Florida General Lines Agent EXAM 2025
QUESTIONS AND ANSWERS
What is the definition of a risk that is insurable?
a.Risk is defined as a chance or the possibility of financial loss; only pure risks are insurable as
there is no possibility of a gain
b.A chance of a loss or gain
c.A risk where there is a possibility of a gain
d.A chance for insurance coverage - ANS a
What is an insurance policy?
a.A binder that offers initial insurance coverage
b.An oral agreement related to insurance
c.A temporary agreement for insurance coverage
d.A written agreement or contract for insurance coverage - ANS d.
What is an insurance binder?
a.An agreement with an insurer for coverage
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b.A temporary agreement for insurance coverage subject to the decision of the insurer
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, c.A permanent agreement for insurance coverage
d.An agreement with an agent - ANS b
The term casualty is related to all the following insurance lines except?
a.Life and health insurance
b.Marine insurance
c.Insurance on property
d.Liability insurance - ANS a
What is the mathematical concept where the actual results from an event being measured will
equal the predicted or expected results as the number of units or trials increases? - ANS The
concept of The Law of Large Numbers.
What insurance principle acts to place an insured in the same or similar financial position after
a loss as was prior to the loss event?
a.The indemnity principle
b.The waiver principle
c.The principle of utmost good faith
d.The principle of subrogation - ANS a
What type of contract prevents an insured from transferring the interest of an insurance policy
to another?
a.A personal contract
b.An indemnity contract
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c.A subrogation contract
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, d.A contract of good faith - ANS a
What type of contract is one where the obligation of the insurer is to perform the terms of the
contract and is based on the insured satisfying certain conditions?
a.A binding contract
b.A personal contract
c.A conditional contract
d.An adhesion contract - ANS c
What type of contract is it that the insured cannot negotiate the terms of the contract and must
accept the terms specified in the contract?
a.An indemnity contract
b.A conditional contract
c.A contract of adhesion
d.A personal contract - ANS c
What type of interest (financial or legal) in property must an insured have to benefit from a loss
that is insured?
a.Insurable interest
b.An adhesion interest
c.An indemnity interest
d.A personal interest - ANS a
What insurance doctrine states that a cause of a loss and all other directly related events
3
flowing from the same cause of the loss would be considered as one event?
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, a.The doctrine of insurable interest
b.The doctrine of proximate cause
c.The loss doctrine
d.The doctrine of classification - ANS b
John got in an accident that damaged his automobile, what would be considered as what type
of loss?
a.Direct loss
b.Insured loss
c.Insurable loss
d.Indirect loss - ANS a
John's home was totally destroyed by fire that resulted in him moving his family to a hotel. The
cost of the hotel would be considered as what type of loss?
a.A direct loss
b.Direct expenses
c.An indirect loss
d.Insured loss - ANS c
What insurance clause is related to a lender or creditor's interest in real property and the
insurer would pay losses to all parties that have an interest in the same property?
a.Subrogation clause
b.Mortgage or mortgagee clause
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c.Property loss clause
@COPYRIGHT BRAINBARTER 2025/2026
QUESTIONS AND ANSWERS
What is the definition of a risk that is insurable?
a.Risk is defined as a chance or the possibility of financial loss; only pure risks are insurable as
there is no possibility of a gain
b.A chance of a loss or gain
c.A risk where there is a possibility of a gain
d.A chance for insurance coverage - ANS a
What is an insurance policy?
a.A binder that offers initial insurance coverage
b.An oral agreement related to insurance
c.A temporary agreement for insurance coverage
d.A written agreement or contract for insurance coverage - ANS d.
What is an insurance binder?
a.An agreement with an insurer for coverage
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Page
b.A temporary agreement for insurance coverage subject to the decision of the insurer
@COPYRIGHT BRAINBARTER 2025/2026
, c.A permanent agreement for insurance coverage
d.An agreement with an agent - ANS b
The term casualty is related to all the following insurance lines except?
a.Life and health insurance
b.Marine insurance
c.Insurance on property
d.Liability insurance - ANS a
What is the mathematical concept where the actual results from an event being measured will
equal the predicted or expected results as the number of units or trials increases? - ANS The
concept of The Law of Large Numbers.
What insurance principle acts to place an insured in the same or similar financial position after
a loss as was prior to the loss event?
a.The indemnity principle
b.The waiver principle
c.The principle of utmost good faith
d.The principle of subrogation - ANS a
What type of contract prevents an insured from transferring the interest of an insurance policy
to another?
a.A personal contract
b.An indemnity contract
2
c.A subrogation contract
Page
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, d.A contract of good faith - ANS a
What type of contract is one where the obligation of the insurer is to perform the terms of the
contract and is based on the insured satisfying certain conditions?
a.A binding contract
b.A personal contract
c.A conditional contract
d.An adhesion contract - ANS c
What type of contract is it that the insured cannot negotiate the terms of the contract and must
accept the terms specified in the contract?
a.An indemnity contract
b.A conditional contract
c.A contract of adhesion
d.A personal contract - ANS c
What type of interest (financial or legal) in property must an insured have to benefit from a loss
that is insured?
a.Insurable interest
b.An adhesion interest
c.An indemnity interest
d.A personal interest - ANS a
What insurance doctrine states that a cause of a loss and all other directly related events
3
flowing from the same cause of the loss would be considered as one event?
Page
@COPYRIGHT BRAINBARTER 2025/2026
, a.The doctrine of insurable interest
b.The doctrine of proximate cause
c.The loss doctrine
d.The doctrine of classification - ANS b
John got in an accident that damaged his automobile, what would be considered as what type
of loss?
a.Direct loss
b.Insured loss
c.Insurable loss
d.Indirect loss - ANS a
John's home was totally destroyed by fire that resulted in him moving his family to a hotel. The
cost of the hotel would be considered as what type of loss?
a.A direct loss
b.Direct expenses
c.An indirect loss
d.Insured loss - ANS c
What insurance clause is related to a lender or creditor's interest in real property and the
insurer would pay losses to all parties that have an interest in the same property?
a.Subrogation clause
b.Mortgage or mortgagee clause
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Page
c.Property loss clause
@COPYRIGHT BRAINBARTER 2025/2026
