214 FLORIDA INSURANCE EXAM LATEST
ACTUAL EXAMINATION 2026 QUESTIONS
WITH CORRECT ANSWERS GRADED A+
⫸ Risk is NOT the loss itself, but the _________ of loss. Answer:
CHANCE
⫸ Policy Answer: a written contract for effecting insurance and includes
Clauses, Riders, endorsements, and papers which are part of the contract
⫸ Insurance Answer: a contract where one undertakes to indemnify
another or pay a specific amount determined on contingencies
⫸ Binders Answer: temporary insurance which can be made orally or
written
⫸ property insurance Answer: where payment is made directly to the
insured or other named interest
⫸ liability insurance Answer: where payment is made on behalf of the
insured to another
⫸ Indemnity contract Answer: one-party should be put back in the same
Financial condition they were before the loss. Never profit from A Loss.
,⫸ replacement cost Answer: given new for old
⫸ agreed value Answer: specific amount agreed in advance
⫸ Florida value policy law Answer: paid limit for total loss
⫸ liability Answer: pays amount that exceeds insured's resources
⫸ insurable interest Answer: insured would suffer economic loss
⫸ peril Answer: a contingency that may cause a loss example Wind,
Fire, theft
⫸ hazard Answer: a condition that increases the likelihood of a loss
from a covered peril
⫸ physical hazard Answer: physical characteristics that increase the
probability and severity of loss example ice-covered steps
⫸ moral hazard Answer: intentional loss
example steal from employer
⫸ Morale hazard Answer: accident prone or carelessness example did
not lock the car door
, ⫸ proximate cause Answer: root cause
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 Answer: physical harm to tangible property
⫸ indirect loss Answer: economic loss which flows as a consequence of
the direct loss
example hotel stay after a fire
⫸ actual cash value Answer: is the current cost to replace the item
minus depreciation
⫸ replacement cost Answer: is the actual cost to repair or replace
property
⫸ valued policy 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 Answer: a method of encouraging the insured to accept
the responsibility of ensuring for the amount close to the value of the
ACTUAL EXAMINATION 2026 QUESTIONS
WITH CORRECT ANSWERS GRADED A+
⫸ Risk is NOT the loss itself, but the _________ of loss. Answer:
CHANCE
⫸ Policy Answer: a written contract for effecting insurance and includes
Clauses, Riders, endorsements, and papers which are part of the contract
⫸ Insurance Answer: a contract where one undertakes to indemnify
another or pay a specific amount determined on contingencies
⫸ Binders Answer: temporary insurance which can be made orally or
written
⫸ property insurance Answer: where payment is made directly to the
insured or other named interest
⫸ liability insurance Answer: where payment is made on behalf of the
insured to another
⫸ Indemnity contract Answer: one-party should be put back in the same
Financial condition they were before the loss. Never profit from A Loss.
,⫸ replacement cost Answer: given new for old
⫸ agreed value Answer: specific amount agreed in advance
⫸ Florida value policy law Answer: paid limit for total loss
⫸ liability Answer: pays amount that exceeds insured's resources
⫸ insurable interest Answer: insured would suffer economic loss
⫸ peril Answer: a contingency that may cause a loss example Wind,
Fire, theft
⫸ hazard Answer: a condition that increases the likelihood of a loss
from a covered peril
⫸ physical hazard Answer: physical characteristics that increase the
probability and severity of loss example ice-covered steps
⫸ moral hazard Answer: intentional loss
example steal from employer
⫸ Morale hazard Answer: accident prone or carelessness example did
not lock the car door
, ⫸ proximate cause Answer: root cause
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 Answer: physical harm to tangible property
⫸ indirect loss Answer: economic loss which flows as a consequence of
the direct loss
example hotel stay after a fire
⫸ actual cash value Answer: is the current cost to replace the item
minus depreciation
⫸ replacement cost Answer: is the actual cost to repair or replace
property
⫸ valued policy 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 Answer: a method of encouraging the insured to accept
the responsibility of ensuring for the amount close to the value of the
