Florida General Lines Agent Exam
Questions and 100 % Verified Answers
2026-2027-Rated A+
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 - ANSWER-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 - ANSWER-d.
What is an insurance binder?
a. An agreement with an insurer for coverage
b. A temporary agreement for insurance coverage subject to the decision
of the insurer
c. A permanent agreement for insurance coverage
d.An agreement with an agent - ANSWER-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 - ANSWER-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? - ANSWER-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 - ANSWER-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
c. A subrogation contract
d. A contract of good faith - ANSWER-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 - ANSWER-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 - ANSWER-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 - ANSWER-a
What insurance doctrine states that a cause of a loss and all other
directly related events flowing from the same cause of the loss would be
considered as one event?
a. The doctrine of insurable interest
b. The doctrine of proximate cause
c. The loss doctrine
d. The doctrine of classification - ANSWER-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 - ANSWER-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 - ANSWER-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
c. Property loss clause
d. Loss payable or payee clause - ANSWER-b
What insurance clause is related to a creditor's interest in personal
property such as an auto?
a. The property interest clause
b. The mortgage or mortgagee clause
c. The creditor interest clause
d. The loss payable or loss payee clause - ANSWER-d
Which of the following is not a legal requirement for a contract?
a. All are legal requirements
b. The contract must have a legal purpose and transfer of consideration
(something of value such as payment of insurance premiums)
c. There must be a valid offer and a voluntary acceptance
d. The parties to the contract must have legal capacity to contract -
ANSWER-a
Questions and 100 % Verified Answers
2026-2027-Rated A+
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 - ANSWER-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 - ANSWER-d.
What is an insurance binder?
a. An agreement with an insurer for coverage
b. A temporary agreement for insurance coverage subject to the decision
of the insurer
c. A permanent agreement for insurance coverage
d.An agreement with an agent - ANSWER-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 - ANSWER-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? - ANSWER-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 - ANSWER-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
c. A subrogation contract
d. A contract of good faith - ANSWER-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 - ANSWER-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 - ANSWER-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 - ANSWER-a
What insurance doctrine states that a cause of a loss and all other
directly related events flowing from the same cause of the loss would be
considered as one event?
a. The doctrine of insurable interest
b. The doctrine of proximate cause
c. The loss doctrine
d. The doctrine of classification - ANSWER-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 - ANSWER-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 - ANSWER-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
c. Property loss clause
d. Loss payable or payee clause - ANSWER-b
What insurance clause is related to a creditor's interest in personal
property such as an auto?
a. The property interest clause
b. The mortgage or mortgagee clause
c. The creditor interest clause
d. The loss payable or loss payee clause - ANSWER-d
Which of the following is not a legal requirement for a contract?
a. All are legal requirements
b. The contract must have a legal purpose and transfer of consideration
(something of value such as payment of insurance premiums)
c. There must be a valid offer and a voluntary acceptance
d. The parties to the contract must have legal capacity to contract -
ANSWER-a
