Florida General Lines Agent Exam | 208 Questions and Answers(A+ Solution guide)

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 - 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 - 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 - b The term casualty is related to all the following insurance lines except? a.Life and health insurance b.Marine insurance c.Insurance on propertyd.Liability insurance - 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? - 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 - a