANSWER-Legal Purpose
Risks that are insurable are - CORRECT ANSWER-Pure risks
,Insurance that covers the responsibility for loss arising out of negligence that results in payment to a
party other than the insured is: - CORRECT ANSWER-Liability Insurance
The goal of insurance is to restore the insured to the same economic position as before the covered
loss, this is the principle of - CORRECT ANSWER-Indemnity
All of the following are ways that liability limits can be expressed except:
• PIP Limit
• Aggregate Limit
• Split Limit
• Single Limit - CORRECT ANSWER-PIP Limit
An insured has A SPLIT limit liability policy with 10/20/10 limits. He owes the following people
liability bodily injuries claims of: Passenger 1 = $12,000, Passenger 2 = $10,000, Passenger 3 =
$18,000. How much liability insurance will his policy pay for these claims? - CORRECT ANSWER-
$20,000
If a lender has an insurable interest in an auto, because of the money loaned to finance the
purchase, the lender would appear on the policy as the:
• Lessee
• Loss Payee
• Mortgagor
• Mortgagee - CORRECT ANSWER-Loss Payee
To turn partially damaged property over to the insurance company and ask them to pay for a total
loss is called - CORRECT ANSWER-Abandonment
Firemen caused water damage to a property by spraying water to put out a fire. If the property
insurance policy listed fire as the only named peril: - CORRECT ANSWER-The water damage is
covered due to the concept of proximate cause
XYZ Insurance Corp. filed its corporate charter in Tallahassee and has its home office in Tampa: -
CORRECT ANSWER-In Florida, XYZ is a domestic insurer
, An insured has a home with a replacement cost / value of $100,000, on which he carries an
insurance policy for $80,000 with an 80% Coinsurance clause. The insured has a $20,000 partial loss,
the insurance company will pay how much for this partial loss of $20,000? (Remember $80,000 is
80% of $100,000) - CORRECT ANSWER-$20,000
"Actual Cash Value" ACV means: - CORRECT ANSWER-Current cost to replace minus depreciation
Which of the following is TRUE concerning Subrogation? - CORRECT ANSWER-Allows insurer to sue a
negligent third party to recover a loss paid to an insured
All of the following may qualify for a dwelling policy EXCEPT:
• A 6 - family dwelling
• A beach house owned by ACME Corporation
• A small single family home, rented by a salesman
• An old frame home, built upon piers, valued at $10,000 and occupied by the owner, Mrs. Jones.
Company underwriting minimum for a homeowner policy is $50,000 - CORRECT ANSWER-A 6 - family
dwelling
All of the following are eligible for a Homeowners Policy EXCEPT:
• A person who rents an apartment
• A condominium owner
• Owner-occupant of a four-family dwelling
• A beach house owned by ACME Corporation - CORRECT ANSWER-A beach house owned by ACME
Corporation
The principle of "insurable interest" is important in the dwelling policy as well as other kinds of
insurance. Which of the following does not have "insurable interest" in the described property?
• The one who holds title to the property
• One who inherits title to property under the terms of a will
• One who attends a Mary Kay party at a friend's property
• A bank who holds a mortgage on a described property - CORRECT ANSWER-One who attends a
Mary Kay party at a friend's property
